DHS awarded $26.4M for tactical infrastructure maintenance, with Primus Solutions, LLC managing the contract
Contract Overview
Contract Amount: $26,398,549 ($26.4M)
Contractor: Primus Solutions, LLC
Awarding Agency: Department of Homeland Security
Start Date: 2012-03-12
End Date: 2017-03-31
Contract Duration: 1,845 days
Daily Burn Rate: $14.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: Construction
Official Description: COMPREHENSIVE TACTICAL INFRASTRUCTURE MAINTENANCE AND REPAIR
Place of Performance
Location: MCALLEN, HIDALGO County, TEXAS, 78501
State: Texas Government Spending
Plain-Language Summary
Department of Homeland Security obligated $26.4 million to PRIMUS SOLUTIONS, LLC for work described as: COMPREHENSIVE TACTICAL INFRASTRUCTURE MAINTENANCE AND REPAIR Key points: 1. The contract value of $26.4 million over its duration suggests a significant investment in maintaining critical infrastructure. 2. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a competitive process, though with specific initial exclusions. 3. The contract type 'COST PLUS FIXED FEE' can sometimes lead to cost overruns if not closely monitored. 4. The duration of 1845 days (approximately 5 years) allows for sustained support but requires long-term performance evaluation. 5. The primary service area in Texas (TX) highlights a regional focus for this infrastructure maintenance. 6. The absence of small business set-aside flags suggests larger prime contractors are involved, with potential subcontracting opportunities.
Value Assessment
Rating: fair
Benchmarking the value of $26.4 million requires understanding the scope and scale of 'COMPREHENSIVE TACTICAL INFRASTRUCTURE MAINTENANCE AND REPAIR'. Without specific details on the types of infrastructure and the extent of maintenance required, a direct comparison to similar contracts is difficult. The 'COST PLUS FIXED FEE' contract type introduces a degree of risk, as costs can escalate beyond initial estimates if not managed effectively. However, the fixed fee component provides some predictability for the contractor's profit margin.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests that while the competition was intended to be broad, certain sources were initially excluded. The number of bidders is not explicitly stated, but the 'limited' competition level implies that not all potential offerors were considered from the outset. This could potentially impact price discovery and may not always yield the most competitive pricing compared to a truly unrestricted full and open competition.
Taxpayer Impact: Taxpayers may have faced slightly higher costs due to the initial exclusion of certain sources, potentially limiting the pool of competitive bids and the resulting price negotiations.
Public Impact
The primary beneficiaries are U.S. Customs and Border Protection (CBP) operations within Texas, ensuring the functionality of tactical infrastructure. Services delivered include comprehensive maintenance and repair, crucial for the operational readiness of border security assets. The geographic impact is concentrated in Texas, supporting federal law enforcement and border management activities in that region. Workforce implications may include direct employment by the prime contractor and potential subcontracting roles for specialized maintenance services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize higher spending if not rigorously overseen.
- The 'exclusion of sources' in the competition phase might have limited the number of bids, potentially affecting price competitiveness.
- The long duration of the contract requires sustained vigilance to ensure performance remains aligned with objectives.
Positive Signals
- The contract was awarded through a competitive process, indicating some level of market vetting.
- The fixed fee component provides a defined profit margin for the contractor, offering some cost predictability.
- The sustained nature of the contract allows for specialized expertise to be developed and applied to infrastructure maintenance.
Sector Analysis
This contract falls within the Heavy and Civil Engineering Construction sector, specifically related to infrastructure maintenance. The market for such services is substantial, driven by government needs for maintaining critical facilities and operational assets. Comparable spending benchmarks would typically involve analyzing other large-scale maintenance and repair contracts awarded by federal agencies for similar types of infrastructure, considering factors like geographic scope and service complexity.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the prime contract was awarded to a larger entity, Primus Solutions, LLC. While there is no direct indication of subcontracting requirements for small businesses, large federal contracts often include provisions for small business participation. The absence of a set-aside may mean that opportunities for small businesses would primarily exist as subcontractors to the prime.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Homeland Security (DHS) and specifically U.S. Customs and Border Protection (CBP). As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring are crucial to ensure that costs remain reasonable and that the fixed fee is justified by the services rendered. Transparency would be facilitated through contract reporting mechanisms and potentially through DHS's Inspector General's office if any performance or financial irregularities arise.
Related Government Programs
- Border Infrastructure Projects
- Federal Facilities Maintenance
- Department of Homeland Security Contracts
- Customs and Border Protection Operations Support
- Tactical Infrastructure Development and Maintenance
Risk Flags
- Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
- Competition was not fully unrestricted due to 'exclusion of sources'.
- Long contract duration requires sustained performance monitoring.
- Lack of specific details on 'tactical infrastructure' scope limits detailed value assessment.
Tags
construction, infrastructure-maintenance, department-of-homeland-security, u-s-customs-and-border-protection, texas, definitive-contract, cost-plus-fixed-fee, limited-competition, federal-spending, contract-analysis, primus-solutions-llc
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $26.4 million to PRIMUS SOLUTIONS, LLC. COMPREHENSIVE TACTICAL INFRASTRUCTURE MAINTENANCE AND REPAIR
Who is the contractor on this award?
The obligated recipient is PRIMUS SOLUTIONS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).
What is the total obligated amount?
The obligated amount is $26.4 million.
What is the period of performance?
Start: 2012-03-12. End: 2017-03-31.
What is the specific nature of the 'tactical infrastructure' being maintained under this contract?
The term 'tactical infrastructure' in the context of U.S. Customs and Border Protection (CBP) typically refers to facilities and structures critical for border security operations. This can include physical barriers, patrol roads, sensor systems, communication networks, forward operating bases, and other physical assets used to monitor and control U.S. borders. The 'COMPREHENSIVE TACTICAL INFRASTRUCTURE MAINTENANCE AND REPAIR' contract implies a broad scope covering routine upkeep, emergency repairs, and potentially upgrades to ensure these assets remain functional and effective in supporting CBP's mission. The exact components would be detailed in the contract's Statement of Work (SOW).
How does the 'COST PLUS FIXED FEE' (CPFF) contract type compare to other contract types in terms of cost control for similar infrastructure maintenance?
Cost Plus Fixed Fee (CPFF) contracts reimburse the contractor for allowable costs incurred, plus a predetermined fixed fee representing profit. For infrastructure maintenance, CPFF can be advantageous when the scope of work is not precisely defined or is expected to change significantly, allowing flexibility. However, it carries a higher risk of cost overruns compared to fixed-price contracts, as the government bears the risk of cost increases. Compared to Cost Plus Incentive Fee (CPIF), CPFF offers less incentive for the contractor to control costs beyond the fixed fee. For predictable maintenance tasks, fixed-price contracts are generally preferred for better cost certainty for the government.
What are the potential risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type?
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type indicates that while the competition was ultimately intended to be open, certain potential sources were excluded at some stage. This exclusion could stem from various reasons, such as specific security requirements, past performance issues, or unique capabilities needed. The primary risk is that by excluding certain entities, the government may limit the pool of qualified bidders, potentially leading to less competitive pricing and fewer innovative solutions. It also raises questions about the justification for the exclusion and whether it was truly necessary to achieve the government's objectives or if it inadvertently restricted competition.
What is the historical spending pattern for tactical infrastructure maintenance by U.S. Customs and Border Protection?
Historical spending patterns for tactical infrastructure maintenance by U.S. Customs and Border Protection (CBP) are likely substantial, given the extensive border and the need for continuous operational readiness. Analyzing past contract awards for similar services would reveal trends in contract values, durations, and the types of contractors utilized. For instance, examining spending over the last 5-10 years could show an increasing trend due to aging infrastructure, evolving security needs, or specific policy initiatives. Understanding these patterns helps in benchmarking current contract values and anticipating future budgetary requirements for infrastructure upkeep.
How does Primus Solutions, LLC's track record influence the assessment of this contract's risk?
Assessing Primus Solutions, LLC's track record is crucial for understanding the risk associated with this $26.4 million contract. A review of their past performance on similar government contracts, particularly those involving infrastructure maintenance and repair for agencies like DHS or CBP, would provide insights. Positive indicators include a history of on-time delivery, adherence to budget, high-quality work, and positive past performance reviews. Conversely, a history of cost overruns, missed deadlines, or performance issues would elevate the perceived risk. Without specific data on Primus Solutions' past performance, the risk assessment remains general, but a strong track record would mitigate concerns related to execution.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Arctic Slope Regional Corporation
Address: 6303 IVY LANE STE 130, GREENBELT, MD, 20770
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Other Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $26,398,549
Exercised Options: $26,398,549
Current Obligation: $26,398,549
Subaward Activity
Number of Subawards: 16
Total Subaward Amount: $2,585,224
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2012-03-12
Current End Date: 2017-03-31
Potential End Date: 2017-03-31 00:00:00
Last Modified: 2022-09-22
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