DoD Navy Awards $32M Engineering Services Contract to Primetech International, Inc

Contract Overview

Contract Amount: $31,971,765 ($32.0M)

Contractor: Primetech International, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-03-17

End Date: 2026-01-28

Contract Duration: 682 days

Daily Burn Rate: $46.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THIS REQUIREMENT WAS PREVIOUSLY RELEASED AS INTEGRATED LOGISTIC SUPPORT SERVICES (ILSS) CONSOLIDATION AND IS NOW STORAGE COMMAND CLASS VII SOLUTIONS (SC7). IT IS SET ASIDE FOR SMALL BUSINESSES.

Place of Performance

Location: ALBANY, DOUGHERTY County, GEORGIA, 31704

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $32.0 million to PRIMETECH INTERNATIONAL, INC. for work described as: THIS REQUIREMENT WAS PREVIOUSLY RELEASED AS INTEGRATED LOGISTIC SUPPORT SERVICES (ILSS) CONSOLIDATION AND IS NOW STORAGE COMMAND CLASS VII SOLUTIONS (SC7). IT IS SET ASIDE FOR SMALL BUSINESSES. Key points: 1. Contract value of $31.97M for engineering services. 2. Primetech International, Inc. is the awardee. 3. Department of the Navy is the contracting agency. 4. This requirement was previously ILSS Consolidation, now SC7. 5. Set aside for small businesses, but awarded to a non-small business.

Value Assessment

Rating: questionable

The contract value of $31.97M for engineering services appears to be a significant award. Benchmarking against similar contracts for engineering services within the Department of Defense would be necessary to assess its pricing reasonableness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition. However, the data indicates it was set aside for small businesses, yet awarded to a non-small business, which raises questions about the competition process and price discovery.

Taxpayer Impact: The impact on taxpayers is unclear without further analysis of the competition and pricing, especially given the discrepancy in the small business set-aside.

Public Impact

Potential impact on small businesses due to the set-aside discrepancy. Ensures continued engineering services for the Department of the Navy. The transition from ILSS Consolidation to SC7 may indicate evolving needs or consolidation efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Small business set-aside awarded to a non-small business.
Lack of clarity on the transition from ILSS to SC7.
Potential for price overruns if competition was not fully realized.

Positive Signals

Awarded under firm fixed price contract type.
Contract duration of 682 days provides a defined period of performance.
Engineering services are critical for defense operations.

Sector Analysis

Engineering services are crucial for defense operations, encompassing design, development, and technical support. Spending benchmarks for this sector within the DoD can vary widely based on specialization and project scope.

Small Business Impact

The contract was designated as a small business set-aside, but the awardee, Primetech International, Inc., is listed as not a small business. This discrepancy needs further investigation to understand the implications for small business participation and contract award fairness.

Oversight & Accountability

Oversight is crucial to ensure the integrity of the small business set-aside process and to verify that the awarded price reflects fair and reasonable competition. The transition from ILSS to SC7 also warrants review for strategic alignment.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Small business set-aside awarded to a non-small business.
Lack of transparency in the transition from ILSS to SC7.
Potential for uncompetitive pricing due to the set-aside issue.
Need for detailed cost-benefit analysis of SC7 solutions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.0 million to PRIMETECH INTERNATIONAL, INC.. THIS REQUIREMENT WAS PREVIOUSLY RELEASED AS INTEGRATED LOGISTIC SUPPORT SERVICES (ILSS) CONSOLIDATION AND IS NOW STORAGE COMMAND CLASS VII SOLUTIONS (SC7). IT IS SET ASIDE FOR SMALL BUSINESSES.

Who is the contractor on this award?

The obligated recipient is PRIMETECH INTERNATIONAL, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $32.0 million.

What is the period of performance?

Start: 2024-03-17. End: 2026-01-28.

What is the justification for awarding a small business set-aside contract to a large business?

The discrepancy between the small business set-aside designation and the award to a non-small business requires clarification. Possible reasons include a lack of qualified small business bidders, a protest that led to the award being opened, or an administrative error. Understanding the specific circumstances is vital for assessing the fairness of the procurement process and ensuring compliance with federal acquisition regulations.

How does the $31.97M contract value compare to similar engineering services contracts awarded by the Department of the Navy?

Benchmarking this $31.97M contract against similar engineering services contracts awarded by the Department of the Navy is essential for evaluating its value. Factors such as contract scope, duration, specific engineering disciplines, and the competitive landscape influence pricing. A detailed comparison would reveal if this award represents a fair market price or if there are potential cost efficiencies or overruns.

What are the specific 'Class VII Solutions' being procured under this contract, and how do they differ from the previous 'Integrated Logistic Support Services'?

The shift from 'Integrated Logistic Support Services (ILSS) Consolidation' to 'Storage Command Class VII Solutions (SC7)' suggests a potential evolution in the Department of the Navy's requirements. Class VII supplies typically refer to personal property, including equipment and supplies not classified elsewhere. Understanding the precise nature of these SC7 solutions and the rationale behind the consolidation is key to assessing the contract's strategic relevance and effectiveness.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: M6700423R3005

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1329 SWIFT AVE, NORTH KANSAS CITY, MO, 64116

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $96,632,346

Exercised Options: $38,574,126

Current Obligation: $31,971,765

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017821D9287

IDV Type: IDC

Timeline