Army Knowledge Online (AKO) Software Support Contract Awarded to Salient CRGT for $303M

Contract Overview

Contract Amount: $303,212,245 ($303.2M)

Contractor: Salient Crgt, Inc.

Awarding Agency: Department of the Interior

Start Date: 2002-07-01

End Date: 2007-09-30

Contract Duration: 1,917 days

Daily Burn Rate: $158.2K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: SOFTWARE ENGINEERING AND SYSTEMS INTEGRATION IN SUPPORT OF THE ARMY KNOWLEDGE ONLINE (AKO)

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $303.2 million to SALIENT CRGT, INC. for work described as: SOFTWARE ENGINEERING AND SYSTEMS INTEGRATION IN SUPPORT OF THE ARMY KNOWLEDGE ONLINE (AKO) Key points: 1. Contract awarded to Salient CRGT, Inc. for software engineering and systems integration for AKO. 2. The contract spans over 5 years, from July 2002 to September 2007. 3. This was a competitive delivery order, indicating some level of price discovery. 4. The NAICS code 518210 points to data processing and web hosting services. 5. The contract type is Time and Materials, which can pose cost control challenges.

Value Assessment

Rating: fair

The total award value of $303M over 5 years averages $60.6M annually. Without specific benchmarks for similar large-scale knowledge management systems, it's difficult to definitively assess pricing. However, Time and Materials contracts can sometimes lead to higher costs if not closely managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This was a competitive delivery order, suggesting that multiple vendors likely competed for this specific task order under a broader contract vehicle. The competitive nature should have aided in price discovery, though the Time and Materials pricing structure might limit its full effectiveness.

Taxpayer Impact: Taxpayer funds are being used to support a critical Army knowledge management system. While competition was present, the T&M structure warrants careful oversight to ensure value for money.

Public Impact

Ensures continued functionality and development of the Army Knowledge Online (AKO) platform, a vital communication and information resource for soldiers. Supports the technological infrastructure and services necessary for a large government agency's internal operations. Potential for impact on user experience and access to information depending on the quality of services provided. The contract's duration and value indicate a significant investment in maintaining a key government IT system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type
Long contract duration
Significant award value

Positive Signals

Competitive award
Supports critical Army function

Sector Analysis

This contract falls within the IT and data processing sector, specifically focusing on web hosting and related services for a large government agency. Spending benchmarks for similar large-scale, long-term IT support contracts are highly variable, but $60M annually for a system like AKO is substantial.

Small Business Impact

The data indicates that small businesses were not awarded this contract, as the prime contractor is Salient CRGT, Inc. Further analysis would be needed to determine if any subcontracting opportunities were made available to small businesses.

Oversight & Accountability

The competitive delivery order structure suggests some level of oversight in the award process. However, the Time and Materials contract type necessitates robust monitoring and performance management to ensure cost control and prevent scope creep.

Related Government Programs

Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Department of the Interior Contracting
Departmental Offices Programs

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Long contract duration may reduce flexibility for future technological advancements.
Lack of small business participation noted.
Dependence on a single contractor for a critical system.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $303.2 million to SALIENT CRGT, INC.. SOFTWARE ENGINEERING AND SYSTEMS INTEGRATION IN SUPPORT OF THE ARMY KNOWLEDGE ONLINE (AKO)

Who is the contractor on this award?

The obligated recipient is SALIENT CRGT, INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $303.2 million.

What is the period of performance?

Start: 2002-07-01. End: 2007-09-30.

What was the specific scope of work for software engineering and systems integration under this contract, and how did it evolve over the 5-year period?

The scope likely encompassed maintaining, updating, and potentially enhancing the AKO platform's software and underlying systems. This could include bug fixes, security patches, feature development, and infrastructure management. Evolution over five years would typically involve adapting to new technologies, user needs, and Army directives, requiring flexibility but also careful change control to manage costs.

How effectively did the competitive nature of the delivery order ensure fair pricing, given the Time and Materials contract type?

While the competitive award process likely established a baseline for pricing, the Time and Materials (T&M) structure inherently shifts some cost risk to the government. Fair pricing in T&M relies heavily on accurate labor hour estimates, defined rates, and stringent oversight to prevent overbilling or inefficient work. Competition helps, but effective management is crucial for T&M.

What was the overall effectiveness of the AKO platform during this contract period, and how did Salient CRGT's services contribute to its success or challenges?

The effectiveness of AKO during this period would be measured by its uptime, user satisfaction, security posture, and ability to meet the Army's communication needs. Salient CRGT's contribution would be assessed based on their performance against contract requirements, responsiveness to issues, and successful implementation of any system upgrades or integrations. Specific metrics would be needed for a definitive answer.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Contractor Details

Address: 8150 LEESBURG PIKE # 405, VIENNA, VA, 11

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business

Financial Breakdown

Contract Ceiling: $342,911,543

Exercised Options: $342,911,543

Current Obligation: $303,212,245

Parent Contract

Parent Award PIID: GS35F4786H

IDV Type: FSS

Timeline