GSA's $456M IT contract to Salient CRGT, Inc. for computer systems design services

Contract Overview

Contract Amount: $456,369,658 ($456.4M)

Contractor: Salient Crgt, Inc.

Awarding Agency: General Services Administration

Start Date: 2020-09-10

End Date: 2024-09-27

Contract Duration: 1,478 days

Daily Burn Rate: $308.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: TRANSFER OF ADMINISTRATION FROM REGION 1 TO FEDSIM

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $456.4 million to SALIENT CRGT, INC. for work described as: TRANSFER OF ADMINISTRATION FROM REGION 1 TO FEDSIM Key points: 1. Contract value represents a significant investment in IT infrastructure support. 2. The use of Cost Plus Fixed Fee (CPFF) pricing requires careful monitoring of costs. 3. A single award for a large dollar amount warrants scrutiny of competition and value. 4. The contract duration of nearly 5 years suggests a long-term need for these services. 5. The 'Computer Systems Design Services' category indicates a focus on IT modernization and support.

Value Assessment

Rating: fair

The contract's value of over $456 million over nearly five years is substantial. Benchmarking this against similar large-scale IT service contracts is crucial. The CPFF structure, while offering flexibility, can lead to cost overruns if not managed tightly. Without specific performance metrics or comparisons to industry standards for similar services, assessing the true value-for-money is challenging. The contract's size suggests it is a significant undertaking for the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. With 5 bidders, there was a reasonable level of competition. However, the fact that it resulted in a single award for a large dollar amount suggests that one vendor, Salient CRGT, Inc., was deemed the most advantageous. Further analysis would be needed to determine if the competition effectively drove down prices or if the scope was highly specialized.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through market forces. The presence of multiple bidders suggests that taxpayer dollars were likely used efficiently, although the final price is still substantial.

Public Impact

Federal agencies, particularly those utilizing GSA's Federal Acquisition Service, benefit from enhanced IT systems and design services. The contract supports the modernization and maintenance of critical IT infrastructure. The primary geographic impact is within the District of Columbia, where the contract is managed. The contract likely supports a workforce of IT professionals and system designers, both within the contractor's organization and potentially within the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type necessitates rigorous oversight to prevent cost creep and ensure efficiency.
The large contract value raises concerns about potential overspending if performance is not closely monitored.
Assessing the specific outcomes and return on investment for this significant expenditure will be key.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
The contract duration of nearly five years indicates a stable, long-term IT support requirement.
The 'Computer Systems Design Services' classification points to a focus on essential IT functions.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design and related services. The IT services market is vast and highly competitive, with numerous large and small firms offering specialized solutions. GSA's role as an aggregator for federal IT procurement means contracts like this are common, aiming to provide agencies with efficient access to necessary technology services. Benchmarks for similar large-scale IT support contracts would typically range in the hundreds of millions of dollars over several years.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, Salient CRGT, Inc., may engage small businesses as subcontractors, depending on their own subcontracting plans and the nature of the services required. The absence of a small business set-aside means the primary competition was open to all eligible large businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically its Federal Acquisition Service (FAS). GSA has established procurement regulations and contract management processes. Accountability measures would be tied to performance metrics outlined in the contract. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly available. The Inspector General for GSA would have jurisdiction to investigate any potential fraud, waste, or abuse.

Related Government Programs

IT Services
Computer Systems Design
Federal Civilian IT Procurement
GSA Schedules
IT Modernization

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing requires diligent oversight to manage potential cost overruns.
Large contract value necessitates robust performance monitoring to ensure value for taxpayer money.
Dependence on a single contractor for a significant duration requires contingency planning.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $456.4 million to SALIENT CRGT, INC.. TRANSFER OF ADMINISTRATION FROM REGION 1 TO FEDSIM

Who is the contractor on this award?

The obligated recipient is SALIENT CRGT, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $456.4 million.

What is the period of performance?

Start: 2020-09-10. End: 2024-09-27.

What is Salient CRGT, Inc.'s track record with large federal IT contracts, particularly those with a CPFF structure?

Salient CRGT, Inc. has a history of securing and performing on significant federal IT contracts. Their portfolio often includes a range of services from cloud migration and cybersecurity to data analytics and software development. Contracts utilizing a Cost Plus Fixed Fee (CPFF) structure are common in the federal space, especially for complex projects where the full scope may evolve. Analyzing their past performance on similar CPFF contracts would involve reviewing contract close-out data, any reported overruns or underruns, and customer satisfaction ratings if available through sources like the Federal Procurement Data System (FPDS) or agency performance reports. A review of their contract history would reveal if they have consistently managed costs effectively within this pricing model or if there have been notable challenges.

How does the $456 million contract value compare to similar IT systems design contracts awarded by GSA or other agencies?

The $456 million contract value is substantial and places it among larger IT service awards. To benchmark it, one would compare it to other 'Computer Systems Design Services' (NAICS 541512) contracts awarded by GSA or other civilian agencies over a similar timeframe (e.g., 2020-2024). Data from the Federal Procurement Data System (FPDS) can be queried for contracts with similar NAICS codes, award amounts, and contract durations. For instance, comparing it to other multi-year, multi-million dollar IT support contracts awarded to large system integrators would provide context. If similar contracts for comparable services were awarded at a lower total value or with more favorable terms (e.g., fixed price), it might indicate this contract's value is on the higher end, warranting closer examination of the scope and necessity.

What are the key performance indicators (KPIs) used to measure the success of this contract, and how has Salient CRGT performed against them?

Specific Key Performance Indicators (KPIs) for this contract are typically detailed within the contract's Performance Work Statement (PWS) or Statement of Objectives (SOO). These KPIs would likely relate to system uptime, response times for technical support, successful implementation of system designs, project milestones met, and adherence to security protocols. Measuring Salient CRGT's performance would involve reviewing contract administration reports, quality assurance surveillance plan (QASP) findings, and any formal performance evaluations conducted by the GSA contracting officer's representative (COR). Without access to these internal agency reports, it's difficult to definitively assess performance. However, the continued funding and extension (implied by the end date) suggest satisfactory performance to date.

What is the potential risk associated with the Cost Plus Fixed Fee (CPFF) pricing structure for this contract?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the 'fixed fee' component provides the contractor with a guaranteed profit margin, the 'cost-plus' element means the government reimburses the contractor for allowable costs incurred. If costs escalate beyond initial estimates due to inefficiencies, scope creep not properly managed, or unforeseen challenges, the total contract value can increase significantly. This necessitates robust oversight from the government to scrutinize all claimed costs, ensure they are reasonable and allocable, and manage any changes to the scope of work through formal modification processes. The government bears the risk of higher-than-expected costs, while the contractor is incentivized to control costs to maximize their fee relative to the fixed fee.

How has federal spending on 'Computer Systems Design Services' (NAICS 541512) evolved over the past five years, and where does this contract fit in?

Federal spending on 'Computer Systems Design Services' (NAICS 541512) has generally seen a steady increase over the past five years, driven by the ongoing need for IT modernization, cybersecurity enhancements, and digital transformation across government agencies. This specific $456 million contract awarded in 2020 represents a significant portion of that spending within a single award. It aligns with the trend of agencies investing heavily in IT infrastructure and support to improve service delivery and operational efficiency. Analyzing broader spending trends in this category, available through FPDS or reports from organizations like the Government Accountability Office (GAO), would show whether this contract's value is typical for large-scale, multi-year engagements or an outlier. The trend indicates a sustained demand for these services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4000 LEGATO RD STE 600, FAIRFAX, VA, 22033

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $497,986,008

Exercised Options: $495,886,008

Current Obligation: $456,369,658

Actual Outlays: $-31,336

Subaward Activity

Number of Subawards: 395

Total Subaward Amount: $346,667,654

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0060

IDV Type: GWAC

Timeline