GSA awards $422M contract for computer systems design services to Salient CRGT, Inc

Contract Overview

Contract Amount: $422,039,859 ($422.0M)

Contractor: Salient Crgt, Inc.

Awarding Agency: General Services Administration

Start Date: 2021-08-27

End Date: 2026-09-06

Contract Duration: 1,836 days

Daily Burn Rate: $229.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: DEA BLUESTONE AWARD

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22152

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $422.0 million to SALIENT CRGT, INC. for work described as: DEA BLUESTONE AWARD Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee, which incentivizes performance but can lead to higher costs if not managed carefully. 3. The duration of the contract is 1836 days, indicating a long-term need for these services. 4. The award is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The North American Industry Classification System (NAICS) code 541512 points to a focus on computer systems design. 6. The contract is not set aside for small businesses, implying larger contractors were likely the primary bidders.

Value Assessment

Rating: fair

Benchmarking the value of this $422 million contract is challenging without specific performance metrics or comparable contract details. The Cost Plus Award Fee (CPAF) structure means the final cost is tied to performance, making direct price comparisons difficult. However, the significant dollar amount suggests a substantial need for these computer systems design services. Further analysis would require understanding the scope of work and the award fee structure to assess if the price is reasonable for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 6 bidders (no=6) suggests a moderate level of competition for this requirement. While multiple bidders participated, the specific details of the bidding process and the final awardee's competitive advantage are not detailed here. The competition level provides some assurance of price discovery, but the CPAF structure can complicate direct price comparisons.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and improve service quality. The presence of multiple bidders suggests that taxpayer funds are being utilized in a process designed to achieve best value.

Public Impact

The primary beneficiaries are likely federal agencies requiring sophisticated computer systems design and integration services. The contract supports the development and maintenance of critical IT infrastructure for government operations. The geographic impact is primarily within Virginia, where the contractor is located, but the services likely support nationwide federal IT needs. The contract implies a need for skilled IT professionals in computer systems design, potentially impacting the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can sometimes lead to cost overruns if performance targets are not clearly defined or if the award fee structure is too generous.
The long contract duration (1836 days) necessitates ongoing oversight to ensure continued value and alignment with evolving technological needs.
Without detailed performance metrics, it's difficult to fully assess the value for money achieved under this contract.
The lack of small business set-aside may limit opportunities for smaller, specialized firms in this contracting space.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contract is a delivery order, suggesting it aligns with a broader strategic IT acquisition framework.
The contractor, Salient CRGT, Inc., is a known entity in the federal IT services market.
The contract aims to provide essential computer systems design services, addressing a clear government need.

Sector Analysis

The federal IT services market is vast and highly competitive, with agencies increasingly relying on contractors for specialized expertise in areas like computer systems design. This contract falls within the broader IT services sector, which includes software development, systems integration, and IT consulting. Spending in this sector is driven by the government's continuous need to modernize its technological infrastructure, enhance cybersecurity, and improve operational efficiency. Comparable spending benchmarks would typically involve analyzing other large-scale IT services contracts awarded by agencies like GSA, DOD, and civilian departments.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for small businesses. This suggests that the primary focus was on securing capabilities from larger, established IT service providers. While this may streamline the acquisition process for the agency, it means that opportunities for small businesses to directly participate in this specific award are limited. The overall impact on the small business ecosystem would depend on whether Salient CRGT, Inc. has its own small business subcontracting program or if other federal contracts are available to compensate for this lack of direct participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service, which awarded the contract. As a Cost Plus Award Fee (CPAF) contract, performance monitoring and the determination of award fees are critical oversight functions. The contract likely includes reporting requirements and regular reviews to ensure contractor performance aligns with objectives. Transparency is facilitated through contract award databases, but detailed performance data and fee structures may not be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

GSA IT Schedule 70 (now IT Professional Services)
Department of Defense IT Services Contracts
Civilian Agency IT Modernization Programs
Cloud Computing Services Contracts
Cybersecurity Services Contracts

Risk Flags

Cost Plus Award Fee (CPAF) structure requires careful monitoring to ensure value for money.
Long contract duration (approx. 5 years) increases risk of technological obsolescence and requirements drift.
Performance metrics and award fee criteria need rigorous oversight to justify costs.
Lack of small business set-aside may limit broader economic participation.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $422.0 million to SALIENT CRGT, INC.. DEA BLUESTONE AWARD

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 $422.0 million.

What is the period of performance?

Start: 2021-08-27. End: 2026-09-06.

What is the specific scope of 'Computer Systems Design Services' covered under this contract?

The scope of 'Computer Systems Design Services' (NAICS 541512) under this contract is not explicitly detailed in the provided data. Generally, this classification encompasses services related to analyzing and designing computer systems, including hardware, software, and communication technologies. This can involve requirements analysis, system architecture design, integration planning, and the development of technical specifications. For this specific DEA BLUESTONE AWARD contract with Salient CRGT, Inc., the services likely involve complex IT solutions tailored to the needs of the Drug Enforcement Administration (DEA) or other entities served by GSA. Further details would be found in the contract's Statement of Work (SOW) or Performance Work Statement (PWS), which outline the specific tasks, deliverables, and performance standards expected from the contractor.

How does the Cost Plus Award Fee (CPAF) structure influence contractor performance and cost?

The Cost Plus Award Fee (CPAF) contract structure is designed to incentivize contractor performance by allowing the contractor to recover all allowable costs plus a base fee, with the potential for an additional award fee based on meeting or exceeding performance objectives. This structure aims to balance cost control with the achievement of high-quality outcomes, particularly for complex projects where performance is difficult to define precisely upfront. For taxpayers, CPAF can be beneficial if the award fee criteria are well-defined and rigorously assessed, leading to superior service delivery. However, it also carries a risk of higher costs compared to fixed-price contracts if the award fee criteria are too lenient or if the contractor focuses on maximizing the award fee rather than cost efficiency. Effective government oversight is crucial to ensure that the award fee truly reflects exceptional performance and does not simply inflate the total contract cost.

What is Salient CRGT, Inc.'s track record with similar federal contracts?

Salient CRGT, Inc. has a significant track record of performing federal IT services contracts. While specific details of their past performance on contracts of similar size and scope to the DEA BLUESTONE AWARD are not provided here, the company is known for providing a range of IT solutions, including cloud services, data analytics, cybersecurity, and software development, to various government agencies. Their history includes work with the Department of Defense, Department of Veterans Affairs, and other civilian agencies. A comprehensive assessment of their track record would involve reviewing past performance evaluations, contract completion history, and any documented instances of outstanding performance or contract disputes. The fact that they were awarded this substantial contract suggests a positive evaluation of their capabilities and past performance by the GSA.

How does the $422 million award compare to typical federal spending on computer systems design services?

The $422 million award for computer systems design services is a substantial sum, placing it among significant federal IT procurements. Federal spending on IT services, including systems design, is consistently in the hundreds of billions of dollars annually. Contracts of this magnitude are typically awarded for large-scale, long-term projects that require extensive expertise and resources. To benchmark this specific award, one would compare it to other large IDIQ contract task orders or standalone contracts for similar services awarded by agencies like the Department of Defense, Department of Homeland Security, or other major civilian agencies. The average cost per year for this contract is approximately $73 million ($422M / ~5.75 years), which is considerable but not unusual for major federal IT system design and integration efforts.

What are the potential risks associated with a 1836-day contract duration?

A contract duration of 1836 days (approximately 5 years) presents several potential risks. Firstly, technological obsolescence is a significant concern; IT systems and design methodologies can evolve rapidly, potentially making the contracted solutions outdated before the contract term ends. Secondly, requirements drift is common in long-term projects; the agency's needs may change over time, requiring contract modifications that could increase costs or alter the scope. Thirdly, maintaining consistent contractor performance and engagement over such an extended period can be challenging. Finally, long-term contracts can sometimes reduce flexibility for the government to adopt newer, potentially more cost-effective solutions that emerge during the contract's life. Robust contract management, regular reviews, and built-in flexibility for adaptation are crucial to mitigate these risks.

What is the significance of the contract being a 'Delivery Order'?

The designation of this award as a 'Delivery Order' (aw='DELIVERY ORDER') is significant because it implies that this contract is a task order issued under a larger, pre-existing Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract vehicle. IDIQ contracts allow agencies to procure a range of supplies or services over a set period, with specific quantities and delivery dates defined by individual delivery or task orders. This approach provides flexibility for the agency to order services as needed, while the IDIQ vehicle itself likely underwent a competitive process. The fact that this is a delivery order suggests that Salient CRGT, Inc. was awarded a position on a broader IDIQ contract, and this specific order represents a defined need within that framework. It streamlines the procurement process for specific requirements once the overarching IDIQ is in place.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFCA21R0004

Offers Received: 6

Pricing Type: COST PLUS AWARD FEE (R)

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: $875,693,798

Exercised Options: $630,253,863

Current Obligation: $422,039,859

Actual Outlays: $-20,252

Subaward Activity

Number of Subawards: 128

Total Subaward Amount: $187,112,746

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0060

IDV Type: GWAC

Timeline