EPA Awards $287M ESSET Contract to Salient CRGT for Computer Systems Design

Contract Overview

Contract Amount: $287,131,821 ($287.1M)

Contractor: Salient Crgt, Inc.

Awarding Agency: General Services Administration

Start Date: 2022-06-03

End Date: 2026-06-02

Contract Duration: 1,460 days

Daily Burn Rate: $196.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: ENTERPRISE SUPPORT SERVICES AND ENDPOINT TECHNOLOGY (ESSET) TASK ORDER (47QFCA22F0026) AWARD FROM TASK ORDER REQUEST (47QFCA21F0072) IN SUPPORT OF THE US EPA.

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27709

State: North Carolina Government Spending

Plain-Language Summary

General Services Administration obligated $287.1 million to SALIENT CRGT, INC. for work described as: ENTERPRISE SUPPORT SERVICES AND ENDPOINT TECHNOLOGY (ESSET) TASK ORDER (47QFCA22F0026) AWARD FROM TASK ORDER REQUEST (47QFCA21F0072) IN SUPPORT OF THE US EPA. Key points: 1. The contract, valued at $287.1 million, supports the EPA with enterprise support services and endpoint technology. 2. Awarded under full and open competition, the contract aims to ensure competitive pricing for essential IT services. 3. The primary risk lies in the Cost Plus Award Fee (CPAF) structure, which can incentivize cost overruns if not managed carefully. 4. The IT sector, particularly computer systems design, is crucial for agency operations and modernization efforts.

Value Assessment

Rating: good

The contract's Cost Plus Award Fee (CPAF) structure allows for flexibility but requires robust oversight to ensure value for money. Benchmarking against similar IT support contracts is essential to validate pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust process for price discovery and selection of the most advantageous offer. This method typically leads to better pricing outcomes.

Taxpayer Impact: The competitive nature of the award is expected to yield fair pricing, maximizing the value of taxpayer funds allocated to essential EPA IT services.

Public Impact

Ensures the EPA has critical IT infrastructure and support for its environmental protection mission. Supports technological advancements and operational efficiency within a key federal agency. The contract's duration and value indicate a significant investment in the EPA's technological capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep with CPAF contract type.
Dependence on a single contractor for critical IT services.
Need for strong performance monitoring to ensure award fee criteria are met.

Positive Signals

Awarded through full and open competition.
Supports a vital federal agency's mission.
Long-term contract provides stability for IT services.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Spending in this area is substantial across government, supporting agency operations, data management, and digital transformation initiatives.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there is no direct analysis of small business participation in this specific award.

Oversight & Accountability

The Cost Plus Award Fee (CPAF) structure necessitates diligent oversight from the General Services Administration (GSA) to ensure performance objectives are met and costs are controlled. Regular performance reviews and audits are critical.

Related Government Programs

Computer Systems Design Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Cost Plus Award Fee (CPAF) contract type.
Long contract duration (4 years).
No small business set-aside.
Potential for vendor lock-in.
Reliance on contractor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $287.1 million to SALIENT CRGT, INC.. ENTERPRISE SUPPORT SERVICES AND ENDPOINT TECHNOLOGY (ESSET) TASK ORDER (47QFCA22F0026) AWARD FROM TASK ORDER REQUEST (47QFCA21F0072) IN SUPPORT OF THE US EPA.

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 $287.1 million.

What is the period of performance?

Start: 2022-06-03. End: 2026-06-02.

How will the EPA ensure the award fee criteria in the CPAF contract effectively incentivize cost control and optimal performance?

The EPA must establish clear, measurable, and achievable award fee criteria tied to specific performance metrics and cost management goals. Regular performance reviews, transparent communication with Salient CRGT, and robust data analysis will be crucial to monitor progress and ensure the contractor is incentivized to deliver both high-quality services and cost-effective solutions, thereby maximizing taxpayer value.

What are the potential risks associated with the long duration (4 years) of this contract for the EPA's IT infrastructure?

A long contract duration carries risks of technological obsolescence if the EPA's needs evolve beyond the scope of the original agreement. It also poses a risk if the contractor's performance degrades over time or if market prices for similar services decrease significantly. Proactive contract management, including regular reviews and potential modifications, is essential to mitigate these risks and ensure the EPA maintains a modern and cost-effective IT environment.

How does this contract align with the GSA's broader goals for IT modernization and efficient procurement?

This contract, awarded through full and open competition, aligns with GSA's goal of achieving competitive pricing and best value for IT services. The ESSET contract supports the EPA's modernization efforts, contributing to the government-wide push for improved digital services. GSA's role in managing this task order underscores its commitment to facilitating efficient and effective IT procurement for federal agencies.

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: 47QFCA22R0029

Offers Received: 4

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: $524,460,334

Exercised Options: $474,007,882

Current Obligation: $287,131,821

Subaward Activity

Number of Subawards: 209

Total Subaward Amount: $184,099,804

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0060

IDV Type: GWAC

Timeline