DoD's $81.9M R&D Contract with Salient Federal Solutions Faces Scrutiny Over Competition and Value
Contract Overview
Contract Amount: $81,885,844 ($81.9M)
Contractor: Salient Federal Solutions, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-02-01
End Date: 2015-05-07
Contract Duration: 1,191 days
Daily Burn Rate: $68.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: LABOR - BASE PERIOD
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $81.9 million to SALIENT FEDERAL SOLUTIONS, INC. for work described as: LABOR - BASE PERIOD Key points: 1. The contract awarded to Salient Federal Solutions, Inc. for R&D services is for a significant amount, raising questions about its overall value. 2. The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting potential limitations in the competitive landscape. 3. The 'Research and Development in the Physical, Engineering, and Life Sciences' sector is critical but often complex to benchmark. 4. The cost-plus-fixed-fee (CPFF) pricing structure can lead to cost overruns if not managed tightly, posing a risk to taxpayer funds.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee structure requires careful monitoring to ensure costs remain reasonable and aligned with project milestones. Benchmarking CPFF contracts in R&D is challenging due to the inherent uncertainty in research outcomes.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while competition was sought, it was not entirely unrestricted. This method can impact price discovery by limiting the pool of potential bidders, potentially leading to higher prices than a truly open competition.
Taxpayer Impact: The limited competition and CPFF structure could result in less favorable pricing for taxpayers compared to a fully open and competitively bid contract.
Public Impact
Taxpayers may be paying more than necessary due to the limited competition and cost-plus pricing model. The effectiveness of the R&D services provided needs to be rigorously assessed to ensure the investment yields desired outcomes. Lack of transparency in the bidding process could erode public trust in government contracting.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Cost-plus-fixed-fee pricing
- Potential for cost overruns
- Lack of clear performance metrics
Positive Signals
- Awarded to a specific company for R&D services
- Contract duration is substantial, allowing for project completion
Sector Analysis
This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for innovation but requires careful oversight due to its complexity and potential for cost escalation. Benchmarks are difficult to establish due to the unique nature of R&D projects.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or partners in this contract. Further investigation is needed to determine the extent of small business participation.
Oversight & Accountability
Oversight of this contract should focus on rigorous monitoring of costs, adherence to project milestones, and the quality of R&D outcomes. The contracting agency must ensure accountability for the fixed fee and any allowable costs incurred.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Limited competition may have inflated costs.
- CPFF structure poses a risk of cost overruns.
- Lack of transparency in source exclusion.
- Difficulty in benchmarking R&D contract value.
- Potential for inadequate oversight of R&D progress.
Tags
research-and-development-in-the-physical, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $81.9 million to SALIENT FEDERAL SOLUTIONS, INC.. LABOR - BASE PERIOD
Who is the contractor on this award?
The obligated recipient is SALIENT FEDERAL SOLUTIONS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $81.9 million.
What is the period of performance?
Start: 2012-02-01. End: 2015-05-07.
What specific R&D advancements or deliverables were achieved under this contract, and how do they align with the initial objectives and taxpayer investment?
The contract's success hinges on tangible R&D advancements. A thorough review of project reports, technical evaluations, and final deliverables is necessary to ascertain if the $81.9 million investment yielded significant scientific or technological progress. This assessment should compare outcomes against the initial scope of work and stated objectives to determine if the value proposition for taxpayers was met.
How did the 'exclusion of sources' in the competition process impact the final contract price and the range of innovative solutions considered?
The exclusion of certain sources, even within a broader competitive framework, can limit the diversity of approaches and potentially inflate prices. An analysis should compare the awarded price to similar R&D contracts that underwent full and open competition to identify any premium paid. Understanding the rationale for exclusion is key to assessing if it was justified and did not unduly restrict innovation or cost-effectiveness.
What mechanisms were in place to control costs and ensure efficiency within the Cost Plus Fixed Fee (CPFF) structure, and were they effectively utilized?
CPFF contracts require robust oversight to prevent cost overruns. This includes detailed audits of expenditures, clear definitions of allowable costs, and performance metrics tied to the fixed fee. Evaluating the agency's cost control measures and their effectiveness in preventing unnecessary spending is crucial for determining the overall financial prudence of this contract.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 4000 LEGATO ROAD 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: $81,885,844
Exercised Options: $81,885,844
Current Obligation: $81,885,844
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC102808D2002
IDV Type: IDC
Timeline
Start Date: 2012-02-01
Current End Date: 2015-05-07
Potential End Date: 2015-08-07 00:00:00
Last Modified: 2025-03-05
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