Commerce Department's USPTO awards $10.4M contract for OEDIS support to Salient CRGT, Inc

Contract Overview

Contract Amount: $10,445,909 ($10.4M)

Contractor: Salient Crgt, Inc.

Awarding Agency: Department of Commerce

Start Date: 2022-03-02

End Date: 2027-03-20

Contract Duration: 1,844 days

Daily Burn Rate: $5.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: LABOR HOURS

Sector: IT

Official Description: OFFICE OF ENROLLMENT AND DISCIPLINE AUTOMATED SYSTEM (OEDIS) SUPPORT AND SERVICES FRAMEWORK ID#: 3EB.307

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $10.4 million to SALIENT CRGT, INC. for work described as: OFFICE OF ENROLLMENT AND DISCIPLINE AUTOMATED SYSTEM (OEDIS) SUPPORT AND SERVICES FRAMEWORK ID#: 3EB.307 Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of over 5 years indicates a long-term need for these services. 3. The primary service category is Computer Systems Design Services, a critical area for government IT infrastructure. 4. The contract type is a Delivery Order, implying it's part of a larger framework agreement. 5. The vendor, Salient CRGT, Inc., has secured this significant award, indicating their capability in this sector. 6. The contract value of approximately $10.4 million over its term suggests a substantial investment in system support.

Value Assessment

Rating: good

The contract value of $10.4 million over approximately five years for computer systems design services appears reasonable given the scope and duration. Benchmarking against similar contracts for IT support and system design services within federal agencies suggests that this pricing falls within expected ranges. The use of labor hours as the contract type allows for flexibility, but requires careful monitoring to ensure efficient resource utilization and prevent cost overruns. Without specific details on the labor rates and hours utilized, a precise value-for-money assessment is challenging, but the overall award size is not indicative of overpayment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, which typically involves soliciting bids from all responsible prospective contractors. The presence of 5 bids indicates a healthy level of competition for this requirement. A competitive process like this generally leads to better price discovery and encourages contractors to offer their best value propositions. The agency's decision to use full and open competition suggests they sought the widest possible pool of qualified vendors to ensure they received optimal solutions and pricing.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and higher quality services due to the pressure of multiple bidders vying for the contract.

Public Impact

The U.S. Patent and Trademark Office (USPTO) will benefit from enhanced support for its Office of Enrollment and Discipline Automated System (OEDIS). This contract ensures the continued operation and potential improvement of critical IT systems supporting USPTO's administrative functions. The services delivered will likely maintain and improve the efficiency of patent and trademark enrollment and disciplinary processes. The geographic impact is primarily within the USPTO's operational centers, likely supporting federal employees and contractors involved in these processes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the OEDIS system requirements evolve significantly beyond the initial framework.
Dependence on a single vendor for critical system support could pose risks if the vendor experiences financial instability or performance issues.
Ensuring adequate government oversight and performance metrics are in place to manage the labor hours effectively.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Long contract duration suggests a stable and ongoing need, allowing for vendor investment in expertise.
Salient CRGT, Inc. is an established government contractor with a track record in IT services.

Sector Analysis

The contract falls within the Computer Systems Design Services sector, a vital component of the broader IT services industry. This sector is characterized by a high demand for specialized skills in software development, system integration, and IT support. The federal government is a significant consumer of these services, with spending often driven by the need to modernize legacy systems, enhance cybersecurity, and improve operational efficiency. Comparable spending benchmarks for similar IT support contracts within federal agencies can vary widely based on complexity, duration, and specific service requirements, but this award of approximately $10.4 million over five years is consistent with medium-to-large scale IT support engagements.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'ss': false and 'sb': false. The award to Salient CRGT, Inc., a likely mid-to-large size business, suggests that subcontracting opportunities for small businesses may exist, depending on Salient CRGT's subcontracting plan. However, without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is not immediately clear. The absence of a small business set-aside means that larger, more established firms were primarily considered for this requirement.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Patent and Trademark Office's contracting officers and program managers. Performance will be monitored against the terms and conditions of the delivery order, including service level agreements and deliverables. Transparency is generally maintained through contract award databases and public reporting mechanisms. While specific Inspector General (IG) jurisdiction for this particular contract isn't explicitly stated, the Department of Commerce's Office of Inspector General typically has oversight over agency spending and contract performance to ensure accountability and prevent fraud, waste, and abuse.

Related Government Programs

General Services Administration (GSA) IT Schedule Contracts
Department of Commerce IT Support Services
Computer Systems Design Services Federal Contracts
USPTO IT Modernization Efforts

Risk Flags

Long-term contract duration requires ongoing performance monitoring.
Labor hour contract type necessitates careful management to control costs.
Dependence on a single vendor for critical system support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $10.4 million to SALIENT CRGT, INC.. OFFICE OF ENROLLMENT AND DISCIPLINE AUTOMATED SYSTEM (OEDIS) SUPPORT AND SERVICES FRAMEWORK ID#: 3EB.307

Who is the contractor on this award?

The obligated recipient is SALIENT CRGT, INC..

Which agency awarded this contract?

Awarding agency: Department of Commerce (U.S. Patent and Trademark Office).

What is the total obligated amount?

The obligated amount is $10.4 million.

What is the period of performance?

Start: 2022-03-02. End: 2027-03-20.

What is Salient CRGT, Inc.'s track record with the Department of Commerce and USPTO for similar IT support services?

Salient CRGT, Inc. has a history of performing IT support and system design services for various federal agencies, including the Department of Commerce. Their past performance with the USPTO and similar entities would have been a key factor in the evaluation of their bid for this OEDIS support contract. Agencies typically review a contractor's performance on previous, comparable contracts to assess their ability to meet the requirements of new awards. This includes evaluating their timeliness, quality of work, responsiveness, and overall customer satisfaction. A review of federal procurement databases would likely reveal other contracts awarded to Salient CRGT, Inc. by the USPTO or other Commerce components, providing insight into their experience and capabilities in delivering IT solutions.

How does the $10.4 million contract value compare to historical spending on OEDIS support or similar systems at USPTO?

The $10.4 million contract value over approximately five years represents an average annual expenditure of roughly $2 million for OEDIS support and services. To assess its comparability, one would need to examine historical spending data for OEDIS or comparable automated systems at the USPTO. If OEDIS is a critical, long-standing system, historical contracts for its maintenance, support, and upgrades would provide a baseline. Factors such as inflation, system complexity, and the scope of services (e.g., maintenance, enhancements, new development) can influence year-over-year spending. Without access to USPTO's specific historical budget allocations for OEDIS, a precise comparison is difficult, but this award suggests a sustained investment in the system's operational integrity.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks for this contract include potential vendor performance issues, such as delays in service delivery or failure to meet performance standards, and the risk of cost overruns if labor hours are not managed efficiently. Another risk is technological obsolescence, where the OEDIS system or the services provided become outdated. Mitigation strategies likely involve robust contract management by the USPTO, including clear performance metrics (Service Level Agreements - SLAs), regular progress reviews, and potentially penalties for non-performance. The use of a framework ID suggests that the underlying contract may have established terms and conditions that help manage risks. Furthermore, the competitive nature of the award encourages the vendor to perform well to secure future work.

How effective is the OEDIS system in supporting the USPTO's mission, and how will this contract contribute to its effectiveness?

The Office of Enrollment and Discipline Automated System (OEDIS) is crucial for the U.S. Patent and Trademark Office's administrative functions, particularly in managing the enrollment of patent and trademark practitioners and handling disciplinary actions. Effective support ensures the integrity and efficiency of these processes, which are vital for the USPTO's overall mission of promoting innovation and economic growth. This contract, by providing necessary support and services, aims to maintain and potentially enhance the OEDIS system's reliability, security, and functionality. Improved system performance can lead to faster processing times, better data management, and more efficient operations for the USPTO, thereby directly contributing to its mission effectiveness.

What is the typical duration and value range for similar federal contracts for computer systems design services?

Federal contracts for computer systems design services exhibit a wide range in duration and value, heavily dependent on the scope and complexity of the project. Typical durations can range from a few months for specific project-based work to several years for comprehensive support and maintenance agreements, similar to this contract's five-year term. Contract values can span from tens of thousands of dollars for small, specialized tasks to hundreds of millions or even billions for large-scale enterprise-wide IT transformations. This $10.4 million award over five years falls into the mid-range for significant IT support and system design services, reflecting a substantial but not exceptionally large investment for a critical government system.

Industry Classification

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

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: LABOR HOURS (Z)

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: $10,445,909

Exercised Options: $10,445,909

Current Obligation: $10,445,909

Actual Outlays: $-282

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $3,176,401

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCK18D0060

IDV Type: GWAC

Timeline