Department of Transportation awards $16.8M for IT services, highlighting long-term IT support needs

Contract Overview

Contract Amount: $16,849,571 ($16.8M)

Contractor: Salient Crgt, Inc.

Awarding Agency: Department of Transportation

Start Date: 2005-05-31

End Date: 2007-12-31

Contract Duration: 944 days

Daily Burn Rate: $17.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Sector: IT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20590

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $16.8 million to SALIENT CRGT, INC. for work described as: Key points: 1. Contract value of $16.8M over 944 days suggests a moderate investment in IT support. 2. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a competitive process with specific criteria. 3. Performance period spanning 2005-2007 places this contract in a historical context of IT service procurement. 4. The NAICS code 541519 (Other Computer Related Services) points to a broad range of IT support functions. 5. Award to SALIENT CRGT, INC. provides insight into established IT service providers for federal agencies. 6. The BPA CALL award type suggests this is a task order under a larger agreement, potentially offering efficiency.

Value Assessment

Rating: fair

The total award of $16.8M over approximately 2.5 years averages to about $6.7M annually. Without specific details on the services rendered or comparable contracts from the same period, a precise value-for-money assessment is challenging. However, the duration and total value suggest a significant, ongoing need for IT services. Benchmarking against similar 'Other Computer Related Services' contracts awarded by the Department of Transportation during the mid-2000s would be necessary for a more robust comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This procurement method implies that while the competition was intended to be open, certain sources were excluded, possibly due to specific technical requirements, existing relationships, or prior performance. The exact number of bidders and the rationale for excluding other sources are not detailed, making it difficult to fully assess the breadth of competition. This approach can sometimes lead to less aggressive pricing compared to truly full and open competition.

Taxpayer Impact: For taxpayers, this limited competition may mean that the government did not secure the absolute lowest possible price, as a wider pool of bidders could have driven down costs further. However, it could also indicate that the selected contractor was uniquely qualified, potentially leading to better service quality and reduced risk of performance issues.

Public Impact

Federal employees within the Department of Transportation benefit from reliable IT infrastructure and support. Essential IT services, including potentially network management, software support, and hardware maintenance, are delivered. The primary geographic impact is within the District of Columbia, where the Department of Transportation is headquartered. The contract supports the IT workforce of the contractor, SALIENT CRGT, INC., and potentially indirectly supports federal IT staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in higher costs than a fully open process.
Lack of detailed service descriptions makes it hard to verify if the full scope of IT needs was met efficiently.
The exclusion of sources, if not well-justified, could represent a missed opportunity for innovation or cost savings.

Positive Signals

Award to an established contractor like SALIENT CRGT, INC. suggests a degree of reliability and experience.
The BPA CALL award type indicates a potentially streamlined procurement process for IT services.
The contract's duration suggests a stable, long-term need for IT support, implying consistent service delivery.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically 'Other Computer Related Services.' The federal IT services market is vast and highly competitive, with agencies constantly seeking solutions for infrastructure, software development, cybersecurity, and general IT support. During the mid-2000s, agencies were increasingly reliant on IT for core operations, leading to significant spending in this area. Comparable spending benchmarks would involve looking at other IT support contracts awarded to companies of similar size and scope by federal agencies during that period.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The award to SALIENT CRGT, INC., a significant IT service provider, suggests that the primary contract was not structured to prioritize small businesses. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem for this specific award is likely minimal, unless SALIENT CRGT voluntarily engaged small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of Transportation's contracting officers and program managers. As a BPA CALL award, oversight might also be influenced by the terms of the underlying Blanket Purchase Agreement. Transparency is limited by the available data; specific performance metrics, quality assurance plans, and detailed spending reports are not publicly accessible through this summary. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IT Services
Computer Related Services
Blanket Purchase Agreements (BPAs)
Department of Transportation IT Procurement
Federal IT Support Contracts

Risk Flags

Limited Competition
Lack of Detailed Service Scope
Potential for Higher Costs due to Excluded Sources

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $16.8 million to SALIENT CRGT, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is SALIENT CRGT, INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Immediate Office of the Secretary of Transportation).

What is the total obligated amount?

The obligated amount is $16.8 million.

What is the period of performance?

Start: 2005-05-31. End: 2007-12-31.

What specific IT services were provided under this contract?

The contract falls under NAICS code 541519, 'Other Computer Related Services.' This broad category can encompass a wide range of IT support functions, including but not limited to IT system design, integration, and management; network support; hardware and software installation and maintenance; IT consulting; and potentially help desk services. Without more specific contract line item details or a statement of work, the precise nature of the services rendered remains general. Given the duration and value, it likely involved ongoing operational support for the Department of Transportation's IT infrastructure and user needs during the 2005-2007 period.

How does the $16.8M award compare to similar IT service contracts for the Department of Transportation during that era?

Comparing the $16.8M award requires context regarding the specific IT services procured and the scale of the Department of Transportation's IT needs during 2005-2007. Annual spending for IT services within large federal agencies could range from tens to hundreds of millions of dollars. An average annual spend of approximately $6.7M ($16.8M / ~2.5 years) for 'Other Computer Related Services' appears moderate for a department like Transportation. To provide a definitive comparison, one would need to analyze other DOT contracts for similar IT support services awarded within a close timeframe, considering factors like contract duration, service scope, and number of bidders.

What are the potential risks associated with a 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement?

This procurement method, while allowing for competition, introduces specific risks. The primary risk is that by excluding certain sources, the agency might inadvertently limit the pool of highly qualified or innovative vendors, potentially leading to suboptimal solutions or higher prices. The justification for exclusion must be robust to ensure fairness and prevent favoritism. If the exclusion criteria are too narrow or poorly defined, it could stifle competition and reduce the government's leverage in price negotiation. Furthermore, understanding *why* sources were excluded is crucial for assessing if the government received the best possible value and if the process was truly competitive in spirit.

What was SALIENT CRGT, INC.'s track record with the federal government around the time of this award?

SALIENT CRGT, INC. (and its predecessor entities) has a long history of contracting with the federal government. Around the 2005-2007 period, the company was an established player in the federal IT services market. Their ability to secure contracts, including this BPA CALL with the Department of Transportation, suggests a demonstrated capacity to meet federal requirements. A deeper dive into their contract history prior to and during this period would reveal their performance ratings, past performance evaluations, and the types of services they consistently provided to various agencies, offering insight into their reliability and expertise.

How did the duration of the contract (944 days) impact its overall value and management?

A duration of 944 days (approximately 2.5 years) is a common length for IT service contracts, providing stability for both the agency and the contractor. This duration allows for the contractor to become deeply familiar with the agency's systems and needs, potentially leading to more efficient service delivery over time. For the agency, it reduces the administrative burden and cost associated with frequent re-procurement. However, longer durations can also pose risks if technology rapidly evolves or if contractor performance is subpar, as it ties the agency to a potentially less optimal solution for an extended period. Effective oversight and performance management are critical throughout the contract lifecycle.

What does the BPA CALL award type signify in terms of efficiency and cost?

A BPA CALL (Blanket Purchase Agreement Call) signifies that this contract is a task order issued under a pre-existing Blanket Purchase Agreement (BPA). BPAs are simplified acquisition methods used to streamline the process of obtaining a wide variety of supplies and services from approved sources. Issuing a 'call' or task order against a BPA is typically faster and more efficient than establishing a new contract from scratch. This can lead to cost savings through reduced administrative effort and potentially better pricing if the underlying BPA was competitively established. It implies that the Department of Transportation had an existing framework agreement in place, allowing for quicker procurement of these specific IT services.

Industry Classification

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

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: NEGOTIATED PROPOSAL/QUOTE

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business

Parent Contract

Parent Award PIID: DTOS5905A00203

IDV Type: BPA

Timeline