VA Awards $205.5M Network Engineering Contract to Salient CRGT, Inc. Under Full and Open Competition

Contract Overview

Contract Amount: $205,535,562 ($205.5M)

Contractor: Salient Crgt, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-07-22

End Date: 2026-06-21

Contract Duration: 1,795 days

Daily Burn Rate: $114.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NETWORK ENGINEERING, DESIGN, IMPLEMENTATION AND INFRASTRUCTURE SUPPORT.

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $205.5 million to SALIENT CRGT, INC. for work described as: NETWORK ENGINEERING, DESIGN, IMPLEMENTATION AND INFRASTRUCTURE SUPPORT. Key points: 1. Significant contract value of $205.5 million for comprehensive network engineering services. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. Potential risks include vendor lock-in and ensuring continued cost-effectiveness over the contract term. 4. The sector is IT services, specifically computer systems design, a critical area for government operations.

Value Assessment

Rating: good

The contract value of $205.5 million for a 5-year period appears reasonable given the scope of network engineering, design, implementation, and support. Benchmarking against similar large-scale IT infrastructure contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the agency to select the best value offering.

Taxpayer Impact: The competitive nature of the award is expected to yield fair market pricing, maximizing the value of taxpayer dollars spent on essential IT infrastructure.

Public Impact

Ensures robust network infrastructure for the Department of Veterans Affairs, impacting services for veterans. Supports critical IT systems, potentially improving the efficiency and reliability of VA operations. The contract's duration and value suggest a long-term commitment to modernizing VA's technological capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of nearly 5 years.
Large contract value may attract significant vendor attention.
Reliance on a single vendor for critical infrastructure support.

Positive Signals

Awarded through full and open competition.
Firm Fixed Price contract type provides cost certainty.
Multiple delivery orders indicate ongoing need and potential for flexibility.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Government spending in this area is substantial, focusing on maintaining and upgrading complex digital infrastructures to support agency missions.

Small Business Impact

While the contract was awarded through full and open competition, there is no explicit indication of small business participation in the provided data. Further analysis would be needed to determine if subcontracting opportunities were made available.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard government procurement oversight processes, including performance monitoring and compliance checks, would be in place to ensure effective service delivery.

Related Government Programs

Computer Systems Design Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Contract duration is nearly 5 years.
Potential for vendor lock-in.
Reliance on a single awardee for critical infrastructure.
Lack of explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $205.5 million to SALIENT CRGT, INC.. NETWORK ENGINEERING, DESIGN, IMPLEMENTATION AND INFRASTRUCTURE SUPPORT.

Who is the contractor on this award?

The obligated recipient is SALIENT CRGT, INC..

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $205.5 million.

What is the period of performance?

Start: 2021-07-22. End: 2026-06-21.

What specific network engineering capabilities are included in this contract?

The contract covers network engineering, design, implementation, and infrastructure support. This likely includes services such as network architecture, hardware/software deployment, system integration, cybersecurity measures, and ongoing maintenance and troubleshooting to ensure the VA's network operates efficiently and securely.

What are the primary risks associated with a large, long-term IT infrastructure contract like this?

Key risks include potential vendor lock-in, where the VA becomes heavily reliant on Salient CRGT, making future transitions difficult or costly. There's also a risk of scope creep, where the project expands beyond initial expectations, increasing costs. Ensuring the vendor maintains cutting-edge expertise throughout the contract term is another consideration.

How does this contract contribute to the VA's overall mission effectiveness?

A robust and well-supported network infrastructure is fundamental to the VA's ability to deliver services to veterans. This contract ensures the reliability and performance of the systems that manage veteran health records, benefits processing, and communication, directly impacting the efficiency and quality of care and support provided.

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 - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

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: $218,892,513

Exercised Options: $206,859,204

Current Obligation: $205,535,562

Actual Outlays: $101,120,214

Subaward Activity

Number of Subawards: 43

Total Subaward Amount: $269,012,749

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1018

IDV Type: IDC

Timeline