VA Awards $93M for Technical Application Platform Services to Salient CRGT, Inc
Contract Overview
Contract Amount: $93,004,286 ($93.0M)
Contractor: Salient Crgt, Inc.
Awarding Agency: Department of Veterans Affairs
Start Date: 2025-04-11
End Date: 2027-04-10
Contract Duration: 729 days
Daily Burn Rate: $127.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: TECHNICAL APPLICATION PLATFORM SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20515
Plain-Language Summary
Department of Veterans Affairs obligated $93.0 million to SALIENT CRGT, INC. for work described as: TECHNICAL APPLICATION PLATFORM SERVICES Key points: 1. Contract value of $93M over 2 years. 2. Salient CRGT, Inc. is the sole awardee. 3. NAICS code 541512 indicates Computer Systems Design Services. 4. Contract type is Time and Materials, potentially increasing cost risk.
Value Assessment
Rating: fair
The contract's Time and Materials pricing structure presents a risk for cost overruns compared to fixed-price contracts. Benchmarking against similar Computer Systems Design Services contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the Time and Materials pricing model may not fully incentivize cost efficiency from the contractor.
Taxpayer Impact: Taxpayers may face higher costs due to the Time and Materials pricing, which lacks a fixed ceiling and could lead to scope creep or inefficiencies.
Public Impact
Ensures continued operation and development of critical VA technical platforms. Supports IT infrastructure for veteran services. Potential for cost increases impacts budget allocation for other VA programs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing
- Lack of small business participation noted
Positive Signals
- Full and open competition
- Long-term contract duration provides stability
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Spending in this area is substantial across government, with benchmarks varying widely based on service complexity and duration.
Small Business Impact
The data indicates no small business participation in this contract. This is a missed opportunity to support small businesses and could be a point of concern for federal small business contracting goals.
Oversight & Accountability
Awarded under full and open competition, suggesting initial oversight. However, the Time and Materials structure requires diligent monitoring by the VA to manage costs and ensure performance.
Related Government Programs
- Computer Systems Design Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Lack of small business participation.
- Limited insight into specific platforms and their criticality.
- Contract duration may outpace rapid technological changes.
Tags
computer-systems-design-services, department-of-veterans-affairs, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $93.0 million to SALIENT CRGT, INC.. TECHNICAL APPLICATION PLATFORM SERVICES
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 $93.0 million.
What is the period of performance?
Start: 2025-04-11. End: 2027-04-10.
What specific technical application platforms are covered under this contract, and what is their criticality to VA operations?
The contract covers 'TECHNICAL APPLICATION PLATFORM SERVICES' without specifying individual platforms. Understanding the criticality of these platforms is essential for assessing the true value and risk associated with this $93M award. Without this detail, it's difficult to gauge the impact of potential service disruptions or cost overruns on veteran services.
How will the VA mitigate the cost risks associated with the Time and Materials contract type over its two-year duration?
The VA must implement robust oversight mechanisms, including detailed performance metrics and regular cost reviews, to manage the Time and Materials pricing. Establishing clear milestones, requiring detailed timesheets, and potentially negotiating cost ceilings or fixed-price components for specific tasks can help mitigate uncontrolled cost escalation and ensure value for taxpayer money.
What is the projected impact of this contract on the VA's overall IT modernization and cybersecurity posture?
This contract is likely crucial for maintaining and potentially enhancing the VA's existing technical application platforms. The effectiveness of this award in improving IT modernization and cybersecurity depends heavily on the specific tasks performed by Salient CRGT, Inc. and the VA's ability to direct these efforts towards strategic goals.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
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: $198,827,934
Exercised Options: $93,004,286
Current Obligation: $93,004,286
Actual Outlays: $21,852,173
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $5,896,706
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 47QTCK18D0060
IDV Type: GWAC
Timeline
Start Date: 2025-04-11
Current End Date: 2027-04-10
Potential End Date: 2030-04-10 00:00:00
Last Modified: 2026-04-06
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