VA awards $62.5M for Veteran Readiness and Employment System, with 5 bids received

Contract Overview

Contract Amount: $62,535,216 ($62.5M)

Contractor: Salient Crgt, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-04-01

End Date: 2027-03-31

Contract Duration: 1,460 days

Daily Burn Rate: $42.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: READINESS AND EMPLOYMENT SYSTEM FOR VETERAN READINESS AND EMPLOYMENT

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $62.5 million to SALIENT CRGT, INC. for work described as: READINESS AND EMPLOYMENT SYSTEM FOR VETERAN READINESS AND EMPLOYMENT Key points: 1. Contract value of $62.5M over 4 years suggests a significant investment in veteran support systems. 2. Full and open competition indicates a broad market approach, potentially fostering competitive pricing. 3. The fixed-price contract type shifts performance risk to the contractor, Salient CRGT, Inc. 4. This contract supports the critical mission of veteran readiness and employment. 5. The duration of 1460 days (4 years) allows for sustained service delivery and system development. 6. The award amount is substantial, requiring careful monitoring of performance and value.

Value Assessment

Rating: good

The contract value of $62.5M over four years averages to approximately $15.6M annually. Benchmarking this against similar IT system development and support contracts within the federal government is challenging without more specific service details. However, the number of bids (5) suggests a competitive market, which typically leads to more reasonable pricing. The firm-fixed-price structure also implies that the contractor bears the risk of cost overruns, which can be a positive indicator of value if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. With five bids received, the competition level appears moderate, suggesting that while multiple companies were interested, the market might not be saturated with providers for this specific service. This level of competition generally aids in price discovery and can lead to more favorable terms for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it increases the likelihood of securing services at a competitive price, preventing potential overpayment and ensuring efficient use of public funds.

Public Impact

Veterans will benefit from improved systems designed to enhance their readiness and employment opportunities. The contract will deliver IT services focused on the development, maintenance, and support of the READINESS AND EMPLOYMENT SYSTEM. The primary geographic impact is likely within the United States, supporting VA operations nationwide. The contract may have implications for the IT workforce, both within the VA and for the contractor's employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if system requirements are not clearly defined and managed.
Dependence on contractor performance for critical veteran support services.
Risk of vendor lock-in if proprietary technologies are used extensively.
Ensuring data security and privacy for sensitive veteran information is paramount.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Full and open competition suggests a healthy market and potential for competitive pricing.
Award to an established contractor (Salient CRGT, Inc.) may indicate a track record of performance.
Longer contract duration allows for stability and focused development.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. The federal government is a major consumer of these services, investing heavily in modernizing systems to improve service delivery and operational efficiency. The market for such services is competitive, with numerous large and small businesses vying for contracts. This specific award supports a critical function within the Department of Veterans Affairs, aligning with broader government efforts to leverage technology for social good and administrative improvement.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if Salient CRGT, Inc. chooses to engage them. Without specific subcontracting plans detailed in the award, it's difficult to assess the direct benefit to the small business ecosystem. However, large prime contracts often create downstream opportunities for specialized small businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are typically embedded within the contract's performance work statement, including service level agreements and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Veteran Readiness and Employment (VR&E) Program
Department of Veterans Affairs IT Modernization Initiatives
Federal Civilian IT Services Contracts
Computer Systems Design Services

Risk Flags

Potential for performance issues impacting critical veteran services.
Cybersecurity risks associated with sensitive veteran data.
Contract complexity may lead to challenges in oversight and management.
Dependence on contractor for system availability and functionality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $62.5 million to SALIENT CRGT, INC.. READINESS AND EMPLOYMENT SYSTEM FOR VETERAN READINESS AND EMPLOYMENT

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 $62.5 million.

What is the period of performance?

Start: 2023-04-01. End: 2027-03-31.

What is Salient CRGT, Inc.'s track record with the Department of Veterans Affairs and similar IT system contracts?

Salient CRGT, Inc. has a history of working with the Department of Veterans Affairs and other federal agencies on IT services. A review of federal procurement data would reveal the extent and nature of their past performance. Key indicators to examine include contract values, types of services rendered (e.g., system development, integration, maintenance), past performance ratings, and any significant contract modifications or disputes. Understanding their experience with large-scale system implementations, particularly those involving sensitive data or critical user bases like veterans, is crucial for assessing their capability to successfully execute this READINESS AND EMPLOYMENT SYSTEM contract.

How does the $62.5M contract value compare to similar federal IT system development contracts for veteran services?

The $62.5M contract value over four years, averaging $15.6M annually, places this award in the mid-to-large tier for federal IT service contracts. To benchmark effectively, one would compare it to other contracts for developing and maintaining large-scale IT systems within agencies serving specific populations, such as the Department of Labor's employment systems or other VA IT initiatives. Factors like system complexity, user base size, and required functionalities (e.g., data analytics, user interfaces, integration with other systems) heavily influence cost. The number of bidders (5) suggests the price is likely competitive within this range, but a detailed analysis would require comparing specific service scopes and performance metrics.

What are the primary risks associated with the performance of this contract for the VA?

Primary risks include potential underperformance by Salient CRGT, Inc. in delivering the READINESS AND EMPLOYMENT SYSTEM as specified, leading to delays or deficiencies in veteran support services. Technical risks involve system integration challenges, cybersecurity vulnerabilities, and the need for ongoing maintenance and updates in a rapidly evolving technological landscape. Furthermore, there's a risk of cost overruns if the firm-fixed-price contract doesn't adequately account for unforeseen complexities, although the risk is primarily on the contractor. Ensuring the system meets the evolving needs of veterans and VA staff also presents an ongoing performance risk.

How effective is the READINESS AND EMPLOYMENT SYSTEM expected to be in achieving its stated goals for veterans?

The effectiveness of the READINESS AND EMPLOYMENT SYSTEM hinges on several factors, including the clarity and completeness of its requirements, the quality of its design and implementation by Salient CRGT, Inc., and its user adoption by both veterans and VA personnel. The system aims to streamline processes related to veteran readiness and employment, potentially leading to faster access to resources, better tracking of progress, and improved employment outcomes. Its success will be measured by metrics related to user satisfaction, efficiency gains in service delivery, and ultimately, the impact on veteran employment rates and career success. Ongoing monitoring and user feedback will be critical to ensuring its effectiveness.

What are the historical spending patterns for similar IT services supporting veteran programs at the VA?

Historical spending patterns for IT services supporting veteran programs at the VA have generally shown a consistent and significant investment. The VA is one of the largest federal agencies, with a substantial portfolio of IT systems supporting healthcare, benefits, and employment services. Spending in this area typically includes system development, modernization, maintenance, cybersecurity, and cloud services. Analyzing past VA IT budgets and specific contract awards for veteran-facing programs would reveal trends in investment levels, technology adoption (e.g., shift towards cloud, data analytics), and the types of services most frequently procured. This contract's value appears consistent with the VA's ongoing commitment to leveraging technology for veteran support.

What is the potential impact of this contract on the IT workforce within the Department of Veterans Affairs?

This contract primarily impacts the IT workforce through the outsourcing of specific system development and support functions to Salient CRGT, Inc. While the VA may retain internal IT staff for oversight, strategic planning, and integration management, the day-to-day execution of tasks related to the READINESS AND EMPLOYMENT SYSTEM will be handled by the contractor. This could lead to a shift in the VA's internal IT roles, potentially requiring staff with expertise in contract management, vendor oversight, and system integration rather than direct development. It also means that the direct development and maintenance workforce for this specific system will be external to the VA.

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: 5

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: $176,317,712

Exercised Options: $62,535,216

Current Obligation: $62,535,216

Actual Outlays: $35,610,164

Subaward Activity

Number of Subawards: 43

Total Subaward Amount: $41,243,145

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0060

IDV Type: GWAC

Timeline