GSA awards $59.6M contract for computer systems design services to Salient CRGT, Inc

Contract Overview

Contract Amount: $59,662,244 ($59.7M)

Contractor: Salient Crgt, Inc.

Awarding Agency: General Services Administration

Start Date: 2019-09-30

End Date: 2020-09-29

Contract Duration: 365 days

Daily Burn Rate: $163.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: RSC SANDBAR

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $59.7 million to SALIENT CRGT, INC. for work described as: RSC SANDBAR Key points: 1. Contract value represents a significant investment in IT services for the General Services Administration. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The fixed-fee pricing structure provides some cost certainty, but requires careful monitoring of performance. 4. The duration of the contract (365 days) indicates a focused, short-term project or service period. 5. The specific North American Industry Classification System (NAICS) code 541512 points to a focus on computer systems design. 6. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract value of $59.6 million for computer systems design services appears reasonable given the scope. Without specific deliverables or performance metrics, a direct comparison to similar contracts is challenging. However, the fixed-fee structure suggests an expectation of defined scope and cost control by the agency. Benchmarking against industry standards for similar IT services would provide further insight into the value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 5 bids suggests a healthy level of competition for this requirement. This competitive environment is generally favorable for price discovery and can lead to better value for the government.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging innovative solutions from multiple vendors.

Public Impact

Federal agencies requiring computer systems design and integration services benefit from this contract. The contract supports the operational needs of the General Services Administration (GSA). The services delivered likely enhance the efficiency and effectiveness of GSA's IT infrastructure. The contract may indirectly support a workforce skilled in computer systems design and related IT fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly under the fixed-fee structure.
Dependence on a single contractor for critical IT systems design services.
Need for robust performance monitoring to ensure value is realized.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Fixed-fee pricing provides a degree of cost predictability.
The contract supports a core IT service requirement for a major federal agency.

Sector Analysis

The IT services sector is a significant area of federal spending. Contracts for computer systems design services, categorized under NAICS code 541512, are crucial for maintaining and upgrading government IT infrastructure. This contract fits within the broader landscape of federal IT procurement, which often involves complex system integrations and design solutions. Comparable spending benchmarks in this area are typically measured by the scale and complexity of the IT systems being designed or modified.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses indicated in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the General Services Administration's contracting officers and program managers. Accountability measures would be tied to the contract's performance standards and deliverables. Transparency is generally facilitated through contract award databases like FPDS. The Inspector General for GSA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

IT Professional Services
Computer Systems Design
General Services Administration IT Contracts
Federal IT Modernization Programs

Risk Flags

Potential cost overruns if not managed closely.
Contract performance risk if contractor fails to meet requirements.
Dependency on a single vendor for critical IT services.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $59.7 million to SALIENT CRGT, INC.. RSC SANDBAR

Who is the contractor on this award?

The obligated recipient is SALIENT CRGT, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $59.7 million.

What is the period of performance?

Start: 2019-09-30. End: 2020-09-29.

What is the specific nature of the computer systems design services being procured under this contract?

The provided data indicates the contract falls under NAICS code 541512, which covers Computer Systems Design Services. This typically includes designing, developing, and integrating hardware and software solutions. Services could range from network architecture design, software development lifecycle support, database design, cloud integration, to cybersecurity system design. Without further details on the specific task orders or Statement of Work (SOW), the exact nature of the services remains broad but centers on the conceptualization and blueprinting of IT systems.

How does the $59.6 million award compare to typical spending for similar IT services by the GSA?

The $59.6 million award is a substantial sum, reflecting a significant IT services requirement. The General Services Administration (GSA) manages a vast portfolio of IT contracts, and the size of this award places it within the mid-to-large range for individual delivery orders or contracts. GSA's overall IT spending runs into billions annually across various categories. To provide a precise comparison, one would need to analyze GSA's historical spending on computer systems design services (NAICS 541512) over the past several fiscal years, looking at the average award value and the distribution of contract sizes.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract type for this service?

The provided data indicates the contract type is 'COST PLUS FIXED FEE' (CPFF). While the data states 'pt': 'COST PLUS FIXED FEE', it also states 'ct': 'FULL AND OPEN COMPETITION' and 'aw': 'DELIVERY ORDER'. Assuming the 'pt' is accurate, CPFF contracts carry inherent risks. The government agrees to pay the contractor's actual costs plus a fixed fee representing profit. The primary risk for the government is that costs can escalate beyond initial projections, potentially leading to a higher total contract price than anticipated, even though the fee is fixed. This necessitates robust oversight and cost monitoring by the agency to ensure costs are reasonable and allocable.

What is Salient CRGT, Inc.'s track record with federal IT contracts, particularly with the GSA?

Salient CRGT, Inc. is a known entity in the federal IT contracting space. A review of federal procurement data would reveal their history of awards across various agencies, including the GSA. Their track record would typically be assessed based on past performance evaluations, contract completion history, and any significant issues or successes on previous government contracts. Without direct access to performance metrics or specific contract histories beyond this award, a detailed assessment of their track record is limited to their general presence and reputation in the market.

How does the competition level (5 bidders) influence the value proposition for taxpayers?

Having five bidders for this contract is a positive indicator of competition. A higher number of bidders generally leads to more competitive pricing as companies vie for the award. This increased competition can drive down costs, encourage innovation, and ensure that the government receives better value for its investment. For taxpayers, this means their money is more likely to be spent efficiently, securing necessary IT services at a more optimal price point compared to a scenario with fewer or no competing bids.

What is the significance of this contract being a 'Delivery Order'?

The 'Delivery Order' (DO) designation signifies that this contract is likely a task order issued under a larger, pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar master agreement. IDIQs allow agencies to procure a range of supplies or services over a set period, with specific quantities and delivery dates defined by individual delivery orders. This approach provides flexibility for the agency to order services as needed. For taxpayers, it means this $59.6 million is part of a potentially larger, overarching contract vehicle, and the total spending under that vehicle could be significantly higher.

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

Solicitation ID: ID01190005

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Govcio, LLC

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: $59,662,244

Exercised Options: $59,662,244

Current Obligation: $59,662,244

Actual Outlays: $1,049,880

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0060

IDV Type: GWAC

Timeline