DHS awards $21.8M IT support contract to Salient CRGT, Inc. for USCIS systems

Contract Overview

Contract Amount: $21,799,528 ($21.8M)

Contractor: Salient Crgt, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2020-02-27

End Date: 2020-11-06

Contract Duration: 253 days

Daily Burn Rate: $86.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20529

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $21.8 million to SALIENT CRGT, INC. for work described as: IT SUPPORT SERVICES Key points: 1. Contract value represents a significant investment in maintaining critical immigration systems. 2. Competition dynamics suggest a potentially competitive bidding process for this IT support. 3. Performance risk is moderate, given the reliance on established IT support services. 4. This contract falls within the broader IT services sector, supporting government operations. 5. The firm fixed-price structure aims to control costs and provide budget certainty. 6. Delivery order structure indicates a specific tasking within a larger framework.

Value Assessment

Rating: good

The contract value of $21.8 million for IT support services appears reasonable for a federal agency of USCIS's size and complexity. Benchmarking against similar IT support contracts within DHS or other large federal agencies would provide a more precise value-for-money assessment. The firm fixed-price contract type suggests an effort to manage costs effectively, but detailed cost breakdowns are not available to fully assess pricing strategies. The provided benchmark of $86,164 per year for this contract suggests a potentially efficient operational cost.

Cost Per Unit: $86,164 per year

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 number of bidders is not specified, but full and open competition generally fosters a competitive environment, which can lead to better pricing and service quality. The agency's decision to use this procurement method suggests confidence in the market's ability to provide suitable IT support services.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple vendors to offer competitive pricing, potentially leading to cost savings for the government.

Public Impact

USCIS personnel benefit from reliable IT infrastructure and support, enabling efficient processing of immigration applications. The contract ensures the continued operation and maintenance of vital IT systems for immigration services. The primary geographic impact is within the District of Columbia, where USCIS headquarters and key operations are located. The contract supports IT professionals and potentially other roles within the contractor's workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competitively procured.
Dependence on a single contractor for critical IT systems could pose continuity risks.
Scope creep could lead to cost overruns if not managed tightly under the fixed-price structure.

Positive Signals

Firm fixed-price contract provides cost certainty for the agency.
Full and open competition suggests a robust market offering and potential for competitive pricing.
The contract is for established IT support services, indicating a lower risk of technical failure.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically IT Support Services. The IT services market for the federal government is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract for computer systems design services supports the operational needs of a major federal agency, USCIS, aligning with broader government efforts to modernize and secure its IT environment. Comparable spending benchmarks for IT support services can vary widely based on scope, duration, and agency, but the provided annual cost suggests a moderate investment for the services rendered.

Small Business Impact

The data indicates that this contract was not set aside for small businesses and that the contractor, Salient CRGT, Inc., is not a small business. Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. However, large prime contractors are often encouraged or required to have small business subcontracting plans, which could still provide opportunities for small businesses to participate in supporting this contract's objectives.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Citizenship and Immigration Services (USCIS) contracting officer and program managers. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through contract databases like FPDS-NG, which provide public access to contract awards. While specific Inspector General (IG) jurisdiction for this particular award isn't detailed, the DHS Office of Inspector General generally oversees spending and operations within the department to ensure accountability and prevent fraud, waste, and abuse.

Related Government Programs

IT Services
Computer Systems Design
Department of Homeland Security IT Contracts
USCIS IT Modernization
Federal IT Support Services

Risk Flags

Potential for vendor lock-in
Reliance on contractor for critical systems
Scope creep risk under fixed-price contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $21.8 million to SALIENT CRGT, INC.. IT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is SALIENT CRGT, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Citizenship and Immigration Services).

What is the total obligated amount?

The obligated amount is $21.8 million.

What is the period of performance?

Start: 2020-02-27. End: 2020-11-06.

What is the track record of Salient CRGT, Inc. with federal IT support contracts?

Salient CRGT, Inc. has a significant history of performing IT support and related services for various U.S. federal agencies. Their portfolio includes contracts for network engineering, cybersecurity, cloud migration, and software development. Analyzing their past performance on similar contracts, particularly those with agencies like DHS or USCIS, would reveal their ability to meet performance requirements, manage budgets, and deliver on time. Past performance reviews and contract close-out data, where available, can provide insights into their reliability and effectiveness as a federal contractor. Their extensive experience suggests a strong understanding of government IT needs and procurement processes.

How does the $86,164 per year cost benchmark compare to similar federal IT support contracts?

The per-year cost benchmark of $86,164 for this IT support contract appears to be within a reasonable range for federal IT services, though direct comparisons require careful consideration of scope and complexity. For instance, contracts involving basic help desk support might be lower, while those encompassing complex system design, integration, and maintenance could be significantly higher. Benchmarking against contracts for similar services (e.g., computer systems design, IT infrastructure management) awarded by agencies like DHS or other large cabinet-level departments during the same period would provide a more accurate assessment. Factors such as the number of users supported, the criticality of the systems, and the specific technical expertise required heavily influence pricing. Without more granular data on these factors, it's difficult to definitively state if this benchmark represents exceptional value or is on the higher end.

What are the primary risks associated with this IT support contract for USCIS?

The primary risks associated with this IT support contract for USCIS revolve around performance, security, and continuity. Performance risk stems from the potential for the contractor to fail to meet service level agreements (SLAs), leading to disruptions in critical immigration processing systems. Security risks are paramount, as a breach or compromise of USCIS systems could have severe national security and privacy implications. Continuity risk arises from the dependence on a single vendor; any disruption to the contractor's operations or a failure to transition smoothly to a new vendor at contract end could impact USCIS's ability to function. Additionally, scope creep, where the contract's requirements expand beyond the original agreement without corresponding adjustments in cost and schedule, poses a financial risk.

How effective is the firm fixed-price contract type in managing costs for this IT support service?

The firm fixed-price (FFP) contract type is generally considered effective for managing costs in IT support services when the scope of work is well-defined and unlikely to change significantly. FFP shifts the risk of cost overruns to the contractor, incentivizing them to perform efficiently to maintain profitability. For routine IT support tasks like system maintenance, help desk operations, and standard upgrades, FFP provides budget certainty for the agency. However, if the IT environment is highly dynamic or requires significant unforeseen development or integration work, an FFP contract might be less suitable, potentially leading the contractor to either underbid and struggle, or overbid to account for uncertainty, or the agency to face change orders. Given the nature of IT support, FFP is a common and often effective choice for controlling expenditures.

What are the historical spending patterns for IT support services at USCIS or DHS?

Historical spending patterns for IT support services at USCIS and the broader Department of Homeland Security (DHS) generally show a consistent and significant investment in maintaining and modernizing their complex IT infrastructure. Agencies like USCIS manage vast amounts of sensitive data and critical operational systems, necessitating substantial and ongoing funding for IT support. Spending typically fluctuates based on major system upgrades, cybersecurity initiatives, and evolving technological requirements. Analyzing historical data reveals a trend of increasing reliance on IT services, often awarded through competitive full and open processes, with a mix of contract types. Understanding these patterns helps in assessing the current contract's value and forecasting future IT needs and budgets within the agency.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70SBUR20R000000011

Offers Received: 1

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: $21,799,528

Exercised Options: $21,799,528

Current Obligation: $21,799,528

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $8,911,475

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCK18D0060

IDV Type: GWAC

Timeline