USAID awards $75.5M follow-on contract for strategic program management and engineering services to Salient Federal

Contract Overview

Contract Amount: $75,478,791 ($75.5M)

Contractor: Salient Federal-Sgis Inc

Awarding Agency: Agency for International Development

Start Date: 2021-01-19

End Date: 2026-01-18

Contract Duration: 1,825 days

Daily Burn Rate: $41.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: INITIAL REQ FOR STRATEGIC PROGRAMS FOLLOW-ON AWARD WHICH PROVIDES THE CONSOLIDATED SERVICES OF PMO, PQM, ENGINEERING AND MAJOR SYSTEMS PMOS.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Agency for International Development obligated $75.5 million to SALIENT FEDERAL-SGIS INC for work described as: INITIAL REQ FOR STRATEGIC PROGRAMS FOLLOW-ON AWARD WHICH PROVIDES THE CONSOLIDATED SERVICES OF PMO, PQM, ENGINEERING AND MAJOR SYSTEMS PMOS. Key points: 1. Contract provides essential consolidated services for program management, quality, engineering, and major systems. 2. Awarded via full and open competition, suggesting a robust market for these specialized services. 3. The contract type is Time and Materials, which can pose cost control risks if not closely managed. 4. Duration of 5 years indicates a long-term need for these critical support functions. 5. Salient Federal is the incumbent contractor, suggesting a focus on continuity of services. 6. The North American Industry Classification System (NAICS) code 541519 points to a broad range of IT and computer-related services.

Value Assessment

Rating: fair

The contract's value of $75.5 million over five years for consolidated program management and engineering services appears reasonable given the scope. However, the Time and Materials (T&M) pricing structure warrants close monitoring to ensure cost efficiency. Without specific benchmarks for similar consolidated PMO and engineering support contracts at USAID or other agencies, a definitive value-for-money assessment is challenging. The absence of a ceiling price in the provided data also limits a precise cost analysis.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The presence of three bidders (no=3) suggests a competitive environment, which generally benefits price discovery and can lead to more favorable terms for the government. The specific details of the bidding process and the evaluation criteria are not provided, but the open competition is a positive indicator.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment among potential contractors.

Public Impact

The primary beneficiaries are USAID's strategic programs, which will receive consolidated support for critical functions. Services delivered include Program Management Office (PMO), Program Quality Management (PQM), Engineering, and Major Systems PMOs. The contract supports operations within the Agency for International Development, primarily impacting its programmatic and operational efficiency. The workforce implications are tied to the personnel employed by Salient Federal to deliver these services, potentially including project managers, engineers, and technical specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not managed diligently.
Lack of a specific contract ceiling price in the provided data makes precise cost control assessment difficult.
Limited information on performance metrics and past performance of the incumbent for this specific follow-on award.

Positive Signals

Awarded through full and open competition, indicating a healthy market and potential for competitive pricing.
Follow-on award suggests satisfaction with incumbent's performance and a desire for service continuity.
Consolidation of services aims to improve efficiency and potentially reduce administrative overhead.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on IT and computer-related services (NAICS 541519). This sector is characterized by a high degree of specialization and a mix of large and small businesses. The market size for such services supporting federal agencies is substantial, with significant spending allocated annually to program management, engineering, and IT support. Comparable spending benchmarks would typically involve analyzing other large, multi-year IT and program support contracts awarded by agencies like USAID, Department of State, or DoD.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (sb=false) and the incumbent is Salient Federal, a large business. There is no explicit mention of subcontracting requirements for small businesses within this award. Therefore, the direct impact on the small business ecosystem appears limited unless Salient Federal voluntarily includes small businesses in its subcontracting plan. Further analysis of the contract's detailed terms would be needed to ascertain specific subcontracting goals.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID) contracting officers and program managers. Accountability measures are typically embedded within the contract's performance work statement (PWS), requiring adherence to specific deliverables and service levels. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected or reported.

Related Government Programs

USAID Program Management Support Services
Federal IT and Engineering Support Contracts
Strategic Program Management Services
Follow-on IT Services Awards

Risk Flags

Cost Overrun Risk (Time and Materials)
Performance Management Complexity (Consolidated Services)
Limited Competition Benchmarking (3 Bidders)

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $75.5 million to SALIENT FEDERAL-SGIS INC. INITIAL REQ FOR STRATEGIC PROGRAMS FOLLOW-ON AWARD WHICH PROVIDES THE CONSOLIDATED SERVICES OF PMO, PQM, ENGINEERING AND MAJOR SYSTEMS PMOS.

Who is the contractor on this award?

The obligated recipient is SALIENT FEDERAL-SGIS INC.

Which agency awarded this contract?

Awarding agency: Agency for International Development (Agency for International Development).

What is the total obligated amount?

The obligated amount is $75.5 million.

What is the period of performance?

Start: 2021-01-19. End: 2026-01-18.

What is the historical spending pattern for similar strategic program management and engineering services at USAID?

Analyzing historical spending patterns for similar services at USAID is crucial for contextualizing the $75.5 million award. While specific historical data for this exact consolidated service is not provided, USAID consistently invests in program management, technical support, and engineering services to execute its global development mission. Past contracts for PMO, PQM, and major systems support would likely show significant annual expenditures, often in the tens of millions of dollars, depending on the scale and duration of specific initiatives. Trends might indicate a move towards consolidating services for efficiency, as seen in this follow-on award. Understanding the historical average cost per year for comparable services would allow for a more robust benchmark against the current contract's estimated annual value.

How does the Time and Materials (T&M) contract type compare to other contract vehicles for similar services, and what are the associated risks?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change, allowing flexibility. However, they carry inherent risks for the government, primarily related to cost control, as the final price is not fixed. Unlike Firm-Fixed-Price (FFP) contracts, T&M contracts obligate the government to pay for the labor hours and materials used, potentially leading to cost overruns if not managed diligently. For strategic program management and engineering services, FFP or Cost-Plus-Fixed-Fee (CPFF) contracts might offer better cost predictability. The risk with this T&M award is that the $75.5 million could be exceeded if labor hours and material costs escalate beyond initial projections. Robust oversight and detailed reporting are essential to mitigate these risks.

What is Salient Federal's track record with USAID, particularly on follow-on contracts?

Salient Federal's selection for this follow-on award suggests a positive track record with USAID, likely indicating satisfactory performance on the preceding contract. Follow-on awards are typically given to incumbents when the agency is satisfied with the contractor's ability to meet requirements, manage costs, and deliver quality services. Without access to specific past performance evaluations or contract performance reports, a detailed assessment is limited. However, the continuity implied by a follow-on award generally signifies that the contractor has demonstrated reliability, technical competence, and a good understanding of USAID's operational needs and objectives. Further investigation into publicly available performance metrics or CPARS reports could provide deeper insights.

What are the potential performance risks associated with consolidating multiple PMO, PQM, engineering, and major systems functions under one contract?

Consolidating diverse functions like PMO, PQM, engineering, and major systems PMOs under a single contract, while aiming for efficiency, introduces several potential performance risks. Firstly, managing such a broad scope requires a contractor with exceptionally strong program management capabilities and deep expertise across all functional areas. A risk exists if the contractor excels in one area but struggles in others, potentially leading to suboptimal performance in critical functions. Secondly, integrating different teams and processes that may have previously operated independently can be challenging, risking communication breakdowns or cultural clashes. Thirdly, the complexity of overseeing such a consolidated effort increases for the government contracting officer. Ensuring adequate technical expertise within the government oversight team is crucial to effectively monitor performance across all consolidated functions.

How does the competition level (3 bidders) impact the value and risk for this specific contract?

Having three bidders for this full and open competition suggests a moderately competitive environment. While more bidders generally lead to better price discovery and potentially lower costs, three bidders still provide a reasonable level of competition. This number indicates that the market has multiple capable providers interested in this type of work. The impact on value is likely positive, as bidders would have incentive to offer competitive pricing and strong technical solutions to win the award. However, the risk associated with limited competition (e.g., collusion or a less-than-optimal solution) is not entirely eliminated compared to a scenario with five or more bidders. The government's evaluation process plays a critical role in ensuring the best value is achieved, regardless of the number of bidders.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Skillstorm Commercial Services 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: $108,266,786

Exercised Options: $108,266,786

Current Obligation: $75,478,791

Actual Outlays: $74,982,809

Subaward Activity

Number of Subawards: 47

Total Subaward Amount: $44,309,734

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0609S

IDV Type: FSS

Timeline