HUD awards $31M for CHUMS/FHAC/HCS IT support to Salient Federal Solutions
Contract Overview
Contract Amount: $31,085,552 ($31.1M)
Contractor: Salient Federal Solutions, Inc.
Awarding Agency: Department of Housing and Urban Development
Start Date: 2017-09-29
End Date: 2022-09-28
Contract Duration: 1,825 days
Daily Burn Rate: $17.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF OPERATIONS, MAINTENANCE AND DME SUPPORT FOR COMPUTERIZED HOMES UNDERWRITING SYSTEM (CHUMS/F17), FHA CONNECTION (FHAC/F17C) AND HOUSING COUNSELING SYSTEM (HCS/F11)
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033
State: Virginia Government Spending
Plain-Language Summary
Department of Housing and Urban Development obligated $31.1 million to SALIENT FEDERAL SOLUTIONS, INC. for work described as: IGF::OT::IGF OPERATIONS, MAINTENANCE AND DME SUPPORT FOR COMPUTERIZED HOMES UNDERWRITING SYSTEM (CHUMS/F17), FHA CONNECTION (FHAC/F17C) AND HOUSING COUNSELING SYSTEM (HCS/F11) Key points: 1. Contract awarded via full and open competition, indicating a competitive bidding process. 2. The contract value of $31.1M over 5 years suggests a significant investment in IT infrastructure. 3. Fixed-price contract type may offer cost certainty but could limit flexibility for scope changes. 4. The IT sector, particularly system maintenance and support, is a critical area for government operations.
Value Assessment
Rating: good
The contract value of $31.1M over 5 years, averaging $6.2M annually, appears reasonable for comprehensive IT operations, maintenance, and support services for complex systems like CHUMS, FHAC, and HCS. Benchmarking against similar large-scale IT support contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value offer.
Taxpayer Impact: The competitive award process likely resulted in a fair market price, maximizing the value of taxpayer dollars spent on essential IT systems.
Public Impact
Ensures continued operation of critical housing and underwriting systems for FHA. Supports housing counselors and potential homebuyers through accessible online platforms. Maintains the integrity and functionality of systems vital to the housing market.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if follow-on contracts are not competitively procured.
- Reliance on a single vendor for critical IT infrastructure poses a risk.
- Scope creep could lead to cost overruns if not managed tightly.
Positive Signals
- Awarded through full and open competition.
- Fixed-price contract type provides cost predictability.
- Long-term contract ensures stability for essential IT services.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on computer systems design and related services. Spending in this area is substantial across federal agencies to maintain and upgrade complex technological infrastructures.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). While the primary award went to a large business, opportunities for small business subcontracting may exist within the performance of this contract.
Oversight & Accountability
The contract is managed by the Department of Housing and Urban Development, which is responsible for oversight. The fixed-price nature of the contract provides a degree of financial oversight, but performance monitoring is crucial.
Related Government Programs
- Computer Systems Design Services
- Department of Housing and Urban Development Contracting
- Department of Housing and Urban Development Programs
Risk Flags
- Unclear definition of 'DME' in the contract description.
- Potential for vendor lock-in.
- Reliance on a single vendor for critical systems.
- No small business participation indicated in the prime contract.
Tags
computer-systems-design-services, department-of-housing-and-urban-developm, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Housing and Urban Development awarded $31.1 million to SALIENT FEDERAL SOLUTIONS, INC.. IGF::OT::IGF OPERATIONS, MAINTENANCE AND DME SUPPORT FOR COMPUTERIZED HOMES UNDERWRITING SYSTEM (CHUMS/F17), FHA CONNECTION (FHAC/F17C) AND HOUSING COUNSELING SYSTEM (HCS/F11)
Who is the contractor on this award?
The obligated recipient is SALIENT FEDERAL SOLUTIONS, INC..
Which agency awarded this contract?
Awarding agency: Department of Housing and Urban Development (Department of Housing and Urban Development).
What is the total obligated amount?
The obligated amount is $31.1 million.
What is the period of performance?
Start: 2017-09-29. End: 2022-09-28.
What is the specific scope of 'DME' (Durable Medical Equipment) in the context of IT support for these systems, and is it a standard inclusion?
The term 'DME' in this context is unusual for IT support. Typically, IT contracts cover hardware, software, maintenance, and support services. 'Durable Medical Equipment' usually refers to medical devices. Clarification is needed to understand if this refers to specialized IT hardware or if it's a miscategorization within the contract description.
How does the annual cost of $6.2M compare to industry benchmarks for similar IT system maintenance and support contracts of this scale?
An annual cost of $6.2M for maintaining and supporting complex, legacy government IT systems like CHUMS, FHAC, and HCS is within a plausible range, especially considering the criticality and user base. However, without specific details on the scope of services, personnel required, and the complexity of the systems, a precise benchmark comparison is difficult. Industry averages vary widely based on system size, criticality, and required service levels.
What mechanisms are in place to ensure continued competition for future IT support needs beyond this contract's duration?
Given this contract was awarded via full and open competition, the expectation is that future requirements will also be subject to competitive procurement processes. HUD should actively plan for the expiration of this contract, conduct market research, and ensure that the solicitation for follow-on work is structured to encourage broad participation from qualified vendors, including potentially new entrants.
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: DU100I-16-R-0013
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4000 LEGATO ROAD 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: $44,327,671
Exercised Options: $43,827,671
Current Obligation: $31,085,552
Actual Outlays: $23,044,215
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS00Q09BGD0007
IDV Type: GWAC
Timeline
Start Date: 2017-09-29
Current End Date: 2022-09-28
Potential End Date: 2022-09-28 00:00:00
Last Modified: 2024-06-24
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