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

Positive Signals

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

Risk Flags

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 ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP 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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