Air Force awards $14.5M engineering support contract to Salient CRGT, Inc. for AFCENT operations

Contract Overview

Contract Amount: $14,447,891 ($14.4M)

Contractor: Salient Crgt, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-08-22

End Date: 2026-08-21

Contract Duration: 1,095 days

Daily Burn Rate: $13.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIXED PRICE LEVEL OF EFFORT

Sector: Defense

Official Description: 9 AF (AFCENT) A7 CONSTRUCTION & ENGINEERING (C&E) SUPPORT SERVICES TO SUPPORT AFCENT THEATER SUPPORT GROUP (TSG)

Plain-Language Summary

Department of Defense obligated $14.4 million to SALIENT CRGT, INC. for work described as: 9 AF (AFCENT) A7 CONSTRUCTION & ENGINEERING (C&E) SUPPORT SERVICES TO SUPPORT AFCENT THEATER SUPPORT GROUP (TSG) Key points: 1. Contract provides essential engineering and construction support services for U.S. Air Forces Central Command (AFCENT). 2. The fixed-price level-of-effort contract structure aims to control costs while ensuring service delivery. 3. Competition was full and open, suggesting a potentially competitive bidding process. 4. The contract duration of 1095 days (3 years) indicates a medium-term commitment for ongoing support. 5. Salient CRGT, Inc. is the sole awardee for this specific delivery order. 6. The contract falls under the Engineering Services NAICS code (541330).

Value Assessment

Rating: good

The contract value of approximately $14.5 million over three years for theater-level engineering support appears reasonable. Benchmarking against similar large-scale engineering support contracts within the Department of Defense is necessary for a definitive value assessment. The fixed-price level-of-effort (FPLE) pricing type suggests that the government is paying for a defined level of effort, which can be cost-effective if the scope is well-defined and managed. However, without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging.

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 offers. The data shows 3 bids were received. A competitive process like this generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition contracts. The number of bidders (3) suggests a moderate level of competition for this specific requirement.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, driving down prices and increasing the likelihood of selecting the most cost-effective solution.

Public Impact

The primary beneficiaries are the U.S. Air Forces Central Command (AFCENT) personnel and operations in the theater. Services include engineering and construction support, crucial for maintaining and improving infrastructure. The geographic impact is focused on the AFCENT theater of operations. This contract supports a specialized segment of the engineering services workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the 'level of effort' is not strictly managed.
Dependence on a single contractor for critical support services in a theater of operations.

Positive Signals

Awarded through full and open competition, indicating a potentially competitive pricing environment.
Fixed-price contract type can provide cost predictability if the scope is well-defined.
Contract supports a critical command (AFCENT) with essential engineering services.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting military construction and operational infrastructure. The engineering services market is vast, encompassing design, consulting, and project management for various industries. For defense contracts, the market is often characterized by large, specialized firms capable of handling complex, high-value projects in challenging environments. Benchmarking this $14.5 million contract would involve comparing it to other large-scale engineering support services awarded by the Department of Defense or other federal agencies for similar operational contexts.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. However, the prime contractor, Salient CRGT, Inc., may engage small businesses as subcontractors to fulfill parts of the contract, depending on their own subcontracting plans and the nature of the services required. The absence of a set-aside means the primary competition was open to all business sizes.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the relevant Air Force contracting and program management offices within AFCENT. The fixed-price level-of-effort structure requires diligent monitoring of the contractor's performance and the effort expended to ensure alignment with the contract's objectives and prevent cost overruns. Transparency is facilitated through contract reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

AFCENT Operations Support
Department of Defense Engineering Services
Military Construction Support Contracts
Air Force Base Operations Support

Risk Flags

Potential for cost overruns if 'level of effort' is not strictly managed.
Dependence on contractor performance in a critical operational theater.
Geopolitical instability impacting service delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.4 million to SALIENT CRGT, INC.. 9 AF (AFCENT) A7 CONSTRUCTION & ENGINEERING (C&E) SUPPORT SERVICES TO SUPPORT AFCENT THEATER SUPPORT GROUP (TSG)

Who is the contractor on this award?

The obligated recipient is SALIENT CRGT, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $14.4 million.

What is the period of performance?

Start: 2023-08-22. End: 2026-08-21.

What is Salient CRGT, Inc.'s track record with similar engineering support contracts for the Department of Defense?

Salient CRGT, Inc. has a history of performing various IT and engineering services for the Department of Defense. While specific details on past AFCENT engineering support contracts require deeper database analysis, the company's general profile suggests experience in government contracting. A review of their past performance evaluations and contract history would reveal their success rates, any past performance issues, and their ability to manage complex projects. This specific contract's value and duration are within the range of services the company typically provides, but a detailed analysis of their performance on similar-sized and scoped contracts would be necessary for a comprehensive assessment.

How does the $14.5 million contract value compare to similar engineering support contracts for AFCENT or other regional commands?

The $14.5 million contract value for three years of engineering and construction support services for AFCENT appears to be within a reasonable range for theater-level support. However, a precise comparison requires benchmarking against contracts with similar scope, duration, and geographic focus. For instance, contracts supporting U.S. Central Command (CENTCOM) or other regional commands for base operations, infrastructure development, or engineering consulting could serve as comparators. The specific nature of the 'C&E Support Services' and the operational tempo within the AFCENT theater are key factors influencing cost. Without access to a detailed database of comparable contracts, it's difficult to definitively state if this represents exceptional value, but it does not appear to be an outlier based on the initial data.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential scope creep, contractor performance issues, and geopolitical instability impacting operations in the AFCENT theater. Scope creep is a risk inherent in engineering and construction support, especially in dynamic environments, and is mitigated by the fixed-price level-of-effort structure which defines the scope of work and the effort to be expended. Contractor performance risk is managed through standard contract oversight, performance metrics (if defined), and the potential for contract modifications or termination for default. Geopolitical risks are largely outside the contractor's control but are managed by the government through strategic planning and contingency operations. The government's oversight and the contractor's experience are crucial mitigation factors.

How effective is the fixed-price level-of-effort (FPLE) contract type in ensuring program effectiveness for engineering support?

The FPLE contract type aims to ensure program effectiveness by defining a specific level of effort (e.g., hours or labor categories) that the contractor will provide for a fixed price. This structure is effective when the scope of work is not precisely definable at the outset but the level of resources required is predictable. For engineering support, it allows flexibility to address evolving needs within the defined effort. Effectiveness hinges on accurate estimation of the required effort and diligent government oversight to ensure the contractor is indeed expending the agreed-upon effort on necessary tasks. If the effort is insufficient, the program's objectives may not be met; if excessive, costs could be higher than necessary.

What are the historical spending patterns for engineering and construction support services within AFCENT or the Air Force?

Historical spending patterns for engineering and construction support services within AFCENT and the broader Air Force typically show significant investment, particularly in regions with ongoing military operations. These expenditures are driven by the need for infrastructure maintenance, upgrades, and new construction to support air operations and personnel. Spending can fluctuate based on geopolitical conditions, strategic priorities, and the lifecycle of deployed assets. Analyzing past contract awards for similar services within AFCENT would reveal trends in contract values, durations, and the types of services most frequently procured, providing context for the current $14.5 million award.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)

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: $47,078,002

Exercised Options: $16,385,168

Current Obligation: $14,447,891

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $6,551,039

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD20DU127

IDV Type: IDC

Timeline