DoD's $29.9M Case Processing Contract Awarded to Salient Federal-SGIS Inc. for IT Support

Contract Overview

Contract Amount: $29,920,645 ($29.9M)

Contractor: Salient Federal-Sgis Inc

Awarding Agency: Department of Defense

Start Date: 2020-10-01

End Date: 2024-09-04

Contract Duration: 1,434 days

Daily Burn Rate: $20.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CASE PROCESSING AND ENHANCEMENT SUPPORT. THIS CONTRACT HAS BEEN TRANSFERRED FROM OPM TO DCSA IAW THE 2018 NDAA AND EO 13869.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20451

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $29.9 million to SALIENT FEDERAL-SGIS INC for work described as: CASE PROCESSING AND ENHANCEMENT SUPPORT. THIS CONTRACT HAS BEEN TRANSFERRED FROM OPM TO DCSA IAW THE 2018 NDAA AND EO 13869. Key points: 1. Contract value of nearly $30 million over four years indicates significant investment in IT support services. 2. The transfer of this contract from OPM to DCSA highlights evolving national security priorities and agency responsibilities. 3. A firm-fixed-price contract type suggests predictable costs for the government, assuming scope remains stable. 4. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services. 5. Awarded to a single contractor, Salient Federal-SGIS Inc., the contract's performance will be closely watched. 6. The contract's duration of 1434 days (nearly four years) suggests a need for sustained support. 7. The contract was awarded via full and open competition, implying a robust bidding process.

Value Assessment

Rating: good

The contract value of approximately $29.9 million over nearly four years for case processing and enhancement support appears reasonable given the scope of services. Benchmarking against similar IT support contracts for federal agencies suggests that this pricing is within an expected range. The firm-fixed-price structure helps manage cost certainty for the Department of Defense. However, a detailed cost breakdown and comparison to specific service delivery metrics would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of two bidders suggests a competitive environment, which generally benefits price discovery and encourages better service offerings. The specific details of the bidding process, including the number of proposals received and the evaluation criteria, would provide further insight into the effectiveness of the competition.

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

Public Impact

The primary beneficiaries are the Defense Counterintelligence and Security Agency (DCSA) and its mission to process and enhance critical case data. The services delivered are essential for the efficient operation and modernization of the DCSA's case management systems. The contract's impact is primarily within the federal government's national security and personnel vetting apparatus. Workforce implications may include the need for specialized IT personnel to support and enhance the case processing systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if enhancements are highly proprietary.
Dependence on a single contractor for critical case processing systems.
Risk of scope creep if enhancement requirements are not clearly defined and managed.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Full and open competition suggests a competitive award process.
Contract duration indicates a stable, long-term need for these services.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer-related services and support. The federal IT services market is substantial, with agencies consistently investing in modernization and operational support. This contract for case processing and enhancement aligns with the government's ongoing efforts to improve data management, security, and efficiency within critical functions like counterintelligence and security clearances. Comparable spending benchmarks would typically be found within IT support and system integration contracts awarded to various federal agencies.

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 set-aside provision. The primary contractor, Salient Federal-SGIS Inc., will likely manage the subcontracting opportunities, if any, based on their own business strategy and the specific needs of the contract. Analysis of subcontracting plans would be required to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Defense Counterintelligence and Security Agency (DCSA). As a Department of Defense contract, it is also subject to the oversight of the DoD Inspector General, who can investigate allegations of fraud, waste, and abuse. Transparency is facilitated through contract award databases like FPDS, which provide basic information on contract value, duration, and competition. However, detailed performance metrics and internal oversight reports are typically not publicly available.

Related Government Programs

OPM Case Processing Support
DCSA IT Modernization Programs
Federal Background Investigation IT Systems
National Security Agency IT Services
Department of Defense Information Technology Contracts

Risk Flags

Contract transferred between agencies, indicating potential shifts in strategic priorities or consolidation efforts.
Sole awardee for a critical function requires close monitoring of performance and potential for vendor lock-in.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.9 million to SALIENT FEDERAL-SGIS INC. CASE PROCESSING AND ENHANCEMENT SUPPORT. THIS CONTRACT HAS BEEN TRANSFERRED FROM OPM TO DCSA IAW THE 2018 NDAA AND EO 13869.

Who is the contractor on this award?

The obligated recipient is SALIENT FEDERAL-SGIS INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Counterintelligence and Security Agency).

What is the total obligated amount?

The obligated amount is $29.9 million.

What is the period of performance?

Start: 2020-10-01. End: 2024-09-04.

What is the track record of Salient Federal-SGIS Inc. in performing similar IT support and case processing contracts for the federal government?

Salient Federal-SGIS Inc. has a history of performing IT and professional services for various federal agencies. While specific details on past performance for contracts of this exact nature and scale require deeper investigation into contract databases and performance reviews, their presence as a contractor suggests they possess the necessary qualifications. A thorough review would involve examining past contract awards, any reported performance issues or commendations, and their experience with government IT systems, particularly those involving sensitive data processing and enhancement. Their ability to secure this significant DoD contract indicates a level of established capability and trust within the federal contracting landscape.

How does the $29.9 million contract value compare to similar IT support contracts awarded by the DoD or other agencies for case processing functions?

The $29.9 million contract value for nearly four years of case processing and enhancement support appears to be within a reasonable range for federal IT services of this nature. Contracts for system modernization, data management, and IT support within defense and intelligence agencies often run into tens of millions of dollars, depending on the complexity, scope, and duration. For instance, similar contracts for background investigation systems or intelligence data processing have seen comparable or higher values. The firm-fixed-price structure also suggests that the government has negotiated a defined cost for a specific set of services, which aids in budget predictability. A precise benchmark would require comparing specific service level agreements and deliverables.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Key risks include potential vendor lock-in due to specialized enhancements, dependence on a single contractor for critical functions, and the possibility of scope creep if requirements are not tightly managed. Mitigation strategies likely involve robust contract management by DCSA, clear definition and monitoring of performance metrics, and contingency planning for service continuity. The firm-fixed-price nature helps mitigate cost overruns from scope creep, provided changes are managed through formal modification processes. Regular performance reviews and open communication channels with the contractor are also crucial for early risk identification and resolution.

How effective is the current IT infrastructure and case processing system being supported by this contract in meeting DCSA's mission objectives?

The effectiveness of the IT infrastructure and case processing system is directly tied to the services provided under this contract. The contract's objective is to 'support' and 'enhance' these systems, implying that improvements are intended to boost efficiency, security, and capability. The transfer from OPM to DCSA, mandated by the 2018 NDAA and EO 13869, suggests a strategic realignment to consolidate or improve these functions under a national security agency. The success of the contract will be measured by its contribution to DCSA's ability to process and manage cases effectively, contributing to national security vetting and counterintelligence efforts. Without specific performance data, assessing current effectiveness is speculative, but the contract's existence points to a recognized need for ongoing support and improvement.

What has been the historical spending trend for similar case processing and IT enhancement services within the DoD or DCSA prior to this award?

Historical spending trends for similar services within the DoD and DCSA would likely show a consistent investment in IT infrastructure and support, particularly for functions related to national security and personnel vetting. Prior to this specific contract, funding would have been allocated through various mechanisms, potentially including contracts managed by OPM before the transfer. Agencies like DCSA and its predecessors have historically relied on significant IT support to manage vast amounts of sensitive data and complex processing requirements. Spending patterns often reflect evolving technological needs, security threats, and regulatory changes, indicating a continuous requirement for modernization and enhancement services. Analyzing past budgets and contract awards for IT support and system integration within these agencies would reveal these trends.

Industry Classification

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

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

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: $29,925,645

Exercised Options: $29,925,645

Current Obligation: $29,920,645

Actual Outlays: $7,631,866

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $4,314,078

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0609S

IDV Type: FSS

Timeline