DoD awards $32.4M for DSOS sustainment, with Salient CRGT Inc. securing a Cost Plus Fixed Fee contract

Contract Overview

Contract Amount: $32,418,333 ($32.4M)

Contractor: Salient Crgt, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-09-28

End Date: 2026-03-27

Contract Duration: 911 days

Daily Burn Rate: $35.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: DSOS SUSTAINMENT SUPPORT BASE

Place of Performance

Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $32.4 million to SALIENT CRGT, INC. for work described as: DSOS SUSTAINMENT SUPPORT BASE Key points: 1. Contract value appears moderate for IT sustainment services. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include the Cost Plus Fixed Fee pricing structure, which can incentivize cost growth. 4. Performance context is tied to sustainment support for the Defense Office of Security. 5. Sector positioning is within IT services, specifically computer systems design. 6. The contract duration of over two years suggests a need for ongoing support.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) structure warrants careful monitoring, as it can lead to higher costs compared to fixed-price contracts if not managed effectively. Benchmarking the fixed fee against industry standards for similar IT sustainment services would be crucial to assess value for money. Without specific performance metrics or detailed cost breakdowns, a definitive value assessment is challenging, but the CPFF structure introduces inherent cost-plus risks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. This level of competition is generally favorable for price discovery and can lead to more competitive pricing for the government. The number of bidders is not specified, but the 'full and open' designation implies a robust competitive environment.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of obtaining services at a fair market price by leveraging market forces.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Defense Counterintelligence and Security Agency (DCSA). The services delivered are critical for the sustainment and operational readiness of the Defense Office of Security (DSOS) systems. The geographic impact is likely concentrated within the DCSA's operational areas, primarily in Virginia. Workforce implications may include the need for specialized IT personnel to support the DSOS systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) pricing can lead to cost overruns if not closely managed.
Lack of specific performance metrics in the award data makes it difficult to assess expected outcomes.
The contract's duration suggests a long-term reliance on this specific vendor for sustainment.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
The contract aims to provide essential sustainment support for critical defense systems.
Salient CRGT, Inc. is an established government contractor, suggesting potential familiarity with DoD requirements.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design and related services. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their systems. This contract represents a portion of the broader spending on defense IT sustainment, a critical area for national security. Comparable spending benchmarks would typically involve analyzing other sustainment contracts for similar defense systems or IT infrastructure.

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 or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, Salient CRGT, Inc., is likely a large business, and any subcontracting would be at their discretion.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices, with potential involvement from the Defense Contract Management Agency (DCMA). Transparency is facilitated by contract award databases like FPDS. Accountability measures would be tied to the performance work statement and the terms of the Cost Plus Fixed Fee agreement. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense IT Modernization Programs
Cybersecurity Sustainment Contracts
IT Infrastructure Support Services
Defense Security Systems Maintenance

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing structure carries inherent risk of cost escalation.
Lack of detailed performance metrics in award data hinders assessment of expected outcomes.
Contract duration of over two years suggests long-term reliance on a single vendor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.4 million to SALIENT CRGT, INC.. DSOS SUSTAINMENT SUPPORT BASE

Who is the contractor on this award?

The obligated recipient is SALIENT CRGT, 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 $32.4 million.

What is the period of performance?

Start: 2023-09-28. End: 2026-03-27.

What is the track record of Salient CRGT, Inc. with similar IT sustainment contracts for the Department of Defense?

Salient CRGT, Inc. has a history of performing IT and sustainment services for various U.S. government agencies, including the Department of Defense. Analyzing their past performance on similar contracts, particularly those involving system sustainment and IT support within defense agencies, would provide insight into their capabilities and reliability. Past performance evaluations, if publicly available, could indicate their ability to meet deadlines, manage costs, and deliver quality services. A review of their contract history might reveal any significant performance issues or commendations on prior engagements of a similar nature and scale.

How does the awarded amount of $32.4 million compare to similar DSOS sustainment contracts or other DoD IT sustainment efforts?

Benchmarking the $32.4 million award requires comparing it against similar contracts for IT sustainment within the Department of Defense, specifically for security-related systems or large-scale IT infrastructure. The contract type, Cost Plus Fixed Fee (CPFF), also influences cost comparisons, as CPFF contracts inherently carry different cost structures than fixed-price agreements. Without access to detailed cost breakdowns or specific performance metrics, a direct value-for-money assessment is difficult. However, the duration of the contract (over two years) suggests a significant scope of work, and the amount appears moderate for a multi-year sustainment effort in the defense IT sector.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this DSOS sustainment effort?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This can incentivize contractors to incur higher costs, as their fee remains constant regardless of the total cost. Effective oversight, stringent cost controls, and clear performance metrics are crucial to mitigate this risk. The government must diligently monitor expenditures to ensure costs are reasonable and allocable to the contract's objectives. Without robust management, CPFF contracts can become more expensive than other contract types.

What specific IT systems or services does the DSOS Sustainment Support Base contract cover?

The provided data indicates the contract is for 'DSOS SUSTAINMENT SUPPORT BASE' and falls under NAICS code 541512, 'Computer Systems Design Services.' While specific system names are not detailed, this suggests the contract covers the ongoing maintenance, support, and potentially minor enhancements for the IT systems that underpin the Defense Office of Security (DSOS) operations. This could include servers, networks, databases, software applications, and related infrastructure necessary for the DSOS to function effectively. The sustainment aspect implies ensuring the continued availability, reliability, and security of these critical systems.

What is the historical spending trend for DSOS sustainment support or similar services within the DCSA?

To assess historical spending trends for DSOS sustainment support or similar services within the DCSA, one would need to analyze contract award data over several fiscal years. This would involve querying databases like FPDS for contracts awarded to the DCSA or related entities for IT sustainment, computer systems design, and maintenance services. Examining the total annual spending, the number of contracts awarded, and the average contract values would reveal patterns. Significant year-over-year increases or decreases could indicate shifts in program priorities, budget allocations, or changes in contracting strategies. Understanding these trends provides context for the current $32.4 million award.

How does the 'full and open competition' award mechanism impact the overall cost-effectiveness for taxpayers?

A 'full and open competition' award mechanism is generally considered beneficial for taxpayers. It allows any responsible source to submit a bid, thereby maximizing the pool of potential offerors and fostering robust competition. This increased competition typically drives down prices as contractors vie for the award. Furthermore, it ensures that the government has access to a wider range of innovative solutions and services. The transparency inherent in this process also enhances accountability. While it requires more administrative effort upfront to manage the solicitation and evaluation, the long-term benefits of competitive pricing and potentially better service quality often outweigh these initial costs for taxpayers.

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 › IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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: $58,674,338

Exercised Options: $32,427,143

Current Obligation: $32,418,333

Actual Outlays: $1,074,718

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCK18D0060

IDV Type: GWAC

Timeline