HUD's $16.2M IT contract with Salient Federal Solutions saw a single award over 9 years

Contract Overview

Contract Amount: $16,253,058 ($16.3M)

Contractor: Salient Federal Solutions, Inc.

Awarding Agency: Department of Housing and Urban Development

Start Date: 2010-06-16

End Date: 2019-09-13

Contract Duration: 3,376 days

Daily Burn Rate: $4.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MANDATORY/RECURRING - PAS/LOCCS RECOMPETE.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20410

State: District of Columbia Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $16.3 million to SALIENT FEDERAL SOLUTIONS, INC. for work described as: MANDATORY/RECURRING - PAS/LOCCS RECOMPETE. Key points: 1. Contract awarded via full and open competition, indicating broad market access. 2. Firm Fixed Price contract type suggests predictable costs for the government. 3. Long duration of 9 years may present risks of technological obsolescence or cost overruns. 4. The contract was a delivery order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. Awarded to a single contractor, raising questions about sustained competition throughout the period of performance. 6. The contract's focus on custom computer programming services aligns with core IT needs.

Value Assessment

Rating: fair

The total value of $16.2 million over nearly 9 years averages to approximately $1.8 million annually. Benchmarking this against similar custom computer programming services contracts is challenging without more specific details on the scope of work. However, the long duration for a fixed-price IT contract could indicate either a stable, well-defined need or a potential for the government to overpay if market rates or technological requirements shift significantly. The absence of multiple bids in the award phase, despite full and open competition, warrants further scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. However, the data indicates only one award was made. This suggests that while the opportunity was broadly advertised, only one offeror was deemed successful or perhaps only one submitted a competitive bid. The limited number of actual awards from a 'full and open' competition can sometimes indicate a highly specialized requirement or a market with few capable vendors.

Taxpayer Impact: While the competition was open, the single award limits the immediate price discovery benefits typically seen with multiple competing bids. Taxpayers benefit from the initial open competition ensuring a fair process, but sustained price pressure might be absent.

Public Impact

Benefits the Department of Housing and Urban Development (HUD) by providing essential custom computer programming services. Supports the operational efficiency and technological infrastructure of a key federal agency. The services delivered likely impact HUD's internal systems and potentially public-facing portals. Geographic impact is centered in the District of Columbia, where HUD's headquarters are located. Workforce implications include the IT professionals employed by Salient Federal Solutions to fulfill the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (9 years) increases risk of cost escalation and technological irrelevance.
Single award despite full and open competition may indicate limited market interest or contractor capability.
Lack of re-competition within the contract period limits ongoing price negotiation opportunities.

Positive Signals

Awarded under full and open competition, ensuring a fair and transparent initial process.
Firm Fixed Price contract type provides cost certainty for the government.
Contract aligns with a core IT service requirement for HUD.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically Custom Computer Programming Services (NAICS 541511). This is a large and competitive market supporting government agencies' digital transformation and operational needs. The market size for federal IT services is substantial, with agencies consistently investing in software development, system integration, and IT support. This contract represents a portion of HUD's overall IT spending, contributing to its ability to manage housing programs and services.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from this particular award. The prime contractor, Salient Federal Solutions, is likely a mid-to-large sized business capable of handling this scope of work.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Housing and Urban Development's contracting officers and program managers. As a delivery order under a potential larger IDIQ, oversight might also be influenced by the terms of the base contract. Transparency is facilitated by public contract databases, but detailed performance metrics and specific oversight activities are typically internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

HUD IT Modernization Efforts
Custom Software Development Services
Federal IT Services Contracts
IT Support Services

Risk Flags

Long contract duration
Single award despite open competition
Potential for technological obsolescence

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $16.3 million to SALIENT FEDERAL SOLUTIONS, INC.. MANDATORY/RECURRING - PAS/LOCCS RECOMPETE.

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 $16.3 million.

What is the period of performance?

Start: 2010-06-16. End: 2019-09-13.

What was the specific scope of 'Custom Computer Programming Services' for this contract?

The provided data does not detail the specific scope of 'Custom Computer Programming Services.' This category (NAICS 541511) broadly covers establishments primarily engaged in writing, modifying, testing, and supporting software to meet the needs of a particular customer. For HUD, this could range from developing new applications for housing assistance programs, modernizing legacy systems, creating data analytics tools, or enhancing cybersecurity features. Understanding the precise deliverables, such as the types of software, the complexity of the programming, and the integration requirements, would be crucial for a comprehensive value assessment.

How did Salient Federal Solutions' past performance influence this award?

The provided data does not include information on Salient Federal Solutions' past performance metrics or how they were evaluated for this specific contract. In federal contracting, past performance is a significant evaluation factor, assessing a contractor's record of meeting contractual requirements and facility/performance standards on previous similar contracts. A positive past performance record typically involves timely delivery, quality work, effective cost control, and good communication. Without this data, it's impossible to definitively assess if their track record contributed positively or negatively to the award decision beyond meeting the basic eligibility criteria.

Were there any other bids received, even if only one award was made?

The data indicates 'NO' (no) bids were received, which seems contradictory to the 'FULL AND OPEN COMPETITION' (ct) status. Typically, 'full and open competition' implies that multiple bids are solicited and evaluated. The 'NO' might refer to the number of *awards* made (which is 1), or it could be an anomaly in the data reporting. If truly no bids were received despite open competition, it would suggest significant issues with the solicitation, market research, or contractor interest. However, given the award was made, it's more probable that 'NO' refers to something other than the total number of bids submitted, or the data is incomplete.

What is the significance of this contract being a 'Delivery Order' (aw)?

The designation 'DELIVERY ORDER' (aw) signifies that this contract is likely a task order issued under a larger, pre-existing Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract vehicle. IDIQs allow agencies to procure supplies or services from contractors over a set period, with specific orders placed as needed. Being a delivery order means this $16.2 million represents the value of a specific set of goods or services procured under a broader master agreement. This approach offers flexibility for the agency but can sometimes obscure the total spending picture if the base IDIQ is not easily identifiable or analyzed.

How does the 9-year duration compare to typical IT programming contracts?

A 9-year duration (dur: 3376 days, approximately 9.25 years) for a custom computer programming services contract is exceptionally long, especially for fixed-price agreements. Standard IT development and programming contracts often range from 1 to 5 years, with options for renewal. Longer durations are more common for sustainment, maintenance, or large-scale system integration projects where stability is paramount. For a contract focused on 'custom programming,' such a long period increases the risk of technological obsolescence, changing requirements, and potential cost inefficiencies if the initial pricing doesn't account for market shifts or evolving technologies.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4000 LEGATO RD STE 600, FAIRFAX, VA, 22033

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,253,058

Exercised Options: $16,253,058

Current Obligation: $16,253,058

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4704G

IDV Type: FSS

Timeline