HUD's $29.5M contract for F17/CHUMS system support awarded to Salient Federal Solutions, Inc

Contract Overview

Contract Amount: $29,544,083 ($29.5M)

Contractor: Salient Federal Solutions, Inc.

Awarding Agency: Department of Housing and Urban Development

Start Date: 2011-04-01

End Date: 2018-11-21

Contract Duration: 2,791 days

Daily Burn Rate: $10.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OPERATIONAL SUPPORT AND CORRECTIVE MAINTENANCE FOR F17/CHUMS, F17C/FHAC, AND F11/HCS

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $29.5 million to SALIENT FEDERAL SOLUTIONS, INC. for work described as: OPERATIONAL SUPPORT AND CORRECTIVE MAINTENANCE FOR F17/CHUMS, F17C/FHAC, AND F11/HCS Key points: 1. Contract value represents a significant investment in maintaining critical housing information systems. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (over 7 years) indicates a long-term need for these services. 4. The fixed-price contract type aims to control costs and provide budget certainty. 5. The specific systems supported (F17/CHUMS, F17C/FHAC, F11/HCS) are vital for HUD's operations. 6. The contractor, Salient Federal Solutions, Inc., has a track record with federal agencies.

Value Assessment

Rating: good

The contract's total value of approximately $29.5 million over nearly 8 years suggests a moderate annual spend for operational support and maintenance of specialized IT systems. Benchmarking this against similar contracts for custom computer programming services requires detailed analysis of system complexity and scope. However, the firm fixed-price structure indicates an effort to manage costs effectively. Without specific per-unit cost data or detailed service level agreements, a precise value-for-money assessment is challenging, but the competitive award process provides some assurance of fair pricing.

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 a bid. The presence of two bids indicates a degree of competition, though the exact number of potential bidders is unknown. A higher number of bidders typically leads to more competitive pricing and a wider range of technical solutions. The fact that it was competed suggests that HUD sought the best value through a market-driven process.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible price and quality for essential IT support services, preventing potential overspending associated with sole-source or limited competition awards.

Public Impact

Federal employees within HUD benefit from reliable and maintained IT systems, enabling efficient processing of housing data and program administration. The services delivered ensure the continued operation of critical housing information systems like F17/CHUMS, F17C/FHAC, and F11/HCS. The geographic impact is primarily national, supporting HUD's nationwide housing programs and initiatives. Workforce implications include the need for skilled IT professionals to perform maintenance and corrective actions on these specialized systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is not adequately transferred.
Reliance on a single contractor for critical system maintenance could pose risks if performance falters.
The long contract duration might lead to less incentive for continuous innovation if not managed proactively.

Positive Signals

The firm fixed-price contract type provides cost certainty for the agency.
Award under full and open competition suggests a robust selection process and potential for competitive pricing.
The contractor's experience in providing similar services is a positive indicator of capability.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming and IT support. The market for such services is vast and highly competitive, with numerous companies offering specialized solutions. HUD's spending on maintaining its core IT infrastructure is a common practice across federal agencies to ensure operational continuity. Comparable spending benchmarks would involve analyzing IT maintenance contracts for other large federal agencies with similar system complexities.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, Salient Federal Solutions, Inc., is not explicitly identified as a small business in the provided data. Therefore, the direct impact on small business set-asides is minimal. However, the prime contractor may engage small businesses as subcontractors, which would be detailed in subcontracting plans not provided here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within HUD. Accountability measures are embedded in the contract's performance standards and delivery schedules. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

Federal IT Infrastructure Modernization
Custom Software Development Services
IT Operations and Maintenance Contracts
Housing Information Systems

Risk Flags

Long contract duration may not adapt to technological changes.
Potential for vendor lock-in due to specialized system knowledge.
Reliance on a single vendor for critical system maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $29.5 million to SALIENT FEDERAL SOLUTIONS, INC.. OPERATIONAL SUPPORT AND CORRECTIVE MAINTENANCE FOR F17/CHUMS, F17C/FHAC, AND F11/HCS

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 $29.5 million.

What is the period of performance?

Start: 2011-04-01. End: 2018-11-21.

What is the track record of Salient Federal Solutions, Inc. in delivering similar IT support services to federal agencies?

Salient Federal Solutions, Inc. has a history of performing IT support and custom computer programming services for various federal agencies. Their contract portfolio includes work in areas such as enterprise IT, cloud services, and software development. Analyzing their past performance on similar contracts, particularly those involving system maintenance and operational support, would provide insight into their reliability and technical capabilities. Specific metrics like on-time delivery, adherence to budget, and customer satisfaction ratings from previous engagements are crucial for a comprehensive assessment. While this contract with HUD is for a significant duration, understanding their performance on shorter-term or different types of contracts can help gauge their overall suitability and risk profile.

How does the pricing of this contract compare to similar IT support contracts awarded by HUD or other agencies?

Comparing the pricing of this $29.5 million contract for operational support and corrective maintenance requires detailed analysis of the scope of work, system complexity, and service level agreements. As a firm fixed-price contract awarded under full and open competition with two bidders, it suggests an effort to achieve competitive pricing. However, without access to the specific rates, labor categories, and detailed cost breakdowns, a direct benchmark is difficult. Generally, IT maintenance contracts for specialized government systems can vary significantly based on the technology stack, security requirements, and the criticality of the systems. A thorough comparison would involve analyzing the average annual cost per system supported or per user, relative to industry standards and other government contracts for comparable services.

What are the key performance indicators (KPIs) used to measure the success of this contract?

While specific KPIs are not detailed in the provided data, typical performance indicators for IT operational support and maintenance contracts include system uptime percentages, response times for corrective maintenance, resolution times for reported issues, and adherence to security protocols. For custom computer programming services, KPIs might also encompass software defect rates, successful deployment of updates, and user satisfaction with system performance. The contract likely includes a Service Level Agreement (SLA) that outlines these metrics and potential penalties or incentives tied to performance. HUD's program managers would monitor these KPIs to ensure Salient Federal Solutions, Inc. is meeting its contractual obligations and maintaining the integrity and functionality of the F17/CHUMS, F17C/FHAC, and F11/HCS systems.

What is the historical spending pattern for IT support services related to the F17/CHUMS, F17C/FHAC, and F11/HCS systems prior to this contract?

Historical spending data for IT support related to these specific systems would reveal trends in maintenance costs and contractor performance over time. Analyzing previous contracts awarded for the F17/CHUMS, F17C/FHAC, and F11/HCS systems would indicate whether this $29.5 million contract represents an increase, decrease, or stable level of investment. Understanding past spending patterns can help identify potential cost efficiencies or areas where spending has escalated. It also provides context for the current contract's value, duration, and scope, helping to assess if the current award is aligned with historical needs and budgets. This information is crucial for evaluating the long-term financial commitment and operational strategy for these critical HUD systems.

What are the potential risks associated with the long duration (over 7 years) of this contract?

The extended duration of this contract, spanning from 2011 to 2018, presents several potential risks. Firstly, technology evolves rapidly; systems that are current at the start of a long contract may become outdated, requiring significant adaptation or replacement. Secondly, a long-term relationship with a single vendor can lead to complacency or reduced incentive for innovation from the contractor, as well as potential vendor lock-in for the agency. Thirdly, the fixed-price nature over such a long period might not adequately account for unforeseen cost increases in labor or materials, potentially impacting the contractor's profitability and motivation, or conversely, if costs decrease significantly, the government might be overpaying. Effective contract management, including regular performance reviews and potential for contract modifications, is essential to mitigate these risks.

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Governmentcio LLC (UEI: 080006028)

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: $32,741,830

Exercised Options: $32,741,830

Current Obligation: $29,544,083

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4704G

IDV Type: FSS

Timeline