DoD's $209M IT Services Contract with Salient CRGT: A 15-Year Engagement
Contract Overview
Contract Amount: $20,941,449 ($20.9M)
Contractor: Salient Crgt, Inc.
Awarding Agency: Department of Defense
Start Date: 2003-06-04
End Date: 2008-05-18
Contract Duration: 1,810 days
Daily Burn Rate: $11.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COMBINATION (TWO OR MORE)
Sector: IT
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $20.9 million to SALIENT CRGT, INC. for work described as: Key points: 1. Significant long-term IT infrastructure and hosting services valued at $209.4M. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract spans 15 years, raising questions about adaptability to evolving tech needs. 4. Services fall under the Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services sector.
Value Assessment
Rating: fair
The contract's total value is $209.4M over 15 years. Without specific per-unit cost data or comparison points for similar long-term, comprehensive IT infrastructure contracts, a precise value assessment is challenging. The extended duration may suggest a stable, albeit potentially less agile, pricing structure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust process for price discovery and selection of the most advantageous offer. This method typically leads to more competitive pricing compared to limited or sole-source procurements.
Taxpayer Impact: The competitive award process likely ensured a reasonable price for taxpayers over the contract's long lifespan, although the total expenditure is substantial.
Public Impact
Ensures continuity of critical IT infrastructure and data processing for the Department of Defense. Supports essential government operations through reliable web hosting and related services. The long duration could impact the adoption of newer, potentially more cost-effective technologies. Potential for vendor lock-in over the 15-year period.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (15 years) may lead to outdated technology or missed cost-saving opportunities.
- Lack of specific performance metrics or cost breakdowns makes detailed value assessment difficult.
- Potential for scope creep over such an extended period.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Provides essential IT services to a critical government agency.
- Long-term contract provides stability for service delivery.
Sector Analysis
This contract falls within the IT sector, specifically focusing on computing infrastructure, data processing, and web hosting. Spending in this area is crucial for government operations, with benchmarks varying widely based on the scope and duration of services provided.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. The primary awardee is Salient CRGT, Inc., a mid-sized business. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract's long duration necessitates ongoing oversight to ensure performance, manage scope, and adapt to technological advancements. Without specific oversight reports, it's difficult to assess the effectiveness of accountability mechanisms.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of Defense Contracting
- Washington Headquarters Services Programs
Risk Flags
- Long contract duration (15 years) increases risk of technological obsolescence.
- Potential for vendor lock-in over an extended period.
- Lack of detailed cost breakdown hinders precise value-for-money assessment.
- Limited insight into ongoing performance and oversight effectiveness.
Tags
computing-infrastructure-providers-data-, department-of-defense, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.9 million to SALIENT CRGT, INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is SALIENT CRGT, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Washington Headquarters Services).
What is the total obligated amount?
The obligated amount is $20.9 million.
What is the period of performance?
Start: 2003-06-04. End: 2008-05-18.
What is the total cost per year for these IT services, and how does it compare to industry averages for similar managed services?
The total contract value is $209.4 million over approximately 15 years (1810 days). This averages to roughly $13.96 million per year. Comparing this to industry averages is difficult without knowing the specific service level agreements, infrastructure managed, and geographic locations. However, for comprehensive IT infrastructure, data processing, and hosting, this annual figure could be within a reasonable range if it includes significant hardware, software, and personnel costs.
What are the risks associated with a 15-year contract for IT services, particularly regarding technological obsolescence and vendor lock-in?
A 15-year term for IT services presents significant risks. Technology evolves rapidly, and services contracted today may be outdated or inefficient in five years, let alone fifteen. This can lead to paying for suboptimal solutions. Vendor lock-in is also a concern, as switching providers after such a long period can be costly and disruptive, potentially reducing leverage for renegotiation or competitive bidding.
How effectively has the Department of Defense managed this contract to ensure value and adapt to changing IT needs over its 15-year duration?
Assessing the effectiveness of management is challenging without specific oversight reports or performance reviews. Key indicators would include whether the services remained relevant and cost-effective throughout the period, if contract modifications were managed judiciously, and if the DoD actively sought opportunities to leverage new technologies or renegotiate terms. The long duration suggests a need for proactive management to mitigate risks.
Industry Classification
NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and 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: COMBINATION (TWO OR MORE) (2)
Evaluated Preference: NONE
Contractor Details
Address: 8150 LEESBURG PIKE # 405, VIENNA, VA, 11
Business Categories: Category Business, Small Business
Parent Contract
Parent Award PIID: GS35F4786H
IDV Type: FSS
Timeline
Start Date: 2003-06-04
Current End Date: 2008-05-18
Potential End Date: 2008-05-18 00:00:00
Last Modified: 2009-06-07
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