DoD's $77.8M contract for educational support services awarded to SALIENT FEDERAL-SGIS INC

Contract Overview

Contract Amount: $77,753,137 ($77.8M)

Contractor: Salient Federal-Sgis Inc

Awarding Agency: Department of Defense

Start Date: 2021-03-17

End Date: 2024-05-31

Contract Duration: 1,171 days

Daily Burn Rate: $66.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: RSNF EDUCATIONAL SUPPORT SERVICES

Plain-Language Summary

Department of Defense obligated $77.8 million to SALIENT FEDERAL-SGIS INC for work described as: RSNF EDUCATIONAL SUPPORT SERVICES Key points: 1. Contract value represents a significant investment in specialized educational support. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Contract type (Cost Plus Fixed Fee) may allow for flexibility but requires careful cost oversight. 4. Performance period spans over three years, indicating a long-term need for these services. 5. The award is part of broader Department of Defense efforts to support personnel and their families. 6. Engineering Services NAICS code points to a technical or specialized nature of the support.

Value Assessment

Rating: fair

The total contract value of $77.8 million over approximately three years suggests a substantial investment. Benchmarking this against similar educational support contracts within the Department of Defense is crucial for a precise value-for-money assessment. Without specific per-unit cost data or comparisons to market rates for comparable services, it's difficult to definitively assess if the pricing is competitive or represents excellent value. The Cost Plus Fixed Fee structure necessitates diligent monitoring to ensure costs remain reasonable and aligned with the fixed fee.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, potentially leading to better pricing and service offerings for the government. The number of bidders is not specified, but the 'full and open' designation implies a robust process was intended.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through market forces, potentially driving down costs and improving service quality.

Public Impact

Personnel and their families within the Department of Defense are the primary beneficiaries of these educational support services. Services delivered likely include a range of educational assistance, training, or program management. Geographic impact is likely widespread, covering various military installations or regions where DoD personnel are stationed. Workforce implications may involve the creation or sustainment of jobs for educators, administrators, and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed tightly.
Lack of specific performance metrics in the provided data makes it hard to gauge effectiveness.
The broad nature of 'educational support services' could mask inefficiencies if not clearly defined and monitored.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
Long performance period indicates a sustained and valued service.
Award to a single contractor (SALIENT FEDERAL-SGIS INC) suggests they met all requirements effectively.

Sector Analysis

The contract falls within the broader professional, scientific, and technical services sector, specifically engineering services (NAICS 541330). This sector is characterized by specialized expertise and often involves significant government contracting. The market size for such services within the defense sector is substantial, driven by the need for technical and support functions that cannot be efficiently handled in-house. Comparable spending benchmarks would involve looking at other large-scale support service contracts awarded by the DoD or other federal agencies.

Small Business Impact

The provided data indicates that small business set-asides were not utilized for this contract (ss: false, sb: false). This means the contract was not specifically reserved for small businesses. There is no information on subcontracting plans or their impact on the small business ecosystem. Without specific subcontracting goals or achievements, it's difficult to assess the direct impact on small businesses.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) and the Defense Contract Management Agency (DCMA). Accountability measures are inherent in the Cost Plus Fixed Fee structure, requiring the contractor to justify costs against the fixed fee. Transparency is generally facilitated through contract databases like FPDS, where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Education Activity (DoDEA) Programs
Military Family Support Services
Federal Education and Training Contracts
Professional and Technical Services for Government

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Limited data on specific performance metrics makes assessing effectiveness challenging.
Lack of detail on competition size (number of bidders) limits analysis of price discovery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $77.8 million to SALIENT FEDERAL-SGIS INC. RSNF EDUCATIONAL SUPPORT SERVICES

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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $77.8 million.

What is the period of performance?

Start: 2021-03-17. End: 2024-05-31.

What is the track record of SALIENT FEDERAL-SGIS INC. with similar Department of Defense contracts?

Assessing the track record of SALIENT FEDERAL-SGIS INC. requires a review of their past performance on similar contracts, particularly those involving educational support services or engineering services for the Department of Defense. This would involve examining contract histories for on-time delivery, quality of service, adherence to budget, and any past performance issues or awards. A detailed analysis would look for patterns of successful contract completion, any disputes or terminations, and client feedback. Without access to specific past performance evaluations or a comprehensive contract database beyond the immediate award details, a definitive assessment of their track record is limited. However, securing a contract of this magnitude from the DoD often implies a demonstrated capability and a satisfactory performance history on prior engagements.

How does the awarded amount compare to the estimated value or budget for this service requirement?

The awarded amount of $77,753,136.71 represents the total ceiling value for this Cost Plus Fixed Fee contract. To compare this to the estimated value or budget, one would need access to the government's initial cost estimates or budget allocations for this specific requirement. Often, awarded amounts can be close to, at, or sometimes even below the government's estimate, depending on the competitiveness of the bidding process and market conditions. If the awarded amount is significantly lower than the government's estimate, it could indicate strong competition or efficient contractor proposals. Conversely, if it's higher, it might suggest unforeseen complexities or a less competitive environment. Without the government's internal estimates, this comparison remains speculative.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for educational support services?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for educational support services revolve around cost control and contractor incentive. For the government, the risk is that the contractor may not be sufficiently incentivized to control costs, as the government agrees to cover all allowable costs plus a fixed fee. This can lead to potential cost overruns if the contractor's actual costs exceed projections, even though the fee remains fixed. The government must implement robust oversight to ensure all costs are allowable, reasonable, and allocable. For the contractor, the risk lies in accurately estimating costs to ensure the fixed fee provides adequate profit margin. If costs are underestimated, the contractor may incur a loss. Effective risk mitigation involves clear definition of allowable costs, rigorous monitoring, and strong communication between the government and contractor.

What is the expected impact of these educational support services on military readiness or personnel retention?

Educational support services are generally intended to enhance military readiness and personnel retention by addressing the educational needs of service members and their families. For service members, access to educational opportunities can improve morale, provide pathways for professional development, and contribute to skill enhancement, indirectly supporting readiness. For families, particularly children of service members who frequently relocate, these services can provide stability and continuity in education, reducing stress and improving overall well-being. This, in turn, can positively influence retention rates, as personnel are more likely to remain in service when their families' needs are met. The specific impact would depend on the nature and quality of the services provided under this contract.

How has federal spending on engineering and educational support services evolved over the past five years?

Analyzing the evolution of federal spending on engineering and educational support services over the past five years requires access to historical federal procurement data. Generally, spending in these categories can fluctuate based on defense priorities, economic conditions, and specific program needs. Engineering services spending often correlates with infrastructure projects, defense modernization, and research and development initiatives. Educational support services spending might increase during periods of heightened focus on personnel welfare, family support programs, or specific training mandates. A detailed trend analysis would involve aggregating contract data for relevant NAICS codes (like 541330 for Engineering Services) and service descriptions across different agencies to identify patterns, growth, or contraction in overall federal investment in these areas.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0018919R3037

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Skillstorm Commercial Services LLC

Address: 8255 GREENSBORO DR STE 400, MCLEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $79,558,128

Exercised Options: $79,494,525

Current Obligation: $77,753,137

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $1,345,707

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017814D8041

IDV Type: IDC

Timeline