DoD Awards $27.2M Contract for Educational Support Services to Salient CRGT, Inc
Contract Overview
Contract Amount: $27,199,794 ($27.2M)
Contractor: Salient Crgt, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-06-01
End Date: 2025-05-31
Contract Duration: 364 days
Daily Burn Rate: $74.7K/day
Competition Type: NOT COMPETED
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 $27.2 million to SALIENT CRGT, INC. for work described as: RSNF EDUCATIONAL SUPPORT SERVICES Key points: 1. Contract value of $27.2 million for one year. 2. Salient CRGT, Inc. is the sole awardee. 3. The contract is for educational support services. 4. This is a definitive contract type.
Value Assessment
Rating: fair
The contract value of $27.2 million for a one-year period appears high for educational support services. Benchmarking against similar contracts is difficult without more specific service details, but the per-unit cost of $74,725 seems elevated.
Cost Per Unit: $74,725
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating a lack of full and open competition. This method may limit price discovery and potentially lead to higher costs for the government.
Taxpayer Impact: The sole-source award for a significant sum raises concerns about taxpayer value and whether a more competitive process could have secured better pricing.
Public Impact
Taxpayers may be paying a premium due to the lack of competition. The specific educational services provided are not detailed, making it hard to assess direct public benefit. The Department of Defense is utilizing significant resources for support services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- High per-unit cost.
- Lack of detailed service description.
Positive Signals
- Contract awarded to a single entity.
- Definitive contract for a set period.
Sector Analysis
Educational Support Services fall under professional, scientific, and technical services. Spending in this sector can vary widely based on the specific nature of the services, but a $27.2 million award for a single year warrants scrutiny for efficiency.
Small Business Impact
The award was not made to a small business. There is no indication of subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The sole-source nature of this award suggests limited oversight in the initial procurement phase. Further oversight will be needed to ensure the services are delivered effectively and at a reasonable cost.
Related Government Programs
- Educational Support Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award raises competition concerns.
- High per-unit cost requires justification.
- Lack of transparency on specific services provided.
- Potential for taxpayer funds to be used inefficiently.
Tags
educational-support-services, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.2 million to SALIENT CRGT, INC.. RSNF EDUCATIONAL SUPPORT SERVICES
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 Contract Management Agency).
What is the total obligated amount?
The obligated amount is $27.2 million.
What is the period of performance?
Start: 2024-06-01. End: 2025-05-31.
What specific educational support services are being procured under this contract, and how do they align with the Department of Defense's mission objectives?
The contract specifies 'Educational Support Services' under NAICS code 611710. While the exact nature of these services is not detailed in the provided data, they likely pertain to training, curriculum development, or educational program management for military personnel or their families. The alignment with DoD mission objectives would depend on whether these services directly support readiness, personnel development, or family support programs critical to military operations.
Given the sole-source award and the high per-unit cost, what steps are being taken to mitigate potential cost overruns and ensure value for taxpayer money?
As a Cost Plus Fixed Fee contract, the contractor is reimbursed for allowable costs plus a fixed fee. To mitigate cost overruns, the Defense Contract Management Agency (DCMA) should closely monitor allowable costs and the contractor's performance. Regular reviews of the fixed fee and the overall contract value against deliverables are crucial to ensure value for taxpayer money, especially in the absence of competitive pressure.
What is the justification for awarding this contract on a sole-source basis, and what is the long-term strategy for acquiring these educational support services?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of other responsible sources. Without further information, it's unclear why Salient CRGT, Inc. was the only viable option. The long-term strategy might involve transitioning to a competitive procurement in the future, depending on market conditions and evolving DoD requirements for educational support.
Industry Classification
NAICS: Educational Services › Educational Support Services › Educational Support Services
Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0018924RZ045
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: $27,199,794
Exercised Options: $27,199,794
Current Obligation: $27,199,794
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $3,302,647
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-06-01
Current End Date: 2025-05-31
Potential End Date: 2025-05-31 00:00:00
Last Modified: 2025-10-02
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