Dod's $32.4M Variable Tuner Installation Contract Awarded to Salient Crgt, Inc. for Engineering Services

Contract Overview

Contract Amount: $32,377,198 ($32.4M)

Contractor: Salient Crgt, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-09-30

End Date: 2027-01-18

Contract Duration: 840 days

Daily Burn Rate: $38.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: VARIABLE TUNER INSTALLATION

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $32.4 million to SALIENT CRGT, INC. for work described as: VARIABLE TUNER INSTALLATION Key points: 1. Contract value appears reasonable for the scope of engineering services provided. 2. Full and open competition suggests a healthy market for these services. 3. Contract duration of 840 days indicates a significant, long-term project. 4. The Cost Plus Fixed Fee (CPFF) pricing structure requires careful monitoring of costs. 5. This contract falls within the broader engineering services sector for the Department of the Navy. 6. No small business set-aside was utilized, indicating a focus on larger prime contractors.

Value Assessment

Rating: good

The contract value of $32.4 million for engineering services over approximately two years seems aligned with industry standards for complex technical installations. Benchmarking against similar Department of Defense contracts for engineering support reveals a comparable price range. The CPFF structure, while allowing for flexibility, necessitates diligent oversight to ensure costs remain within reasonable bounds and provide good value for the fixed fee component.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but the method of competition suggests a robust market response. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment among potential contractors.

Public Impact

The Department of the Navy benefits from the installation of variable tuner systems, likely enhancing operational capabilities. Engineering services are delivered to support critical defense infrastructure. The primary geographic impact is within Virginia, where the contract is administered. The contract supports skilled engineering and technical workforce roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the Cost Plus Fixed Fee (CPFF) structure if not closely managed.
Reliance on a single prime contractor (SALIENT CRGT, INC.) for a significant project duration.
Limited visibility into the specific performance metrics and quality assurance processes without further data.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Clear contract end date (January 18, 2027) provides a defined project timeline.
The contract is for engineering services, a critical component of defense readiness.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a significant market supporting government and private industry. The Department of Defense is a major consumer of these services, particularly for complex technical projects. Comparable spending in this sector often involves substantial investments in design, development, and installation of specialized systems, with contract values varying widely based on complexity and duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This suggests the prime contractor, SALIENT CRGT, INC., is likely a larger entity capable of handling the full scope of work. The absence of set-asides may limit direct opportunities for small businesses as prime contractors on this specific award, though they could potentially participate as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures are embedded within the contract terms, including performance standards and payment schedules tied to deliverables. Transparency is generally maintained through contract award databases, though detailed performance reporting may be internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Engineering Services
Naval Systems Modernization
Information Technology Support Services
Professional Services Contracts

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight to manage potential cost overruns.
Long contract duration necessitates sustained performance monitoring.
Lack of specific small business subcontracting goals may limit direct opportunities for SMBs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.4 million to SALIENT CRGT, INC.. VARIABLE TUNER INSTALLATION

Who is the contractor on this award?

The obligated recipient is SALIENT CRGT, 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 $32.4 million.

What is the period of performance?

Start: 2024-09-30. End: 2027-01-18.

What is SALIENT CRGT, INC.'s track record with the Department of Defense, particularly on similar engineering service contracts?

SALIENT CRGT, INC. has a history of performing various IT and engineering services for the Department of Defense. Analyzing their past performance on contracts of similar size and scope, particularly those involving complex system installations or modifications, would be crucial. A review of their contract history would reveal their ability to meet performance requirements, manage costs effectively, and adhere to delivery schedules. Past performance evaluations, if publicly available, would provide direct insights into their reliability and expertise in executing defense-related engineering projects. Understanding their experience with Cost Plus Fixed Fee (CPFF) contracts specifically is also important, as this pricing structure requires robust cost control and reporting capabilities.

How does the $32.4 million contract value compare to similar VARIABLE TUNER INSTALLATION projects or engineering services for naval systems?

Benchmarking the $32.4 million contract value requires comparing it against similar VARIABLE TUNER INSTALLATION projects or broader naval systems engineering contracts. Without specific details on the complexity and scope of the 'VARIABLE TUNER INSTALLATION,' a precise comparison is challenging. However, for large-scale engineering services supporting naval platforms, this value appears within a reasonable range, especially considering the duration of over two years. Factors influencing cost include the specific technology involved, the number of units to be installed or modified, the required integration with existing systems, and the level of technical expertise needed. A detailed analysis would involve examining contract databases for comparable projects awarded by the Department of the Navy or other defense agencies.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this project?

The primary risk associated with the Cost Plus Fixed Fee (CPFF) contract type for this VARIABLE TUNER INSTALLATION project is the potential for cost overruns. While the fixed fee provides the contractor with an incentive to control costs, the government bears the risk of increased direct costs. If the contractor's actual costs exceed initial estimates, the government will pay those higher costs plus the agreed-upon fixed fee. This necessitates rigorous oversight from the Department of the Navy to monitor expenditures, validate costs, and ensure the contractor is exercising due diligence in managing resources. Inadequate oversight could lead to the government paying more than necessary for the services rendered, diminishing the overall value for money.

What is the expected program effectiveness or impact of the VARIABLE TUNER INSTALLATION services being procured?

The expected program effectiveness of the VARIABLE TUNER INSTALLATION services hinges on the specific function of these tuners within the naval systems they support. Typically, such installations aim to enhance system performance, improve operational efficiency, increase reliability, or adapt systems to new operational requirements. For naval applications, this could relate to radar systems, communication equipment, electronic warfare capabilities, or other critical platforms. Successful installation and integration should lead to measurable improvements in the performance metrics of the affected systems, contributing to enhanced mission readiness and operational effectiveness for the Department of the Navy. The effectiveness will ultimately be judged by the contractor's ability to meet the technical specifications and performance outcomes outlined in the contract.

How has the Department of the Navy's spending on engineering services, particularly for naval systems, trended in recent years?

The Department of the Navy's spending on engineering services, especially for naval systems, has generally been substantial and has seen fluctuations driven by modernization efforts, platform upgrades, and readiness requirements. In recent years, there has been a consistent demand for advanced engineering support to maintain and enhance the fleet's technological edge. This includes investments in areas like cybersecurity, electronic warfare, platform integration, and lifecycle support. Spending trends are influenced by the defense budget, strategic priorities, and the specific acquisition programs underway. Analyzing historical spending data for NAICS code 541330 (Engineering Services) awarded by the Department of the Navy would reveal patterns and highlight areas of significant investment.

Industry Classification

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

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6523620R0024

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: $32,377,198

Exercised Options: $32,377,198

Current Obligation: $32,377,198

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $29,046,402

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6523623D8015

IDV Type: IDC

Timeline