DoD's $101M GCTC III Contract Awarded to Salient Federal Solutions Raises Questions on Competition and Value
Contract Overview
Contract Amount: $101,256,636 ($101.3M)
Contractor: Salient Federal Solutions, Inc.
Awarding Agency: Department of Defense
Start Date: 2015-04-15
End Date: 2025-08-12
Contract Duration: 3,772 days
Daily Burn Rate: $26.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF GLOBAL COMMAND TERRESTRIAL COMMUNICATIONS (GCTC) III
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $101.3 million to SALIENT FEDERAL SOLUTIONS, INC. for work described as: IGF::OT::IGF GLOBAL COMMAND TERRESTRIAL COMMUNICATIONS (GCTC) III Key points: 1. The contract's large value ($101M) warrants scrutiny, especially given its R&D focus. 2. Salient Federal Solutions is the sole awardee, indicating a lack of broader competition. 3. The 'Research and Development' NAICS code suggests potential for innovation but also higher risk. 4. The 'Defense' sector often involves complex, high-value contracts requiring robust oversight.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed tightly. Benchmarking R&D contracts is inherently difficult due to unique project scopes, but the lack of competition raises concerns about achieving optimal value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning no other vendors were considered. This significantly limits price discovery and potentially prevents the government from securing the best possible pricing through competitive bidding.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying more than necessary for the research and development services provided.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The long duration (2015-2025) suggests a significant, ongoing investment of federal funds. The sole-source nature limits opportunities for small businesses to participate in this contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of transparency in pricing
Positive Signals
- Contract supports critical R&D for defense
- Long-term contract provides stability
Sector Analysis
This contract falls within the Defense sector, specifically focusing on Research and Development. Defense R&D contracts are often complex and high-value, with spending benchmarks varying widely based on the specific technological area and project scope.
Small Business Impact
The contract was not set aside for small businesses, and the sole-source award mechanism further limits opportunities for small business participation. This suggests that larger, established contractors are likely performing the work.
Oversight & Accountability
The sole-source nature of this contract necessitates strong oversight from the Defense Contract Management Agency (DCMA) to ensure cost control and adherence to the contract's objectives. Regular audits and performance reviews are crucial for accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition.
- Cost-plus contract type carries inherent cost overrun risk.
- Lack of transparency in pricing due to sole-source nature.
- Potential for reduced value for taxpayer dollars without competition.
Tags
research-and-development-in-the-physical, department-of-defense, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $101.3 million to SALIENT FEDERAL SOLUTIONS, INC.. IGF::OT::IGF GLOBAL COMMAND TERRESTRIAL COMMUNICATIONS (GCTC) III
Who is the contractor on this award?
The obligated recipient is SALIENT FEDERAL SOLUTIONS, 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 $101.3 million.
What is the period of performance?
Start: 2015-04-15. End: 2025-08-12.
What specific R&D advancements has this contract enabled, and how do they justify the sole-source award and associated costs?
The justification for a sole-source award typically hinges on unique capabilities or critical national security needs that only one contractor can meet. For R&D, this could involve proprietary technology, specialized expertise, or ongoing developmental phases that would be disrupted by switching vendors. The specific advancements would need to be detailed in the contract's justification and approval (J&A) document, demonstrating a clear return on investment for the taxpayer in terms of technological superiority or mission capability.
How are the costs under this Cost Plus Fixed Fee (CPFF) contract being monitored to prevent potential overruns and ensure fair pricing?
Under a CPFF contract, the government pays the contractor's allowable costs plus a fixed fee representing profit. Monitoring involves rigorous auditing of incurred costs, ensuring they are reasonable, allocable, and allowable per federal acquisition regulations. DCMA plays a key role in this oversight, reviewing invoices, performing forward pricing rate analyses, and conducting audits to verify costs. Regular performance reviews also help identify potential cost drivers early.
What is the long-term strategy for competition or transition once this contract expires, to ensure future value for the government?
Given the contract's long duration and sole-source nature, a forward-looking strategy is essential. This might involve market research to identify potential competitors for future needs, breaking down the requirement into smaller, more competitive lots, or developing government in-house capabilities. Planning for transition should begin well before the contract's end to ensure continuity of essential services while maximizing future competition and cost savings.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 4000 LEGATO ROAD 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: $101,256,636
Exercised Options: $101,256,636
Current Obligation: $101,256,636
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-04-15
Current End Date: 2025-08-12
Potential End Date: 2025-08-12 00:00:00
Last Modified: 2025-10-10
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