Salient CRGT is a competitor gaining increasingly more attention with its continued aggressive pursuit of larger contracts. Their leadership and capture/business development team with backgrounds from the largest of U.S. Government contractors (such as General Dynamics Information Technology) has enhanced the profile of Salient CRGT as a competitor to know.
Headquartered in Fairfax, VA, Salient CRGT is a 2,000+ employee strong technology and professional services company providing health IT, data analytics, cloud, software development, cyber security, and IT infrastructure services.
What makes up Salient CRGT?
The entity known as Salient CRGT was brought together in August 2015 through the merger of Salient Federal Solutions and CRGT. Salient CRGT is jointly owned by two private equity firms: Bridge Growth Partners (previously holding CRGT) and Frontenac (previously holding Salient Federal Solutions).
Salient CRGT is a company built on a series of acquisitions instead of organic growth. Note Figure 1 illustrating the series of M & A actions leading to the Salient CRGT we know today.
Figure 1- Salient CRGT’s Merger and Acquisition history from 2010 through August 2019
Although both legacy Salient Federal Solutions and CRGT engaged in aggressive buying between 2010 and 2014, the only acquisition the company has made since becoming the combined Salient CRGT is Information Innovators Inc (Triple-I). The Triple-I business was acquired in March 2017. The Triple-I purchase added health IT and some major contracts to the Salient CRGT backlog.
Who are Salient CRGT’s primary U.S. Government customers?
Figure 2 – Salient CRGT’s top government customers based on prime federal obligations from FY2014 through FY 2018
The graphic above shows Salient CRGT’s top federal customers for the past five full U.S. Government fiscal years. While the list is dominated by Federal Civilian (FEDCIV) agencies, note that the U.S. Army is the company’s largest prime customer by contract obligations.
The company’s primary U.S. Army contract is the Global Command Terrestrial Communications (GCTC) Salient CRGT has been the prime incumbent for three iterations of this contract—the most recent of which was awarded as a sole source in April 2018. Through legacy Salient Federal, they have provided installation, maintenance, and modernization support for strategic terrestrial communication transmission systems. Salient CRGT was obligated $101 million on the previous 3-year GCTC III contract that ended in 2018. The current 23-month GCTC IV sole source follow-on has received $59 in obligations and will end in March 2020.
However, the GCTC is not indicative of the rest of their contract work. Analysis of their FEDCIV portfolio, there is a consistent theme of IT services and software development.
- As part of the Triple-I acquisition, Salient CRGT gained the 5-year contract with $150 million obligated value U.S. Citizenship and Immigration Services’ National Area and Transnational IT Operations and Next Generation Support (NATIONS) program. With the contract expiring in September 2019 (although it is likely to be extended), Salient CRGT will be bracing itself to fight for the upcoming recompete, which will be under the new Technology Operations and Support (TOAST) acronym.
- For the U.S. Patent and Trademark Office, the company provides software development and data management, and help desk support under the Software Development and Integration – Next Generation (SDI-NG) and Enterprise-wide Data Warehouse (EDW) contracts. These come from Salient Federal’s legacy LIST acquisition and CRGT’s legacy Guident acquisition respectively. SDI-NG’s bridge contract will come to a close in March 2020, with $151 million in total obligations to date. EDW has been obligated $24 million over its 5-year period of performance and will expire in July 2020.
- The entirety of Salient CRGT’s prime U.S. Department of Veterans Affairs work comes from Triple-I. This includes a very healthy VA T4 and T4NG task order portfolio with $258 million in obligations across T4 and T4NG. The defining task order within it all is the Network Engineering, Design, Implementation and Infrastructure Support (NEDIIS) contract for data center, service desk, network operations, and network security support. This task order and the follow-on awarded in 2016 make up over 80% the company’s total T4 and T4NG obligations. The company has not won any new task orders since legacy Triple-I was acquired and the contract was off ramped from the SDVOSB track onto the Full and open track.
You may have noticed that these contracts are all hold-overs and recompetes from legacy acquisition. One noteworthy exception is the U.S. Government Accountability Office (GAO) IT Operations, Engineering and Enhancement Support Services (OEESS) win in May 2019. The 5-year, potential $115 million contract is the company’s first ever GAO prime award. Interestingly enough, this opportunity is a takeaway from legacy CSRA. This award is enduring the ever typical array of protests (multiple protests in this case) against the OEESS award. The ultimate fate of Salient CRGT’s new win is yet to be determined until protests are resolved.
The FedSavvy Strategies take:
- They have leveraged key hires by such as Rebecca Miller of legacy CSRA to lead their Health & Civilian Agencies Division in July 2018. As part of the personnel exodus from the acquisition of CSRA by GDIT, Salient CRGT added several legacy ex-CSRA GovCon veterans who now hold business development and executive leadership roles within the company.
- Based on a likely trajectory towards a sale of Salient CRGT, they may very well be very aggressive in pursuing U.S. Government contracts. This motive is likely to influence how and what Salient CRGT executes new business growth strategies. They have been successful in defending contracts…
- They have successfully defended existing FEDCIV work, winning the 5-year, $37 million Office of Personnel Management (OPM) CASE Processing Operations contract, as well as the Pension Benefit Guaranty Corporation (PBGC)’s Actuarial Technology Support Services (ATSS) and Participant Management Technology Services (PMTS) contracts (which both hold a 10-year period of performance and $100 million ceiling).
- Salient CRGT has invested in building their IT services and agile capabilities through their internal Innovation Centers. Notably, this includes the Digital Service Innovation Center, which houses the company’s robust agile services offerings – to include their Agile Readiness Center, Agile Development Teams, and Agile Development Centers.
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