Interior's $29M TAAMS Software Contract Awarded to CGI Federal Inc. with No Competition
Contract Overview
Contract Amount: $29,020,572 ($29.0M)
Contractor: CGI Federal Inc.
Awarding Agency: Department of the Interior
Start Date: 2023-05-01
End Date: 2026-04-30
Contract Duration: 1,095 days
Daily Burn Rate: $26.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: OTS 410_2023_TAAMS_LICENSES&SUPPORT
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87104
Plain-Language Summary
Department of the Interior obligated $29.0 million to CGI FEDERAL INC. for work described as: OTS 410_2023_TAAMS_LICENSES&SUPPORT Key points: 1. The contract for TAAMS licenses and support represents a significant investment in IT infrastructure. 2. CGI Federal Inc. is the sole awardee, raising questions about competitive pricing. 3. The lack of competition poses a risk to achieving best value for taxpayers. 4. The IT sector is characterized by rapid innovation, making long-term sole-source contracts potentially problematic.
Value Assessment
Rating: questionable
The contract value of $29 million over three years for software licenses and support needs careful benchmarking against similar government IT contracts. Without competitive bids, it's difficult to ascertain if this pricing reflects fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method bypasses the competitive process, potentially limiting price discovery and the opportunity for other vendors to offer innovative solutions or better pricing.
Taxpayer Impact: The absence of competition may lead to higher costs for taxpayers than if the contract had been awarded through a competitive bidding process.
Public Impact
Taxpayers may be overpaying for TAAMS software licenses and support due to the lack of competition. The Bureau of Indian Affairs and Bureau of Indian Education rely on this system, making its cost and effectiveness crucial. Future IT procurements could be influenced by this sole-source award, potentially reducing competitive opportunities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Sole-source award
Positive Signals
- Contract supports critical government functions
- Firm fixed price contract provides cost certainty
Sector Analysis
This contract falls within the IT services sector, specifically custom computer programming. Spending in this area is substantial across government, with benchmarks varying widely based on the complexity and criticality of the software and support required.
Small Business Impact
The awardee, CGI Federal Inc., is a large business. There is no indication that small businesses were involved in this specific procurement, either as prime contractors or subcontractors.
Oversight & Accountability
Oversight is crucial to ensure that the services provided under this sole-source contract meet the needs of the Bureau of Indian Affairs and Bureau of Indian Education and that the pricing remains reasonable throughout the contract term.
Related Government Programs
- Custom Computer Programming Services
- Department of the Interior Contracting
- Bureau of Indian Affairs and Bureau of Indian Education Programs
Risk Flags
- Lack of competitive bidding may result in inflated costs.
- Sole-source awards can stifle innovation from other vendors.
- Potential for vendor lock-in and reduced negotiating leverage.
- Insufficient transparency regarding the justification for sole-source award.
Tags
custom-computer-programming-services, department-of-the-interior, nm, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $29.0 million to CGI FEDERAL INC.. OTS 410_2023_TAAMS_LICENSES&SUPPORT
Who is the contractor on this award?
The obligated recipient is CGI FEDERAL INC..
Which agency awarded this contract?
Awarding agency: Department of the Interior (Bureau of Indian Affairs and Bureau of Indian Education).
What is the total obligated amount?
The obligated amount is $29.0 million.
What is the period of performance?
Start: 2023-05-01. End: 2026-04-30.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing without competition?
The justification for a sole-source award typically involves unique capabilities or circumstances where only one vendor can meet the requirement. Agencies must still conduct market research and negotiate pricing to ensure it is fair and reasonable, often by comparing to historical data or commercial pricing for similar services. Documentation of this process is key to accountability.
How does the per-unit cost of TAAMS licenses and support compare to industry benchmarks for similar software and IT support services?
Without specific per-unit cost data and detailed service level agreements, a direct comparison is challenging. However, the overall contract value of $29 million for three years suggests a significant investment. Benchmarking would require analyzing the specific functionalities, user base, and support levels against commercially available or government-wide contract offerings.
What is the long-term strategy for TAAMS software, and will future needs be met through competitive procurements to ensure better value?
The long-term strategy for critical software like TAAMS is vital. Agencies should plan for future requirements, including potential upgrades or replacements, with a focus on fostering competition. This ensures that the government can leverage market dynamics to obtain the best possible value and access innovative solutions over time.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 140A1623F0056
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: THE Timken Company
Address: 12601 FAIR LAKES CIR, FAIRFAX, VA, 22033
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $29,020,572
Exercised Options: $29,020,572
Current Obligation: $29,020,572
Actual Outlays: $26,535,204
Subaward Activity
Number of Subawards: 16
Total Subaward Amount: $1,722,462
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 140A1621D0008
IDV Type: IDC
Timeline
Start Date: 2023-05-01
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2026-01-21
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