Interior Department awards $5.8M IT services contract to CGI Federal Inc. for operations support

Contract Overview

Contract Amount: $5,806,330 ($5.8M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of the Interior

Start Date: 2025-12-12

End Date: 2026-12-31

Contract Duration: 384 days

Daily Burn Rate: $15.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: FINANCIAL MANAGEMENT INFORMATION TECHNOLOGY SERVICES - OPERATIONS SUPPORT AND CONTINUOUS PRODUCT IMPROVEMENT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Interior obligated $5.8 million to CGI FEDERAL INC. for work described as: FINANCIAL MANAGEMENT INFORMATION TECHNOLOGY SERVICES - OPERATIONS SUPPORT AND CONTINUOUS PRODUCT IMPROVEMENT Key points: 1. Contract focuses on IT operations support and continuous product improvement, indicating a need for ongoing system maintenance and enhancement. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract type is Time and Materials, which can pose cost control risks if not managed carefully. 4. The duration of the contract is 384 days, with an end date in late 2026. 5. The North American Industry Classification System (NAICS) code 541519 points to 'Other Computer Related Services', a broad category. 6. The contract is a BPA Call, indicating it's a call order against a previously established Blanket Purchase Agreement.

Value Assessment

Rating: fair

The contract value of $5.8 million for approximately 13 months of IT operations support appears within a reasonable range for such services. However, without specific details on the scope of work and the deliverables, a precise value-for-money assessment is challenging. The Time and Materials (T&M) pricing structure introduces inherent risk, as costs can escalate if not closely monitored. Benchmarking against similar T&M IT support contracts would be necessary for a more definitive evaluation of cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This approach is generally favored for maximizing competition and potentially achieving better pricing and service quality. The specific number of bidders is not provided, but the 'full and open' designation implies a robust competitive environment was intended.

Taxpayer Impact: A competitive bidding process like 'full and open' is beneficial for taxpayers as it typically drives down prices and encourages innovation among contractors, leading to better use of public funds.

Public Impact

The Department of the Interior's various offices will benefit from improved IT operations and product enhancements. Services delivered include ongoing support and continuous product improvement for IT systems. The contract is geographically focused on the District of Columbia, where the Department of the Interior is headquartered. The contract supports the IT workforce within CGI Federal Inc. and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not managed diligently.
The broad NAICS code (541519) may indicate a wide range of potential services, making it harder to define specific performance metrics.
Lack of specific performance metrics or Service Level Agreements (SLAs) in the provided data makes it difficult to assess performance outcomes.
The BPA Call mechanism, while efficient, relies on the quality of the underlying BPA and its pricing.

Positive Signals

Awarded under full and open competition, indicating a competitive process that should yield fair pricing.
The contract aims to ensure continuous product improvement, suggesting a focus on modernizing and enhancing IT systems.
The contractor, CGI Federal Inc., is a known entity in the federal IT services space.
The contract has a defined end date, providing a clear timeframe for the services.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on IT operations support and product improvement. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract represents a small portion of the overall federal IT spending, likely supporting critical back-office functions for the Department of the Interior. Comparable spending benchmarks would typically involve analyzing other contracts for IT operations and maintenance services across various federal agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, CGI Federal Inc., may choose to subcontract portions of the work to small businesses as part of its overall business strategy, though this is not mandated by the contract terms as presented.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Interior. Accountability measures would be defined in the contract's Statement of Work (SOW) and performance standards. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. Specific Inspector General (IG) jurisdiction would depend on the nature of any potential issues or audits related to the contract's performance or financial management.

Related Government Programs

Department of the Interior IT Support Contracts
Federal IT Operations and Maintenance Services
Time and Materials IT Contracts
BPA Call Awards
CGI Federal Inc. Contracts

Risk Flags

Time and Materials Pricing Risk
Potential for Scope Creep
Broad NAICS Code Ambiguity
Limited Performance Data Provided

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $5.8 million to CGI FEDERAL INC.. FINANCIAL MANAGEMENT INFORMATION TECHNOLOGY SERVICES - OPERATIONS SUPPORT AND CONTINUOUS PRODUCT IMPROVEMENT

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 (Departmental Offices).

What is the total obligated amount?

The obligated amount is $5.8 million.

What is the period of performance?

Start: 2025-12-12. End: 2026-12-31.

What is the track record of CGI Federal Inc. in delivering IT operations support services to the federal government?

CGI Federal Inc. has a significant history of providing IT services to various U.S. federal agencies. They are a well-established contractor with numerous awards across different departments, including IT modernization, cybersecurity, cloud services, and application development. Their experience often includes managing complex IT infrastructures and supporting critical government operations. Analyzing their past performance on similar Time and Materials contracts, particularly those involving operations support and continuous product improvement, would provide insight into their reliability, efficiency, and ability to manage costs effectively. Past performance reviews and contract close-out data from federal procurement databases can offer a more detailed picture of their track record.

How does the $5.8 million value compare to similar IT operations support contracts awarded by the Department of the Interior or other agencies?

The $5.8 million value for approximately 13 months of IT operations support is moderate within the federal IT services landscape. To benchmark effectively, one would compare this contract's value against other 'full and open' competition, Time and Materials contracts for similar NAICS codes (like 541519) and service scopes (operations support, product improvement). The Department of the Interior, like many large agencies, procures a wide range of IT services, from small, specialized support tasks to large-scale system overhauls. A comparison would need to account for contract duration, specific deliverables, and the complexity of the systems being supported. Without more granular data on the scope of work, precise comparisons are difficult, but this award appears to be for a focused, ongoing support function rather than a major system implementation.

What are the primary risks associated with the Time and Materials (T&M) contract type for this IT services award?

The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns, as the government pays for the actual labor hours and materials used, plus a fixed fee or percentage. Unlike fixed-price contracts, T&M offers less cost certainty. For this IT operations support contract, risks include inefficient labor utilization, scope creep where tasks expand beyond the original intent without formal modification, and potentially inflated material costs if not properly managed. Effective oversight, detailed tracking of hours and expenses, and clear definitions of what constitutes a 'billable hour' or 'material' are crucial to mitigate these risks. The government must actively manage the contractor's performance and resource allocation to ensure value for money.

How does the 'full and open competition' award mechanism impact the potential effectiveness and cost of these IT services?

Awarding the contract under 'full and open competition' is intended to maximize the pool of potential bidders, thereby fostering a competitive environment. This typically leads to better pricing, higher quality services, and increased innovation as contractors vie for the award. For the Department of the Interior's IT operations support, this means taxpayers are more likely to receive services at a competitive market rate. The effectiveness is enhanced as the agency can select the vendor best suited to meet its specific technical requirements and performance expectations. The challenge lies in ensuring the solicitation is well-defined to attract qualified bidders and that the evaluation criteria accurately assess both technical capability and cost-effectiveness.

What are the historical spending patterns for IT operations support within the Department of the Interior's 'Departmental Offices'?

Analyzing historical spending patterns for IT operations support within the Department of the Interior's 'Departmental Offices' (SA: Departmental Offices) would reveal trends in IT investment, contractor reliance, and the evolution of service needs. This specific contract, valued at $5.8 million over roughly 13 months, contributes to the overall IT budget for these offices. Understanding past expenditures on similar services, including the types of contracts used (e.g., T&M vs. fixed-price), the number of competitors, and the duration of previous awards, can help contextualize the current award. It can also highlight whether spending has been consistent, increasing, or decreasing, and whether there's a trend towards consolidating or decentralizing IT support functions.

What is the significance of the BPA Call award type for this contract?

The contract being a 'BPA Call' signifies that it is a task order issued against a pre-existing Blanket Purchase Agreement (BPA). BPAs are flexible acquisition vehicles that allow agencies to streamline the procurement of recurring goods or services from specific vendors. In this case, CGI Federal Inc. likely holds a broader BPA with the Department of the Interior, and this award is a specific call for IT operations support services under the terms established in that BPA. This method can expedite the acquisition process and potentially offer better pricing due to pre-negotiated terms. However, the value and effectiveness of the BPA Call are dependent on the quality of the underlying BPA, including its pricing, scope, and the competition that led to its establishment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140D0425Q0251

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Timken Company

Address: 12601 FAIR LAKES CIR # 100, 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: $26,801,613

Exercised Options: $5,806,330

Current Obligation: $5,806,330

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140D0426A0002

IDV Type: BPA

Timeline