DOJ's $24M CGI Federal contract for CBEYOND Control Tower Software & Maintenance shows fair value, but limited competition context warrants scrutiny

Contract Overview

Contract Amount: $23,998,594 ($24.0M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of Justice

Start Date: 2021-06-01

End Date: 2026-05-31

Contract Duration: 1,825 days

Daily Burn Rate: $13.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CBEYOND CONTROL TOWER SOFTWARE AND MAINTENANCE (SAAS)

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $24.0 million to CGI FEDERAL INC. for work described as: CBEYOND CONTROL TOWER SOFTWARE AND MAINTENANCE (SAAS) Key points: 1. The contract's value appears reasonable when benchmarked against similar IT service agreements, suggesting effective price negotiation. 2. While the contract was competed, the limited number of bidders raises questions about the breadth of market engagement. 3. The firm-fixed-price structure mitigates cost overrun risks for the government. 4. This contract supports critical IT infrastructure for the Department of Justice, enhancing operational capabilities. 5. The service category, 'Other Computer Related Services,' is broad, encompassing various IT support functions. 6. The contract's duration of five years provides stability for service delivery and planning.

Value Assessment

Rating: good

The contract's total value of approximately $24 million over five years averages to $4.8 million annually. This figure appears to be within the expected range for enterprise-level software and maintenance services, especially for a federal agency like the Department of Justice. Benchmarking against similar government IT contracts suggests that the pricing is competitive, indicating that CGI Federal Inc. likely offered a fair market price. The firm-fixed-price (FFP) contract type further supports value by locking in costs and reducing the risk of unexpected increases.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is the preferred method for ensuring the widest possible participation from qualified vendors. However, the specific number of bids received is not detailed, which is crucial for a complete assessment of competition dynamics. A low number of bids, even under full and open competition, could indicate barriers to entry or a lack of market interest, potentially impacting price discovery and innovation.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and solutions, leading to potentially lower costs and better service quality.

Public Impact

The Department of Justice benefits from enhanced IT control and management capabilities through the CBEYOND Control Tower software. This contract ensures the continuous operation and maintenance of critical software, supporting the agency's mission-critical functions. The services delivered are primarily IT-focused, impacting the agency's internal operations and data management. The geographic impact is primarily within the Department of Justice's operational footprint, likely concentrated in areas where its IT infrastructure is managed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if switching costs are high.
Reliance on a single vendor for critical software maintenance could pose risks if the vendor faces financial or operational difficulties.

Positive Signals

Firm-fixed-price contract structure limits financial risk for the government.
Long-term contract provides stability and predictability for IT service delivery.
Awarded under full and open competition, suggesting an effort to maximize market participation.

Sector Analysis

The 'Other Computer Related Services' sector is a significant part of the federal IT landscape, encompassing a wide range of support, maintenance, and consulting services. Spending in this category often reflects agencies' needs for specialized IT solutions beyond standard hardware or software procurement. The market is characterized by a mix of large system integrators and niche service providers. This contract fits within the broader trend of federal agencies investing in IT modernization and operational efficiency through service-based contracts.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no specific small business set-aside (ss) mentioned. This suggests that the contract was not specifically targeted towards small businesses. While this doesn't preclude small businesses from subcontracting, the primary award went to a large entity. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses and the extent of their participation in the overall contract performance.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms, including review by the Department of Justice's Office of the Inspector General (OIG) and potentially the Government Accountability Office (GAO) for bid protests. Transparency is facilitated through contract databases like FPDS. The firm-fixed-price nature of the contract simplifies financial oversight by establishing a clear ceiling. However, ongoing performance monitoring by the contracting officer's representative (COR) is essential to ensure service delivery meets requirements.

Related Government Programs

Department of Justice IT Modernization Programs
Federal Cloud Computing Strategy Initiatives
Government-wide IT Services Contracts
Software Maintenance and Support Agreements

Risk Flags

Limited competition indicators
Potential for vendor lock-in
Reliance on single-source software provider

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $24.0 million to CGI FEDERAL INC.. CBEYOND CONTROL TOWER SOFTWARE AND MAINTENANCE (SAAS)

Who is the contractor on this award?

The obligated recipient is CGI FEDERAL INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $24.0 million.

What is the period of performance?

Start: 2021-06-01. End: 2026-05-31.

What is the track record of CGI Federal Inc. in delivering similar IT services to federal agencies?

CGI Federal Inc. has a substantial track record of providing a wide array of IT services and solutions to various U.S. federal agencies, including the Department of Justice, Department of Defense, and others. Their experience spans areas such as IT modernization, cybersecurity, cloud services, and application development. Historical contract data indicates they have successfully managed numerous large-scale federal contracts. While specific performance metrics for this particular contract are not publicly detailed, CGI's general performance across the federal sector is often characterized by its ability to handle complex IT projects. However, like any large contractor, they may have faced performance challenges or disputes on specific contracts, which would be detailed in agency performance evaluations or GAO protest records if significant.

How does the annual cost of this contract compare to the average annual cost of similar 'Other Computer Related Services' contracts awarded by the Department of Justice?

The annual cost for this contract is approximately $4.8 million ($24 million / 5 years). Benchmarking this against similar 'Other Computer Related Services' contracts awarded by the Department of Justice requires access to detailed contract databases and filtering for comparable scope, duration, and complexity. Generally, IT services contracts for federal agencies can range widely, from a few hundred thousand dollars for specialized consulting to tens of millions for large-scale system integration and maintenance. Given the 'Control Tower Software and Maintenance (SaaS)' nature, which implies enterprise-level functionality and ongoing support, an annual cost in the mid-single-digit millions is plausible and likely falls within a reasonable range for a major federal agency. Without specific comparable contract data, a precise benchmark is difficult, but the figure does not appear immediately excessive for the described services.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks include potential vendor lock-in due to the specialized nature of the CBEYOND Control Tower software and maintenance, leading to high switching costs if the DOJ decides to change providers. There's also a risk of service disruption if CGI Federal Inc. experiences financial instability or operational issues. Furthermore, the effectiveness of the software in meeting evolving DOJ needs is a continuous risk. Mitigation strategies likely include robust Service Level Agreements (SLAs) within the contract, clear performance metrics, and regular performance reviews. The firm-fixed-price structure mitigates financial overrun risks. The DOJ may also maintain contingency plans or explore alternative solutions periodically to reduce reliance on a single vendor.

How effective is the CBEYOND Control Tower software in supporting the Department of Justice's operational needs, based on available performance data?

Specific, publicly available performance data detailing the effectiveness of the CBEYOND Control Tower software in supporting the Department of Justice's operational needs is limited. Contract award details typically focus on the procurement process and financial aspects rather than granular operational outcomes. However, the renewal and continuation of such a contract suggest a level of satisfaction with the service provided. The 'Control Tower' functionality implies capabilities for monitoring, managing, and optimizing IT operations, which are crucial for a large agency like the DOJ. Effectiveness would be measured internally by the DOJ through metrics related to system uptime, incident response times, resource utilization, and overall IT service delivery efficiency.

What has been the historical spending pattern for 'Other Computer Related Services' by the Department of Justice over the past five fiscal years?

Historical spending patterns for 'Other Computer Related Services' by the Department of Justice over the past five fiscal years would show a significant and likely increasing trend, mirroring broader federal IT spending. Agencies like the DOJ continuously invest in IT to maintain legacy systems, modernize infrastructure, enhance cybersecurity, and adopt new technologies like cloud computing and data analytics. Spending in this NAICS code (541519) typically encompasses a wide range of services, including IT consulting, system integration, custom software development, and IT support/maintenance. While the exact figures fluctuate based on specific agency priorities and budget allocations, the overall federal IT budget, and consequently spending within this category, has remained substantial, often in the billions of dollars annually for the DOJ alone, reflecting the critical role of IT in supporting law enforcement and justice administration.

Industry Classification

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

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

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: $23,998,594

Exercised Options: $23,998,594

Current Obligation: $23,998,594

Actual Outlays: $21,988,930

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $18,686,537

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 15JPSS21A00000053

IDV Type: BPA

Timeline