GSA's $22M Common Catalog Platform contract to CGI Federal faces scrutiny over value and competition

Contract Overview

Contract Amount: $22,057,502 ($22.1M)

Contractor: CGI Federal Inc.

Awarding Agency: General Services Administration

Start Date: 2021-09-27

End Date: 2026-09-26

Contract Duration: 1,825 days

Daily Burn Rate: $12.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: COMMON CATALOG PLATFORM CCP

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20405

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $22.1 million to CGI FEDERAL INC. for work described as: COMMON CATALOG PLATFORM CCP Key points: 1. The contract's value proposition is unclear without detailed performance metrics and cost-benefit analysis. 2. Limited public information on the competitive landscape raises questions about price discovery. 3. Potential risks include vendor lock-in and the need for robust performance monitoring. 4. The contract supports a critical IT infrastructure component for federal agencies. 5. CGI Federal's role in providing IT services positions them as a significant player in this sector. 6. The contract's duration and funding mechanism warrant close examination for efficiency.

Value Assessment

Rating: fair

Benchmarking the value of this $22 million contract is challenging due to the lack of publicly available performance data and detailed cost breakdowns. While the contract duration is substantial (5 years), the absence of specific deliverables or service level agreements makes it difficult to compare its value against similar IT service contracts. The Time and Materials pricing model, while flexible, can sometimes lead to cost overruns if not managed tightly, suggesting a need for vigilant oversight to ensure fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. However, the number of bidders (7) is moderate, and without knowing the specific requirements and the pool of potential bidders, it's difficult to definitively assess the intensity of the competition. A higher number of bidders typically leads to more competitive pricing and better value for the government.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages a wider range of solutions and drives down prices through market forces. However, the ultimate benefit depends on the effectiveness of the bidding process and the government's ability to select the most cost-effective and technically sound proposal.

Public Impact

Federal agencies benefit from access to a consolidated catalog of IT products and services, streamlining procurement. The contract supports the modernization of federal IT infrastructure, aiming for greater efficiency and interoperability. The geographic impact is nationwide, as federal agencies across the US can utilize the Common Catalog Platform. The contract likely supports IT professionals within CGI Federal and potentially its subcontractors, contributing to the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes value assessment difficult.
Time and Materials pricing model requires strict oversight to prevent cost escalation.
Limited public data on competition intensity hinders full understanding of price discovery.
Contract duration of 5 years necessitates long-term performance monitoring.

Positive Signals

Awarded under full and open competition, suggesting a broad market approach.
Supports a critical IT function for federal agencies, indicating strategic importance.
CGI Federal is an established IT services provider with a track record in government contracting.

Sector Analysis

The Common Catalog Platform (CCP) falls within the broader IT services sector, specifically focusing on IT consulting and systems integration services (NAICS 541519). This sector is characterized by rapid technological advancements and a high demand for specialized expertise. The market size for federal IT services is substantial, with agencies continually investing in modernizing their systems. This contract represents a component of that larger investment, aiming to provide a centralized and efficient procurement channel for IT solutions.

Small Business Impact

The 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 set-aside requirement. However, as a large contract awarded to a major IT provider, there may be opportunities for small businesses to participate as subcontractors to CGI Federal, depending on their subcontracting plan and the specific needs of the project.

Oversight & Accountability

Oversight for this contract is primarily managed by the General Services Administration (GSA), specifically the Federal Acquisition Service. As a Time and Materials contract, it requires diligent monitoring of labor hours and material costs to ensure compliance and prevent overspending. Transparency is dependent on GSA's reporting practices and the availability of contract performance data. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

GSA Schedules
IT Procurement Vehicles
E-Government Initiatives
Cloud Computing Services
Digital Services Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Lack of detailed performance metrics hinders value assessment.
Moderate competition level may impact price discovery.
Long contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $22.1 million to CGI FEDERAL INC.. COMMON CATALOG PLATFORM CCP

Who is the contractor on this award?

The obligated recipient is CGI FEDERAL INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $22.1 million.

What is the period of performance?

Start: 2021-09-27. End: 2026-09-26.

What is CGI Federal's track record with similar large-scale IT service contracts for the federal government?

CGI Federal has a significant history of performing large IT service contracts for various U.S. federal agencies. They are known for providing a wide range of services including systems integration, application development, IT modernization, and managed services. Their experience spans across defense, civilian, and intelligence agencies. While specific performance details for each contract are often not publicly disclosed in detail, their continued success in winning and performing on multi-year, multi-million dollar contracts suggests a generally positive track record. However, like many large government contractors, they may have faced scrutiny or performance issues on specific projects, which would typically be documented in past performance evaluations during recompetes or through agency-specific reporting.

How does the $22 million contract value compare to similar federal IT catalog platform initiatives?

Comparing the $22 million value of the Common Catalog Platform (CCP) contract to similar federal IT catalog initiatives requires understanding the scope and duration. The CCP contract is valued at approximately $22 million over its 5-year period (2021-2026), averaging around $4.4 million per year. This figure appears moderate for a platform supporting potentially broad federal agency use. Larger, more comprehensive e-procurement or catalog management systems might have higher total contract values, potentially reaching hundreds of millions or even billions over their lifecycles, especially if they encompass a wider array of services or a larger user base. Conversely, smaller, agency-specific catalog solutions might have significantly lower values. Without more detailed information on the specific functionalities and user base of the CCP, a precise benchmark is difficult, but it seems positioned as a significant, yet not exceptionally large, IT service contract within the federal landscape.

What are the primary risks associated with a 5-year Time and Materials contract for IT services?

A primary risk with a 5-year Time and Materials (T&M) contract for IT services is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual labor hours and materials used. If not managed diligently with strict oversight, contractors may bill for excessive hours or use less efficient methods, driving up costs beyond initial expectations. Another risk is 'scope creep,' where the project's requirements expand over time without a corresponding adjustment in the contract's ceiling or a formal modification, leading to unplanned expenditures. Vendor lock-in can also be a concern, as agencies may become dependent on a single provider's expertise and systems, making future transitions costly and complex. Finally, ensuring consistent quality and performance over a long T&M contract requires robust performance metrics and regular evaluations.

How effective is the Common Catalog Platform (CCP) in streamlining federal IT procurement?

The effectiveness of the Common Catalog Platform (CCP) in streamlining federal IT procurement is contingent on its adoption rate, user experience, and the breadth of IT products and services it offers. As a platform managed by the General Services Administration (GSA), its goal is to consolidate and simplify the process of acquiring IT solutions for federal agencies. When implemented successfully, such platforms can reduce duplication of effort, provide better visibility into available offerings, and potentially leverage aggregated purchasing power for cost savings. However, the actual streamlining impact depends on factors like user training, integration with existing agency systems, and the platform's ability to adapt to evolving IT needs. Without specific usage data and agency feedback, a definitive assessment of its effectiveness is challenging, but its existence points to a recognized need for improved IT procurement processes.

What is the historical spending trend for IT services under GSA's Federal Acquisition Service?

Historical spending trends for IT services under GSA's Federal Acquisition Service (FAS) generally show a consistent and significant investment by the federal government. GSA FAS manages a vast array of IT procurement vehicles, including GSA Schedules, which are a primary channel for agencies to purchase IT products and services. Over the past decade, federal IT spending has remained robust, driven by modernization efforts, cybersecurity needs, and the transition to cloud computing. While specific figures fluctuate annually based on agency priorities and budget allocations, IT services consistently represent a substantial portion of federal contracting dollars. GSA FAS plays a crucial role in facilitating this spending by providing efficient and competitive contracting mechanisms, making it a key indicator of overall federal IT investment.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QDCB21Q0019

Offers Received: 7

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 12601 FAIR LAKES CIR, 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: $22,741,425

Exercised Options: $22,397,589

Current Obligation: $22,057,502

Actual Outlays: $11,032,289

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $3,464,321

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QDCB19A0002

IDV Type: BPA

Timeline