GSA awards $42.9M Computer Systems Design Services contract to CGI Federal Inc
Contract Overview
Contract Amount: $42,929,079 ($42.9M)
Contractor: CGI Federal Inc.
Awarding Agency: General Services Administration
Start Date: 2018-06-20
End Date: 2019-06-19
Contract Duration: 364 days
Daily Burn Rate: $117.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: IGF::OT::IGF DEFEND C AWARD
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
General Services Administration obligated $42.9 million to CGI FEDERAL INC. for work described as: IGF::OT::IGF DEFEND C AWARD Key points: 1. Contract awarded under full and open competition, indicating broad market access. 2. CGI Federal Inc. is a significant player in the IT services sector. 3. The contract's Cost Plus Award Fee structure may incentivize performance but requires careful oversight. 4. The Virginia location suggests potential alignment with federal IT hubs.
Value Assessment
Rating: fair
The Cost Plus Award Fee (CPAF) structure can lead to costs exceeding initial estimates if not managed tightly. Benchmarking against similar CPAF contracts for IT services is crucial to assess if the final award fee aligns with performance and value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically yields competitive pricing by allowing all eligible vendors to bid.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that drives down costs and improves service quality.
Public Impact
Ensures continued IT support services for federal agencies. Supports a major IT contractor, impacting the broader federal IT ecosystem. Potential for innovation and efficiency gains through the award fee structure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee (CPAF) requires diligent oversight to prevent cost overruns.
- Potential for scope creep given the nature of IT services contracts.
Positive Signals
- Awarded through full and open competition.
- Contractor has a strong presence in the federal IT market.
Sector Analysis
This contract falls within the Computer Systems Design Services sector, a critical area for federal IT infrastructure. Spending in this sector is substantial, and benchmarks vary widely based on service complexity and duration.
Small Business Impact
While this contract was awarded to a large prime contractor, opportunities for small businesses may exist through subcontracting. Analysis of subcontracting plans would be necessary to determine the extent of small business participation.
Oversight & Accountability
The Cost Plus Award Fee structure necessitates strong oversight from the GSA to ensure performance targets are met and costs remain reasonable. Regular performance reviews and audits are essential for accountability.
Related Government Programs
- Computer Systems Design Services
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Potential for cost overruns due to CPAF structure.
- Lack of transparency on specific deliverables and performance metrics.
- Limited insight into small business subcontracting.
- Dependence on a single large contractor for critical IT services.
Tags
computer-systems-design-services, general-services-administration, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $42.9 million to CGI FEDERAL INC.. IGF::OT::IGF DEFEND C AWARD
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 $42.9 million.
What is the period of performance?
Start: 2018-06-20. End: 2019-06-19.
What specific IT systems or services are covered under this contract, and how do they align with agency mission needs?
The contract is for Computer Systems Design Services (NAICS 541512). This broad category typically encompasses a range of activities including IT consulting, systems integration, and custom software development. Understanding the specific deliverables and their criticality to the agency's mission is key to assessing the contract's true value beyond its dollar amount.
How effectively was the award fee structure utilized to drive performance and ensure cost-effectiveness for the government?
The effectiveness of the award fee structure hinges on clearly defined performance metrics and objective evaluation criteria. Without insight into the awarded fees and the justification, it's difficult to assess if the government received optimal value or if the contractor was adequately incentivized to control costs while delivering high-quality services.
What is the historical performance record of CGI Federal Inc. on similar government contracts, particularly those with CPAF terms?
CGI Federal Inc. is a large, established contractor with a significant federal footprint. Examining their past performance on comparable contracts, especially those utilizing Cost Plus Award Fee structures, would provide valuable context. This includes reviewing past performance evaluations, any reported disputes, and their ability to meet cost and schedule targets.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: CGI Inc (UEI: 248513116)
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: $530,444,564
Exercised Options: $86,531,809
Current Obligation: $42,929,079
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS00Q09BGD0022
IDV Type: GWAC
Timeline
Start Date: 2018-06-20
Current End Date: 2019-06-19
Potential End Date: 2024-04-30 00:00:00
Last Modified: 2020-04-09
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