GSA awards $35.3M for regional command support to CGI Federal, raising questions about competition and value

Contract Overview

Contract Amount: $35,342,452 ($35.3M)

Contractor: CGI Federal Inc.

Awarding Agency: General Services Administration

Start Date: 2022-05-31

End Date: 2026-05-30

Contract Duration: 1,460 days

Daily Burn Rate: $24.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: REGIONAL DAI COMMAND SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20350

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $35.3 million to CGI FEDERAL INC. for work described as: REGIONAL DAI COMMAND SUPPORT Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The fixed-price contract type offers some cost certainty but may not incentivize efficiency. 3. The duration of the contract (4 years) suggests a need for sustained support services. 4. The specific services provided under 'Custom Computer Programming Services' require further clarification to assess value. 5. The contract's value is moderate within the context of IT services spending. 6. Lack of competition is a key risk indicator for potential overpayment or suboptimal performance.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the sole-source award and limited public data on specific deliverables. The $35.3 million over four years averages to approximately $8.8 million annually. Without comparable sole-source contracts for similar regional command support, it's difficult to definitively assess if this represents fair market value. The firm-fixed-price structure provides some predictability, but the absence of competitive pressure could lead to less favorable pricing than a competed contract might achieve.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. The justification for this approach is not provided in the available data. Sole-source awards typically occur when only one vendor possesses the necessary qualifications, technology, or when urgency dictates. The lack of competition means that taxpayers did not benefit from the potential cost savings and innovation that can arise from a competitive bidding process.

Taxpayer Impact: The absence of competition means taxpayers may have paid a premium for these services, as there was no market pressure to drive down prices. This also limits the government's ability to explore alternative solutions or more cost-effective providers.

Public Impact

The primary beneficiaries are likely the regional commands supported by CGI Federal Inc., receiving custom computer programming services. The services delivered are critical for the operational effectiveness of these commands. The geographic impact is centered in the District of Columbia, where the contract is registered. The contract supports the IT workforce within CGI Federal Inc. and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially leading to higher costs.
Lack of detailed service descriptions makes value-for-money assessment difficult.
Long contract duration without clear performance metrics could mask inefficiencies.
The 'Custom Computer Programming Services' category is broad and may encompass non-essential or overpriced elements.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
CGI Federal Inc. is an established contractor, suggesting some level of reliability.
The contract supports critical command functions, indicating a recognized need.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically Custom Computer Programming Services. The IT services market is vast and highly competitive, with significant government spending. However, sole-source awards in this sector can bypass the usual competitive dynamics, making it harder to benchmark against market rates. Comparable spending in this area often involves large system integrations or specialized software development, where unique capabilities can sometimes justify non-competitive awards.

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 small business set-aside. The primary contractor, CGI Federal Inc., is a large business. Without specific subcontracting plans or goals mentioned, the direct impact on the small business ecosystem from this particular award is likely minimal, though CGI Federal may engage small businesses as subcontractors in its broader operations.

Oversight & Accountability

Oversight mechanisms for this contract are not detailed in the provided data. As a contract managed by the General Services Administration (GSA) through its Federal Acquisition Service, it would typically be subject to GSA's internal oversight processes and potentially the Government Accountability Office (GAO) for bid protests or performance reviews. Transparency is limited due to the sole-source nature and lack of publicly available performance reports or detailed service breakdowns. Inspector General jurisdiction would depend on the specific agency receiving the ultimate services, if different from GSA.

Related Government Programs

IT Professional Services
Custom Software Development
IT Support Services
Government IT Contracts
Sole Source IT Contracts

Risk Flags

Sole-source award
Lack of competition
Limited transparency on services
Potential for overpricing

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $35.3 million to CGI FEDERAL INC.. REGIONAL DAI COMMAND SUPPORT

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 $35.3 million.

What is the period of performance?

Start: 2022-05-31. End: 2026-05-30.

What specific regional command support services are being provided by CGI Federal Inc. under this contract?

The provided data categorizes this contract under NAICS code 541511, 'Custom Computer Programming Services.' This broad classification suggests that CGI Federal Inc. is likely providing services related to the development, modification, and maintenance of computer software for regional commands. However, without more specific details, it is difficult to ascertain the exact nature of the support. This could range from developing new command and control systems, customizing existing software to meet specific regional needs, providing ongoing technical support and maintenance for critical IT infrastructure, or integrating various software applications. The lack of specificity makes it challenging to assess the true value and necessity of these services.

How does the $35.3 million contract value compare to similar sole-source IT services contracts awarded by GSA?

Comparing the $35.3 million value of this sole-source contract to similar GSA awards is difficult without access to a comprehensive database of sole-source IT services contracts with detailed justifications and service scopes. Generally, IT services contracts can range widely in value. However, for a four-year duration, $35.3 million represents an average annual expenditure of approximately $8.8 million. This is a significant sum, and without competitive bidding, it's hard to determine if it represents a fair market price. GSA often awards large IT contracts, but the sole-source nature here warrants scrutiny, as competitive contracts for similar services might yield lower prices due to market forces.

What are the primary risks associated with awarding a $35.3 million contract on a sole-source basis?

The primary risk associated with awarding a $35.3 million contract on a sole-source basis is the potential for inflated costs due to the lack of competition. Without multiple bidders vying for the contract, there is less incentive for the contractor to offer the most competitive pricing. This can lead to the government paying more than necessary for the services. Additionally, sole-source awards can limit the government's access to innovative solutions or potentially better-performing contractors that might have emerged in a competitive process. There's also a risk that the justification for the sole-source award might be weak or that the government may become overly reliant on a single provider, reducing flexibility and leverage in future negotiations.

What is the track record of CGI Federal Inc. in delivering custom computer programming services to the federal government?

CGI Federal Inc. is a well-established government contractor with a significant history of delivering IT services to various federal agencies. They have a broad portfolio that includes custom software development, system integration, and IT modernization. While specific performance metrics for this particular contract are not publicly available, CGI Federal generally has a substantial presence and experience in the federal IT landscape. However, past performance on other contracts does not guarantee success or value on this specific sole-source award. A thorough review of past performance evaluations, contract awards, and any reported issues or disputes would be necessary for a complete assessment.

How does the duration of this contract (1460 days) impact the assessment of its value and risk?

The contract duration of 1460 days (approximately 4 years) suggests a long-term need for the custom computer programming services being provided. From a value perspective, a longer duration can sometimes lead to economies of scale or allow for deeper integration and optimization of services. However, it also extends the period during which the government is committed to a specific vendor, potentially at a non-competitive price. The risk associated with a long duration is amplified in sole-source contracts; if the initial pricing was not optimal or if market conditions change significantly, the government is locked into potentially suboptimal terms for an extended period. Effective oversight and performance management are crucial to mitigate risks over such a long timeframe.

What are the potential implications of this contract for future government IT spending in the 'Custom Computer Programming Services' category?

This contract, being a sole-source award of $35.3 million, could set a precedent or signal a willingness by the GSA to award significant contracts in custom computer programming without full and open competition. If the services provided are deemed essential and the contractor performs adequately, it might encourage similar sole-source justifications for future needs. Conversely, if this contract faces scrutiny for its lack of competition or perceived lack of value, it could prompt stricter review of sole-source justifications. The long-term impact depends heavily on the justification provided for the sole-source award and the perceived success of the contract's execution. It highlights the ongoing need for robust IT services within government.

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 AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47QFLA22R0011

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, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $40,361,515

Exercised Options: $35,342,452

Current Obligation: $35,342,452

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QFLA21D0004

IDV Type: IDC

Timeline