GSA awards CGI Federal $6M+ for IT support, raising questions on competition and value

Contract Overview

Contract Amount: $6,048,780 ($6.0M)

Contractor: CGI Federal Inc.

Awarding Agency: General Services Administration

Start Date: 2026-01-30

End Date: 2027-01-29

Contract Duration: 364 days

Daily Burn Rate: $16.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FINANCIAL MANAGEMENT AND LOGISTICS SUPPORT (FMLS) AWARD

Place of Performance

Location: CAMP H M SMITH, HONOLULU County, HAWAII, 96861

State: Hawaii Government Spending

Plain-Language Summary

General Services Administration obligated $6.0 million to CGI FEDERAL INC. for work described as: FINANCIAL MANAGEMENT AND LOGISTICS SUPPORT (FMLS) AWARD Key points: 1. Contract awarded via 'Not Available for Competition' (NAF) justification, limiting price discovery. 2. Significant contract value for custom computer programming services. 3. Long-term contract duration of 364 days. 4. Fixed-price contract type aims to control costs. 5. Contractor CGI Federal has a substantial presence in government IT. 6. Awarded by the General Services Administration (GSA), a major federal IT procurer.

Value Assessment

Rating: questionable

The contract value of over $6 million for custom computer programming services requires careful benchmarking against similar GSA IT support contracts. Without competitive bidding, it is difficult to ascertain if the pricing reflects fair market value. The fixed-price nature is a positive control, but the lack of competition raises concerns about potential overpayment. Further analysis of the specific services rendered and their necessity would be needed to fully assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'Not Available for Competition' justification, indicating that a full and open competition was not pursued. This typically occurs when a specific need can only be met by a particular contractor, or in cases of urgent and compelling circumstances. The lack of multiple bidders means that the government did not benefit from the price reductions and innovation that can arise from a competitive bidding process.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure to drive down costs. The government's ability to negotiate the best possible price is diminished in sole-source procurements.

Public Impact

Federal agencies requiring custom computer programming and IT logistics support will benefit from these services. The services are expected to be delivered within the United States, supporting federal IT infrastructure. The contract supports the operational needs of the General Services Administration's Federal Acquisition Service. This contract likely supports a workforce of IT professionals and programmers employed by CGI Federal.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award requires strong justification to ensure necessity and fair pricing.
Potential for vendor lock-in if services are highly specialized.

Positive Signals

Fixed-price contract type helps manage cost certainty.
Awarded by GSA, an experienced agency in IT procurement.
Contract duration aligns with typical IT support cycles.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically custom computer programming services. The federal IT market is substantial, with agencies consistently investing in software development, system integration, and IT support. GSA plays a crucial role in facilitating IT procurement for federal agencies. Benchmarking this contract's value against other custom programming services procured by GSA or other agencies would provide further context on its market positioning.

Small Business Impact

The data indicates 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, may engage small businesses as subcontractors, though this is not specified in the provided data. The absence of a small business set-aside means larger businesses are the primary focus for this award.

Oversight & Accountability

Oversight for this contract will primarily reside with the General Services Administration (GSA), specifically the Federal Acquisition Service. GSA has established procurement regulations and contract administration processes. Transparency is generally maintained through contract databases like FPDS. Accountability measures would be tied to the performance standards outlined in the contract and the fixed-price terms. Inspector General oversight may be involved if specific allegations of fraud, waste, or abuse arise.

Related Government Programs

IT Professional Services
Custom Computer Programming
IT Management Consulting Services
IT Services (8(a)/SB/HUBZone)

Risk Flags

Sole-source award limits competitive pricing.
Potential for higher costs due to lack of competition.
Requires strong justification for 'Not Available for Competition'.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $6.0 million to CGI FEDERAL INC.. FINANCIAL MANAGEMENT AND LOGISTICS SUPPORT (FMLS) 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 $6.0 million.

What is the period of performance?

Start: 2026-01-30. End: 2027-01-29.

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

CGI Federal has a significant and long-standing track record of delivering a wide range of IT services and solutions to various U.S. federal agencies. Their portfolio includes custom software development, system integration, IT modernization, cybersecurity, and IT management consulting. They have held numerous prime contracts across departments such as Defense, Homeland Security, and civilian agencies. Their experience often involves large-scale, complex IT projects. While their extensive experience suggests capability, the specific performance on this particular contract, especially given its sole-source nature, would require a review of past performance evaluations and any associated award fees or penalties.

How does the awarded amount compare to similar custom computer programming services contracts awarded by GSA?

Comparing the $6.05 million award to similar custom computer programming services contracts by GSA requires access to detailed contract data beyond the provided summary. However, GSA procures a vast array of IT services, and contract values can range significantly based on scope, duration, and complexity. Given this is a fixed-price contract for a duration of approximately one year, the value is substantial but not unprecedented for specialized IT development. Without specific comparable contract details (e.g., specific services, duration, number of bidders), a precise value-for-money assessment is challenging. The 'Not Available for Competition' status inherently limits direct price comparisons with competitively bid contracts.

What are the primary risks associated with a sole-source award for IT services?

The primary risks associated with a sole-source award for IT services include a lack of competitive pricing, potentially leading to higher costs for the government and taxpayers. There's also a reduced incentive for the contractor to innovate or provide exceptional value beyond the contract's minimum requirements, as there is no direct competition. Furthermore, sole-source awards can raise concerns about fairness and transparency in the procurement process. If the chosen contractor fails to perform adequately, the government faces challenges in finding an alternative solution quickly due to the absence of pre-vetted competitors. This can also lead to vendor lock-in, making it difficult to switch providers in the future.

What is the typical duration for IT support contracts of this nature, and how does this one compare?

IT support contracts, particularly those involving custom programming and ongoing services, often have durations ranging from one to five years, sometimes with option periods. A base period of 364 days, as seen in this contract, is very common for initial awards, especially for fixed-price contracts. This duration allows for initial implementation and service delivery while providing flexibility for renewal or modification based on performance and evolving needs. It's a standard approach that balances immediate requirements with future adaptability. Longer durations are often seen in larger, more complex system development or sustainment contracts.

What does the 'Not Available for Competition' (NAF) justification imply for the procurement process and potential cost savings?

The 'Not Available for Competition' (NAF) justification signifies that the procuring agency determined that only one responsible source could satisfy the agency's needs. This is a specific exception to the general requirement for full and open competition. It implies that a competitive bidding process was not feasible or appropriate for this particular acquisition, often due to unique capabilities, urgent needs, or specific circumstances. Consequently, the government foregoes the potential cost savings and enhanced value that typically result from a competitive environment. While NAF awards are permissible under specific FAR regulations, they generally present a higher risk of non-competitive pricing compared to fully competed contracts.

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: 47QFLA26R0003

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: $20,890,924

Exercised Options: $6,827,200

Current Obligation: $6,048,780

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