FAA Awards $49.7M NOTAM Modernization Contract to CGI Federal Following Challenge-Based Acquisition

Contract Overview

Contract Amount: $49,716,671 ($49.7M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of Transportation

Start Date: 2025-09-30

End Date: 2026-09-29

Contract Duration: 364 days

Daily Burn Rate: $136.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS FUNDING IS FOR THE AWARD OF THE NOTAM MODERNIZATION/NOTAM MANAGEMENT SERVICE (NMS) CONTRACT AS THE FOLLOW-ON TO THE NOTAM CHALLENGE-BASED ACQUISITION. MODERNIZING THE NOTAM AND AERONAUTICAL INFORMATION SYSTEMS HAS BECOME A NATIONAL PRIORITY. T

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $49.7 million to CGI FEDERAL INC. for work described as: THIS FUNDING IS FOR THE AWARD OF THE NOTAM MODERNIZATION/NOTAM MANAGEMENT SERVICE (NMS) CONTRACT AS THE FOLLOW-ON TO THE NOTAM CHALLENGE-BASED ACQUISITION. MODERNIZING THE NOTAM AND AERONAUTICAL INFORMATION SYSTEMS HAS BECOME A NATIONAL PRIORITY. T Key points: 1. The contract aims to modernize critical NOTAM and aeronautical information systems, a national priority. 2. CGI Federal Inc. secured the follow-on contract, indicating a potential incumbent advantage. 3. The award is a Delivery Order under a larger contract, suggesting phased implementation. 4. The sector is IT infrastructure, specifically data processing and web hosting services.

Value Assessment

Rating: good

The contract value of $49.7M for a 1-year period appears reasonable given the critical nature of NOTAM modernization. Benchmarking against similar IT infrastructure contracts would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, as a follow-on to a challenge-based acquisition, the initial competition phase may have influenced the final pricing.

Taxpayer Impact: The investment aims to improve aviation safety and efficiency, with potential long-term cost savings through modernization.

Public Impact

Enhanced reliability and accuracy of NOTAM data for pilots and air traffic control. Improved operational efficiency within the National Airspace System. Foundation for future advancements in aviation information management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if modernization scope expands beyond initial estimates.
Dependence on CGI Federal for a critical national infrastructure component.

Positive Signals

Addresses a recognized national priority for aviation safety.
Leverages a competitive process to select a vendor.
Clear follow-on strategy from a previous acquisition phase.

Sector Analysis

This contract falls within the IT sector, specifically focusing on computing infrastructure and data processing. Spending in this area is substantial across government, with a focus on modernizing legacy systems and enhancing cybersecurity.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was incorporated through subcontracting opportunities.

Oversight & Accountability

The award is a Delivery Order, suggesting it is part of a larger, potentially more established contract vehicle. Oversight will be crucial to ensure the modernization meets performance requirements and stays within budget.

Related Government Programs

Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Follow-on contract to a previous acquisition.
Modernization of a critical national infrastructure.
Awarded under full and open competition.
Potential for integration challenges with existing systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $49.7 million to CGI FEDERAL INC.. THIS FUNDING IS FOR THE AWARD OF THE NOTAM MODERNIZATION/NOTAM MANAGEMENT SERVICE (NMS) CONTRACT AS THE FOLLOW-ON TO THE NOTAM CHALLENGE-BASED ACQUISITION. MODERNIZING THE NOTAM AND AERONAUTICAL INFORMATION SYSTEMS HAS BECOME A NATIONAL PRIORITY. T

Who is the contractor on this award?

The obligated recipient is CGI FEDERAL INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $49.7 million.

What is the period of performance?

Start: 2025-09-30. End: 2026-09-29.

What were the key performance metrics and success criteria established during the challenge-based acquisition that this follow-on contract aims to fulfill?

The challenge-based acquisition likely focused on identifying innovative solutions for NOTAM modernization. Key metrics would have included system performance, data accuracy, user interface usability, and integration capabilities with existing FAA systems. The follow-on contract's success will be measured against these established criteria, ensuring the chosen solution effectively addresses the identified modernization needs and improves the reliability and accessibility of critical flight information.

What are the primary risks associated with the transition from the NOTAM Challenge-Based Acquisition to this follow-on CGI Federal contract, and how are they being mitigated?

Primary risks include potential scope creep, integration challenges with legacy systems, and vendor lock-in. Mitigation strategies likely involve robust contract management, clear definition of deliverables, phased implementation with regular reviews, and contingency planning for unforeseen technical hurdles. Ensuring strong communication channels between the FAA and CGI Federal is also critical for proactive risk identification and resolution.

How will the effectiveness of the NOTAM Modernization/NMS contract be measured in terms of improving aviation safety and operational efficiency?

Effectiveness will be measured through a combination of quantitative and qualitative metrics. Quantitatively, this includes reductions in NOTAM data errors, faster dissemination times, and improved system uptime. Operationally, effectiveness will be assessed by user feedback from pilots and air traffic controllers, and by observing a decrease in incidents or delays attributed to inaccurate or unavailable NOTAM information. Long-term impact on overall airspace efficiency will also be a key indicator.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $51,910,852

Exercised Options: $49,716,671

Current Obligation: $49,716,671

Actual Outlays: $18,789,121

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693KA725D00001

IDV Type: IDC

Timeline