DOT's $33.8M eLearning contract with CGI Federal awarded without competition, raising value-for-money questions

Contract Overview

Contract Amount: $33,865,150 ($33.9M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of Transportation

Start Date: 2020-05-01

End Date: 2026-08-30

Contract Duration: 2,312 days

Daily Burn Rate: $14.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ELEARNING MANAGEMENT SYSTEM (ELMS)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $33.9 million to CGI FEDERAL INC. for work described as: ELEARNING MANAGEMENT SYSTEM (ELMS) Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The contract duration of over 6 years suggests a long-term need for these services. 3. Fixed-price contract type offers some cost certainty but may not fully capture efficiency gains. 4. The specific NAICS code (611430) indicates a focus on professional development training. 5. Geographic location in Washington D.C. may indicate a concentration of federal training needs. 6. The absence of small business set-aside raises questions about opportunities for smaller firms.

Value Assessment

Rating: questionable

Benchmarking the value of this $33.8 million eLearning Management System (ELMS) contract is challenging due to its sole-source nature. Without competitive bids, it's difficult to ascertain if the pricing reflects market rates or if a more cost-effective solution could have been secured. The fixed-price structure provides some predictability, but the lack of competition means the government cannot leverage market forces to drive down costs or ensure the best possible value. Further analysis would require comparing the scope and deliverables to similar sole-source ELMS contracts within the federal government.

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 Federal Aviation Administration (FAA) likely determined that CGI Federal Inc. was the only responsible source capable of meeting the government's requirements. This lack of competition limits the government's ability to explore alternative solutions and negotiate the most favorable pricing. The absence of a competitive process means that price discovery, a key benefit of open competition, was not realized.

Taxpayer Impact: Taxpayers may have paid a premium for this contract due to the lack of competitive bidding. Without multiple offers, the government had less leverage to negotiate a lower price, potentially leading to higher overall expenditure for the eLearning management system.

Public Impact

Federal employees across the Department of Transportation will benefit from access to the eLearning Management System. The contract supports the delivery of professional and management development training. The primary geographic impact is within Washington D.C., where the contract is managed. The contract supports the workforce by providing essential training and development tools.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potentially increases costs.
Long contract duration (over 6 years) may not adapt well to rapidly changing technology.
Lack of small business participation could limit innovation and broader economic impact.

Positive Signals

Fixed-price contract provides cost certainty for the government.
CGI Federal Inc. is an established contractor, potentially indicating reliability.
The contract addresses a clear need for professional development within the FAA.

Sector Analysis

The eLearning Management System (ELMS) falls within the professional and management development training sector, a segment of the broader education and training services industry. This sector is characterized by a mix of large established providers and smaller specialized firms. Federal spending in this area often focuses on compliance training, leadership development, and technical skills enhancement. Comparable spending benchmarks would typically involve analyzing other government contracts for similar learning management systems or outsourced training solutions, though sole-source awards make direct comparisons difficult.

Small Business Impact

This contract does not appear to have a small business set-aside, nor is there an indication of significant subcontracting opportunities for small businesses. The award to CGI Federal Inc., a large business, suggests that the primary focus was on fulfilling the requirement with an established vendor rather than promoting small business participation. This could limit the opportunities for smaller, innovative firms to contribute to the government's eLearning needs and potentially reduce the overall economic impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Aviation Administration (FAA) contracting officers and program managers. Accountability measures are typically embedded within the contract's performance work statement and delivery schedules. Transparency regarding the sole-source justification and the contractor's performance should be available through federal procurement databases. While specific Inspector General (IG) jurisdiction for this particular contract isn't detailed, the DOT OIG generally oversees agency spending and program effectiveness.

Related Government Programs

Federal Training and Education Services
Learning Management Systems
Professional Development Programs
Department of Transportation IT Services

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $33.9 million to CGI FEDERAL INC.. ELEARNING MANAGEMENT SYSTEM (ELMS)

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 $33.9 million.

What is the period of performance?

Start: 2020-05-01. End: 2026-08-30.

What is the track record of CGI Federal Inc. in delivering similar eLearning solutions to the federal government?

CGI Federal Inc. has a significant history of contracting with the U.S. federal government across various agencies and service areas, including IT solutions and professional services. While specific details on their past performance for eLearning Management Systems (ELMS) would require a deeper dive into contract databases and performance reviews, their established presence suggests experience. However, the sole-source nature of this particular DOT contract means that direct comparisons to their competitive ELMS awards are not readily available. Evaluating their past performance would involve reviewing any available past performance information, CPARS reports, and the specific technical capabilities they have demonstrated in prior, similar engagements, looking for consistent delivery, adherence to schedule, and client satisfaction.

How does the per-unit cost of this contract compare to industry benchmarks for eLearning management systems?

Determining a precise per-unit cost for this $33.8 million contract is complex without knowing the number of users, modules, or specific services included. However, given the sole-source award, it is difficult to establish a definitive benchmark against competitive market rates. Typically, sole-source contracts may not achieve the same cost efficiencies as those secured through open competition. To assess value, one would need to compare the contract's scope against industry reports on Learning Management System (LMS) pricing, considering factors like user licenses, content development support, and ongoing maintenance. Without competitive data, it's challenging to conclude whether this contract represents excellent, fair, or questionable value from a pricing perspective.

What are the primary risks associated with a sole-source award for an essential service like an eLearning management system?

The primary risks associated with a sole-source award for an eLearning Management System (ELMS) include potential overpayment due to lack of competition, reduced incentive for the contractor to innovate or provide superior service, and a lack of flexibility if the government's needs evolve. Without competitive pressure, the government may not secure the best possible pricing or the most advanced technological solutions available in the market. Furthermore, reliance on a single vendor can create vendor lock-in, making it difficult and costly to switch providers in the future. There's also a risk that the contractor may not prioritize this contract as highly as they would if they were competing against others for similar business.

What is the expected effectiveness of this contract in meeting the Department of Transportation's training and development goals?

The effectiveness of this contract hinges on the capabilities of the CGI Federal Inc. eLearning Management System (ELMS) and its alignment with the Department of Transportation's (DOT) specific training objectives. As a sole-source award, the government has presumably vetted CGI Federal's ability to meet these needs. The fixed-price nature suggests a defined scope of work, which, if well-executed, should lead to predictable outcomes in terms of training delivery. However, true effectiveness will be measured by user adoption, the quality of training content accessible through the system, and the extent to which it contributes to employee skill development and compliance. Ongoing monitoring and user feedback will be crucial to gauge its success.

How does the total spending on eLearning management systems by the Department of Transportation compare to other federal agencies?

Comparing the Department of Transportation's (DOT) $33.8 million expenditure on this specific eLearning Management System (ELMS) contract to other federal agencies requires a broader analysis of their respective IT and training budgets. Agencies with large workforces, such as the Department of Defense or the Department of Homeland Security, often have significantly larger investments in learning management systems due to scale and diverse training requirements. To make a meaningful comparison, one would need to aggregate DOT's total spending on ELMS and similar training technologies over several fiscal years and benchmark it against comparable agencies, considering factors like employee count and mission complexity. This specific contract, being sole-source and long-term, might represent a substantial portion of DOT's ELMS budget.

Industry Classification

NAICS: Educational Services › Business Schools and Computer and Management Training › Professional and Management Development Training

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

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: $34,630,981

Exercised Options: $33,865,150

Current Obligation: $33,865,150

Actual Outlays: $31,902,229

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline