CGI Federal awarded $15.5M for IT services, with contract duration extending over 6 years

Contract Overview

Contract Amount: $15,533,768 ($15.5M)

Contractor: CGI Federal Inc.

Awarding Agency: U.S. Agency for Global Media

Start Date: 2020-02-01

End Date: 2026-07-31

Contract Duration: 2,372 days

Daily Burn Rate: $6.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ADD FUNDING

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

U.S. Agency for Global Media obligated $15.5 million to CGI FEDERAL INC. for work described as: ADD FUNDING Key points: 1. The contract's value of $15.5 million over 6 years suggests a moderate annual spend, requiring careful monitoring for efficiency. 2. With full and open competition, the government likely secured competitive pricing, though the number of bidders is not specified. 3. The fixed-price contract type shifts performance risk to the contractor, incentivizing timely and cost-effective delivery. 4. The contract's duration of over 6 years indicates a long-term need for these IT services. 5. The 'Other Computer Related Services' category covers a broad range of potential IT support, necessitating clarity on specific deliverables. 6. The contractor, CGI Federal, has a significant presence in the federal IT services market.

Value Assessment

Rating: good

The total award of $15.5 million over approximately 6.5 years averages to about $2.38 million annually. This figure appears reasonable for comprehensive IT services, especially considering the potential scope of 'Other Computer Related Services'. Benchmarking against similar large-scale IT support contracts awarded by agencies like USAGM would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract is generally favorable for the government when scope is well-defined, as it caps costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. While the number of bids received isn't detailed, this procurement method generally fosters a competitive environment, which should lead to better pricing and service options for the government. The agency's decision to use full and open competition suggests confidence in the market's ability to meet its needs.

Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving the best possible price and quality for the services rendered.

Public Impact

The U.S. Agency for Global Media (USAGM) is the primary beneficiary, receiving essential IT services. The contract supports the delivery of various computer-related services crucial for USAGM's operational functions. Services are likely concentrated within the agency's primary locations, potentially impacting IT staff and infrastructure. The contract may influence the demand for IT professionals within the federal contracting space, particularly those with expertise in the specified service areas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the broad 'Other Computer Related Services' NAICS code.
Long contract duration could lead to vendor lock-in if not managed proactively.
Reliance on a single large contractor may limit flexibility in adapting to rapidly changing IT needs.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Full and open competition suggests a competitive award process.
Contract duration aligns with long-term strategic IT needs.

Sector Analysis

This contract falls within the Information Technology sector, specifically under 'Other Computer Related Services' (NAICS 541519). This category encompasses a wide array of IT support, including IT management consulting, IT system integration, and IT infrastructure services. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological capabilities. This contract represents a portion of that ongoing investment by USAGM.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and does not explicitly mention subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem appears limited unless CGI Federal voluntarily engages small businesses for subcontracting opportunities. Without specific subcontracting plans, the primary beneficiaries are likely larger IT service providers.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Agency for Global Media's contracting officers and program managers. The firm fixed-price nature provides a degree of cost control. Transparency is generally facilitated through contract award databases like FPDS. Specific performance metrics and reporting requirements would be detailed in the contract's statement of work, subject to agency oversight and potentially Inspector General review if performance issues arise.

Related Government Programs

IT Professional Services
IT Management Consulting Services
IT System Integration Services
IT Infrastructure Services
Computer Facilities Management Services

Risk Flags

Potential for undefined scope within 'Other Computer Related Services'.
Long contract duration requires careful performance management.
Reliance on a single large contractor.

Frequently Asked Questions

What is this federal contract paying for?

U.S. Agency for Global Media awarded $15.5 million to CGI FEDERAL INC.. ADD FUNDING

Who is the contractor on this award?

The obligated recipient is CGI FEDERAL INC..

Which agency awarded this contract?

Awarding agency: U.S. Agency for Global Media (U.S. Agency for Global Media).

What is the total obligated amount?

The obligated amount is $15.5 million.

What is the period of performance?

Start: 2020-02-01. End: 2026-07-31.

What specific IT services are included under the 'Other Computer Related Services' NAICS code for this contract?

The NAICS code 541519, 'Other Computer Related Services,' is broad and can encompass a wide range of IT support functions. For this specific contract with CGI Federal and the U.S. Agency for Global Media (USAGM), the exact services would be detailed in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These could include, but are not limited to, IT strategy consulting, system integration, network management, cybersecurity support, cloud services implementation, data management, IT infrastructure design and maintenance, and help desk support. Without access to the SOW/PWS, it's difficult to pinpoint the precise deliverables, but the contract's duration and value suggest a comprehensive, long-term IT support engagement rather than a single, narrowly defined service.

How does the annual cost of this contract compare to similar IT service contracts awarded by USAGM or other agencies of comparable size?

The total award of $15.5 million over approximately 6.5 years (February 2020 to July 2026) equates to an average annual value of roughly $2.38 million. To benchmark this effectively, one would need to compare it against IT service contracts of similar scope and duration awarded by agencies with comparable missions and budgets to USAGM. For instance, comparing it to contracts for IT modernization, network operations, or cybersecurity services at agencies like the Department of State or the Broadcasting Board of Governors (USAGM's predecessor) would be relevant. Given the 'Other Computer Related Services' category, a direct comparison might be challenging without knowing the specific services rendered. However, for a large agency requiring ongoing IT support, an annual spend in the low millions is not uncommon, suggesting this contract is within a plausible range, pending detailed service-level comparisons.

What is CGI Federal's track record with USAGM and other federal agencies for similar IT service contracts?

CGI Federal is a major IT services contractor with a substantial presence across the U.S. federal government. A review of publicly available contract data (e.g., through FPDS) would reveal CGI Federal's history of awards with USAGM and other agencies. Typically, large IT firms like CGI have extensive portfolios, including contracts for system modernization, managed services, and IT support. Their track record often includes both successes and challenges, as is common with large, long-term government contracts. Assessing their performance would involve looking at past performance evaluations, any contract disputes or terminations, and the overall value and duration of previous engagements. For this specific contract, its duration and firm-fixed-price nature suggest a level of confidence from USAGM in CGI's ability to deliver.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) for this contract are not detailed in the provided summary data. However, for a contract of this nature, particularly one involving IT services and awarded under a firm-fixed-price structure, KPIs and SLAs are crucial for ensuring performance and value. Typical metrics might include system uptime percentages, response times for help desk support, incident resolution times, project completion milestones, data security compliance rates, and user satisfaction scores. These would be formally defined within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). The U.S. Agency for Global Media would monitor these metrics to assess CGI Federal's performance and ensure the services meet the agency's operational requirements throughout the contract's duration.

How has USAGM's spending on IT services evolved over the past five years, and how does this contract fit into that trend?

Analyzing USAGM's historical IT spending trends would require accessing comprehensive spending data over the past five years. This contract, awarded in February 2020 with an end date in July 2026, represents a significant, long-term commitment. If USAGM's overall IT spending has been increasing or remaining stable, this contract would align with that trend, indicating a continued investment in IT infrastructure and services. Conversely, if spending has been decreasing, this contract might represent a strategic prioritization of specific IT functions. The 'Other Computer Related Services' category suggests a need for flexible and potentially broad IT support, which could be a response to evolving technological landscapes or agency operational demands. Understanding the broader context of USAGM's IT budget and strategic goals would clarify how this $15.5 million award fits into their overall IT investment strategy.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

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

Financial Breakdown

Contract Ceiling: $16,413,019

Exercised Options: $16,211,715

Current Obligation: $15,533,768

Actual Outlays: $882,593

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $232,277

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F281DA

IDV Type: FSS

Timeline