CGI Federal awarded $3.3M for IT software and support, extending services through 2029

Contract Overview

Contract Amount: $3,345,673 ($3.3M)

Contractor: CGI Federal Inc.

Awarding Agency: Corporation for National and Community Service

Start Date: 2025-07-01

End Date: 2029-06-30

Contract Duration: 1,460 days

Daily Burn Rate: $2.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MOMENTUM FOLLOW-ON LICENSING, SOFTWARE, AND SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20524

State: District of Columbia Government Spending

Plain-Language Summary

Corporation for National and Community Service obligated $3.3 million to CGI FEDERAL INC. for work described as: MOMENTUM FOLLOW-ON LICENSING, SOFTWARE, AND SUPPORT SERVICES Key points: 1. Contract provides essential software licensing and support, ensuring continuity of operations. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Fixed-price contract type helps mitigate cost overrun risks. 4. The contract duration of four years allows for stable service provision. 5. This award falls within the 'Other Computer Related Services' NAICS code. 6. The contract is a delivery order, indicating it's part of a larger indefinite-delivery contract.

Value Assessment

Rating: good

The contract value of $3.3 million over four years appears reasonable for IT software licensing and support services. Benchmarking against similar contracts for enterprise software maintenance and support suggests this pricing is within expected ranges. The firm fixed-price structure provides cost certainty for the agency, enhancing value for money by limiting potential for cost overruns.

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 bids. This approach generally fosters a competitive environment, which can lead to better pricing and service offerings. The specific number of bidders is not provided, but the method suggests a robust selection process.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the government sought the best value through an open process.

Public Impact

The Corporation for National and Community Service (CNCS) benefits from continued access to critical IT software and support. Essential IT services are maintained, ensuring the agency can continue its mission delivery. The primary geographic impact is within the District of Columbia, where CNCS is headquartered. The contract supports the IT workforce responsible for maintaining and operating these software systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders limits a full assessment of competition intensity.
The specific software being licensed is not detailed, making it difficult to assess market alternatives.
No information is provided on performance metrics or service level agreements within this award.

Positive Signals

Awarded under full and open competition.
Firm fixed-price contract type offers cost predictability.
Long-term contract duration (4 years) provides stability for service continuity.
Contract is with a known entity, CGI Federal Inc.

Sector Analysis

This contract falls within the broader IT services sector, specifically 'Other Computer Related Services'. The market for IT software licensing, maintenance, and support is substantial and highly competitive, with numerous vendors offering a wide range of solutions. This contract represents a typical procurement for ongoing operational IT needs within a federal agency, ensuring the continuity of essential digital infrastructure.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). There is no explicit mention of subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears minimal unless CGI Federal voluntarily includes small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the Corporation for National and Community Service's contracting officers and program managers. Accountability is established through the firm fixed-price terms and the defined contract period. Transparency is facilitated by the contract award notice, though further details on performance and specific deliverables would enhance oversight.

Related Government Programs

IT Software Licensing
IT Support Services
Software Maintenance Contracts
Federal IT Modernization Programs

Risk Flags

Potential for vendor lock-in
Lack of specific performance metrics in award data
Limited transparency on number of bidders

Frequently Asked Questions

What is this federal contract paying for?

Corporation for National and Community Service awarded $3.3 million to CGI FEDERAL INC.. MOMENTUM FOLLOW-ON LICENSING, SOFTWARE, AND SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is CGI FEDERAL INC..

Which agency awarded this contract?

Awarding agency: Corporation for National and Community Service (Corporation for National and Community Service).

What is the total obligated amount?

The obligated amount is $3.3 million.

What is the period of performance?

Start: 2025-07-01. End: 2029-06-30.

What is the track record of CGI Federal Inc. in delivering similar IT software and support services to federal agencies?

CGI Federal Inc. is a well-established government contractor with a significant history of providing a wide array of IT services to various federal agencies. Their portfolio includes software development, systems integration, IT management, and cybersecurity solutions. While specific performance details for this particular contract are not yet available, CGI Federal generally has a broad range of experience in supporting complex IT infrastructures. Agencies often rely on contractors like CGI for mission-critical systems due to their established presence and capabilities. A review of past performance evaluations and contract histories within federal procurement databases would provide a more granular understanding of their specific track record relevant to this type of service.

How does the $3.3 million contract value compare to similar IT software and support contracts awarded by the government?

The $3.3 million contract value over a four-year period equates to approximately $825,000 annually. This figure is moderate for federal IT services, particularly for enterprise-level software licensing and support. Comparable contracts can vary widely based on the complexity of the software, the number of users, the scope of support (e.g., 24/7 vs. business hours), and the specific agency's needs. Contracts for large-scale enterprise resource planning (ERP) systems or specialized scientific software could easily run into millions or tens of millions annually. However, for specific software suites or support for a defined user base within an agency like the Corporation for National and Community Service, this value appears to be within a reasonable range, suggesting a potentially good value for money, assuming the scope of work is appropriately defined.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential vendor lock-in if the software is proprietary and difficult to replace, performance issues leading to service disruptions, and cost increases if the scope expands beyond initial expectations. Mitigation strategies are evident in the contract structure: the firm fixed-price (FFP) nature limits financial risk for the government by capping costs. The full and open competition aims to ensure a competitive market, reducing reliance on a single vendor. The four-year duration provides stability but also necessitates careful monitoring to ensure continued value. The agency's oversight and the contractor's performance history (if positive) further mitigate performance risks. However, the lack of detailed performance metrics in the award data makes a full risk assessment challenging.

What is the expected effectiveness of these IT software and support services in enabling the Corporation for National and Community Service's mission?

The effectiveness of these services hinges on the criticality of the software being supported to the CNCS's core functions. Assuming the software is integral to operations such as grant management, data analysis, constituent services, or internal administration, the continuity provided by this contract is vital. Reliable software performance and timely support minimize disruptions, allowing agency personnel to focus on their programmatic duties. The contract's duration suggests a strategic decision to ensure stable operations for a significant period. The ultimate effectiveness will be measured by the software's uptime, the responsiveness of support, and its contribution to achieving the agency's strategic goals, which are not detailed in the award data.

How has federal spending on 'Other Computer Related Services' (NAICS 541519) evolved, and where does this contract fit?

Federal spending on NAICS code 541519, 'Other Computer Related Services,' has generally trended upwards over the past decade, reflecting the increasing reliance on technology across all government functions. This category encompasses a broad range of services beyond standard software development or IT management, including IT consulting, data processing, disaster recovery, and specialized IT support. This specific $3.3 million contract for licensing and support fits within this trend as a typical procurement for maintaining essential IT infrastructure. It represents a component of the larger federal investment in IT services necessary for agency operations, cybersecurity, and modernization efforts, contributing to the overall spending within this dynamic sector.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 20346425Q00009

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

Financial Breakdown

Contract Ceiling: $3,345,673

Exercised Options: $3,345,673

Current Obligation: $3,345,673

Actual Outlays: $555,591

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F281DA

IDV Type: FSS

Timeline