USAID's $87.5M Cloud Data Center & Disaster Recovery Contract Awarded to CGI Federal

Contract Overview

Contract Amount: $87,451,987 ($87.5M)

Contractor: CGI Federal Inc.

Awarding Agency: Agency for International Development

Start Date: 2017-04-04

End Date: 2023-04-04

Contract Duration: 2,191 days

Daily Burn Rate: $39.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::CT::IGF CRITICAL FUNCTIONS THE EDC/DR BUNDLES THE CURRENT DATACENTER AND DISASTER RECOVERY REQUIREMENTS TO CAPITALIZE ON CLOUD-BASED TECHNOLOGY GAINS OVER THE PAST 5 YEARS WHEREBY CLOUD SERVICE PROVIDERS PROVIDE CLOUD-BASED VIRTUAL DATACENTER AND OFFER DISASTER RECOVERY.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Agency for International Development obligated $87.5 million to CGI FEDERAL INC. for work described as: IGF::CT::IGF CRITICAL FUNCTIONS THE EDC/DR BUNDLES THE CURRENT DATACENTER AND DISASTER RECOVERY REQUIREMENTS TO CAPITALIZE ON CLOUD-BASED TECHNOLOGY GAINS OVER THE PAST 5 YEARS WHEREBY CLOUD SERVICE PROVIDERS PROVIDE CLOUD-BASED VIRTUAL DATACENTER AND OFFER DISASTER RECOVERY. Key points: 1. The contract aims to leverage cloud technology for data center and disaster recovery, a significant shift from traditional infrastructure. 2. CGI Federal, the sole awardee, faces the challenge of migrating and managing critical government data in a cloud environment. 3. Potential risks include data security, vendor lock-in, and ensuring cost-effectiveness of cloud services over the contract's lifespan. 4. The IT services sector is highly competitive, with numerous cloud providers offering similar capabilities.

Value Assessment

Rating: fair

The contract's value of $87.5 million over six years suggests a substantial investment in cloud migration. Benchmarking against similar large-scale cloud migration projects is difficult without detailed service breakdowns, but the per-year cost appears moderate for comprehensive data center and disaster recovery solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. However, the specific awardee is CGI Federal, suggesting they were the most competitive offer. The pricing mechanism is Time and Materials, which can lead to cost overruns if not closely managed.

Taxpayer Impact: Taxpayer funds are being used to modernize critical IT infrastructure, potentially leading to long-term cost savings through cloud efficiencies, but the Time and Materials pricing introduces risk of increased expenditure.

Public Impact

Modernization of critical government data infrastructure, enhancing resilience and accessibility. Potential for improved service delivery through more agile and scalable cloud-based systems. Ensuring data security and privacy for sensitive government information in the cloud. The transition to cloud services may impact existing IT workforce roles and require retraining.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing model can lead to cost overruns.
Vendor lock-in with a single cloud service provider.
Data security and compliance risks in a cloud environment.
Potential for performance issues if cloud infrastructure is not optimized.

Positive Signals

Leveraging advanced cloud technologies for improved efficiency.
Enhanced disaster recovery capabilities for critical government functions.
Potential for cost savings through economies of scale in cloud computing.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on cloud computing services for data center and disaster recovery. Spending in this area has surged as agencies migrate from legacy systems to more flexible and scalable cloud solutions, driven by efficiency and modernization goals.

Small Business Impact

The contract data indicates that this was not awarded to small businesses, as the 'sb' field is false. Efforts to ensure small business participation in subcontracting opportunities would be crucial for broader economic impact.

Oversight & Accountability

Oversight will be critical to manage the Time and Materials contract, ensuring that costs remain within budget and that the services delivered meet the agency's requirements. Regular performance reviews and audits will be necessary to maintain accountability.

Related Government Programs

Other Computer Related Services
Agency for International Development Contracting
Agency for International Development Programs

Risk Flags

Time and Materials pricing increases cost uncertainty.
Lack of small business prime awardee.
Potential for vendor lock-in.
Complexity of managing cloud security and compliance.
Dependency on a single contractor for critical functions.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $87.5 million to CGI FEDERAL INC.. IGF::CT::IGF CRITICAL FUNCTIONS THE EDC/DR BUNDLES THE CURRENT DATACENTER AND DISASTER RECOVERY REQUIREMENTS TO CAPITALIZE ON CLOUD-BASED TECHNOLOGY GAINS OVER THE PAST 5 YEARS WHEREBY CLOUD SERVICE PROVIDERS PROVIDE CLOUD-BASED VIRTUAL DATACENTER AND OFFER DISASTER RECOVERY.

Who is the contractor on this award?

The obligated recipient is CGI FEDERAL INC..

Which agency awarded this contract?

Awarding agency: Agency for International Development (Agency for International Development).

What is the total obligated amount?

The obligated amount is $87.5 million.

What is the period of performance?

Start: 2017-04-04. End: 2023-04-04.

What is the projected long-term cost savings compared to maintaining on-premise data centers, considering the Time and Materials pricing?

Projected long-term cost savings are difficult to quantify precisely due to the Time and Materials (T&M) pricing structure, which lacks a fixed ceiling. While cloud adoption generally offers economies of scale, T&M can inflate costs if not rigorously managed. A detailed cost-benefit analysis comparing projected T&M expenditures against the total cost of ownership for on-premise solutions, including hardware, maintenance, and personnel, would be necessary to assess potential savings.

What specific measures are in place to mitigate data security and privacy risks associated with migrating sensitive government data to a cloud environment?

Mitigation of data security and privacy risks typically involves stringent contractual clauses, adherence to government security standards (e.g., FedRAMP), encryption of data at rest and in transit, access controls, regular security audits, and incident response plans. The contract should clearly define responsibilities for data protection, breach notification procedures, and compliance with relevant regulations like FISMA.

How will the effectiveness of the cloud-based disaster recovery solution be validated and tested throughout the contract period?

Effectiveness is validated through regular, scheduled disaster recovery drills and testing. These tests should simulate various failure scenarios to ensure data integrity, recovery time objectives (RTOs), and recovery point objectives (RPOs) are met. Performance metrics from these tests, along with independent verification and validation (IV&V) assessments, should be used to confirm the solution's readiness and reliability.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

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: $87,451,987

Exercised Options: $87,451,987

Current Obligation: $87,451,987

Actual Outlays: $52,708,777

Subaward Activity

Number of Subawards: 33

Total Subaward Amount: $10,401,750

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F281DA

IDV Type: FSS

Timeline