EPA Call Center Contract Awarded to CGI Federal for $20M, Spanning 7 Years
Contract Overview
Contract Amount: $20,036,823 ($20.0M)
Contractor: CGI Federal Inc.
Awarding Agency: Environmental Protection Agency
Start Date: 2010-10-01
End Date: 2017-03-31
Contract Duration: 2,373 days
Daily Burn Rate: $8.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: EPA CALL CENTER
Place of Performance
Location: DURHAM, DURHAM County, NORTH CAROLINA, 27711
Plain-Language Summary
Environmental Protection Agency obligated $20.0 million to CGI FEDERAL INC. for work described as: EPA CALL CENTER Key points: 1. Contract value of $20.04M over 7 years. 2. CGI Federal Inc. is the sole awardee. 3. Risk is moderate due to long duration and fixed price. 4. Sector is IT services, specifically call center operations.
Value Assessment
Rating: fair
The contract value of $20.04M over 7 years averages approximately $2.86M annually. Benchmarking against similar IT service contracts requires more granular data on scope and service levels, but this appears within a reasonable range for a large-scale call center operation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. The firm fixed-price contract type aims to control costs, but the long duration could limit price discovery benefits over time.
Taxpayer Impact: The competitive award process is intended to ensure taxpayer funds are used efficiently. However, the long-term nature of the contract warrants ongoing monitoring to ensure continued value for money.
Public Impact
Provides essential call center services for the EPA. Supports environmental information dissemination and public inquiries. Ensures continuity of public-facing services for the agency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (7 years) may lead to price inflexibility.
- Fixed-price contract could disincentivize innovation or efficiency gains.
- Lack of small business participation noted.
Positive Signals
- Awarded through full and open competition.
- Firm fixed-price contract provides cost certainty.
- Long-term award ensures service continuity.
Sector Analysis
This contract falls within the Information Technology sector, specifically IT services for call center operations. Spending benchmarks for similar government call center contracts vary widely based on volume, complexity, and service level agreements, but a $20M, 7-year contract suggests a significant operational scale.
Small Business Impact
The data indicates no small business participation in this contract. While the primary award was through full and open competition, agencies should explore opportunities for small business involvement in subcontracting or future contract vehicles.
Oversight & Accountability
The contract was awarded via a delivery order under a larger contract vehicle. Oversight would typically involve the EPA's contracting officer and program managers to ensure performance and adherence to terms, especially given the long duration.
Related Government Programs
- Other Computer Related Services
- Environmental Protection Agency Contracting
- Environmental Protection Agency Programs
Risk Flags
- Long contract duration
- Firm fixed-price contract
- No small business participation
- Potential for price inflexibility over time
Tags
other-computer-related-services, environmental-protection-agency, nc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Environmental Protection Agency awarded $20.0 million to CGI FEDERAL INC.. EPA CALL CENTER
Who is the contractor on this award?
The obligated recipient is CGI FEDERAL INC..
Which agency awarded this contract?
Awarding agency: Environmental Protection Agency (Environmental Protection Agency).
What is the total obligated amount?
The obligated amount is $20.0 million.
What is the period of performance?
Start: 2010-10-01. End: 2017-03-31.
What was the competitive landscape like during the bidding process, and how did it influence the final price?
The award was made under 'full and open competition,' suggesting multiple bidders likely participated. This competitive pressure is expected to drive down prices. However, the specific number of bids received and the details of the pricing proposals are not provided, making it difficult to definitively assess the extent of price discovery achieved beyond the general assumption of competition.
What are the primary risks associated with a 7-year firm fixed-price contract for call center services?
A significant risk is price inflexibility. Over seven years, technology, service needs, and labor costs can change substantially. A fixed-price contract might not adequately account for these shifts, potentially leading to the government overpaying if costs decrease or the contractor underperforming if costs increase significantly. There's also a risk of reduced incentive for the contractor to innovate or improve efficiency beyond the contract's minimum requirements.
How effectively does this contract ensure the continuity and quality of EPA's public-facing call center operations?
The long duration (7 years) and firm fixed-price structure are designed to ensure service continuity by locking in a provider and price. This stability is beneficial for ongoing operations. However, effectiveness in maintaining quality hinges on robust performance metrics within the contract and diligent oversight by the EPA to ensure the contractor meets or exceeds service level agreements throughout the contract term.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 12601 FAIR LAKES CIRCLE, FAIRFAX, VA, 22033
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $20,073,822
Exercised Options: $20,073,822
Current Obligation: $20,036,823
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $6,102,535
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS35F4797H
IDV Type: FSS
Timeline
Start Date: 2010-10-01
Current End Date: 2017-03-31
Potential End Date: 2017-03-31 00:00:00
Last Modified: 2025-09-26
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