EPA Spends $87M on Custom Application Management Services from CGI Federal Inc
Contract Overview
Contract Amount: $86,960,144 ($87.0M)
Contractor: CGI Federal Inc.
Awarding Agency: Environmental Protection Agency
Start Date: 2011-09-27
End Date: 2017-03-31
Contract Duration: 2,012 days
Daily Burn Rate: $43.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: CUSTOM APPLICATIONS MANAGEMENT
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033
State: Virginia Government Spending
Plain-Language Summary
Environmental Protection Agency obligated $87.0 million to CGI FEDERAL INC. for work described as: CUSTOM APPLICATIONS MANAGEMENT Key points: 1. Significant contract value of $86.96 million over its life. 2. CGI Federal Inc. is the sole awardee, raising questions about competition. 3. Contract duration spans from 2011 to 2017, indicating a long-term need. 4. NAICS code 541519 suggests a focus on IT services beyond standard software. 5. The contract type is Time and Materials, which can lead to cost overruns.
Value Assessment
Rating: fair
The $86.96 million contract value over six years appears substantial for custom application management. Benchmarking against similar IT service contracts is difficult without more specific service details, but the Time and Materials pricing model warrants scrutiny for potential cost inefficiencies.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition. However, the data indicates a single awardee, CGI Federal Inc., for a significant duration. This suggests that while the initial competition was open, the subsequent delivery orders may have been less competitive or focused on a specific vendor's capabilities.
Taxpayer Impact: The substantial spending on custom application management indicates a significant investment by taxpayers in maintaining and developing agency-specific software solutions.
Public Impact
Taxpayers are funding the development and maintenance of specialized software for the EPA. The long-term nature of the contract suggests ongoing reliance on these custom applications. Potential for cost overruns exists due to the Time and Materials pricing structure. The specific IT services provided could impact the EPA's operational efficiency and data management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing model
- Long contract duration
- Single awardee for delivery orders
Positive Signals
- Awarded under full and open competition
- Addresses specific agency needs for custom applications
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on custom application management and related computer services. Spending benchmarks for this category can vary widely based on the complexity and scope of the applications managed. The EPA's investment reflects a significant commitment to its IT infrastructure.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The primary awardee, CGI Federal Inc., is a large corporation, suggesting that small businesses were likely not primary contractors on this specific award, though they may have participated as subcontractors.
Oversight & Accountability
The contract was awarded under full and open competition, indicating an initial attempt at broad market engagement. However, the long duration and single awardee for delivery orders warrant further review to ensure ongoing accountability and value for taxpayer money.
Related Government Programs
- Other Computer Related Services
- Environmental Protection Agency Contracting
- Environmental Protection Agency Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Lack of clear competition for subsequent delivery orders.
- Long contract duration may indicate vendor lock-in.
- Limited transparency on specific applications managed and their value.
Tags
other-computer-related-services, environmental-protection-agency, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Environmental Protection Agency awarded $87.0 million to CGI FEDERAL INC.. CUSTOM APPLICATIONS MANAGEMENT
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 $87.0 million.
What is the period of performance?
Start: 2011-09-27. End: 2017-03-31.
What specific custom applications were managed under this contract, and what was their criticality to the EPA's mission?
The contract covered 'CUSTOM APPLICATIONS MANAGEMENT' under NAICS code 541519. While the specific applications are not detailed, they likely support core EPA functions such as environmental data processing, regulatory compliance tracking, or internal operational management. Understanding their criticality would involve assessing their direct impact on the agency's ability to fulfill its environmental protection mandate and enforce regulations.
How did the Time and Materials pricing model impact the final cost compared to a fixed-price contract for similar services?
The Time and Materials (T&M) pricing model allows costs to fluctuate based on the actual labor hours and material costs incurred. While offering flexibility, T&M contracts carry a higher risk of cost overruns if not closely managed. Without a fixed-price comparison, it's difficult to definitively state the cost impact, but T&M generally leads to higher final costs than well-defined fixed-price contracts for comparable services.
What mechanisms were in place to ensure effective competition and prevent vendor lock-in throughout the contract's lifecycle?
The contract was initially awarded under 'FULL AND OPEN COMPETITION.' However, the data shows multiple delivery orders issued to a single vendor, CGI Federal Inc. Effective competition throughout the lifecycle would typically involve periodic re-competition of task orders or the contract itself, or ensuring that the scope of work allowed for multiple vendors to compete on specific needs. The long duration without explicit re-competition clauses could indicate a risk of vendor lock-in.
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: 5
Pricing Type: TIME AND MATERIALS (Y)
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: $86,960,144
Exercised Options: $86,960,144
Current Obligation: $86,960,144
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS35F4797H
IDV Type: FSS
Timeline
Start Date: 2011-09-27
Current End Date: 2017-03-31
Potential End Date: 2025-09-10 00:00:00
Last Modified: 2025-09-09
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