DoD's $54.5M DCAPES Contract Awarded to CGI Federal Inc. Amidst Full and Open Competition

Contract Overview

Contract Amount: $54,500,996 ($54.5M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of Defense

Start Date: 2020-04-06

End Date: 2025-04-05

Contract Duration: 1,825 days

Daily Burn Rate: $29.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DCAPES DEVELOPMENT AND SUSTAINMENT

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $54.5 million to CGI FEDERAL INC. for work described as: DCAPES DEVELOPMENT AND SUSTAINMENT Key points: 1. The Department of Defense awarded a significant contract valued at $54.5 million for DCAPES development and sustainment. 2. CGI Federal Inc. secured the contract through full and open competition, indicating a competitive bidding process. 3. The contract duration of 1825 days suggests a long-term need for these services. 4. The primary sector for this spending is Information Technology, specifically custom computer programming. 5. The award amount of $54.5 million represents a substantial investment in defense IT infrastructure.

Value Assessment

Rating: good

The contract's fixed-price nature provides cost certainty. The benchmark of $29,864 per base year suggests reasonable pricing, though a direct comparison to similar custom programming contracts would be beneficial for a more definitive assessment.

Cost Per Unit: $29,864 (base year benchmark)

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' suggesting a competitive process where multiple vendors were considered. This method generally promotes price discovery and ensures fair market value.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary defense IT services.

Public Impact

Ensures continued development and maintenance of the Defense Civilian Personnel and Pay System (DCAPES). Supports critical human resources and pay functions for Department of Defense civilian personnel. Impacts thousands of civilian employees by ensuring accurate and timely pay and personnel management. Enhances the efficiency and reliability of defense personnel administration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term development contracts.
Reliance on a single vendor for critical system sustainment.
Ensuring continued innovation and modernization beyond initial contract scope.

Positive Signals

Awarded through full and open competition.
Firm fixed-price contract provides cost predictability.
Long-term sustainment ensures system stability.
Supports critical defense personnel functions.

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming services. The $54.5 million award is a significant investment, reflecting the critical nature of personnel and pay systems within the Department of Defense.

Small Business Impact

The contract was awarded to CGI Federal Inc., a large business. There is no explicit indication of small business participation in this specific award, suggesting potential missed opportunities for small business engagement in this IT development and sustainment effort.

Oversight & Accountability

The contract's fixed-price nature and competitive award process provide a degree of oversight. However, ongoing monitoring of performance, deliverables, and adherence to scope will be crucial for accountability throughout the contract's duration.

Related Government Programs

Custom Computer Programming Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Potential for cost overruns if scope expands beyond initial estimates.
Risk of system obsolescence if not continuously updated.
Dependency on a single contractor for critical functionality.
Cybersecurity vulnerabilities inherent in complex IT systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.5 million to CGI FEDERAL INC.. DCAPES DEVELOPMENT AND SUSTAINMENT

Who is the contractor on this award?

The obligated recipient is CGI FEDERAL INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $54.5 million.

What is the period of performance?

Start: 2020-04-06. End: 2025-04-05.

What is the projected return on investment for the DCAPES development and sustainment contract?

The return on investment (ROI) for the DCAPES contract is primarily measured through improved efficiency, accuracy, and reduced administrative burden in managing civilian personnel and pay. By ensuring a stable and functional system, the DoD avoids costly disruptions and potential pay errors, thereby realizing significant indirect financial benefits and enhanced operational readiness.

What are the primary risks associated with the long-term sustainment of the DCAPES system by CGI Federal Inc.?

Key risks include vendor lock-in, where the DoD becomes overly dependent on CGI Federal for system maintenance and upgrades, potentially limiting future flexibility or innovation. There's also a risk of knowledge transfer gaps if key personnel leave CGI, impacting sustainment continuity. Furthermore, evolving cybersecurity threats require constant vigilance and adaptation, posing an ongoing risk to system integrity.

How effectively does the DCAPES system contribute to the overall mission readiness of the Department of Defense?

The DCAPES system is crucial for mission readiness by ensuring accurate and timely pay and personnel management for civilian employees, who are integral to DoD operations. A well-maintained system reduces administrative overhead, minimizes pay discrepancies, and allows HR personnel to focus on strategic workforce management rather than system issues, thereby indirectly supporting the DoD's core mission objectives.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12601 FAIR LAKES CIR # 100, FAIRFAX, VA, 22033

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $54,707,479

Exercised Options: $54,707,479

Current Obligation: $54,500,996

Actual Outlays: $10,737,963

Subaward Activity

Number of Subawards: 30

Total Subaward Amount: $6,247,376

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA877112D1011

IDV Type: IDC

Timeline