GSA's $56.8M Billing & Account Receivable Contract with CGI Federal Faces Scrutiny Over Competition and Value

Contract Overview

Contract Amount: $56,797,698 ($56.8M)

Contractor: CGI Federal Inc.

Awarding Agency: General Services Administration

Start Date: 2009-03-31

End Date: 2014-09-30

Contract Duration: 2,009 days

Daily Burn Rate: $28.3K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BILLING AND ACCOUNT RECEIVABLE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20405

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $56.8 million to CGI FEDERAL INC. for work described as: BILLING AND ACCOUNT RECEIVABLE Key points: 1. The contract awarded to CGI Federal Inc. for billing and account receivable services totaled $56.8 million. 2. Awarded as a competitive delivery order, the contract's competitive nature and price discovery are key areas for review. 3. The contract's duration and fixed-price structure are important factors in assessing overall value and risk. 4. Services fall under 'Other Computer Related Services,' a broad category requiring specific context for benchmarking. 5. The absence of small business participation warrants further investigation into contracting opportunities.

Value Assessment

Rating: fair

The contract's firm fixed price structure suggests an attempt at cost control. However, without detailed cost breakdowns or comparisons to similar services, assessing the true value for money is challenging. The benchmark of $28,272 for a similar contract suggests potential overspending if this contract's scope is comparable.

Cost Per Unit: $28,272 (benchmark)

Competition Analysis

Competition Level: unknown

The contract was awarded via a competitive delivery order, indicating some level of competition. However, the specifics of the competition, including the number of bidders and the evaluation process, are crucial to understanding how effectively prices were discovered and optimized.

Taxpayer Impact: The $56.8 million expenditure represents taxpayer funds. Ensuring competitive pricing and efficient service delivery is paramount to maximizing the value of this investment and minimizing waste.

Public Impact

Taxpayers funded a significant contract for essential financial management services. The contract's duration and scope impact the government's ability to adapt to evolving financial technologies. Lack of small business involvement may limit innovation and economic opportunity for smaller firms.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited transparency on competitive process details
Potential for unoptimized pricing without robust benchmarking
No reported small business participation

Positive Signals

Awarded via competitive delivery order
Firm fixed price contract type
Long-term service provision

Sector Analysis

This contract falls under 'Other Computer Related Services,' a broad category. Benchmarking requires identifying comparable government or commercial contracts for billing and account receivable processing. The $56.8 million value over its lifespan suggests a substantial operational requirement.

Small Business Impact

The data indicates no small business participation in this contract. This raises questions about whether opportunities were adequately advertised or if the contract's scope inherently favored larger entities, potentially limiting broader economic impact.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. Further review of GSA's procurement processes, vendor performance monitoring, and cost-effectiveness analyses would be necessary to assess oversight effectiveness.

Related Government Programs

Other Computer Related Services
General Services Administration Contracting
Office of the Administrator Programs

Risk Flags

Lack of detailed competition metrics
Unclear value for money without further cost analysis
No small business participation
Potential for system obsolescence over contract duration

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $56.8 million to CGI FEDERAL INC.. BILLING AND ACCOUNT RECEIVABLE

Who is the contractor on this award?

The obligated recipient is CGI FEDERAL INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Office of the Administrator).

What is the total obligated amount?

The obligated amount is $56.8 million.

What is the period of performance?

Start: 2009-03-31. End: 2014-09-30.

What specific services were included under 'Other Computer Related Services' for billing and account receivable, and how did they align with the $56.8 million cost?

The specific services likely encompassed software, system maintenance, data processing, and potentially customer support related to billing and account receivable functions. The $56.8 million cost over the contract's life suggests a comprehensive, long-term solution. Detailed service level agreements and performance metrics would clarify the value proposition against this expenditure.

How robust was the competitive process for this delivery order, and did it effectively drive down costs compared to potential sole-source alternatives?

While designated as a 'competitive delivery order,' the depth of competition is unknown. A thorough review would examine the number of bids received, the evaluation criteria, and the final negotiated price. Effective competition should yield prices significantly lower than a sole-source award, ensuring better value for taxpayer dollars.

What was the government's strategy for ensuring the long-term effectiveness and adaptability of the billing and account receivable system procured under this contract?

The government likely relied on the firm fixed price contract and vendor performance metrics to ensure effectiveness. However, long-term adaptability might be a concern with a fixed system. Clauses for system upgrades, technological refresh, or performance-based incentives tied to evolving financial management needs would indicate a proactive strategy.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: CGI Inc (UEI: 248513116)

Address: 12601 FAIR LAKES CIRCLE, FAIRFAX, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $56,797,698

Exercised Options: $56,797,698

Current Obligation: $56,797,698

Parent Contract

Parent Award PIID: GS35F4797H

IDV Type: FSS

Timeline