GSA's $49M CGI Federal IT support contract shows fair value but limited competition

Contract Overview

Contract Amount: $49,032,762 ($49.0M)

Contractor: CGI Federal Inc.

Awarding Agency: General Services Administration

Start Date: 2009-05-01

End Date: 2014-04-30

Contract Duration: 1,825 days

Daily Burn Rate: $26.9K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PEGASYS MOMENTUM FINANCIALS SUPPORT SERVICES

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 $49.0 million to CGI FEDERAL INC. for work described as: PEGASYS MOMENTUM FINANCIALS SUPPORT SERVICES Key points: 1. Contract value of $49 million over five years suggests a moderate investment in IT support services. 2. The use of a Firm Fixed Price contract type indicates a clear understanding of scope and cost expectations. 3. The contract was awarded via a competitive delivery order, implying some level of market vetting. 4. The 'Other Computer Related Services' NAICS code points to a broad range of potential IT support functions. 5. The contract's duration of 1825 days (5 years) is typical for IT service contracts of this nature. 6. The small business set-aside flag being false suggests this was not specifically targeted for small business participation.

Value Assessment

Rating: fair

The contract's total value of approximately $49 million over five years averages to about $9.8 million annually. Benchmarking this against similar IT support services contracts is challenging without more specific service details. However, the firm-fixed-price structure suggests that the government aimed to lock in costs, which can be a good value indicator if the scope was well-defined. The award amount of $26,867 for the base period is a small fraction of the total, indicating significant option periods were exercised or planned.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER'. This suggests it was likely competed under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle. While a delivery order implies competition at some level, the specifics of how many bidders vied for this particular order are not detailed here. A limited competition scenario can sometimes lead to less aggressive pricing compared to full and open competition.

Taxpayer Impact: The competitive delivery order approach likely provided some price discovery, but the exact level of competition for this specific order could impact the final price paid by taxpayers.

Public Impact

Federal agencies, particularly those under the General Services Administration's purview, benefit from the IT support services provided. The contract delivers a range of 'Other Computer Related Services,' which could encompass IT help desk, system maintenance, network support, and software assistance. The contract is geographically focused on the District of Columbia, impacting federal operations within the nation's capital. The contract supports the IT infrastructure and operational needs of the federal government, indirectly benefiting federal employees and the public interacting with these systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition details for the delivery order could mean less optimal pricing.
The broad NAICS code 'Other Computer Related Services' might obscure specific performance metrics.
Lack of small business set-aside could limit opportunities for smaller IT firms.

Positive Signals

Firm Fixed Price contract type provides cost certainty.
Awarded under a competitive delivery order, indicating some market vetting.
Long-term contract (5 years) provides stability for service delivery.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically focusing on 'Other Computer Related Services.' This category often includes a wide array of support functions essential for government IT operations, such as help desk, system administration, and basic network maintenance. The market for IT support services is highly competitive, with numerous large and small businesses offering specialized capabilities. Government spending in this area is substantial, driven by the need to maintain aging systems and implement new technologies across various agencies.

Small Business Impact

The contract indicates 'sb': false, meaning it was not set aside for small businesses. This suggests that the competition was likely open to all eligible contractors, including large businesses. While this contract may not directly provide set-aside opportunities, the prime contractor, CGI Federal Inc., may engage small businesses as subcontractors to fulfill specific aspects of the IT support services, depending on their subcontracting plan and the nature of the services required.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Office of the Administrator. GSA has established procurement regulations and contract administration processes to ensure compliance and performance. The use of a Firm Fixed Price contract provides a degree of cost control. Transparency is generally maintained through contract databases like FPDS. The extent of Inspector General involvement would depend on any reported issues of fraud, waste, or abuse.

Related Government Programs

IT Professional Services
IT Operations and Maintenance
IT Managed Services
Cloud Computing Services
Cybersecurity Services

Risk Flags

Potential for suboptimal pricing due to limited competition.
Broad service category may lack specific performance metrics.
Contract duration could lead to vendor lock-in if not managed carefully.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $49.0 million to CGI FEDERAL INC.. PEGASYS MOMENTUM FINANCIALS SUPPORT SERVICES

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 $49.0 million.

What is the period of performance?

Start: 2009-05-01. End: 2014-04-30.

What specific IT services are included under the 'Other Computer Related Services' NAICS code for this contract?

The NAICS code 541519, 'Other Computer Related Services,' is a broad category encompassing a wide range of IT support functions not classified elsewhere. For this specific contract with CGI Federal Inc. under GSA, these services likely include, but are not limited to, IT help desk support, system administration, network monitoring and maintenance, user account management, software installation and troubleshooting, and potentially basic hardware support. The exact scope would be detailed in the contract's Statement of Work (SOW), which is not provided here. However, the 'PEGASYS MOMENTUM FINANCIALS SUPPORT SERVICES' title suggests a focus on supporting financial systems or related IT infrastructure within GSA.

How does the average annual cost of this contract compare to similar IT support contracts awarded by GSA?

This contract has a total value of approximately $49 million over five years, averaging about $9.8 million per year. To benchmark this effectively, we would need to compare it to other GSA contracts for similar IT support services, considering factors like the number of users supported, the complexity of the systems, and the specific services rendered. Without access to a detailed database of comparable contracts with granular service descriptions and pricing, a precise comparison is difficult. However, $9.8 million annually for comprehensive IT support for a federal agency or program is within a plausible range, though potentially on the higher side if the user base or system complexity is not substantial.

What are the primary risks associated with a 'limited' competition award for IT services?

A 'limited' competition award, such as a competitive delivery order under a larger IDIQ, carries several potential risks. Primarily, it may result in less favorable pricing for the government compared to a full and open competition, as the pool of potential bidders is restricted. This can lead to higher costs for taxpayers. Additionally, limited competition might reduce the incentive for contractors to innovate or offer their best services, as they face less pressure from a wider array of competitors. There's also a risk that the government might overlook potentially more capable or cost-effective solutions offered by companies not included in the limited competition pool.

What is the track record of CGI Federal Inc. in delivering IT support services to the federal government?

CGI Federal Inc. is a well-established government contractor with a significant presence in the federal IT services market. They have a history of performing large-scale IT projects and support services for various federal agencies. Their track record generally includes experience in areas such as system modernization, IT infrastructure management, and digital transformation initiatives. While specific performance details for this particular contract are not provided, CGI Federal's overall experience suggests they possess the capabilities to deliver complex IT support. However, like any large contractor, their performance can vary across contracts, and a review of past performance evaluations and any contract disputes would provide a more nuanced understanding.

How has federal spending on 'Other Computer Related Services' (NAICS 541519) trended over the past five years?

Federal spending on NAICS code 541519, 'Other Computer Related Services,' has generally seen a consistent upward trend over the past five years, reflecting the government's ongoing reliance on IT services to support its operations. This category captures a diverse range of services, including IT consulting, system integration, and various forms of IT support that don't fit into more specific categories. Agencies continually invest in maintaining and upgrading their IT infrastructure, managing complex data, and enhancing cybersecurity, all of which contribute to spending in this broad category. The total federal obligation for this NAICS code typically runs into the billions of dollars annually, underscoring its significance.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

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: $49,032,762

Exercised Options: $49,032,762

Current Obligation: $49,032,762

Parent Contract

Parent Award PIID: GS35F4797H

IDV Type: FSS

Timeline