GSA's $66M contract for cybersecurity tools and sensors supports DHS's critical network security efforts

Contract Overview

Contract Amount: $65,981,673 ($66.0M)

Contractor: CGI Federal Inc.

Awarding Agency: General Services Administration

Start Date: 2016-11-01

End Date: 2018-11-13

Contract Duration: 742 days

Daily Burn Rate: $88.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: THE PURPOSE OF THIS TO IS TO SUPPORT THE DHS NATIONAL PROTECTION AND PROGRAMS DIRECTORATE, (NPPD)/OFFICE OF CYBERSECURITY AND COMMUNICATIONS (CS&C)/NETWORK SECURITY DEPLOYMENT (NSD) DIVISION, OPERATING ON BEHALF OF A SPECIFIC SET OF AGENCIES, BY PROVIDING TOOLS AND SENSORS IN SUPPORT OF THE CDM PROGRAM. IGF::OT::IGF.

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 $66.0 million to CGI FEDERAL INC. for work described as: THE PURPOSE OF THIS TO IS TO SUPPORT THE DHS NATIONAL PROTECTION AND PROGRAMS DIRECTORATE, (NPPD)/OFFICE OF CYBERSECURITY AND COMMUNICATIONS (CS&C)/NETWORK SECURITY DEPLOYMENT (NSD) DIVISION, OPERATING ON BEHALF OF A SPECIFIC SET OF AGENCIES, BY PROVIDING TOOLS AND SENSORS IN SUP… Key points: 1. The contract focuses on providing essential tools and sensors for the Continuous Diagnostics and Mitigation (CDM) program, enhancing national cybersecurity. 2. Awarded through full and open competition, this BPA call suggests a competitive environment for cybersecurity solutions. 3. The use of Time and Materials pricing introduces potential cost escalation risks if not closely managed. 4. The contract duration of 742 days (approximately 2 years) indicates a medium-term need for these cybersecurity services. 5. The primary recipient is the Department of Homeland Security's National Protection and Programs Directorate, highlighting its importance in federal cybersecurity. 6. The contract's value of over $65 million signifies a substantial investment in safeguarding federal networks.

Value Assessment

Rating: good

The contract value of $65.9 million for cybersecurity tools and sensors appears reasonable given the scope of supporting the DHS CDM program. Benchmarking against similar large-scale cybersecurity procurements for federal agencies would provide a more precise value-for-money assessment. The Time and Materials (T&M) pricing structure, while common for evolving IT needs, warrants careful monitoring to ensure costs remain within expected parameters and do not exceed the allocated budget without justification. The contract's duration of approximately two years suggests a commitment to ongoing support, which is typical for such critical infrastructure protection programs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 3 bidders suggests a moderate level of competition for this cybersecurity support BPA call. A higher number of bidders typically leads to more competitive pricing and a wider range of innovative solutions. However, the fact that it was competed openly is a positive sign for price discovery and ensuring the government receives a fair market price.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received. It ensures that taxpayer funds are used efficiently by selecting the most cost-effective and capable solution available in the market.

Public Impact

The primary beneficiary is the Department of Homeland Security (DHS), specifically the National Protection and Programs Directorate (NPPD) and its Office of Cybersecurity and Communications (CS&C), which will receive enhanced network security capabilities. The contract delivers essential tools and sensors crucial for the effective operation and enhancement of the CDM program, a foundational element of federal cybersecurity. The geographic impact is national, as the cybersecurity enhancements support federal agencies across the United States. The contract supports the federal cybersecurity workforce by providing the necessary technological resources for their operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost overruns if not managed diligently, as contractor effort is billed directly.
The duration of the contract (742 days) means that the technology and threat landscape could evolve significantly, potentially requiring adjustments or future re-competition.
Reliance on a single BPA call for critical cybersecurity tools might concentrate risk if the contractor faces performance issues or financial instability.

Positive Signals

Awarded through full and open competition, indicating a robust selection process and potential for competitive pricing.
The contract directly supports the critical mission of DHS's NPPD/CS&C, addressing vital national cybersecurity needs.
The use of a BPA call suggests an established framework for procuring necessary cybersecurity solutions efficiently.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on cybersecurity services and solutions. The market for federal cybersecurity is substantial and growing, driven by increasing cyber threats and the need to protect sensitive government data and infrastructure. This contract for tools and sensors for the CDM program is a key component of the government's strategy to improve its overall cybersecurity posture. Comparable spending benchmarks in this area often involve multi-year, multi-million dollar contracts for network security, threat detection, and incident response services.

Small Business Impact

This contract was not specifically set aside for small businesses, and the data indicates no small business participation (ss: false, sb: false). This suggests that the primary award went to a large business (CGI Federal Inc.). While this contract may not directly benefit small businesses through set-asides, large prime contractors are often required to subcontract a portion of the work to small businesses. Further analysis would be needed to determine if subcontracting goals were established and met, impacting the broader small business ecosystem within the federal contracting landscape.

Oversight & Accountability

The contract is managed under the General Services Administration (GSA), which typically has robust oversight mechanisms for its Federal Supply Schedule (FSS) and Blanket Purchase Agreement (BPA) calls. Oversight would likely involve contract administration by GSA's Federal Acquisition Service (FAS), performance monitoring, and adherence to the terms of the BPA call. Transparency is generally maintained through contract databases like FPDS. Inspector General (IG) jurisdiction would typically fall under the DHS IG, given that DHS is the end-user agency benefiting from the services, for matters related to fraud, waste, or abuse.

Related Government Programs

DHS Continuous Diagnostics and Mitigation (CDM) Program
Federal Information Security Management Act (FISMA) Compliance
GSA Federal Supply Schedule (FSS) Contracts
Cybersecurity and Infrastructure Security Agency (CISA) Initiatives

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Risk of technological obsolescence over the contract duration.
Dependence on a single BPA call for critical cybersecurity infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $66.0 million to CGI FEDERAL INC.. THE PURPOSE OF THIS TO IS TO SUPPORT THE DHS NATIONAL PROTECTION AND PROGRAMS DIRECTORATE, (NPPD)/OFFICE OF CYBERSECURITY AND COMMUNICATIONS (CS&C)/NETWORK SECURITY DEPLOYMENT (NSD) DIVISION, OPERATING ON BEHALF OF A SPECIFIC SET OF AGENCIES, BY PROVIDING TOOLS AND SENSORS IN SUPPORT OF THE CDM PROGRAM. IGF::OT::IGF.

Who is the contractor on this award?

The obligated recipient is CGI FEDERAL INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $66.0 million.

What is the period of performance?

Start: 2016-11-01. End: 2018-11-13.

What is the track record of CGI Federal Inc. in delivering similar cybersecurity solutions to federal agencies?

CGI Federal Inc. has a significant track record in providing IT and cybersecurity services to various U.S. federal agencies. They are a major contractor involved in numerous large-scale IT modernization and cybersecurity programs. For instance, CGI has been involved in providing enterprise IT services, cybersecurity solutions, and support for critical infrastructure protection across departments like the Department of Defense, Treasury, and Health and Human Services. Their experience often includes system integration, network security, data protection, and identity management. While specific performance metrics for this particular BPA call are not detailed here, CGI's overall presence in the federal cybersecurity market suggests they possess the capabilities and experience to handle complex requirements. However, as with any large contractor, past performance reviews and contract-specific data would be necessary for a comprehensive assessment.

How does the pricing structure (Time and Materials) compare to other cybersecurity tool procurements of similar scope?

Time and Materials (T&M) pricing is a common contract type for IT services, especially when the scope of work is not precisely defined at the outset or is expected to evolve, as is often the case with cybersecurity tools and sensor deployments. Compared to fixed-price contracts, T&M can offer greater flexibility but also carries a higher risk of cost overruns if not managed effectively. For cybersecurity procurements, agencies often use T&M for support, maintenance, and integration services, while fixed-price might be preferred for the procurement of specific, off-the-shelf hardware or software. The benchmark for 'value' in T&M contracts is heavily reliant on the agreed-upon hourly rates for labor categories and the efficiency of the contractor's performance. A thorough review would involve comparing the labor rates and indirect cost structures of CGI Federal Inc. against industry benchmarks and rates paid to other contractors for similar skill sets and services under GSA schedules or other contract vehicles.

What are the primary risks associated with this contract and how are they being mitigated?

The primary risks associated with this contract include potential cost overruns due to the Time and Materials (T&M) pricing structure, the risk of technological obsolescence given the contract's duration, and performance-related risks. T&M contracts require diligent oversight from the government to ensure that hours billed are reasonable and necessary for the work performed. Mitigation strategies typically involve establishing clear ceilings on contract value, requiring detailed progress reports, conducting regular performance reviews, and potentially incorporating incentives or penalties. For technological obsolescence, the government can manage this by actively monitoring the threat landscape and technology advancements, and by building flexibility into the contract for upgrades or modifications. Performance risks are managed through defined performance standards, service level agreements (SLAs), and the contractor's overall past performance record.

How does this contract contribute to the overall effectiveness of the DHS CDM Program?

This contract is fundamental to the operational effectiveness of the DHS Continuous Diagnostics and Mitigation (CDM) Program. The CDM Program aims to provide federal agencies with the necessary capabilities to identify cybersecurity risks, detect threats, and respond to incidents in near real-time. The tools and sensors procured under this contract are the 'eyes and ears' of the CDM program, enabling agencies to monitor their networks, assets, and data. Without these essential components, the program's ability to provide comprehensive visibility into the federal cybersecurity landscape would be severely limited. Therefore, this contract directly supports the program's core mission of enhancing the security posture of federal information systems and networks.

What has been the historical spending trend for cybersecurity tools and sensors under similar GSA BPA calls?

Historical spending trends for cybersecurity tools and sensors under GSA BPA calls, particularly those supporting large programs like CDM, have generally shown a consistent increase over the years. This reflects the growing federal investment in cybersecurity due to escalating threats and evolving regulatory requirements. BPA calls, by their nature, are often used for recurring needs and can represent significant cumulative spending. While specific historical data for this exact BPA call isn't provided, the overall trend in federal cybersecurity spending, especially for foundational programs like CDM, indicates a sustained and often growing demand. Agencies leverage BPA calls to streamline procurement for established needs, leading to substantial aggregate expenditures over time for critical technologies and services.

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: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: CGI Inc

Address: 12601 FAIR LAKES CIRCLE, FAIRFAX, VA, 22033

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $102,466,954

Exercised Options: $102,466,954

Current Obligation: $65,981,673

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00T13AJA0009

IDV Type: BPA

Timeline