GSA's $31.9M IT Infrastructure Support Contract with CNI Federal Services Faces Scrutiny Over Competition and Value

Contract Overview

Contract Amount: $31,926,037 ($31.9M)

Contractor: CNI Federal Services, LLC

Awarding Agency: General Services Administration

Start Date: 2008-08-06

End Date: 2013-08-31

Contract Duration: 1,851 days

Daily Burn Rate: $17.2K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 15

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IOAT IT ENTERPRISE INFRASTRUCTURE SUPPORT

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $31.9 million to CNI FEDERAL SERVICES, LLC for work described as: IOAT IT ENTERPRISE INFRASTRUCTURE SUPPORT Key points: 1. Contract awarded to CNI Federal Services, LLC for IT Enterprise Infrastructure Support. 2. Totaling $31.9M, the contract spans nearly five years. 3. Awarded via a competitive delivery order, but details on price discovery are limited. 4. The 'Other Computer Related Services' NAICS code suggests a broad scope. 5. Concerns exist regarding the Time and Materials pricing structure and potential for cost overruns.

Value Assessment

Rating: fair

The contract's Time and Materials pricing structure raises concerns about cost control and potential overruns, especially given the extended duration. Benchmarking against similar IT support contracts is difficult without more granular data on labor categories and rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was awarded as a competitive delivery order, indicating some level of competition at the time of award. However, the specific details of the competition and how price was determined are not fully detailed, potentially limiting transparency.

Taxpayer Impact: The Time and Materials contract type, coupled with a significant award value, presents a risk to taxpayers if not closely managed to prevent inflated costs.

Public Impact

Taxpayers may be exposed to higher costs due to the Time and Materials pricing model. The long duration of the contract could lead to vendor lock-in and reduced flexibility for the agency. Lack of detailed performance metrics makes it challenging to assess the true value delivered for the investment. The broad NAICS code could encompass services not strictly related to core IT infrastructure, potentially leading to scope creep.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing
Long contract duration
Limited performance data
Broad NAICS code

Positive Signals

Awarded via competitive delivery order
Managed by GSA, a central procurement agency

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services.' Spending in this area is substantial across the federal government, with benchmarks varying widely based on service type and complexity. The $31.9M value is significant for a single contract of this nature.

Small Business Impact

The contract was not awarded to a small business, as indicated by 'sb': false. This means opportunities for small business participation were likely limited unless CNI Federal Services subcontracted.

Oversight & Accountability

Oversight of this contract would primarily fall under the General Services Administration (GSA). The effectiveness of oversight depends on the agency's diligence in monitoring performance, costs, and adherence to contract terms, especially given the T&M structure.

Related Government Programs

Other Computer Related Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Time and Materials pricing model increases risk of cost overruns.
Long contract duration (1851 days) may limit flexibility and increase vendor lock-in.
Lack of detailed performance metrics makes value assessment difficult.
Broad NAICS code could indicate potential for scope creep.
Contract not awarded to a small business, limiting SMB participation.
Limited transparency on specific competition details and price discovery.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $31.9 million to CNI FEDERAL SERVICES, LLC. IOAT IT ENTERPRISE INFRASTRUCTURE SUPPORT

Who is the contractor on this award?

The obligated recipient is CNI FEDERAL SERVICES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $31.9 million.

What is the period of performance?

Start: 2008-08-06. End: 2013-08-31.

What specific IT enterprise infrastructure support services were provided under this contract, and how did their scope align with the 'Other Computer Related Services' NAICS code?

The contract details do not specify the exact services rendered beyond 'IT Enterprise Infrastructure Support.' The broad NAICS code 541519 allows for a wide range of computer-related services. Without a detailed statement of work, it's difficult to ascertain if the services were narrowly focused on infrastructure or extended into other areas, potentially impacting the perceived value and relevance of the contract.

How effectively did the competitive delivery order process ensure fair pricing and prevent potential cost overruns given the Time and Materials contract type?

While the delivery order was competitive, the Time and Materials (T&M) pricing structure inherently carries a risk of cost overruns if not rigorously managed. The competitiveness at the delivery order stage may have influenced initial rates, but the lack of a fixed ceiling or detailed performance metrics makes it challenging to assess long-term price discovery effectiveness and taxpayer value protection.

What mechanisms were in place to ensure accountability and measure the effectiveness of CNI Federal Services' IT support throughout the contract's nearly five-year duration?

The provided data does not detail specific accountability mechanisms or performance metrics. For a T&M contract of this duration and value, effective oversight typically involves regular performance reviews, detailed invoicing with justification, and clear deliverables. The absence of this information raises questions about the robustness of the accountability framework and the ability to definitively assess the contract's overall effectiveness.

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

Solicitation ID: FY758001T6

Offers Received: 15

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chickasaw Nation (UEI: 070848361)

Address: 7100 N CLASSEN BLVD, STE 403, OKLAHOMA CITY, OK, 90

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $36,585,301

Exercised Options: $36,585,301

Current Obligation: $31,926,037

Parent Contract

Parent Award PIID: GS35F0248T

IDV Type: FSS

Timeline