Interior's CGI contract for TAAMS operations reached $18.7M over 5.5 years, averaging $3.4M annually

Contract Overview

Contract Amount: $18,730,831 ($18.7M)

Contractor: CGI Information Systems & Management Consultants, Inc.

Awarding Agency: Department of the Interior

Start Date: 2008-12-08

End Date: 2014-05-31

Contract Duration: 2,000 days

Daily Burn Rate: $9.4K/day

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SERVICE BUREAU OPERATIONS FOR TAAMS.

Place of Performance

Location: ADDISON, DALLAS County, TEXAS, 75001

State: Texas Government Spending

Plain-Language Summary

Department of the Interior obligated $18.7 million to CGI INFORMATION SYSTEMS & MANAGEMENT CONSULTANTS, INC. for work described as: SERVICE BUREAU OPERATIONS FOR TAAMS. Key points: 1. The contract's annual value averaged $3.4M, indicating a significant but not exceptionally large investment for IT operations. 2. Competition dynamics are unclear as the contract type is listed as 'Delivery Order' without further detail on its initial award. 3. The fixed-price contract type suggests cost certainty for the government, but potential for contractor profit if efficiencies are found. 4. Performance context is limited without specific metrics on the effectiveness of the TAAMS operations. 5. The IT sector, specifically computer facilities management, is a common area for federal outsourcing. 6. The contract duration of approximately 5.5 years allowed for sustained service delivery but also potential for vendor lock-in.

Value Assessment

Rating: fair

The total award of $18.7 million over 5.5 years translates to an average annual spend of approximately $3.4 million. Benchmarking this requires understanding the scope of TAAMS operations. Without specific performance metrics or details on the services provided, it's difficult to definitively assess value for money. However, the fixed-price nature of the contract provides some cost predictability. Compared to similar IT operations contracts of this scale, the pricing appears within a reasonable range, assuming the services delivered were comprehensive and met the agency's needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was awarded as a 'Delivery Order,' which typically implies it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a pre-competed vehicle. The specific competition details for the original IDIQ or the decision to issue this particular delivery order are not provided. If it was a competitive IDIQ, the competition occurred at the IDIQ level. If it was a sole-source IDIQ or a direct award, competition would have been limited or non-existent for this specific order.

Taxpayer Impact: The level of competition directly impacts taxpayer value. More robust competition generally leads to lower prices and better service terms. If this delivery order was competed effectively, taxpayers likely benefited from a more competitive price. If competition was limited, there's a risk that the price may not have been optimized.

Public Impact

The Bureau of Indian Affairs and Bureau of Indian Education are the primary beneficiaries, receiving operational support for their TAAMS system. The services delivered likely include the management and maintenance of computer facilities essential for the agency's administrative and educational functions. The contract's geographic impact is centered in Texas, where the contractor CGI Information Systems & Management Consultants, Inc. is located. Workforce implications are primarily related to the IT professionals employed by CGI to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the initial competition for the contract vehicle.
Absence of specific performance metrics makes it difficult to assess the true value and effectiveness of the services.
The fixed-price contract could incentivize cost-cutting that might impact service quality if not properly monitored.

Positive Signals

The contract was awarded on a firm fixed-price basis, providing budget certainty for the government.
The duration of the contract allowed for continuity of essential IT operations.
CGI Information Systems & Management Consultants, Inc. is a large, established IT services provider with a significant federal footprint.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer facilities management. This is a broad and mature market within the federal government, with numerous providers offering similar services. The total federal spending on IT services is in the tens of billions annually. Contracts like this, supporting agency-specific management and administrative systems (TAAMS), are common across various departments. Benchmarking requires comparing the cost per user or per system managed against similar government or commercial contracts.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting goals. CGI Information Systems & Management Consultants, Inc. is a large business. The absence of small business participation requirements means that opportunities for small businesses to engage in this specific contract were likely minimal, unless they were direct subcontractors to CGI without a formal set-aside.

Oversight & Accountability

Oversight mechanisms would typically involve the Contracting Officer's Representative (COR) within the Department of the Interior, responsible for monitoring contractor performance and ensuring compliance with contract terms. Accountability is established through the contract's performance clauses and the fixed-price structure. Transparency is limited by the available data; details on performance reviews or specific oversight activities are not publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Operations and Maintenance
Computer Systems Design Services
Management and Consulting Services
Federal IT Infrastructure Support
Bureau of Indian Affairs IT Spending
Bureau of Indian Education IT Spending

Risk Flags

Lack of competition details
Limited performance data
Potential for scope creep in fixed-price contracts

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $18.7 million to CGI INFORMATION SYSTEMS & MANAGEMENT CONSULTANTS, INC.. SERVICE BUREAU OPERATIONS FOR TAAMS.

Who is the contractor on this award?

The obligated recipient is CGI INFORMATION SYSTEMS & MANAGEMENT CONSULTANTS, INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Indian Affairs and Bureau of Indian Education).

What is the total obligated amount?

The obligated amount is $18.7 million.

What is the period of performance?

Start: 2008-12-08. End: 2014-05-31.

What specific services did CGI provide under this contract for TAAMS operations?

The contract description indicates 'SERVICE BUREAU OPERATIONS FOR TAAMS.' TAAMS likely refers to a system managed by the Bureau of Indian Affairs and Bureau of Indian Education. Service bureau operations typically encompass a range of IT support functions, including managing and maintaining computer hardware and software, ensuring system availability and performance, providing user support, data management, and potentially network administration. Without more detailed statements of work or performance reports, the precise scope of services remains generalized. These operations are crucial for the day-to-day functioning of the agency's administrative and educational data systems.

How does the annual spending of approximately $3.4 million compare to similar federal IT operations contracts?

An average annual spend of $3.4 million for IT operations is moderate within the federal landscape. Large-scale IT infrastructure contracts can run into hundreds of millions, while smaller, specialized support contracts might be in the hundreds of thousands. This contract's value suggests it supported a significant but not enterprise-wide IT function. To provide a precise comparison, one would need to benchmark against contracts with similar service scopes (e.g., help desk, system administration, data center management) and similar agency sizes or user bases. However, as a general benchmark, $3.4M annually is a substantial investment indicative of critical system support.

What are the potential risks associated with a firm fixed-price contract for IT operations?

Firm fixed-price (FFP) contracts offer cost certainty to the government, as the price is set regardless of the contractor's actual costs. However, risks exist. If the scope of work is not clearly defined or if unforeseen technical challenges arise, the contractor may struggle to deliver within the fixed price, potentially leading to disputes or reduced quality. Conversely, if the contractor is highly efficient and the scope is well-defined, they can achieve significant profit margins. For the government, the primary risk is that the contractor might cut corners on service quality or innovation to maximize profit, especially if performance monitoring is weak. This necessitates robust oversight to ensure deliverables meet requirements.

What was the track record of CGI Information Systems & Management Consultants, Inc. with the Department of the Interior prior to or during this contract?

CGI Information Systems & Management Consultants, Inc. is a major global IT consulting and services company with a long history of contracting with various U.S. federal agencies, including the Department of the Interior. While specific performance details for this particular contract (awarded in 2008 and ending in 2014) are not readily available in public databases, CGI's extensive experience suggests a substantial track record. Agencies typically evaluate past performance when awarding contracts. A contract of this duration and value implies a level of trust and satisfactory performance, although specific instances of exceptional or poor performance would require deeper investigation into agency records or past performance evaluations.

How has federal spending on computer facilities management services evolved since this contract period (2008-2014)?

Federal spending on IT services, including computer facilities management, has generally trended upwards over the past decade, driven by increasing digitization and reliance on technology. During the 2008-2014 period, agencies were already investing heavily in IT modernization and operational support. Post-2014, trends have emphasized cloud computing adoption, cybersecurity enhancements, and data analytics, which have reshaped the landscape of facilities management. While traditional on-premises data center management remains, there's a growing shift towards hybrid and cloud-based solutions. Spending patterns have also been influenced by budget cycles, legislative mandates (like FITARA), and evolving technological paradigms, leading to both consolidation and new areas of investment.

Industry Classification

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

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

Contractor Details

Parent Company: CGI Inc (UEI: 248513116)

Address: 14800 LANDMARK BLVD STE 300, DALLAS, TX, 75254

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

Financial Breakdown

Contract Ceiling: $18,730,831

Exercised Options: $18,730,831

Current Obligation: $18,730,831

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: INA12PC60005

IDV Type: IDC

Timeline