Interior's $14M IT Services Contract with CGI Federal Faces Scrutiny for Non-Competitive Award
Contract Overview
Contract Amount: $14,081,106 ($14.1M)
Contractor: CGI Federal Inc.
Awarding Agency: Department of the Interior
Start Date: 2009-06-01
End Date: 2012-09-30
Contract Duration: 1,217 days
Daily Burn Rate: $11.6K/day
Competition Type: NON-COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MOMENTUM IMPLEMENTATION EXECUTION
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852
State: Maryland Government Spending
Plain-Language Summary
Department of the Interior obligated $14.1 million to CGI FEDERAL INC. for work described as: MOMENTUM IMPLEMENTATION EXECUTION Key points: 1. The contract awarded to CGI Federal Inc. for IT services represents a significant expenditure. 2. Lack of competition raises concerns about potential overpricing and suboptimal service delivery. 3. The 'Other Computer Related Services' NAICS code suggests a broad scope, making direct benchmarking difficult. 4. The long duration (1217 days) and firm-fixed-price structure could lead to inflexibility. 5. The absence of small business participation is noted.
Value Assessment
Rating: questionable
Without competitive bids, it's difficult to assess if the $14 million price tag represents fair market value. The firm-fixed-price contract type, while offering cost certainty, may not incentivize efficiency if the initial price was not rigorously benchmarked against similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded as a non-competitive delivery order, indicating a lack of open competition. This method limits price discovery and may result in higher costs for taxpayers compared to a fully competitive process.
Taxpayer Impact: The absence of competition likely means taxpayers did not benefit from the cost savings that could have been achieved through a bidding process.
Public Impact
Taxpayers may have paid more than necessary due to the lack of competition. The Department of the Interior's reliance on a single vendor for extensive IT services could indicate a potential vendor lock-in. Limited transparency in the procurement process hinders public understanding of the value received for the funds expended.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Non-competitive award
- Lack of small business participation
- Long contract duration
- Broad service category
Positive Signals
- Firm-fixed-price contract type provides cost certainty
Sector Analysis
The IT services sector is highly competitive, with numerous vendors capable of providing 'Other Computer Related Services.' A $14 million contract over three years is substantial, and competitive bidding is standard practice to ensure value for money.
Small Business Impact
The contract data indicates no small business participation (ss: false, sb: false). This suggests that opportunities for small businesses to compete or subcontract were not pursued or were unavailable under this specific award.
Oversight & Accountability
The non-competitive nature of this award warrants further oversight to ensure the Department of the Interior received adequate justification for bypassing a competitive process and that the pricing was reasonable.
Related Government Programs
- Other Computer Related Services
- Department of the Interior Contracting
- Departmental Offices Programs
Risk Flags
- Potential for overpayment due to lack of competition
- Limited transparency in procurement
- No small business participation
- Risk of vendor lock-in
- Broad service category lacks specificity
Tags
other-computer-related-services, department-of-the-interior, md, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $14.1 million to CGI FEDERAL INC.. MOMENTUM IMPLEMENTATION EXECUTION
Who is the contractor on this award?
The obligated recipient is CGI FEDERAL INC..
Which agency awarded this contract?
Awarding agency: Department of the Interior (Departmental Offices).
What is the total obligated amount?
The obligated amount is $14.1 million.
What is the period of performance?
Start: 2009-06-01. End: 2012-09-30.
What was the specific justification for awarding this contract on a non-competitive basis, and were alternative competitive strategies considered?
The justification for a non-competitive award typically involves factors like urgency, unique capabilities, or the existence of only one responsible source. Without detailed documentation, it's impossible to confirm if these criteria were met or if less restrictive competitive methods, such as a limited competition or a sole-source justification with a more robust price analysis, were explored.
How was the 'fair and reasonable' price determined for this sole-source contract, and what benchmarks were used?
Determining a fair and reasonable price for a sole-source contract requires thorough price analysis, often involving comparison to historical prices, commercial price lists, or independent government cost estimates. The absence of competitive bids makes this analysis critical. Without access to the agency's price negotiation documentation, it's difficult to ascertain the rigor of this process.
What specific IT services were provided under this contract, and how effectively were they delivered to meet the Department of the Interior's mission needs?
The NAICS code '541519 - Other Computer Related Services' is broad. Understanding the specific deliverables, performance metrics, and user satisfaction would be necessary to assess effectiveness. Without performance reports or user feedback, it's challenging to evaluate the actual impact and value derived from the $14 million expenditure.
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) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NON-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: $14,081,106
Exercised Options: $14,081,106
Current Obligation: $14,081,106
Parent Contract
Parent Award PIID: GS35F4797H
IDV Type: FSS
Timeline
Start Date: 2009-06-01
Current End Date: 2012-09-30
Potential End Date: 2013-09-30 00:00:00
Last Modified: 2013-10-22
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