CGI Federal Inc. contract for IT services valued at $28M over 4 years

Contract Overview

Contract Amount: $27,986,180 ($28.0M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of the Interior

Start Date: 2003-01-15

End Date: 2007-09-30

Contract Duration: 1,719 days

Daily Burn Rate: $16.3K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 51

Pricing Type: FIRM FIXED PRICE

Sector: IT

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $28.0 million to CGI FEDERAL INC. for work described as: Key points: 1. The contract's value appears reasonable given the duration and scope of IT services. 2. Competition dynamics for this contract are not detailed, impacting price discovery assessment. 3. Performance context is limited, making a definitive risk assessment challenging. 4. The contract falls within the broad category of IT services, a significant area of federal spending. 5. Sector positioning is within IT consulting and support, a mature market.

Value Assessment

Rating: fair

Benchmarking the value of this contract is difficult without more specific service details. However, a $28 million contract over four years for IT services suggests an average annual spend of $7 million. This is within the typical range for large-scale IT support contracts, but a precise value-for-money assessment requires comparison to similar service level agreements and market rates for comparable IT functions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract type is listed as 'COMPETITIVE DELIVERY ORDER,' which implies it was awarded under a pre-existing contract vehicle that was competed. However, the specific competition level for this particular delivery order is not detailed. Without knowing the number of bidders or the specific procurement vehicle used, it's challenging to assess the extent of competition and its impact on price discovery.

Taxpayer Impact: The lack of detailed competition information for this delivery order makes it difficult to ascertain if taxpayers received the best possible pricing.

Public Impact

The primary beneficiaries are likely federal agencies requiring IT support and consulting services. Services delivered include 'Other Computer Related Services,' indicating a broad range of IT support. The geographic impact is likely concentrated where the Department of the Interior operates, primarily within Virginia. Workforce implications could include the employment of IT professionals by CGI Federal Inc. and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed competition information hinders assessment of optimal pricing.
Limited performance context makes it difficult to evaluate contractor effectiveness.
The broad nature of 'Other Computer Related Services' could mask specific performance risks.

Positive Signals

Awarded as a competitive delivery order, suggesting some level of prior competition.
Long-term contract (4 years) can provide stability for service delivery.
Firm Fixed Price contract type helps manage cost uncertainty.

Sector Analysis

This contract falls within the Information Technology sector, specifically in the area of IT consulting and support services. The federal IT market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. Comparable spending benchmarks would involve analyzing other large IT service contracts awarded to major federal contractors by various agencies, considering factors like service scope, duration, and agency.

Small Business Impact

Information regarding small business set-asides or subcontracting plans for this specific contract is not provided. As a large contract awarded to CGI Federal Inc., it's possible that subcontracting opportunities may exist for small businesses, but this cannot be confirmed without further data. The absence of explicit small business participation metrics limits the assessment of its impact on the small business ecosystem.

Oversight & Accountability

Oversight mechanisms for this contract would typically be managed by the Department of the Interior's contracting officers and program managers. Accountability measures are inherent in the contract terms, including performance standards and payment schedules. Transparency is generally facilitated through contract databases like FPDS, though detailed performance reporting may be internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Professional Services
IT Consulting Services
Computer Systems Design Services
Federal IT Modernization Programs
Department of the Interior IT Support

Risk Flags

Ambiguity in service scope due to broad NAICS code.
Limited transparency on competition details for the delivery order.
Lack of specific performance metrics for evaluation.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $28.0 million to CGI FEDERAL INC.. See the official description on USAspending.

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 $28.0 million.

What is the period of performance?

Start: 2003-01-15. End: 2007-09-30.

What is the specific nature of the 'Other Computer Related Services' provided under this contract?

The classification 'Other Computer Related Services' (NAICS code 541519) is a broad category encompassing a wide array of IT support and consulting activities not specifically covered by other codes. This can include services such as IT project management, IT strategy consulting, IT security consulting, data management, cloud services implementation, and general IT support. Without more granular details from the contract's statement of work, it is difficult to pinpoint the exact services rendered. However, given the contract's value and duration with the Department of the Interior, it likely involves significant IT infrastructure support, system integration, or modernization efforts.

How does the $28 million contract value compare to similar IT service contracts awarded by the Department of the Interior?

Comparing the $28 million contract value for CGI Federal Inc. requires access to a comprehensive database of similar contracts awarded by the Department of the Interior (DOI) over the same period (2003-2007). However, as a general benchmark, a $7 million annual spend for IT services is substantial and indicative of a significant engagement. Larger federal agencies often award multi-million dollar IT contracts annually. To provide a precise comparison, one would need to identify contracts with similar scope (e.g., IT support, system integration) and duration awarded by DOI or comparable agencies during that timeframe. Without such specific comparative data, it's challenging to definitively state if this contract represents exceptional value or is on the higher end.

What are the primary risks associated with a 'COMPETITIVE DELIVERY ORDER' of this magnitude?

A 'COMPETITIVE DELIVERY ORDER' implies that the underlying contract vehicle was competed, but the specific order itself might have had limited competition or was awarded based on pre-negotiated terms. Key risks include potential scope creep if the requirements are not clearly defined, vendor lock-in if the services are highly specialized, and performance issues if the contractor fails to meet service level agreements. Given the duration of over four years, there's also a risk of technological obsolescence if the services are not adaptable to evolving IT landscapes. The 'Other Computer Related Services' classification adds a layer of ambiguity, potentially masking specific technical or operational risks that are not immediately apparent.

What was CGI Federal Inc.'s track record with the federal government prior to and during this contract period?

Assessing CGI Federal Inc.'s track record requires a review of their contract history within the federal government, particularly with the Department of the Interior, during the period of this contract (2003-2007) and preceding years. Publicly available data from contract databases (like FPDS) would show the number and value of contracts awarded to CGI Federal Inc., the agencies they served, and potentially performance ratings if available. A positive track record would be indicated by consistent contract awards, successful completion of projects, and few reported performance issues or disputes. Conversely, a history of contract cancellations, significant overruns, or negative performance reviews would raise concerns about their reliability for this specific $28 million engagement.

How has federal spending on 'Other Computer Related Services' evolved since this contract was awarded?

Federal spending on 'Other Computer Related Services' (NAICS 541519) has likely seen significant growth and evolution since the 2003-2007 period. Post-2007, federal IT spending has increasingly focused on areas like cloud computing, cybersecurity, data analytics, and digital transformation initiatives. While specific figures for NAICS 541519 are needed for a precise trend analysis, the overall federal IT budget has generally increased, driven by modernization needs and expanding digital service delivery. The nature of services within this category has also likely shifted, with greater emphasis on agile development, managed services, and specialized consulting for emerging technologies, compared to the more traditional IT support prevalent in the early 2000s.

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

Offers Received: 51

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Groupe CGI Inc (UEI: 246801237)

Address: 12601 FAIR LAKES CIRCLE, FAIRFAX, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $27,986,180

Exercised Options: $27,986,180

Current Obligation: $27,986,180

Parent Contract

Parent Award PIID: GS35F4797H

IDV Type: FSS

Timeline