DoD's $23M Computer Systems Design Contract with CGI Federal Faces Scrutiny for Value and Competition
Contract Overview
Contract Amount: $22,988,749 ($23.0M)
Contractor: CGI Federal Inc.
Awarding Agency: Department of Defense
Start Date: 2011-07-29
End Date: 2018-09-30
Contract Duration: 2,620 days
Daily Burn Rate: $8.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SYSTEM MAINTENANCE BASE YEAR
Place of Performance
Location: ALBANY, DOUGHERTY County, GEORGIA, 31704
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $23.0 million to CGI FEDERAL INC. for work described as: SYSTEM MAINTENANCE BASE YEAR Key points: 1. The contract awarded to CGI Federal Inc. for system maintenance represents a significant investment in IT services. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract's duration and firm fixed-price nature warrant a review of its long-term value and cost-effectiveness. 4. The sector is IT, specifically computer systems design services, a critical area for defense operations.
Value Assessment
Rating: fair
The contract's total value of $22.99 million over its period of performance needs to be benchmarked against similar IT maintenance contracts. Without specific per-unit cost data, a precise value assessment is challenging, but the overall spend is substantial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the long duration and the specific nature of system maintenance could still lead to price creep if not managed effectively.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently, but ongoing monitoring is crucial to confirm value realization.
Public Impact
Ensures continued operation of critical Department of the Navy systems. Supports the IT infrastructure necessary for defense operations. Potential for long-term cost implications for taxpayers due to contract duration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may obscure true cost-effectiveness.
- Lack of specific per-unit cost data hinders detailed value analysis.
Positive Signals
- Awarded through full and open competition.
- Firm fixed-price contract provides cost certainty.
Sector Analysis
This contract falls within the IT sector, specifically computer systems design services, which is a vital component of modern defense operations. Spending benchmarks for similar services can vary widely based on complexity and scope.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the 'sb' field is false. Further analysis would be needed to determine if small business participation was sought through subcontracting opportunities.
Oversight & Accountability
The firm fixed-price structure provides a degree of cost control. However, the long duration necessitates robust oversight to ensure performance standards are met and that the contract remains aligned with evolving technological needs.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration.
- Lack of granular per-unit cost data.
- Potential for service quality degradation over time.
- No indication of small business participation.
Tags
computer-systems-design-services, department-of-defense, ga, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.0 million to CGI FEDERAL INC.. SYSTEM MAINTENANCE BASE YEAR
Who is the contractor on this award?
The obligated recipient is CGI FEDERAL INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $23.0 million.
What is the period of performance?
Start: 2011-07-29. End: 2018-09-30.
What is the average annual cost of this contract, and how does it compare to industry benchmarks for similar system maintenance services?
The contract's total value is $22.99 million over approximately 7 years (2620 days). This averages to roughly $3.28 million per year. Comparing this to industry benchmarks requires detailed knowledge of the specific systems maintained, their complexity, and the scope of services provided. Without this granular data, a definitive comparison is difficult, but it represents a significant annual investment.
Given the long duration, what mechanisms are in place to mitigate the risk of cost overruns or declining service quality over time?
The firm fixed-price contract provides a baseline cost certainty. However, long-term risks are typically managed through performance metrics, service level agreements (SLAs), and periodic contract reviews. The Department of Defense would need to actively monitor CGI Federal's performance against these metrics and address any deviations promptly to prevent cost overruns or service degradation.
How effectively did the full and open competition process ensure the best possible price and value for these essential IT services?
Full and open competition is designed to maximize price competition and identify the best value. The fact that multiple bidders likely participated suggests a competitive environment was established. However, the ultimate effectiveness depends on the clarity of the requirements, the evaluation criteria used, and the government's negotiation strategy to ensure the winning bid represented optimal value for the taxpayer.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: M6785411R4684
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: CGI Inc
Address: 12601 FAIR LAKES CIR, FAIRFAX, VA, 22033
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $23,383,232
Exercised Options: $22,988,749
Current Obligation: $22,988,749
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2011-07-29
Current End Date: 2018-09-30
Potential End Date: 2018-09-30 00:00:00
Last Modified: 2023-08-16
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