DoD awards $41.9M for engineering services to CGI Federal Inc., with a 1968-day duration

Contract Overview

Contract Amount: $41,948,196 ($41.9M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of Defense

Start Date: 2014-09-22

End Date: 2020-02-11

Contract Duration: 1,968 days

Daily Burn Rate: $21.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: BASE YEAR - ENGINEERING SERVICES

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92110

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $41.9 million to CGI FEDERAL INC. for work described as: BASE YEAR - ENGINEERING SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control but also carries risk. 3. The base year value of $41.9M for engineering services requires benchmarking against similar contracts. 4. The duration of 1968 days (over 5 years) indicates a long-term need for these services. 5. The North American Industry Classification System (NAICS) code 541512 points to computer systems design services. 6. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

The base year value of approximately $41.9 million for engineering services, specifically computer systems design, is substantial. Without direct comparable contract data for identical services and scope, a precise value-for-money assessment is challenging. However, the CPFF contract type suggests that the government pays for allowable costs plus a fixed fee, which can lead to higher overall costs if not managed carefully. Benchmarking against industry standards for similar IT engineering services would be necessary to determine if this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The data shows 4 bids were received. A competitive process like this generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition contracts. The presence of multiple bidders suggests a healthy market for these types of engineering services.

Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, as it increases the likelihood of receiving services at a fair market price and reduces the risk of overpayment associated with less competitive procurements.

Public Impact

The Department of the Navy benefits from specialized engineering and computer systems design services. These services likely support critical naval operations, IT infrastructure, or system development. The contract's duration suggests a sustained impact on the Navy's technological capabilities. The geographic impact is likely concentrated around the Navy's operational bases or contractor facilities in California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can sometimes lead to cost overruns if not rigorously monitored.
The long duration of the contract (1968 days) increases the risk of scope creep or evolving requirements.
Reliance on a single contractor for an extended period could limit flexibility in adopting new technologies.
The specific nature of 'engineering services' is broad and requires detailed oversight to ensure alignment with objectives.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The fixed fee component in CPFF contracts provides some level of cost predictability.
The contract is a delivery order, suggesting it aligns with a pre-established IDIQ contract, potentially streamlining future procurements.
The contractor, CGI Federal Inc., is a known entity in the federal IT services space.

Sector Analysis

The contract falls within the Information Technology (IT) sector, specifically computer systems design services. This is a critical area for government operations, encompassing software development, system integration, and IT consulting. The market for these services is large and competitive, with numerous firms capable of providing specialized engineering support. The value of this contract, while significant, needs to be benchmarked against other large-scale IT service contracts awarded by defense agencies to gauge its relative size and cost-effectiveness.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, CGI Federal Inc., may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could provide opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy contracting officers and program managers. As a Cost Plus Fixed Fee (CPFF) contract, rigorous monitoring of allowable costs and the fixed fee is crucial. Transparency would be enhanced through regular reporting requirements mandated by the contract. The specific Inspector General jurisdiction would depend on the agency and the nature of the services, but the Department of Defense Office of Inspector General would likely have oversight responsibilities.

Related Government Programs

IT Services
Computer Systems Design
Engineering Services
Department of Defense Contracts
Naval IT Modernization
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee Contract Type
Long Contract Duration
Potential for Cost Overruns
Need for Robust Oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.9 million to CGI FEDERAL INC.. BASE YEAR - ENGINEERING SERVICES

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 $41.9 million.

What is the period of performance?

Start: 2014-09-22. End: 2020-02-11.

What is CGI Federal Inc.'s track record with the Department of the Navy and similar engineering service contracts?

CGI Federal Inc. has a significant history of contracting with the U.S. federal government, including the Department of Defense and the Department of the Navy. Their portfolio often includes IT modernization, system integration, and professional services. Analyzing past performance reviews, contract modifications, and any past performance issues related to similar engineering or computer systems design contracts awarded by the Navy to CGI Federal would provide insight into their reliability and capability. A review of their award history for Cost Plus Fixed Fee (CPFF) contracts specifically would also be relevant to understand their experience managing this contract type within the defense sector.

How does the $41.9 million base year cost compare to similar engineering service contracts for the Navy?

Benchmarking the $41.9 million base year cost requires identifying comparable contracts for engineering and computer systems design services awarded by the Department of the Navy around the same period (2014-2020). Key comparison points would include contract duration, scope of work, and contract type (CPFF). If similar contracts for comparable services were awarded at a lower cost per year or per day, it would suggest this contract might be priced higher than the market average. Conversely, if the scope is particularly complex or specialized, the cost might be justified. Access to historical contract databases and cost analysis tools is essential for a definitive comparison.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?

The primary risks with a CPFF contract of this scale ($41.9M base year, 1968-day duration) revolve around cost control and potential for contractor inefficiency. While the fixed fee provides some cost certainty for the contractor's profit, the 'cost plus' element means the government bears the risk of allowable cost increases. This can incentivize contractors to incur higher costs if oversight is lax, as their fee remains constant. For the government, risks include potential cost overruns beyond initial estimates, difficulty in precisely defining 'allowable costs,' and the need for robust monitoring to ensure the contractor is performing efficiently. The long duration amplifies these risks, as requirements can change, and oversight needs to be sustained.

How effective has CGI Federal Inc. been in delivering computer systems design services under similar federal contracts?

Assessing the effectiveness of CGI Federal Inc. in delivering computer systems design services requires examining their past performance data. This includes looking at contract close-out reports, CPARS (Contractor Performance Assessment Reporting System) ratings, and any documented instances of successful project completion or challenges. For this specific contract, understanding the key performance indicators (KPIs) and whether they were consistently met throughout the contract period is crucial. A review of project milestones achieved, system performance improvements delivered, and client satisfaction feedback would provide a comprehensive view of their effectiveness.

What have been the historical spending patterns for engineering and IT services by the Department of the Navy in the years leading up to and during this contract?

Analyzing historical spending patterns for engineering and IT services by the Department of the Navy prior to and during the 2014-2020 period would provide context for this $41.9 million award. This involves examining aggregate spending data for NAICS codes like 541512 (Computer Systems Design Services) and related engineering service codes. Understanding whether overall Navy IT spending was increasing, decreasing, or stable can indicate budget priorities and market conditions. Comparing the number and value of similar contracts awarded during those years can reveal trends in procurement strategies and the average contract size, helping to determine if this specific award aligns with established patterns or represents an outlier.

What is the significance of this contract being awarded as a delivery order under an IDIQ contract?

Awarding this contract as a delivery order under an Indefinite Delivery/Indefinite Quantity (IDIQ) contract signifies that the Department of the Navy had a pre-existing IDIQ vehicle in place, likely established through a prior competitive process. This approach allows the agency to procure specific services or supplies (the delivery order) against a broader contract that establishes terms, conditions, and potentially ceiling prices. For the government, it streamlines the procurement process for subsequent needs, reduces administrative burden, and can offer better pricing due to the overall commitment under the IDIQ. For the contractor, it provides a framework for ongoing work and potential for future task orders.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $51,793,220

Exercised Options: $51,793,220

Current Obligation: $41,948,196

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $5,788,413

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q09BGD0022

IDV Type: GWAC

Timeline