CGI Federal awarded $28M for Financial Management System Implementation and Migration Services by Railroad Retirement Board
Contract Overview
Contract Amount: $27,955,430 ($28.0M)
Contractor: CGI Federal Inc.
Awarding Agency: Railroad Retirement Board
Start Date: 2012-09-28
End Date: 2023-09-29
Contract Duration: 4,018 days
Daily Burn Rate: $7.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: IGF::OT::IGF PROVISION OF FINANCIAL MANAGEMENT INTEGRATED SYSTEM IMPLEMENTATION AND MIGRATION SERVICES BEGINNING SEPTEMBER 28, 2012 AND COMMENCING WITH CUT-OVER TO NEW FMIS SYSTEM ON OCTOBER 1, 2013. THIS CONTRACT INCLUDES THE IMPLEMENTATION AND MIGRATION PERIOD, INITIAL BASE YEAR, AND NINE (9) ONE YEAR OPTION PERIODS.
Place of Performance
Location: CHICAGO, COOK County, ILLINOIS, 60611
State: Illinois Government Spending
Plain-Language Summary
Railroad Retirement Board obligated $28.0 million to CGI FEDERAL INC. for work described as: IGF::OT::IGF PROVISION OF FINANCIAL MANAGEMENT INTEGRATED SYSTEM IMPLEMENTATION AND MIGRATION SERVICES BEGINNING SEPTEMBER 28, 2012 AND COMMENCING WITH CUT-OVER TO NEW FMIS SYSTEM ON OCTOBER 1, 2013. THIS CONTRACT INCLUDES THE IMPLEMENTATION AND MIGRATION PERIOD, INITIAL BASE YEA… Key points: 1. The contract, valued at $27.96 million, supports the implementation and migration of a Financial Management Integrated System (FMIS). 2. Awarded through full and open competition, the contract has a long duration, extending over 10 years with options. 3. The primary contractor is CGI Federal Inc., a significant player in government IT services. 4. The Railroad Retirement Board is the agency procuring these critical financial system services.
Value Assessment
Rating: good
The total award value of $27.96 million over 10 years suggests a reasonable annual spend for a complex system implementation and migration. Benchmarking against similar large-scale IT system projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust process for soliciting bids and ensuring fair pricing. This method generally leads to competitive pricing as multiple vendors vie for the contract.
Taxpayer Impact: The competitive award process aims to secure the best value for taxpayers by leveraging market forces to drive down costs for essential IT services.
Public Impact
Ensures continuity and modernization of critical financial management operations for the Railroad Retirement Board. Potential for improved efficiency and accuracy in financial reporting and management. Impacts agency's ability to manage retirement benefits and financial obligations effectively. Long-term contract may provide stability but also requires ongoing monitoring for performance and cost-effectiveness.
Waste & Efficiency Indicators
Waste Risk Score: 69 / 10
Warning Flags
- Long contract duration increases risk of cost overruns or scope creep.
- Reliance on a single vendor for a critical system can create dependency.
- Potential for integration challenges with existing agency systems.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Contract provides for implementation and migration, addressing critical system needs.
- Experienced contractor (CGI Federal) likely brings expertise to the project.
Sector Analysis
This contract falls within the IT sector, specifically focusing on computing infrastructure and data processing services. The value is substantial for a system implementation and migration project, reflecting the complexity and criticality of financial management systems for government agencies.
Small Business Impact
The data indicates this contract was awarded through full and open competition and does not specify any set-asides for small businesses. Therefore, the direct impact on small businesses is likely limited unless they are subcontractors to the prime awardee.
Oversight & Accountability
The long duration of the contract necessitates robust oversight from the Railroad Retirement Board to ensure performance milestones are met, costs remain controlled, and the system effectively meets the agency's evolving needs. Regular reviews and audits will be crucial.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Railroad Retirement Board Contracting
- Railroad Retirement Board Programs
Risk Flags
- Potential for cost overruns due to T&M pricing structure.
- Risk of vendor lock-in with a long-term, single-system contract.
- Dependency on contractor's expertise for critical financial system operations.
- Challenges in adapting the system to future regulatory or technological changes.
- Ensuring data security and integrity throughout the migration and implementation process.
Tags
computing-infrastructure-providers-data-, railroad-retirement-board, il, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Railroad Retirement Board awarded $28.0 million to CGI FEDERAL INC.. IGF::OT::IGF PROVISION OF FINANCIAL MANAGEMENT INTEGRATED SYSTEM IMPLEMENTATION AND MIGRATION SERVICES BEGINNING SEPTEMBER 28, 2012 AND COMMENCING WITH CUT-OVER TO NEW FMIS SYSTEM ON OCTOBER 1, 2013. THIS CONTRACT INCLUDES THE IMPLEMENTATION AND MIGRATION PERIOD, INITIAL BASE YEAR, AND NINE (9) ONE YEAR OPTION PERIODS.
Who is the contractor on this award?
The obligated recipient is CGI FEDERAL INC..
Which agency awarded this contract?
Awarding agency: Railroad Retirement Board (Railroad Retirement Board).
What is the total obligated amount?
The obligated amount is $28.0 million.
What is the period of performance?
Start: 2012-09-28. End: 2023-09-29.
What is the projected return on investment for the FMIS implementation and migration services?
The return on investment (ROI) for the FMIS implementation and migration is not explicitly detailed in the provided data. However, the agency likely anticipates significant ROI through improved operational efficiencies, reduced manual processing, enhanced data accuracy for decision-making, and better compliance with financial regulations. Quantifying this ROI would require a detailed cost-benefit analysis comparing the contract's total value against projected savings and performance improvements over its lifespan.
What are the key performance indicators (KPIs) used to measure the success of this contract?
Key performance indicators for this contract would likely include system uptime and availability, successful data migration rates, reduction in processing errors, user satisfaction scores, adherence to project timelines and budget, and the system's ability to support new financial reporting requirements. The Railroad Retirement Board would establish specific, measurable targets for these KPIs during the contract's performance period to ensure the contractor meets expectations.
How does the pricing structure (Time and Materials) align with achieving cost-effectiveness for this long-term project?
A Time and Materials (T&M) contract, while offering flexibility for evolving project scopes, can pose a risk to cost-effectiveness over a long duration like this. The Railroad Retirement Board must implement strong oversight, including detailed work breakdown structures and regular reviews of labor hours and material costs, to prevent scope creep and ensure fair pricing. The agency should also consider incorporating cost-cap mechanisms or fixed-price components for well-defined project phases to mitigate potential cost overruns.
Industry Classification
NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related 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
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
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: $64,253,921
Exercised Options: $45,250,374
Current Obligation: $27,955,430
Actual Outlays: $5,622,900
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2012-09-28
Current End Date: 2023-09-29
Potential End Date: 2023-09-29 00:00:00
Last Modified: 2024-03-07
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