State Dept. Awards $92M for IT Support to CGI Federal, Raising Oversight Concerns
Contract Overview
Contract Amount: $92,146,042 ($92.1M)
Contractor: CGI Federal Inc.
Awarding Agency: Department of State
Start Date: 2013-09-30
End Date: 2017-12-29
Contract Duration: 1,551 days
Daily Burn Rate: $59.4K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: INCREMENTAL FUNDING - PPT SUPPORT SERVICES - TASK 2 IGF::OT::IGF
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520
Plain-Language Summary
Department of State obligated $92.1 million to CGI FEDERAL INC. for work described as: INCREMENTAL FUNDING - PPT SUPPORT SERVICES - TASK 2 IGF::OT::IGF Key points: 1. Significant contract value of $92.1M for IT support services. 2. Sole-source award to CGI Federal Inc. limits competition. 3. Long contract duration of over 4 years may indicate potential for cost overruns. 4. Focus on Computer Facilities Management Services within the IT sector.
Value Assessment
Rating: questionable
The contract value of $92.1M for Computer Facilities Management Services appears high given the lack of competition. Benchmarking against similar contracts for IT support services is difficult without more detailed scope information, but the absence of competitive bidding raises questions about optimal pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This significantly limits price discovery and may result in higher costs for taxpayers compared to a competitively bid contract.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the best possible price for these services, potentially leading to inefficient use of public funds.
Public Impact
Taxpayers may be overpaying for IT support due to the lack of competition. The long duration of the contract could lead to vendor lock-in and reduced flexibility. Lack of transparency in the sole-source award process can erode public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Long contract duration
Positive Signals
- Services provided to a key government agency (Dept. of State)
Sector Analysis
This contract falls under the IT sector, specifically Computer Facilities Management Services. The federal IT spending landscape is vast, and while competitive bidding is generally preferred to ensure value, sole-source awards can occur for specific, justified reasons. Benchmarks for similar services vary widely based on scope and complexity.
Small Business Impact
The data indicates that small businesses were not involved in this contract, as the 'sb' field is false. There is no indication of subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the services are necessary, priced appropriately, and delivered effectively. Accountability mechanisms should be robust to justify the lack of competition.
Related Government Programs
- Computer Facilities Management Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for inflated pricing due to lack of competition.
- Long contract duration may lead to inefficiencies.
- Limited transparency in the procurement process.
- No indication of small business participation.
Tags
computer-facilities-management-services, department-of-state, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $92.1 million to CGI FEDERAL INC.. INCREMENTAL FUNDING - PPT SUPPORT SERVICES - TASK 2 IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is CGI FEDERAL INC..
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $92.1 million.
What is the period of performance?
Start: 2013-09-30. End: 2017-12-29.
What specific justification was provided for awarding this contract on a sole-source basis, and how does it align with federal procurement regulations for sole-source procurements?
Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services. A thorough review of the justification document is necessary to determine if it meets the criteria for urgency, unique capabilities, or other permissible reasons. Without this documentation, it's difficult to assess the validity of the sole-source decision and ensure taxpayer funds are being used appropriately.
How was the price for this sole-source contract determined to be fair and reasonable, and what mechanisms were in place to prevent potential overpricing?
Determining fair and reasonable pricing for sole-source contracts is challenging without competitive bids. Agencies typically rely on historical pricing, commercial price lists, or independent government cost estimates. However, the absence of competition inherently reduces the pressure to offer the lowest possible price. Robust negotiation and cost analysis are crucial, but the inherent risk of overpayment remains higher than in a competitive scenario.
What performance metrics and oversight are in place to ensure the effectiveness and value of the IT support services provided by CGI Federal under this contract?
Effective oversight of sole-source contracts is critical. This includes establishing clear performance standards, regular progress reviews, and mechanisms for addressing deficiencies. The Department of State should have a robust contract management plan to monitor service delivery, ensure compliance with the contract terms, and verify that the services provided are meeting the agency's needs and delivering value for the investment made.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: CGI Inc (UEI: 248513116)
Address: 12601 FAIR LAKES CIR, FAIRFAX, VA, 22033
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $92,146,042
Exercised Options: $92,146,042
Current Obligation: $92,146,042
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SAQMMA13D0174
IDV Type: IDC
Timeline
Start Date: 2013-09-30
Current End Date: 2017-12-29
Potential End Date: 2017-12-29 00:00:00
Last Modified: 2020-10-14
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