Department of State's $43.3M IT support contract to CGI Federal Inc. for budget system modernization awarded under full and open competition

Contract Overview

Contract Amount: $43,349,913 ($43.3M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of State

Start Date: 2014-07-01

End Date: 2021-06-17

Contract Duration: 2,543 days

Daily Burn Rate: $17.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IT SUPPORT SERVICES: BUDGET SYSTEM MODERNIZATION IGF::OT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $43.3 million to CGI FEDERAL INC. for work described as: IT SUPPORT SERVICES: BUDGET SYSTEM MODERNIZATION IGF::OT::IGF Key points: 1. The contract value of $43.3 million over its period of performance represents a significant investment in modernizing the Department of State's budget systems. 2. CGI Federal Inc. was selected through a full and open competition, suggesting a robust evaluation of multiple potential vendors. 3. The contract's duration of approximately 7 years (July 2014 - June 2021) indicates a long-term need for these IT support services. 4. The award was made as a BPA Call, which is a type of task order against an existing Blanket Purchase Agreement, often used for efficiency. 5. The North American Industry Classification System (NAICS) code 541519 for 'Other Computer Related Services' places this contract within a broad IT services category. 6. The contract was not set aside for small businesses, and no subcontracting information was provided, indicating potential impacts on the small business ecosystem. 7. The contract was awarded to CGI Federal Inc., a known entity in the federal IT services space, suggesting a reliance on established contractors for critical systems.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific per-unit cost data or comparisons to similar budget system modernization efforts. The total award amount of $43.3 million over nearly seven years suggests an average annual spend of approximately $6.2 million. This figure needs to be assessed against the scope and complexity of the budget system modernization, the number of users supported, and the criticality of the systems. Without detailed performance metrics or independent cost analyses, it's difficult to definitively assess value for money. However, the duration and scope imply a substantial undertaking.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, there might have been specific exclusions or justifications for limiting the pool of potential bidders initially. However, the 'full and open' designation generally implies that all responsible sources were permitted to submit offers. The number of bidders and the specific evaluation criteria would provide further insight into the robustness of the competition.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and innovative solutions. It ensures that the government explores a wide range of capabilities and pricing structures, potentially driving down costs compared to sole-source or limited competitions.

Public Impact

The primary beneficiaries are the Department of State personnel who rely on accurate and efficient budget systems for financial management and operational planning. The services delivered include IT support crucial for the modernization and maintenance of the department's financial and budget systems. The geographic impact is primarily within the District of Columbia, where the Department of State is headquartered, but the systems likely support global operations. The workforce implications involve IT professionals responsible for maintaining, updating, and potentially developing the budget systems, ensuring continuity of government financial operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the effectiveness of the IT support in achieving budget system modernization goals.
The 'after exclusion of sources' clause in the competition type warrants further investigation to understand any limitations on the initial bidding pool.
No specific information on small business subcontracting was provided, raising questions about opportunities for small businesses in this significant IT contract.
The long contract duration could potentially lead to vendor lock-in if not managed carefully with clear performance expectations and exit strategies.

Positive Signals

Awarded through full and open competition, suggesting a deliberate effort to secure the best value and capabilities.
The contract was awarded to CGI Federal Inc., a company with a significant presence and experience in federal IT services, implying a level of established capability.
The BPA Call award mechanism can indicate an efficient procurement process for ongoing IT support needs.
The contract addresses a critical function: budget system modernization, which is essential for sound financial management within a major federal agency.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on 'Other Computer Related Services' (NAICS 541519). This sector is characterized by a wide range of companies, from large system integrators to specialized software developers. Federal spending in IT services is substantial, driven by the need to modernize legacy systems, enhance cybersecurity, and improve data management. Comparable spending benchmarks would typically involve analyzing IT modernization contracts for other large federal agencies with similar budget management complexities, looking at contract values, durations, and service scopes.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This means that large businesses were eligible to compete and potentially win the award without specific requirements for subcontracting to small businesses. Without explicit subcontracting plans or reporting, it's difficult to assess the impact on the small business ecosystem. Large prime contractors may or may not engage small businesses for specialized support, and the absence of set-asides suggests that opportunities for small businesses might be limited unless they are direct subcontractors to CGI Federal Inc.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of State's internal contracting and program management offices. The Inspector General (IG) for the Department of State would have jurisdiction to investigate potential fraud, waste, or abuse related to this contract. Transparency is generally facilitated through contract award databases like FPDS-NG (now SAM.gov), where basic award details are published. However, detailed oversight reports or specific accountability measures related to this particular contract are not readily available in the provided data.

Related Government Programs

Department of State Financial Management Systems
Federal Budget and Financial Systems Modernization
IT Support Services Contracts
Large Agency IT Modernization Projects
BPA Call Procurements

Risk Flags

Competition Type Ambiguity
Lack of Performance Metrics
Limited Small Business Impact Data

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $43.3 million to CGI FEDERAL INC.. IT SUPPORT SERVICES: BUDGET SYSTEM MODERNIZATION 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 $43.3 million.

What is the period of performance?

Start: 2014-07-01. End: 2021-06-17.

What is the track record of CGI Federal Inc. in delivering similar IT support and system modernization services to federal agencies?

CGI Federal Inc. is a well-established contractor with a significant history of providing IT services to various U.S. federal agencies, including the Department of State. Their portfolio often includes large-scale system modernization, application development, and IT infrastructure support. While specific performance details for this particular contract are not detailed here, CGI Federal has been involved in numerous complex federal IT projects. Agencies typically evaluate a contractor's past performance, including their ability to meet deadlines, manage costs, and deliver quality services, as part of the source selection process. A review of past performance questionnaires and contract data for CGI Federal across other agencies would provide a more comprehensive understanding of their capabilities and reliability in similar engagements.

How does the per-year cost of this contract compare to industry benchmarks for IT support and budget system modernization?

The provided data indicates a total award of $43,349,912.93 over a period of 2,543 days, which is approximately 6.96 years. This equates to an average annual spend of roughly $6.2 million. Benchmarking this figure requires detailed information on the specific services rendered, the complexity of the budget systems modernized, the number of users supported, and the level of support provided (e.g., 24/7 operations, help desk, system development). Without these specifics, a direct comparison to industry benchmarks is difficult. However, for a large federal agency like the Department of State, an annual IT support and modernization budget in the millions of dollars for critical financial systems is not uncommon, especially for complex, long-term projects. Further analysis would require comparing this to similar-sized modernization efforts at agencies like Treasury, Defense, or HHS.

What are the key performance indicators (KPIs) used to measure the success of this contract, and how has CGI Federal Inc. performed against them?

The provided data does not include specific Key Performance Indicators (KPIs) or performance evaluation details for this contract. Typically, government contracts of this nature would include metrics related to system uptime, response times for support requests, successful completion of modernization milestones, adherence to security protocols, and user satisfaction. The effectiveness of CGI Federal Inc.'s performance would be assessed against these defined KPIs by the Department of State's contracting officer's representative (COR) or technical point of contact. Without access to performance reports or contractually defined metrics, it is not possible to assess how well the contractor has met its obligations or the overall success of the budget system modernization effort.

What was the total spending on IT support services by the Department of State in the years this contract was active (2014-2021)?

The provided data focuses solely on this specific contract award to CGI Federal Inc. It does not contain information on the Department of State's overall IT support spending during the contract's active period (July 1, 2014, to June 17, 2021). To determine the total IT support spending, one would need to consult the Department of State's annual budget reports, agency financial statements, or comprehensive federal procurement data aggregated by agency and service category. This contract represents only a portion of the department's IT expenditures, likely focused on a specific modernization initiative within their budget systems.

Were there any significant challenges or issues reported by the Inspector General or agency officials regarding this contract or CGI Federal Inc.'s performance?

The provided data does not contain information regarding specific challenges, issues, or Inspector General (IG) reports related to this contract or CGI Federal Inc.'s performance. Such information would typically be found in IG audit reports, agency performance reviews, or contract close-out documentation. While the contract was awarded and completed, the absence of readily available negative reports does not guarantee flawless execution. A thorough review of the Department of State's IG website and relevant contract management portals would be necessary to identify any documented concerns or investigations pertaining to this specific award.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: CGI Inc

Address: 12601 FAIR LAKES CIRCLE, FAIRFAX, VA, 22033

Business Categories: Category Business, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $43,524,503

Exercised Options: $43,524,503

Current Obligation: $43,349,913

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $1,135,880

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: SAQMMA10A0058

IDV Type: BPA

Timeline