State Department's $54.3M consular support contract for Pacific region shows mixed value and limited competition

Contract Overview

Contract Amount: $54,357,092 ($54.4M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of State

Start Date: 2017-02-01

End Date: 2024-01-31

Contract Duration: 2,555 days

Daily Burn Rate: $21.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE

Sector: Other

Official Description: IGF::OT::IGF FOR OVERSEAS CONSULAR SUPPORT TO PROVIDE SUPPORT SERVICES FOR PACIFIC REGION CONSULAR OPERATIONS IN JAPAN, SOUTH KOREA, AUSTRALIA, FIJI, AND NEW ZEALAND SUCH AS USER-PAYS INFORMATION, APPOINTMENT, FEE COLLECTION, DOCUMENT DELIVERY, GREETER, AND OFFSITE BIOMETRIC COLLECTION SERVICES

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $54.4 million to CGI FEDERAL INC. for work described as: IGF::OT::IGF FOR OVERSEAS CONSULAR SUPPORT TO PROVIDE SUPPORT SERVICES FOR PACIFIC REGION CONSULAR OPERATIONS IN JAPAN, SOUTH KOREA, AUSTRALIA, FIJI, AND NEW ZEALAND SUCH AS USER-PAYS INFORMATION, APPOINTMENT, FEE COLLECTION, DOCUMENT DELIVERY, GREETER, AND OFFSITE BIOMETRIC COLL… Key points: 1. The contract's fixed-price incentive structure aims to balance cost control with performance, but actual value realization depends on achieving specific performance targets. 2. Competition was limited, with only one bid received, raising concerns about potential overpricing and reduced incentive for cost efficiency. 3. The contract duration of 7 years (2555 days) is substantial, increasing the risk of cost overruns or performance degradation over time. 4. While CGI Federal Inc. is the incumbent, their track record and the specific performance metrics of this contract require further scrutiny to assess value. 5. The contract's focus on essential consular services highlights its critical role in supporting diplomatic operations in a key geopolitical region. 6. The absence of small business set-asides suggests a focus on large-scale service providers, potentially limiting opportunities for smaller, specialized firms.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without detailed performance data and comparable contract pricing. The fixed-price incentive (FPI) contract type suggests an attempt to control costs while incentivizing performance, but the single bid raises questions about whether the government secured the best possible price. The total award amount of $54.3 million over seven years averages to approximately $7.76 million annually, which needs to be compared against the scope and complexity of services provided and the market rates for similar IT and facility management services in the specified regions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under full and open competition, but only one bid was received. This limited competition scenario can indicate several possibilities: the market for these specialized services is small, the requirements were highly specific and difficult to meet, or potential bidders were deterred by contract terms or perceived risks. The lack of robust competition means the government had less leverage to negotiate favorable pricing and terms, potentially leading to a higher cost for taxpayers.

Taxpayer Impact: A single bidder limits price discovery and can result in the government paying more than if multiple companies had competed. This reduces the overall value for taxpayer dollars spent on these essential consular support services.

Public Impact

Citizens and residents in Japan, South Korea, Australia, Fiji, and New Zealand benefit from the continuity and efficiency of consular services. Essential services such as appointment scheduling, fee collection, document delivery, and biometric collection are facilitated. The contract directly supports U.S. diplomatic missions in the Pacific region, enhancing their operational capacity. The contract ensures the smooth functioning of consular operations, which is vital for international relations and citizen services abroad.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to higher costs for taxpayers.
Long contract duration increases risk of performance degradation or cost overruns.
Lack of small business participation limits opportunities for smaller firms.

Positive Signals

Fixed-price incentive contract type aims to control costs and incentivize performance.
Contract supports critical consular functions in a strategically important region.
Incumbent contractor (CGI Federal Inc.) likely possesses relevant expertise.

Sector Analysis

This contract falls within the IT and professional services sector, specifically focusing on IT facilities management and support services. The market for such services is large and competitive globally, but specialized government contracts with specific geographic and security requirements can narrow the field. The State Department's spending in this area is consistent with the need to maintain robust diplomatic infrastructure. Comparable spending benchmarks would involve analyzing other large-scale IT support contracts for federal agencies with international footprints.

Small Business Impact

There is no indication of small business set-asides for this contract, as indicated by 'sb': false. This suggests that the contract was not specifically designed to promote small business participation. While the prime contractor, CGI Federal Inc., may utilize small businesses as subcontractors, the absence of a direct set-aside means opportunities for direct contracting with small businesses are limited. This could impact the broader small business ecosystem that supports federal contracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of State's Bureau of Information Resource Management (IRM) or the relevant contracting office. Performance monitoring, adherence to contract terms, and financial accountability are key oversight functions. The contract's fixed-price incentive structure implies performance metrics that would be tracked. Transparency is generally maintained through contract award databases, but detailed performance reports are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of State IT Services
Consular Affairs Support Contracts
Overseas Diplomatic Infrastructure Support
IT Facilities Management Contracts
Fixed-Price Incentive Contracts

Risk Flags

Limited Competition
Potential for Cost Overruns
Long Contract Duration
Technological Obsolescence Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $54.4 million to CGI FEDERAL INC.. IGF::OT::IGF FOR OVERSEAS CONSULAR SUPPORT TO PROVIDE SUPPORT SERVICES FOR PACIFIC REGION CONSULAR OPERATIONS IN JAPAN, SOUTH KOREA, AUSTRALIA, FIJI, AND NEW ZEALAND SUCH AS USER-PAYS INFORMATION, APPOINTMENT, FEE COLLECTION, DOCUMENT DELIVERY, GREETER, AND OFFSITE BIOMETRIC COLLECTION SERVICES

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 $54.4 million.

What is the period of performance?

Start: 2017-02-01. End: 2024-01-31.

What is CGI Federal Inc.'s performance history with the Department of State on similar contracts?

Assessing CGI Federal Inc.'s performance history requires a deep dive into past performance evaluations and contract data for the Department of State. While the award data indicates CGI Federal Inc. is the incumbent for this specific contract (ending January 31, 2024), detailed public records on their specific performance metrics, such as on-time delivery, quality of service, and adherence to budget on previous State Department contracts, are not readily available in this dataset. Generally, a contractor's track record is a significant factor in award decisions, and a history of successful contract completion with positive past performance reviews would indicate a lower risk for this new award. Conversely, documented issues or poor performance could raise concerns about the value and reliability of services provided.

How does the average annual cost of this contract compare to similar consular support services globally?

The average annual cost of this contract is approximately $7.76 million ($54.3 million / 7 years). Comparing this to similar consular support services globally is complex due to variations in service scope, geographic location, labor costs, and specific technological requirements. However, for context, large-scale IT and facility management contracts for government agencies often range from several million to tens of millions of dollars annually. Without specific benchmarks for consular support services in the Pacific region, it's difficult to definitively state if this contract represents excellent or questionable value. Factors like the number of supported posts, the criticality of services, and the security requirements heavily influence cost.

What are the primary risks associated with a 7-year contract for IT support services in the Pacific region?

The primary risks associated with a 7-year contract for IT support services in the Pacific region include technological obsolescence, changes in geopolitical landscapes affecting service delivery, potential for contractor performance degradation over time, and the risk of cost overruns if initial pricing assumptions become outdated. Technology evolves rapidly, and a 7-year term might mean the initial systems and support methods are less efficient or secure by the end of the contract. Geopolitical shifts could impact access to certain areas or increase security demands. Furthermore, long-term contracts can sometimes lead to complacency from the contractor, potentially impacting service quality. The fixed-price incentive structure attempts to mitigate some cost risks, but performance risks remain significant over such an extended period.

What is the expected impact of this contract on the efficiency and effectiveness of U.S. consular operations in the specified countries?

This contract is expected to significantly enhance the efficiency and effectiveness of U.S. consular operations by providing essential IT and support services. These services, such as user-pays information, appointment management, fee collection, and document delivery, are critical for smooth daily operations. By outsourcing these functions to a specialized provider like CGI Federal Inc., consular staff can focus on core diplomatic and consular duties, rather than administrative tasks. This should lead to reduced wait times for applicants, more streamlined processes, and improved overall service delivery to citizens and foreign nationals in Japan, South Korea, Australia, Fiji, and New Zealand. The continuity of these services is vital for maintaining strong diplomatic relations and providing necessary support.

How has the State Department's spending on consular support services in the Pacific region evolved over the past five years?

Analyzing the evolution of State Department spending on consular support services in the Pacific region over the past five years requires access to historical contract databases and budget allocations. This specific contract, awarded in February 2017 and ending in January 2024, represents a significant portion of spending during that period. However, without data on other contracts or task orders issued for similar services in the region, a comprehensive trend analysis is not possible. Factors such as increased demand for services, changes in diplomatic presence, or shifts in technology adoption could influence spending patterns. It is plausible that spending has increased due to growing regional importance and the need for modernized consular services.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Timken Company

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: $60,964,139

Exercised Options: $60,964,139

Current Obligation: $54,357,092

Actual Outlays: $15,560,302

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA10D0018

IDV Type: IDC

Timeline