State Department's $290M Personalization Facility contract awarded to CGI Federal Inc. shows long duration and firm fixed price

Contract Overview

Contract Amount: $290,839,231 ($290.8M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of State

Start Date: 2006-10-26

End Date: 2017-11-26

Contract Duration: 4,049 days

Daily Burn Rate: $71.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BOOK PERSONALIZATION FACILTY

Place of Performance

Location: HOT SPRINGS NATIONAL PARK, GARLAND County, ARKANSAS, 71913

State: Arkansas Government Spending

Plain-Language Summary

Department of State obligated $290.8 million to CGI FEDERAL INC. for work described as: BOOK PERSONALIZATION FACILTY Key points: 1. The contract's long duration of over 11 years suggests a sustained need for the services provided. 2. A firm fixed-price contract type generally offers cost certainty for the government, but can limit flexibility. 3. The award to CGI Federal Inc. indicates a significant engagement with a large federal contractor. 4. The 'All Other Support Services' classification points to a broad range of potential activities within the facility. 5. The contract's value of over $290 million over its lifespan warrants scrutiny of its ongoing necessity and efficiency.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the services rendered by the 'BOOK PERSONALIZATION FACILTY'. However, a contract of this magnitude and duration ($290M over 11 years) suggests substantial resource allocation. The firm fixed-price nature provides budget predictability. Further analysis would require comparing the cost per unit of service or output against industry standards or similar government support services contracts to determine if it represents good value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION', indicating that all responsible sources were permitted to submit offers. This suggests a robust competitive process was intended. With 4 bidders, the competition level appears moderate, which can contribute to price discovery and potentially lead to more favorable pricing for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: A full and open competition with multiple bidders generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation.

Public Impact

The primary beneficiaries are likely the Department of State personnel and operations that rely on the services provided by the 'BOOK PERSONALIZATION FACILTY'. The services delivered are broadly categorized under 'All Other Support Services', implying a wide array of functions that support the agency's mission. The geographic impact is primarily centered around the location where the facility operates, likely supporting domestic or international State Department operations. Workforce implications include the creation or maintenance of jobs for individuals employed by CGI Federal Inc. to operate and manage the facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The extended duration of the contract (over 11 years) raises questions about the long-term necessity and potential for service obsolescence.
The broad 'All Other Support Services' classification makes it difficult to assess the specific value and efficiency of the services provided without more granular data.
The significant contract value necessitates ongoing performance monitoring to ensure continued alignment with agency needs and cost-effectiveness.

Positive Signals

The award was made under full and open competition, suggesting a deliberate effort to ensure a competitive and fair process.
The firm fixed-price contract type provides cost certainty for the Department of State, mitigating risks associated with cost overruns.
The engagement with a large, established contractor like CGI Federal Inc. may indicate a level of reliability and established processes.

Sector Analysis

The 'BOOK PERSONALIZATION FACILTY' contract falls under the broad 'Support Services' sector, specifically classified under NAICS code 561990 (All Other Support Services). This sector encompasses a wide range of non-professional services. The federal government is a significant consumer of such services, with spending often driven by agency-specific operational needs. Comparable spending benchmarks would depend heavily on the precise nature of the personalization services, but the overall value of $290M over 11 years places it as a substantial contract within the government services landscape.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless CGI Federal Inc. voluntarily engages small businesses in its subcontracting efforts.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. Transparency is generally maintained through contract award databases like FPDS. Specific Inspector General (IG) jurisdiction would depend on the nature of any potential fraud, waste, or abuse identified within the contract's execution.

Related Government Programs

Department of State Administrative Support Contracts
Federal Information Technology Support Services
Government Logistics and Operations Support
Contracting for Specialized Services

Risk Flags

Long contract duration may indicate potential for service obsolescence or changing needs.
Broad service category ('All Other Support Services') lacks specificity for detailed value assessment.
Lack of performance metrics in summary data hinders evaluation of contractor effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $290.8 million to CGI FEDERAL INC.. BOOK PERSONALIZATION FACILTY

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 $290.8 million.

What is the period of performance?

Start: 2006-10-26. End: 2017-11-26.

What specific services constitute the 'BOOK PERSONALIZATION FACILTY' and how have they evolved over the contract's lifespan?

The provided data categorizes the service under NAICS 561990, 'All Other Support Services,' and refers to it as a 'BOOK PERSONALIZATION FACILTY.' Without more granular details, the exact nature of these services remains unspecified. It could range from physical book customization, digital content personalization, or even administrative support related to publications. The contract's long duration (2006-2017) suggests that the services likely adapted to technological advancements and evolving agency needs. However, the lack of specific service descriptions makes it difficult to assess the efficiency or necessity of the spending without further inquiry into the contract's statement of work and performance reports.

How does the $290 million total contract value compare to similar support services contracts awarded by the Department of State or other agencies?

Comparing the $290 million total contract value requires context regarding the specific services provided. If 'BOOK PERSONALIZATION FACILTY' involves extensive logistical, printing, or digital services, this value might be within a reasonable range for an 11-year contract supporting a large federal agency like the Department of State. However, if the services are more administrative or narrowly focused, the value could be considered high. Benchmarking against similar NAICS codes (561990) across different agencies would provide a clearer picture. For instance, contracts for large-scale printing, mailing, or specialized administrative support can easily reach tens or hundreds of millions of dollars over extended periods. Without a precise definition of the services, a definitive comparison is challenging.

What were the key performance indicators (KPIs) and performance outcomes for CGI Federal Inc. under this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or performance outcomes for CGI Federal Inc. under the 'BOOK PERSONALIZATION FACILTY' contract. Typically, such information would be detailed in performance reports or contractually defined metrics. Given the firm fixed-price nature, the government's primary concern would be whether CGI Federal Inc. met the contractual requirements and delivered the specified services satisfactorily. Assessing performance would require access to contract administration records, quality assurance reviews, and potentially user feedback from the Department of State. The absence of this data limits a thorough evaluation of the contractor's effectiveness and the overall value delivered.

What is the historical spending trend for 'BOOK PERSONALIZATION FACILTY' or similar services at the Department of State?

The provided data represents a single contract award for the 'BOOK PERSONALIZATION FACILTY' totaling $290,083,923.07, spanning from October 26, 2006, to November 26, 2017. This data point alone does not provide a trend. To understand historical spending, one would need to examine prior contracts for similar services, potentially under different contract vehicles or with different awardees, preceding this 11-year period. Additionally, analyzing spending patterns after the expiration of this contract (post-November 2017) would be crucial to determine if the need for these services continued and how it was subsequently met. Without this broader historical context, it's impossible to identify spending trends.

What risks were identified during the procurement process or contract performance, and how were they mitigated?

The provided data does not explicitly detail risks identified during the procurement process or contract performance for the 'BOOK PERSONALIZATION FACILTY' contract. Standard risks in large, long-term service contracts include contractor performance issues, cost overruns (though mitigated by firm fixed-price), scope creep, and changes in agency requirements. Given the 'full and open competition' award type, it suggests that the Department of State sought to mitigate risks by ensuring a competitive field. Mitigation strategies would typically involve robust contract language, performance monitoring, and clear communication channels. However, without specific risk registers or performance reviews, a detailed assessment of identified risks and their mitigation is not possible from the given data.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

Product/Service Code: PHOTO, MAP, PRINT, PUBLICATION › PHOTOGR, MAPPING, PRINTING, PUBLISH

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

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

Financial Breakdown

Contract Ceiling: $290,839,231

Exercised Options: $290,839,231

Current Obligation: $290,839,231

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline