DoD's $38.7M Computer Network Defense Contract Awarded to CGI Federal Inc

Contract Overview

Contract Amount: $38,746,984 ($38.7M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of Defense

Start Date: 2013-09-27

End Date: 2015-04-30

Contract Duration: 580 days

Daily Burn Rate: $66.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: COMPUTER NETWORK DEFENSE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20310

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $38.7 million to CGI FEDERAL INC. for work described as: COMPUTER NETWORK DEFENSE Key points: 1. Contract value of $38.7 million for computer network defense services. 2. Awarded to CGI Federal Inc. under a full and open competition. 3. Services provided to the Department of the Army, with performance in Washington D.C. 4. Contract type is Firm Fixed Price, indicating predictable costs. 5. Duration of 580 days, suggesting a medium-term engagement. 6. North American Industry Classification System (NAICS) code 541512 points to computer systems design services. 7. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The contract value of $38.7 million for computer network defense services appears reasonable given the scope and duration. Benchmarking against similar contracts for network defense and cybersecurity services would provide a more precise assessment of value for money. The firm fixed-price structure helps control costs for the government. However, without specific performance metrics or comparison data, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, suggesting that multiple vendors had the opportunity to bid. This process typically fosters a competitive environment, leading to potentially better pricing and service offerings for the government. The number of bidders is not specified, but the 'full and open' designation implies a robust competition.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring the government receives the best possible value for its investment in critical cybersecurity services.

Public Impact

The Department of the Army benefits from enhanced computer network defense capabilities. Services delivered are crucial for protecting sensitive military networks and data. Geographic impact is concentrated in Washington D.C., where the performance is located. The contract supports the cybersecurity workforce, likely involving skilled IT professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the services are highly specialized and integrated.
Reliance on a single contractor for critical network defense could pose a risk if performance degrades.
The duration of the contract may not align with rapidly evolving cybersecurity threats, requiring potential modifications or new procurements.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Firm Fixed Price contract type helps manage budget predictability.
The contractor, CGI Federal Inc., is a known entity in the federal IT services space.
The contract addresses a critical need for computer network defense within the Department of Defense.

Sector Analysis

The cybersecurity market is a rapidly growing sector within the broader IT services industry, driven by increasing digital threats and the need for robust defense mechanisms. Federal spending in this area is substantial, with agencies like the Department of Defense being major consumers of these services. This contract fits within the segment of IT systems design and integration focused on security.

Small Business Impact

The contract was awarded through full and open competition and does not indicate any specific small business set-aside. There is no explicit information on subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless CGI Federal Inc. voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract, requiring delivery of specified services. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Cybersecurity Services
IT Systems Design
Network Security
Defense IT Contracts
Department of the Army IT Spending

Risk Flags

Potential for scope creep in evolving cyber threat landscape.
Reliance on contractor for critical defense functions.
Need for clear performance metrics to ensure value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.7 million to CGI FEDERAL INC.. COMPUTER NETWORK DEFENSE

Who is the contractor on this award?

The obligated recipient is CGI FEDERAL INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $38.7 million.

What is the period of performance?

Start: 2013-09-27. End: 2015-04-30.

What is CGI Federal Inc.'s track record with the Department of Defense for similar cybersecurity contracts?

CGI Federal Inc. has a significant history of providing IT services to the Department of Defense across various agencies and programs. Their experience spans areas such as enterprise resource planning, IT modernization, and cybersecurity solutions. For cybersecurity-specific contracts, CGI Federal has been involved in network defense, threat analysis, and security operations center support. A detailed review of their past performance ratings, any past performance issues, and the scale of previous DoD cybersecurity contracts would be necessary to fully assess their suitability and track record for this specific award. Their established presence suggests familiarity with DoD's complex security requirements and procurement processes.

How does the $38.7 million contract value compare to other DoD computer network defense contracts awarded around the same period?

The $38.7 million contract value for computer network defense services awarded to CGI Federal Inc. is a substantial but not exceptionally large sum within the context of overall DoD IT and cybersecurity spending. The Department of Defense frequently awards multi-million dollar contracts for network security, threat intelligence, and cyber operations. To benchmark effectively, one would compare this contract's value against other firm-fixed-price delivery orders for similar services (NAICS 541512) awarded by the Army or other DoD components between 2013 and 2015. Factors like contract duration, scope of services (e.g., active defense, passive monitoring, incident response), and geographic coverage would influence comparability. Without specific comparable contract data, it's difficult to definitively state if this represents a premium or a discount, but it falls within a common range for such critical services.

What are the primary risks associated with a firm-fixed-price contract for computer network defense?

The primary risk associated with a firm-fixed-price (FFP) contract for computer network defense lies in the potential for scope creep or unforeseen technical challenges that could strain the contractor's ability to deliver within the agreed price. While FFP is generally advantageous for cost control, if the requirements are not perfectly defined or if the threat landscape evolves rapidly, the contractor might face difficulties in meeting all obligations without incurring significant losses. This could potentially lead to compromises in service quality or a reluctance to implement necessary but unplanned enhancements. Conversely, the government benefits from cost certainty, but must ensure requirements are meticulously detailed upfront to mitigate risks to service delivery.

How effective are full and open competitions in ensuring competitive pricing for specialized IT services like network defense?

Full and open competitions are generally considered the most effective method for ensuring competitive pricing for specialized IT services, including network defense. By allowing all responsible sources to submit bids, this approach maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive proposals. This competition drives down prices as contractors vie for the award. However, the effectiveness is contingent on the clarity of the solicitation, the complexity of the requirements, and the actual number of qualified bidders that participate. For highly specialized niches, the number of capable vendors might be limited, potentially reducing the competitive pressure compared to more commoditized services.

What is the historical spending trend for computer network defense services within the Department of the Army?

Historical spending trends for computer network defense services within the Department of the Army have shown a consistent and increasing trajectory over the past decade and beyond. Driven by the escalating sophistication of cyber threats and the critical nature of military operations, the Army has significantly invested in securing its vast networks. This includes funding for threat detection, prevention, response, and overall network resilience. Spending typically encompasses a mix of hardware, software, and professional services, with contracts like this one representing the services component. The trend reflects a growing recognition of cybersecurity as a foundational element of national defense, necessitating sustained and often growing budget allocations.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

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

Financial Breakdown

Contract Ceiling: $38,746,984

Exercised Options: $38,746,984

Current Obligation: $38,746,984

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $80,080

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0022

IDV Type: GWAC

Timeline