DoD's $67.8M Custom Computer Programming Contract with CGI Federal Faces Scrutiny Over Value and Competition

Contract Overview

Contract Amount: $67,777,990 ($67.8M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of Defense

Start Date: 2015-07-17

End Date: 2022-05-31

Contract Duration: 2,510 days

Daily Burn Rate: $27.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF

Place of Performance

Location: COLUMBIA, HOWARD County, MARYLAND, 21046

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $67.8 million to CGI FEDERAL INC. for work described as: IGF::OT::IGF Key points: 1. The contract awarded to CGI Federal Inc. for custom computer programming services is substantial, totaling over $67.7 million. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. However, the long duration (2510 days) and the lack of specific performance metrics raise potential value and oversight concerns. 4. The sector is IT services, a critical area for government operations, making efficiency and cost-effectiveness paramount.

Value Assessment

Rating: fair

The contract's total value of $67.8 million over approximately seven years suggests a significant investment. Benchmarking against similar custom programming contracts is difficult without detailed scope of work and performance data, but the duration implies a need for ongoing services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: While competition was present, the long contract duration and fixed-price nature could impact the government's ability to realize cost savings if market conditions or requirements change significantly.

Public Impact

Taxpayers are funding extensive custom computer programming services for the Department of Defense. The long-term nature of the contract suggests a reliance on CGI Federal for critical IT functions. The effectiveness of these services in meeting evolving military needs will directly impact operational capabilities. Transparency in performance metrics and cost-effectiveness over the contract's lifespan is crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration may not reflect current needs or technological advancements.
Lack of specific performance metrics makes value assessment difficult.
Fixed-price contract could lead to overpayment if scope changes or efficiency is low.

Positive Signals

Awarded under full and open competition.
Contractor has a history of performance (implied by award).

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically custom computer programming. IT spending by the Department of Defense is consistently high, focusing on modernization, cybersecurity, and operational support. Benchmarks for similar contracts vary widely based on complexity and duration.

Small Business Impact

The data indicates this contract was awarded to CGI Federal Inc., a large business. There is no explicit information on small business participation or subcontracting goals within this specific award, suggesting potential limited opportunities for small businesses on this particular contract.

Oversight & Accountability

The long duration of this definitive contract necessitates robust oversight to ensure continued relevance, performance, and cost-effectiveness. Monitoring contract modifications, performance metrics, and adherence to the original scope is essential for accountability.

Related Government Programs

Custom Computer Programming Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Long contract duration potentially leading to outdated services.
Lack of detailed performance metrics hinders value assessment.
Fixed-price contract risks overpayment if scope or market changes.
Potential for limited small business subcontracting opportunities.
Need for strong ongoing oversight due to contract length.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $67.8 million to CGI FEDERAL INC.. 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 Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $67.8 million.

What is the period of performance?

Start: 2015-07-17. End: 2022-05-31.

What specific custom computer programming services were rendered, and how do they align with the Department of the Army's current and future mission requirements?

The provided data lacks specifics on the exact services rendered under this $67.8 million contract. Understanding the nature of the custom programming is crucial to assess its ongoing relevance and effectiveness. Without this detail, it's difficult to determine if the services provided remain aligned with the Department of the Army's evolving technological needs and strategic objectives.

Given the contract's seven-year duration, what mechanisms were in place to ensure competitive pricing and prevent potential cost overruns throughout its lifecycle?

The contract was awarded under full and open competition, which is a positive step for price discovery. However, a seven-year fixed-price contract presents inherent risks. Mechanisms like regular price reviews, performance-based incentives, or options for renegotiation based on market shifts would be critical to mitigate potential cost overruns and ensure value for money over such an extended period.

How has the performance of CGI Federal Inc. on this contract been evaluated, and what metrics were used to determine the effectiveness of the custom computer programming services provided?

The available data does not include specific performance evaluations or the metrics used to assess CGI Federal Inc.'s effectiveness. For a contract of this magnitude and duration, robust performance monitoring is essential. Key metrics should ideally include timeliness, quality of code, system reliability, user satisfaction, and alignment with project milestones to ensure the services delivered are truly effective and meet the government's needs.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W52P1J14R0061

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $67,777,990

Exercised Options: $67,777,990

Current Obligation: $67,777,990

Actual Outlays: $2,236,223

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $89,237,376

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline