CGI Federal awarded $153.8M contract for Army technical services, raising value-for-money questions
Contract Overview
Contract Amount: $153,813,163 ($153.8M)
Contractor: CGI Federal Inc.
Awarding Agency: Department of Defense
Start Date: 2012-09-10
End Date: 2015-09-09
Contract Duration: 1,094 days
Daily Burn Rate: $140.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: BASE OMA AF
Place of Performance
Location: NEWPORT NEWS, NEWPORT NEWS CITY County, VIRGINIA, 23602
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $153.8 million to CGI FEDERAL INC. for work described as: BASE OMA AF Key points: 1. Contract value appears high relative to duration, suggesting potential for cost efficiencies. 2. Full and open competition was utilized, indicating a potentially competitive pricing environment. 3. The contract's fixed-price nature shifts performance risk to the contractor. 4. Services provided fall under a broad professional, scientific, and technical category. 5. The contractor, CGI Federal, has a significant presence in government contracting. 6. Virginia is the primary location for contract performance, impacting regional economic activity.
Value Assessment
Rating: fair
The $153.8 million contract awarded to CGI Federal Inc. for 'All Other Professional, Scientific, and Technical Services' over a three-year period (2012-2015) warrants scrutiny regarding value for money. While the firm fixed-price structure is generally favorable for cost control, the average annual value of approximately $51.3 million for broad technical services requires benchmarking against similar contracts. Without specific deliverables or performance metrics, it is difficult to definitively assess if the pricing reflects competitive market rates or if there were opportunities for greater cost savings through more targeted service definitions or performance-based incentives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, with seven bids received. This level of competition is generally positive, suggesting that multiple vendors had the opportunity to bid and that the government could select the best value offering. The presence of seven bidders indicates a healthy market for these types of services and likely contributed to price discovery, although the final negotiated price is not detailed here.
Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining competitive pricing and ensures that a wide range of qualified contractors can compete for government business, potentially leading to cost savings.
Public Impact
The primary beneficiary is the Department of the Army, receiving a range of professional, scientific, and technical support services. Services delivered are broadly defined, likely encompassing areas such as analysis, research, and technical consulting. Contract performance is concentrated in Virginia, potentially creating or sustaining jobs within the state. The contract supports the Army's operational and administrative functions through specialized expertise.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Broad service definition may lead to scope creep or inefficient service delivery.
- Lack of specific performance metrics makes it difficult to assess contractor efficiency.
- High contract value for a three-year term warrants detailed review of cost justification.
Positive Signals
- Full and open competition suggests a robust bidding process.
- Firm fixed-price contract shifts performance risk to the contractor.
- CGI Federal is an established contractor with experience in government services.
Sector Analysis
The contract falls within the professional, scientific, and technical services sector, a broad category encompassing a wide array of support functions for government agencies. This sector is characterized by a mix of large and small businesses, with significant government spending allocated to areas like IT support, management consulting, and research and development. Benchmarking this contract's value against similar broad technical service contracts awarded by the Department of Defense or other agencies would provide further context on its relative cost-effectiveness.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, there is no explicit mention of subcontracting goals for small businesses. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem through this specific contract may be limited unless CGI Federal actively engages small businesses as subcontractors.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability is primarily driven by the firm fixed-price terms, requiring the contractor to deliver services within the agreed-upon cost. Transparency is generally facilitated through contract award databases, though detailed performance reports and cost breakdowns may not always be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Department of Defense IT Services
- Army Professional Services Contracts
- Government Technical Consulting
- All Other Professional, Scientific, and Technical Services
Risk Flags
- Broad service definition
- Lack of specific performance metrics
- High contract value relative to duration
Tags
professional-scientific-technical-services, department-of-defense, department-of-the-army, definitive-contract, firm-fixed-price, full-and-open-competition, large-business, virginia, technical-support, analysis-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $153.8 million to CGI FEDERAL INC.. BASE OMA AF
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 $153.8 million.
What is the period of performance?
Start: 2012-09-10. End: 2015-09-09.
What specific types of 'All Other Professional, Scientific, and Technical Services' were provided under this contract?
The contract description 'All Other Professional, Scientific, and Technical Services' (NAICS code 541990) is very broad and encompasses a wide range of activities not classified under more specific categories. Without access to the contract's statement of work (SOW) or task orders, it is impossible to determine the precise services rendered. These could range from specialized research and development support, technical consulting, data analysis, environmental services, to administrative and management support functions that do not fit neatly into other professional service categories. The lack of specificity in the contract title makes it challenging to assess the true scope and value of the work performed.
How does the $153.8 million contract value compare to similar services procured by the Department of the Army?
Benchmarking the $153.8 million contract value requires comparing it to similar 'All Other Professional, Scientific, and Technical Services' contracts awarded by the Department of the Army or Department of Defense during the 2012-2015 period. Given the broad nature of the services, comparisons would ideally focus on contracts with similar durations and scope, if discernible. A preliminary assessment suggests that $153.8 million over three years (an average of over $51 million annually) is a substantial award for non-specific technical services. Further analysis would involve identifying comparable contracts, examining their average annual values, and considering the specific deliverables or outcomes expected to determine if this contract represents a competitive or potentially inflated price point.
What is CGI Federal Inc.'s track record with the Department of Defense for similar service contracts?
CGI Federal Inc. is a well-established government contractor with a significant history of serving the Department of Defense and other federal agencies. Their track record typically includes a wide array of IT, professional, and technical services. For contracts similar to this one, their performance would be assessed based on past project delivery, adherence to schedules and budgets, and overall client satisfaction. While this specific contract was awarded in 2012, CGI Federal's ongoing presence and numerous awards suggest a generally positive, albeit large-scale, operational history. However, a detailed review of past performance evaluations and any past performance issues or disputes related to similar service contracts would be necessary for a comprehensive assessment.
What are the potential risks associated with a broad 'All Other Professional, Scientific, and Technical Services' contract?
The primary risk associated with a broad 'All Other Professional, Scientific, and Technical Services' contract is the potential for scope creep and a lack of clear performance metrics, which can lead to cost overruns and difficulty in assessing value for money. When services are not precisely defined, it can be challenging to hold the contractor accountable for specific outcomes. This ambiguity can also make it difficult for the government to manage the contract effectively and ensure that it is receiving the intended benefits. Furthermore, the broad nature might obscure inefficiencies or the provision of services that are not critical to the agency's mission, potentially leading to suboptimal resource allocation.
How has spending in the 'All Other Professional, Scientific, and Technical Services' category evolved for the Department of the Army since 2012?
Analyzing the evolution of spending in the 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) category for the Department of the Army since 2012 would reveal trends in the utilization of these broad support services. Historically, such categories often see fluctuating spending based on agency priorities, budget cycles, and the outsourcing of specific functions. It would be beneficial to examine if spending in this category has increased or decreased, and whether this reflects a shift towards or away from outsourcing these types of services. Comparing the $153.8 million awarded in this contract to the total Army spending in this category during that period would provide context on its relative significance.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W911S012R0001
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: CGI Inc (UEI: 248513116)
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: $153,875,390
Exercised Options: $153,875,390
Current Obligation: $153,813,163
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-09-10
Current End Date: 2015-09-09
Potential End Date: 2015-09-09 00:00:00
Last Modified: 2019-09-27
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