DoD's $173M 'Other Functions' Contract with CGI Federal Faces Scrutiny for Value and Competition
Contract Overview
Contract Amount: $173,402,187 ($173.4M)
Contractor: CGI Federal Inc.
Awarding Agency: Department of Defense
Start Date: 2015-07-23
End Date: 2021-08-09
Contract Duration: 2,209 days
Daily Burn Rate: $78.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF FOR OTHER FUNCTIONS
Place of Performance
Location: FORT EUSTIS, NEWPORT NEWS CITY County, VIRGINIA, 23604
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $173.4 million to CGI FEDERAL INC. for work described as: IGF::OT::IGF FOR OTHER FUNCTIONS Key points: 1. The contract awarded to CGI Federal Inc. for 'Other Functions' totaled $173.4 million over its lifespan. 2. Competition was listed as 'Full and Open,' but the contract type is 'Definitive,' suggesting a single award. 3. The lack of small business participation is noted, raising concerns about broader economic impact. 4. The sector falls under 'All Other Professional, Scientific, and Technical Services,' a broad category.
Value Assessment
Rating: questionable
The contract's value of $173.4 million over six years for 'Other Functions' is substantial. Without specific deliverables, it's difficult to benchmark against similar contracts. The 'Definitive Contract' award type, despite 'Full and Open' competition, warrants further investigation into pricing justification.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
While advertised as 'Full and Open Competition,' the award of a 'Definitive Contract' to a single entity, CGI Federal Inc., raises questions about the effectiveness of the competition in driving the best possible price. The process may not have fully leveraged market competition.
Taxpayer Impact: The significant expenditure of $173.4 million without clear indicators of competitive pricing or broad small business involvement suggests potential for suboptimal taxpayer value.
Public Impact
Taxpayers may be paying more than necessary due to potentially limited price discovery in the competition process. The absence of small business participation limits opportunities for smaller, innovative firms in this large contract. The broad nature of 'Other Functions' makes it challenging for the public to understand the specific services rendered and their necessity.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of clarity on 'Other Functions' deliverables
- Potential disconnect between 'Full and Open' competition and 'Definitive Contract' award
- No small business participation reported
- Long contract duration (2015-2021)
Positive Signals
- Contract awarded to a known entity (CGI Federal Inc.)
- Utilized a standard contract type (Definitive Contract)
Sector Analysis
The 'All Other Professional, Scientific, and Technical Services' sector is vast and can encompass a wide range of support activities for government agencies. Benchmarking spending in this category is challenging without specific service details, but $173.4 million represents a significant investment.
Small Business Impact
The contract shows no indication of small business participation, which is a missed opportunity to engage smaller, potentially more agile companies. This lack of inclusion could limit innovation and competition in future procurements within this service area.
Oversight & Accountability
The 'Definitive Contract' award, despite 'Full and Open' competition, suggests a need for closer oversight to ensure the process truly fostered competitive pricing and awarded the contract based on best value, not just compliance.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of specific service details
- Potential for uncompetitive pricing despite 'Full and Open' designation
- No small business participation
- Broad service category makes value assessment difficult
Tags
all-other-professional-scientific-and-te, department-of-defense, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $173.4 million to CGI FEDERAL INC.. IGF::OT::IGF FOR OTHER FUNCTIONS
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 $173.4 million.
What is the period of performance?
Start: 2015-07-23. End: 2021-08-09.
What specific services were encompassed by 'IGF::OT::IGF FOR OTHER FUNCTIONS' and how did their performance align with the $173.4 million expenditure?
The designation 'IGF::OT::IGF FOR OTHER FUNCTIONS' is highly generic, making it difficult to ascertain the precise services rendered. A thorough review would require access to detailed contract line item numbers (CLINs) and performance reports. Without this, assessing whether the $173.4 million expenditure represented good value for the specific functions performed is impossible.
How did the 'Full and Open Competition' process ensure competitive pricing for a 'Definitive Contract' awarded to a single vendor?
The combination of 'Full and Open Competition' and a 'Definitive Contract' award to CGI Federal Inc. warrants scrutiny. While the initial solicitation may have been open, the final award mechanism suggests that only one offer was ultimately deemed suitable or that the competition did not result in multiple viable proposals. This raises questions about the effectiveness of the price discovery mechanism.
What is the impact of the lack of small business participation on innovation and cost-effectiveness in this broad service category?
The absence of small business participation in a $173.4 million contract potentially stifles innovation and limits the government's access to specialized expertise that smaller firms often provide. It also means taxpayers may not be benefiting from potentially more competitive pricing that could arise from a more diverse vendor pool, including small businesses.
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: W911S015R0001
Offers Received: 7
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: $181,517,162
Exercised Options: $175,722,797
Current Obligation: $173,402,187
Subaward Activity
Number of Subawards: 25
Total Subaward Amount: $11,066,879
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-07-23
Current End Date: 2021-08-09
Potential End Date: 2021-08-09 00:00:00
Last Modified: 2025-06-18
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