Interior Department Awards $163.8M Task Order to CGI Federal for IT Services

Contract Overview

Contract Amount: $163,795,244 ($163.8M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of the Interior

Start Date: 2019-09-01

End Date: 2025-02-28

Contract Duration: 2,007 days

Daily Burn Rate: $81.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: FOLLOW ON TASK ORDER TO D15PD00594 FOR AGENCIES THAT HAVE MATURED TO FULL PRODUCTION

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $163.8 million to CGI FEDERAL INC. for work described as: FOLLOW ON TASK ORDER TO D15PD00594 FOR AGENCIES THAT HAVE MATURED TO FULL PRODUCTION Key points: 1. Significant contract value for IT services, indicating substantial agency needs. 2. CGI Federal Inc. is the incumbent contractor, suggesting potential for continuity but also a need to assess ongoing value. 3. The contract is a follow-on task order, implying a need for continued support for a matured production system. 4. The 'Other Computer Related Services' NAICS code covers a broad range of IT support.

Value Assessment

Rating: good

The award amount of $163.8M over approximately 5.5 years suggests a substantial investment. Benchmarking against similar large-scale IT service contracts would be necessary for a precise value assessment, but the follow-on nature implies prior satisfactory performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is a positive indicator for price discovery and achieving fair market value. The task order structure allows for competitive bidding among eligible contractors.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers compared to sole-source or limited competition scenarios.

Public Impact

Ensures continued IT support for critical Department of the Interior systems. Supports agency operations through the provision of 'Other Computer Related Services'. The long duration (2019-2025) indicates a stable, long-term need for these services. Follow-on nature suggests successful prior service delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in despite full and open competition due to follow-on nature.
Time and Materials pricing could lead to cost overruns if not closely managed.
Dependence on a single contractor for critical IT infrastructure.

Positive Signals

Awarded under full and open competition.
Follow-on task order indicates continuity of essential services.
Long-term contract provides stability for agency IT operations.

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Spending in this area is substantial across federal agencies, supporting a wide range of digital infrastructure and operational needs. Benchmarks vary widely based on service scope.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses were likely not primary awardees, though they may participate as subcontractors.

Oversight & Accountability

As a task order under a larger contract, oversight would typically be managed by the Department of the Interior's contracting office. The long duration necessitates ongoing performance monitoring and management to ensure value and accountability.

Related Government Programs

Other Computer Related Services
Department of the Interior Contracting
Departmental Offices Programs

Risk Flags

Time and Materials pricing structure.
Long contract duration.
Follow-on nature of the task order.
Broad NAICS code potentially obscuring specific service details.
Lack of small business set-aside.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $163.8 million to CGI FEDERAL INC.. FOLLOW ON TASK ORDER TO D15PD00594 FOR AGENCIES THAT HAVE MATURED TO FULL PRODUCTION

Who is the contractor on this award?

The obligated recipient is CGI FEDERAL INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $163.8 million.

What is the period of performance?

Start: 2019-09-01. End: 2025-02-28.

What specific IT services are included under 'Other Computer Related Services' for this task order, and how do they align with the agency's current and future needs?

The NAICS code 541519 is broad, encompassing services like IT consulting, system integration, and custom software development. For this specific task order, understanding the detailed service catalog is crucial. Given it's a follow-on to a matured production system, the services likely focus on maintenance, upgrades, and ongoing support rather than new development, ensuring the agency's IT infrastructure remains operational and effective.

What mechanisms are in place to manage the Time and Materials (T&M) pricing structure and mitigate potential cost overruns, especially given the contract's significant value and duration?

Effective management of T&M contracts requires robust oversight, including detailed tracking of labor hours and rates, clear scope definitions, and regular performance reviews. The Department of the Interior should employ contract officers and technical monitors to scrutinize invoices, ensure adherence to ceilings, and proactively identify any deviations or inefficiencies that could lead to cost overruns. Regular reporting and milestone reviews are essential.

How will the agency ensure continued innovation and prevent vendor lock-in with CGI Federal, given this is a follow-on contract for a matured system?

To prevent vendor lock-in and encourage innovation, the agency should actively explore market research for alternative solutions and maintain clear contract exit strategies. Periodic re-competition, even for follow-on work, is vital. The agency could also incentivize CGI Federal to propose innovative solutions or efficiencies within the current contract, while simultaneously assessing the feasibility of incorporating new technologies or vendors in future iterations.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140D0419Q0333

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

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: $176,817,966

Exercised Options: $163,795,244

Current Obligation: $163,795,244

Actual Outlays: $162,705,698

Subaward Activity

Number of Subawards: 214

Total Subaward Amount: $302,515,193

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: IND13PC00021

IDV Type: IDC

Timeline