Interior Department awards $5.9M CRM contract to CGI Federal, highlighting IT services for departmental operations

Contract Overview

Contract Amount: $5,891,092 ($5.9M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of the Interior

Start Date: 2023-09-26

End Date: 2025-09-29

Contract Duration: 734 days

Daily Burn Rate: $8.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: BTFA CUSTOMER RELATIONSHIP MANAGEMENT

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $5.9 million to CGI FEDERAL INC. for work described as: BTFA CUSTOMER RELATIONSHIP MANAGEMENT Key points: 1. Contract focuses on IT services, specifically customer relationship management, indicating a need for enhanced digital engagement. 2. The award to CGI Federal suggests a reliance on established IT service providers for critical government functions. 3. The contract duration of over two years points to a sustained need for these CRM capabilities. 4. The 'Other Computer Related Services' NAICS code suggests a broad scope within IT support. 5. The contract type is a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The contract value of approximately $5.9 million over two years for CRM services appears reasonable for a federal IT contract of this nature. Benchmarking against similar CRM implementations within government agencies would provide a more precise value-for-money assessment. However, given the scope of customer relationship management for a large department like the Interior, the allocated funds seem aligned with industry standards for software, implementation, and support 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 process is designed to foster a competitive environment, potentially leading to better pricing and service offerings for the government. The presence of four bids suggests a healthy level of interest from qualified contractors in this IT services space.

Taxpayer Impact: 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.

Public Impact

The Department of the Interior benefits from enhanced customer relationship management capabilities, potentially improving constituent services and internal operational efficiency. This contract supports the delivery of IT services crucial for managing interactions with various stakeholders. The primary geographic impact is within the Department of the Interior's operations, likely supporting its headquarters and potentially field offices. The contract supports the IT workforce, likely involving software developers, system administrators, and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the CRM solution is highly proprietary.
Risk of scope creep if requirements are not clearly defined and managed.
Dependence on CGI Federal for critical IT infrastructure and support.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
The contract is a Delivery Order, which may indicate it leverages an existing, pre-vetted contract vehicle.
The contractor, CGI Federal, is a known entity in the federal IT services market.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on software and related services. The market for Customer Relationship Management (CRM) solutions is robust, with significant spending by both government and commercial entities. Federal IT spending, in general, represents a substantial portion of the federal budget, with a significant allocation towards software development, implementation, and maintenance. This contract is a typical example of how federal agencies procure IT solutions to modernize operations and improve service delivery.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, CGI Federal, is a large business, and their subcontracting plans would typically be outlined in their proposal, but are not detailed in this summary data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Interior. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of the Interior IT Modernization Efforts
Federal Customer Relationship Management Systems
Government-wide IT Services Contracts
Cloud-based CRM Solutions for Government

Risk Flags

Potential for vendor lock-in
Scope creep risk
Performance and reliability concerns
Data security and privacy

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $5.9 million to CGI FEDERAL INC.. BTFA CUSTOMER RELATIONSHIP MANAGEMENT

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 $5.9 million.

What is the period of performance?

Start: 2023-09-26. End: 2025-09-29.

What is CGI Federal's track record with the Department of the Interior and other federal agencies for similar IT services?

CGI Federal has a significant history of providing IT services to the Department of the Interior and numerous other federal agencies. Their portfolio includes a wide range of solutions such as enterprise resource planning (ERP), financial management systems, cybersecurity, and IT infrastructure support. For the Department of the Interior specifically, CGI has been involved in various IT modernization projects. Their experience with large-scale federal IT contracts suggests a familiarity with government procurement processes, security requirements, and operational demands. A review of past performance evaluations and contract histories would provide a more granular understanding of their success rates and client satisfaction across different agencies and service types.

How does the $5.9 million contract value compare to similar CRM implementations within other federal agencies?

The $5.9 million contract value for a two-year CRM implementation and support for the Department of the Interior appears to be within a reasonable range when compared to similar federal IT procurements. CRM systems can vary significantly in complexity, user base, and required integrations, which impacts cost. However, for a department-wide solution, this figure suggests a focus on core CRM functionalities, potentially leveraging existing infrastructure or a phased implementation approach. Larger, more comprehensive federal CRM projects have seen values ranging from tens to hundreds of millions of dollars over longer periods. Conversely, smaller, agency-specific or niche CRM tools might cost significantly less. Without specific details on the scope of services (e.g., customization, data migration, user training, ongoing maintenance), a precise benchmark is challenging, but the awarded amount is not an outlier for a departmental-level IT service contract.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential scope creep, where project requirements expand beyond the initial agreement, leading to cost overruns and schedule delays. Another risk is vendor lock-in, where the Department becomes overly dependent on CGI Federal's proprietary technology or expertise, making future transitions difficult and costly. Performance risks, such as the CRM system not meeting user needs or experiencing technical issues, are also present. Mitigation strategies likely include robust contract management, clearly defined performance metrics (Service Level Agreements - SLAs), regular progress reviews, and a strong change control process to manage any scope adjustments. The use of a Delivery Order under a potentially pre-vetted IDIQ contract may also imply some level of pre-qualification and risk assessment of the contractor.

What is the expected impact of this CRM system on the Department of the Interior's operational effectiveness and constituent services?

The implementation of a new or enhanced Customer Relationship Management (CRM) system is expected to significantly improve the Department of the Interior's operational effectiveness and constituent services. By centralizing customer data and interactions, the system should enable more personalized and efficient communication with stakeholders, including the public, partners, and internal users. This can lead to faster response times, better tracking of inquiries and issues, and improved service delivery across the Department's diverse bureaus and missions. Operationally, it can streamline workflows, automate routine tasks, and provide valuable data analytics for decision-making, resource allocation, and identifying service gaps. Ultimately, a well-implemented CRM system aims to foster stronger relationships, enhance transparency, and improve the overall experience for those interacting with the Department.

How does this contract align with the Department of the Interior's broader IT modernization strategy and spending patterns?

This contract aligns with the broader trend of federal agencies, including the Department of the Interior, investing in IT modernization to improve efficiency, security, and service delivery. Modernizing customer relationship management is a common component of such strategies, as agencies seek to better engage with citizens and manage internal processes. The spending of approximately $5.9 million over two years on CRM services reflects a targeted investment in a specific IT capability. This is consistent with federal IT spending patterns, which often involve procuring specialized services and software solutions to address evolving needs. The Department's overall IT budget likely encompasses a range of initiatives, and this CRM contract represents a focused effort within that larger modernization framework, aiming to enhance digital engagement and operational performance.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Timken Company

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: $6,076,754

Exercised Options: $5,891,092

Current Obligation: $5,891,092

Actual Outlays: $5,891,092

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $3,909,888

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