Interior Department awards $969K for IT infrastructure, data processing to CGI Federal Inc

Contract Overview

Contract Amount: $969,412 ($969.4K)

Contractor: CGI Federal Inc.

Awarding Agency: Department of the Interior

Start Date: 2024-09-23

End Date: 2026-09-22

Contract Duration: 729 days

Daily Burn Rate: $1.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: NIGC OFFICE OF GENERAL COUNSEL MATTER DOCUMENT TRACKING SYSTEM

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $969,412.21 to CGI FEDERAL INC. for work described as: NIGC OFFICE OF GENERAL COUNSEL MATTER DOCUMENT TRACKING SYSTEM Key points: 1. Contract value appears reasonable for a two-year IT services agreement. 2. Full and open competition suggests a competitive bidding process. 3. Potential risk indicators include the use of Time and Materials pricing. 4. This contract supports essential IT infrastructure and data processing needs. 5. The award falls within the broader category of IT services for government operations. 6. CGI Federal Inc. has a significant presence in the federal IT contracting space.

Value Assessment

Rating: good

The contract value of approximately $969,412 over two years for IT infrastructure and data processing services seems within a reasonable range for a federal agency. Benchmarking against similar contracts for computing infrastructure providers, data processing, and web hosting services would provide a more precise value-for-money assessment. The use of Time and Materials pricing, while common, can sometimes lead to cost overruns if not closely managed, which warrants attention in performance monitoring.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of two bids suggests a moderate level of competition for this specific requirement. A higher number of bidders typically leads to more robust price discovery and potentially lower costs for the government, but two bidders still provide a basis for comparison.

Taxpayer Impact: Full and open competition, even with two bidders, generally benefits taxpayers by encouraging competitive pricing and ensuring the government receives services at a fair market value.

Public Impact

The Department of the Interior benefits from enhanced IT infrastructure and data processing capabilities. Essential services supporting departmental operations and data management are delivered. The primary geographic impact is within the Department of the Interior's operational footprint. The contract supports the IT workforce involved in maintaining and utilizing these systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost uncertainty if not managed diligently.
The limited number of bidders (2) might indicate potential barriers to entry or a niche market.

Positive Signals

Awarded under full and open competition, promoting a fair marketplace.
CGI Federal Inc. is an established contractor with experience in government IT services.
The contract duration of two years provides stability for essential IT services.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computing infrastructure, data processing, and web hosting. This is a critical area for government operations, enabling agencies to manage vast amounts of data and maintain essential digital services. The market for these services is large and competitive, with numerous providers offering solutions to federal agencies. Comparable spending benchmarks would involve looking at other federal IT infrastructure contracts, particularly those for data center operations and cloud services.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from this particular award. The primary focus appears to be on securing IT services through a competitive process, with no explicit provisions for small business engagement in this instance.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Interior's contracting officers and program managers. Accountability measures will be tied to the performance standards outlined in the contract, particularly concerning the delivery of IT infrastructure and data processing services. Transparency is facilitated through public contract databases where award details are recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

IT Infrastructure Services
Data Center Operations
Cloud Computing Services
IT Support Services
Government Data Management

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Limited competition (2 bidders) may impact price discovery.
Dependency on a single vendor for critical IT services.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $969,412.21 to CGI FEDERAL INC.. NIGC OFFICE OF GENERAL COUNSEL MATTER DOCUMENT TRACKING SYSTEM

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 $969,412.21.

What is the period of performance?

Start: 2024-09-23. End: 2026-09-22.

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

CGI Federal Inc. is a well-established government contractor with a significant history of providing IT services across various federal agencies, including the Department of the Interior. Their track record typically includes a wide range of services such as IT modernization, system integration, cybersecurity, and managed services. Analyzing past performance reviews, contract awards, and any reported issues or successes with similar contracts would provide a comprehensive view of their capabilities and reliability. For instance, examining their performance on previous IT infrastructure or data processing contracts with DOI or other departments like Defense or HHS can offer insights into their ability to meet technical requirements, manage budgets, and adhere to schedules. This due diligence helps assess their suitability and reduces performance risk for the current award.

How does the pricing structure (Time and Materials) compare to fixed-price or other contract types for similar IT services?

Time and Materials (T&M) contracts, like the one awarded to CGI Federal Inc., are often used when the scope of work is not clearly defined or is expected to change. While T&M offers flexibility, it can be less cost-predictable for the government compared to fixed-price contracts, where the total cost is known upfront. For IT infrastructure and data processing services, fixed-price contracts are generally preferred when requirements are stable and well-defined, as they shift cost risk to the contractor. However, in rapidly evolving IT environments or for support services where effort is difficult to estimate, T&M can be appropriate. Benchmarking this T&M award against similar federal IT contracts would reveal if the hourly rates and material markups are competitive with market standards and other government T&M awards, helping to assess value for money.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

While the provided data does not detail specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs), these are critical components of any IT services contract, especially for infrastructure and data processing. For this contract, typical KPIs might include system uptime percentages, data processing speeds, response times for technical support, and security compliance metrics. SLAs would define the minimum acceptable performance levels for these KPIs and outline remedies or penalties if they are not met. The Department of the Interior's contracting officers and program managers are responsible for establishing and monitoring these metrics to ensure CGI Federal Inc. delivers the required services effectively and efficiently. The absence of explicit KPIs in the summary data necessitates a review of the full contract document for a complete understanding of performance expectations and accountability.

What is the historical spending trend for similar IT infrastructure and data processing services within the Department of the Interior?

Analyzing historical spending trends for IT infrastructure and data processing services within the Department of the Interior (DOI) is crucial for contextualizing this $969,412 award. This involves examining annual expenditures on similar contract vehicles, service categories (e.g., cloud hosting, data management, network services), and key contractors over the past several fiscal years. Significant increases or decreases in spending could indicate shifts in IT strategy, technology adoption (like cloud migration), or changes in operational needs. Understanding these trends helps determine if the current award represents a typical investment, an expansion, or a reduction in this service area. It also aids in identifying potential cost efficiencies or areas where spending might be escalating beyond reasonable benchmarks.

What are the potential risks associated with relying on a single vendor (CGI Federal Inc.) for these critical IT services, even if competed?

Even though this contract was awarded through full and open competition, relying on a single vendor like CGI Federal Inc. for critical IT infrastructure and data processing services carries inherent risks. These include vendor lock-in, where switching providers becomes difficult and costly; potential for complacency in service quality or innovation due to reduced competitive pressure post-award; and increased vulnerability if the vendor experiences financial instability, security breaches, or operational disruptions. Furthermore, a sole vendor dependency can limit the agency's flexibility to adopt new technologies or adapt to changing requirements quickly. Mitigation strategies often involve robust contract management, clear performance metrics, regular vendor performance reviews, and contingency planning for service continuity.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Timken Company

Address: 12601 FAIR LAKES CIR # 100, FAIRFAX, VA, 22033

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $2,049,502

Exercised Options: $969,412

Current Obligation: $969,412

Actual Outlays: $565,234

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $452,145

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140D0424D0087

IDV Type: IDC

Timeline