State Department Awards $155M for Overseas Consular Support in China, Replacing Fragmented Services

Contract Overview

Contract Amount: $155,114,309 ($155.1M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of State

Start Date: 2018-01-01

End Date: 2024-12-31

Contract Duration: 2,556 days

Daily Burn Rate: $60.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE

Sector: IT

Official Description: IGF::OT::IGF GLOBAL SUPPORT STRATEGY (GSS) PERFORMANCE-BASED TASK ORDER FOR OVERSEAS CONSULAR SUPPORT FOR CONSULAR OPERATIONS IN CHINA TO REPLACE THE PATCHWORK OF USER-PAYS INFORMATION, APPOINTMENT, FEE COLLECTION, DOCUMENT DELIVERY, GREETER, AND OFFSITE BIOMETRIC COLLECTION SERVICES CURRENTLY EMPLOYED BY THE POSTS.

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $155.1 million to CGI FEDERAL INC. for work described as: IGF::OT::IGF GLOBAL SUPPORT STRATEGY (GSS) PERFORMANCE-BASED TASK ORDER FOR OVERSEAS CONSULAR SUPPORT FOR CONSULAR OPERATIONS IN CHINA TO REPLACE THE PATCHWORK OF USER-PAYS INFORMATION, APPOINTMENT, FEE COLLECTION, DOCUMENT DELIVERY, GREETER, AND OFFSITE BIOMETRIC COLLECTION SERV… Key points: 1. The contract aims to consolidate and modernize various user-pays services for consular operations in China. 2. CGI Federal Inc. is the prime contractor, indicating a significant award to a major IT services provider. 3. The shift from a 'patchwork' of services suggests a move towards greater efficiency and standardization. 4. The fixed-price incentive contract type suggests a focus on performance and cost control.

Value Assessment

Rating: good

The contract value of $155M over approximately 7 years appears reasonable for comprehensive overseas support services. Benchmarking against similar large-scale IT service contracts for government agencies would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing and allows for a wide range of potential contractors to bid. This method is expected to yield fair market value.

Taxpayer Impact: Consolidating services and potentially improving efficiency could lead to long-term cost savings for taxpayers by reducing redundancy and administrative overhead.

Public Impact

Improved citizen services for visa applications and other consular needs in China. Potential for more streamlined and secure handling of sensitive personal information. Modernization of government IT infrastructure supporting diplomatic missions. Creation of jobs within CGI Federal Inc. and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if not managed carefully.
Complexity of integrating disparate services under a single contract.
Geopolitical risks impacting operations in China.

Positive Signals

Consolidation of services leading to potential efficiency gains.
Use of a performance-based contract to incentivize results.
Awarded through full and open competition.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on IT facilities management and support. Government spending in this area is substantial, driven by the need for secure and reliable technology infrastructure for global operations.

Small Business Impact

The data indicates CGI Federal Inc. is the prime contractor and does not explicitly mention small business participation. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

The Department of State is responsible for oversight. The performance-based nature of the contract suggests mechanisms for monitoring contractor performance against defined metrics, contributing to accountability.

Related Government Programs

Computer Facilities Management Services
Department of State Contracting
Department of State Programs

Risk Flags

Potential for service disruption during transition.
Complexity of managing integrated services.
Geopolitical risks in China.
Vendor lock-in potential.
Ensuring adequate small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $155.1 million to CGI FEDERAL INC.. IGF::OT::IGF GLOBAL SUPPORT STRATEGY (GSS) PERFORMANCE-BASED TASK ORDER FOR OVERSEAS CONSULAR SUPPORT FOR CONSULAR OPERATIONS IN CHINA TO REPLACE THE PATCHWORK OF USER-PAYS INFORMATION, APPOINTMENT, FEE COLLECTION, DOCUMENT DELIVERY, GREETER, AND OFFSITE BIOMETRIC COLLECTION SERVICES CURRENTLY EMPLOYED BY THE POSTS.

Who is the contractor on this award?

The obligated recipient is CGI FEDERAL INC..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $155.1 million.

What is the period of performance?

Start: 2018-01-01. End: 2024-12-31.

What specific performance metrics are included in the fixed-price incentive contract, and how will they ensure value for money?

The contract details likely include specific Key Performance Indicators (KPIs) related to service availability, response times, data security, and user satisfaction. The fixed-price incentive structure means the contractor shares in cost savings or overruns based on achieving or exceeding these targets, directly linking their financial reward to performance and providing a strong incentive for delivering value efficiently.

What are the primary risks associated with consolidating multiple user-pays services into a single performance-based contract for overseas operations?

Key risks include the complexity of integrating diverse services, potential for service disruptions during the transition, and challenges in defining comprehensive performance metrics that cover all aspects of the consolidated services. There's also a risk of over-reliance on a single vendor, potentially leading to reduced flexibility and increased costs if contract terms are not managed proactively.

How will the effectiveness of this new consolidated system be measured compared to the previous 'patchwork' of user-pays services?

Effectiveness will be measured through a combination of quantitative and qualitative data. Quantitative measures may include reduced processing times, lower operational costs, improved system uptime, and fewer service-related incidents. Qualitative measures will likely involve user feedback from both consular staff and the public, assessing satisfaction with the new system's ease of use, reliability, and overall service quality.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management 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: 1

Pricing Type: FIXED PRICE INCENTIVE (L)

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: $218,556,216

Exercised Options: $194,690,263

Current Obligation: $155,114,309

Actual Outlays: $32,279,243

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA10D0018

IDV Type: IDC

Timeline