State Department awards $79M contract for overseas consular support, replacing fragmented services

Contract Overview

Contract Amount: $79,012,280 ($79.0M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of State

Start Date: 2018-06-22

End Date: 2024-06-21

Contract Duration: 2,191 days

Daily Burn Rate: $36.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE

Sector: Other

Official Description: IGF::OT::IGF GLOBAL SUPPORT STRATEGY (GSS) PERFORMANCE-BASED TASK ORDER FOR OVERSEAS CONSULAR SUPPORT FOR CONSULAR OPERATIONS IN NEAR EAST ASIA (NEA) IN EGYPT, SAUDI ARABIA, ALGERIA, JORDAN, KUWAIT, LEBANON, BAHRAIN, TUNISIA, MOROCCO, QATAR, AND OMAN, 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 $79.0 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 NEAR EAST ASIA (NEA) IN EGYPT, SAUDI ARABIA, ALGERIA, JORDAN, KUWAIT, LEBANON, BAHRAIN, TUNISIA, MOROCCO, QATAR, AND OMAN, TO REPLACE THE PATCHWORK OF … Key points: 1. The contract aims to consolidate disparate user-pays services into a unified performance-based task order. 2. This consolidation is expected to improve efficiency and potentially reduce administrative overhead for consular operations. 3. The fixed-price incentive contract structure suggests a focus on achieving specific performance targets. 4. The duration of the contract (over 6 years) indicates a long-term strategic need for these support services. 5. The award to CGI Federal Inc. represents a significant consolidation of services previously handled by multiple, less integrated methods. 6. The scope covers a wide range of essential consular functions, from information and appointments to fee collection and biometrics.

Value Assessment

Rating: good

The contract value of approximately $79 million over six years for overseas consular support appears reasonable given the broad scope of services and geographic coverage. Benchmarking against similar large-scale support contracts for government agencies, particularly those involving international operations and diverse service delivery, suggests this pricing is within an expected range. The fixed-price incentive structure allows for cost control while incentivizing performance, which can lead to better value than purely cost-reimbursable contracts. However, a detailed cost breakdown and comparison to the aggregated costs of the previous 'patchwork' of user-pays systems would provide a more precise value assessment.

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 competitive process is generally favorable for price discovery and ensuring the government receives competitive offers. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition was sought. This approach helps mitigate the risk of overpayment and encourages innovation among potential contractors.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it drives down costs through market forces and ensures that the most capable and cost-effective solution is selected, maximizing the return on public funds.

Public Impact

Citizens and foreign nationals requiring consular services in Egypt, Saudi Arabia, Algeria, Jordan, Kuwait, Lebanon, Bahrain, Tunisia, Morocco, Qatar, and Oman will benefit from potentially more streamlined and efficient service delivery. The contract delivers essential services including information provision, appointment scheduling, fee collection, document delivery, greeter services, and offsite biometric collection. The geographic impact is significant, covering multiple countries across the Near East Asia region, standardizing service delivery across these diverse locations. The contract supports the operational workforce of the Department of State by providing essential back-office and front-office support functions, allowing diplomatic staff to focus on core foreign policy objectives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if service integration becomes too deep and difficult to unwind.
Reliance on a single contractor for critical consular functions across multiple posts could pose a risk if performance falters.
Ensuring consistent service quality across all specified countries may be challenging due to varying local conditions and regulations.

Positive Signals

Consolidation of services promises greater efficiency and potentially reduced administrative burden.
Performance-based contract structure incentivizes the contractor to meet or exceed service level agreements.
Full and open competition suggests a strong market evaluation and selection process.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on facilities management and support services. The market for such services is large and competitive, with many firms capable of providing overseas support. The Department of State's need for standardized, efficient consular operations globally is a significant driver for contracts of this nature. Comparable spending benchmarks would involve looking at other large government contracts for facilities management, administrative support, and logistical services, particularly those with an international component.

Small Business Impact

The provided data indicates that small business participation (sb) is false (ss: false, sb: false). This suggests that the contract was not specifically set aside for small businesses, nor does it appear to have explicit subcontracting requirements for small businesses mandated within this specific task order. Consequently, the direct impact on the small business ecosystem for this particular award is likely minimal, unless the prime contractor voluntarily engages small businesses in their supply chain.

Oversight & Accountability

Oversight for this contract is primarily the responsibility of the Department of State's contracting officers and program managers. The Inspector General of the Department of State would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract. Transparency is facilitated through contract award databases like FPDS, which provide details on contract type, value, and competition. Accountability is built into the performance-based aspects of the contract, with potential financial incentives or penalties tied to service delivery.

Related Government Programs

Overseas Citizen Services
Consular Affairs Support Services
Diplomatic Support Contracts
Global Facilities Management Contracts
Information Technology Support Services for Government Agencies

Risk Flags

Potential for service disruption due to single vendor reliance.
Ensuring consistent quality across diverse international locations.
Complexity of managing performance-based incentives effectively.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $79.0 million to CGI FEDERAL INC.. IGF::OT::IGF GLOBAL SUPPORT STRATEGY (GSS) PERFORMANCE-BASED TASK ORDER FOR OVERSEAS CONSULAR SUPPORT FOR CONSULAR OPERATIONS IN NEAR EAST ASIA (NEA) IN EGYPT, SAUDI ARABIA, ALGERIA, JORDAN, KUWAIT, LEBANON, BAHRAIN, TUNISIA, MOROCCO, QATAR, AND OMAN, 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 $79.0 million.

What is the period of performance?

Start: 2018-06-22. End: 2024-06-21.

What was the historical spending pattern for similar consular support services prior to this consolidated contract?

Prior to this consolidated contract, the Department of State utilized a 'patchwork of user-pays information, appointment, fee collection, document delivery, greeter, and offsite biometric collection services.' This implies fragmented spending across numerous smaller contracts, individual post-level procurements, or even direct service arrangements. Quantifying this historical spending is challenging without access to detailed internal Department of State financial records. However, the rationale for this large, consolidated contract suggests that the previous approach was likely less efficient, potentially more costly due to lack of economies of scale, and harder to manage and standardize across different embassies and consulates. The new contract aims to bring this spending under a single, performance-driven umbrella, likely leading to more predictable and potentially lower overall costs through centralized management and economies of scale.

How does the per-unit cost of services under this contract compare to market rates for similar services in the specified regions?

Determining a precise per-unit cost for comparison is difficult without a detailed breakdown of the services provided and their respective volumes under this contract. The contract is a fixed-price incentive type, covering a broad range of activities like appointment scheduling, fee collection, and biometric services. Market rates for such services can vary significantly by country (Egypt, Saudi Arabia, Algeria, etc.) due to local labor costs, regulatory environments, and market maturity. Generally, large, consolidated contracts like this aim to achieve economies of scale that can lead to lower per-unit costs than if each post procured services independently. However, without specific service volume data and granular pricing details, a direct benchmark against prevailing market rates for each individual service in each country is not feasible based solely on the provided summary data. The Department of State would have conducted its own market research and cost analysis during the procurement process to ensure the pricing was fair and reasonable.

What is CGI Federal Inc.'s track record with similar large-scale government support contracts, particularly those involving international operations?

CGI Federal Inc. has a significant track record of providing IT and business services to various U.S. federal agencies, including defense, civilian, and intelligence communities. They have experience managing large, complex contracts that involve system integration, application development, infrastructure management, and citizen services. While the specific details of their past performance on contracts identical in scope to overseas consular support are not immediately available from the summary data, their general experience suggests they possess the organizational capacity and technical expertise to handle such an award. Government contract databases and past performance reviews would offer more granular insights into their specific successes and challenges with international operations and similar service delivery contracts.

What are the key performance indicators (KPIs) and how are they measured to ensure contractor accountability?

As a performance-based task order with an incentive structure, this contract likely includes specific Key Performance Indicators (KPIs) tied to the delivery of consular support services. While the exact KPIs are not detailed in the provided data, they would typically relate to service availability, response times for appointments and inquiries, accuracy of fee collection, efficiency of document processing, and user satisfaction. The 'incentive' aspect of the contract suggests that achieving or exceeding these KPIs would result in financial bonuses for CGI Federal Inc., while failing to meet them could lead to penalties or reduced profit margins. The Department of State's contracting officer and program managers would be responsible for monitoring these KPIs through regular reporting, audits, and potentially site visits, ensuring accountability and value for taxpayer money.

What is the potential risk associated with consolidating these services under a single vendor, and what mitigation strategies are in place?

The primary risk of consolidating diverse consular support services under a single vendor like CGI Federal Inc. is the potential for service disruption if the contractor underperforms or faces unforeseen operational challenges. This could impact diplomatic missions and the public seeking consular assistance across multiple countries. Mitigation strategies typically include robust performance monitoring, clearly defined service level agreements (SLAs) with associated penalties, contingency planning, and maintaining the option to transition services if necessary. The fixed-price incentive structure itself acts as a mitigation tool by financially incentivizing the contractor to maintain high performance standards. Furthermore, the Department of State likely maintains strong oversight and reserves the right to enforce contract terms rigorously.

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

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: $90,515,648

Exercised Options: $90,515,648

Current Obligation: $79,012,280

Actual Outlays: $32,466,486

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