State Dept. Awards $5.8M for IT Production Support to CGI Federal
Contract Overview
Contract Amount: $5,820,474 ($5.8M)
Contractor: CGI Federal Inc.
Awarding Agency: Department of State
Start Date: 2023-09-29
End Date: 2026-03-28
Contract Duration: 911 days
Daily Burn Rate: $6.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: LABOR HOURS
Sector: IT
Official Description: GLOBAL FINANCIAL SYSTEMS (GFS) CHARLESTON PRODUCTION SUPPORT SERVICES
Place of Performance
Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29415
Plain-Language Summary
Department of State obligated $5.8 million to CGI FEDERAL INC. for work described as: GLOBAL FINANCIAL SYSTEMS (GFS) CHARLESTON PRODUCTION SUPPORT SERVICES Key points: 1. Contract awarded to CGI Federal Inc. for $5.8M. 2. Service category is Other Computer Related Services (NAICS 541519). 3. Competition method: Full and Open Competition after Exclusion of Sources. 4. Contract duration is 911 days, ending March 2026. 5. No small business participation noted.
Value Assessment
Rating: fair
The contract value of $5.8M over approximately 3 years suggests a moderate annual spend. Benchmarking against similar IT support contracts would be necessary to fully assess pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under Full and Open Competition after Exclusion of Sources, indicating a competitive process. However, the specific reason for excluding other sources needs further clarification to understand its impact on price discovery.
Taxpayer Impact: Taxpayer funds are being used for IT production support services. The competitive nature of the award is intended to ensure reasonable pricing, but the exclusion of sources warrants scrutiny.
Public Impact
Ensures continued operation of critical financial systems. Supports Department of State's global financial operations. Potential for cost savings through competitive bidding. Transparency in government IT spending.
Waste & Efficiency Indicators
Waste Risk Score: 60 / 10
Warning Flags
- Reason for exclusion of sources in competition needs clarification.
- Lack of small business participation.
Positive Signals
- Competitive award process.
- Clear contract duration and end date.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on production support. Benchmarks for similar IT support services can vary widely based on complexity and scope, but this award appears to be within a typical range for specialized support.
Small Business Impact
The contract data indicates no small business participation (SB=false). This suggests that the prime contractor, CGI Federal Inc., is likely a large business, and opportunities for small businesses were not identified or pursued in this specific award.
Oversight & Accountability
The Department of State is responsible for overseeing this contract. The 'Full and Open Competition after Exclusion of Sources' method implies a specific justification was made, which should be documented and auditable to ensure accountability.
Related Government Programs
- Other Computer Related Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Potential for limited competition due to source exclusion.
- Lack of small business participation.
- Dependence on a single contractor for critical services.
- Need for detailed cost analysis to ensure value.
Tags
other-computer-related-services, department-of-state, sc, bpa-call, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $5.8 million to CGI FEDERAL INC.. GLOBAL FINANCIAL SYSTEMS (GFS) CHARLESTON PRODUCTION SUPPORT SERVICES
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 $5.8 million.
What is the period of performance?
Start: 2023-09-29. End: 2026-03-28.
What was the specific justification for excluding sources in this 'Full and Open Competition after Exclusion of Sources' award, and how did it impact the final price?
The justification for excluding sources in a 'Full and Open Competition after Exclusion of Sources' award typically relates to specific technical requirements, existing infrastructure compatibility, or unique capabilities that only a limited number of vendors possess. Understanding this rationale is crucial for assessing whether the competition truly yielded the best possible price or if it inadvertently limited market access and potentially inflated costs.
How does the per-unit cost of this contract compare to industry benchmarks for similar IT production support services?
Without specific details on the labor categories and hours utilized, a precise per-unit cost comparison is difficult. However, the total contract value of $5.8M over roughly 2.5 years suggests an average annual spend of approximately $2.3M. This figure needs to be benchmarked against similar government and commercial IT support contracts, considering factors like service level agreements, complexity of systems supported, and geographic location of services.
What is the potential risk associated with relying on a single vendor (CGI Federal Inc.) for critical financial system production support, even with a competitive award?
Even with a competitive award, over-reliance on a single vendor for critical financial system production support carries inherent risks. These include potential vendor lock-in, reduced leverage in future negotiations, and vulnerability to disruptions if the vendor faces financial or operational issues. Contingency planning and regular performance reviews are essential to mitigate these risks.
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 › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Parent Company: THE Timken Company
Address: 12601 FAIR LAKES CIRCLE, FAIRFAX, VA, 22033
Business Categories: Category Business, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $6,139,120
Exercised Options: $6,139,120
Current Obligation: $5,820,474
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: SAQMMA10A0058
IDV Type: BPA
Timeline
Start Date: 2023-09-29
Current End Date: 2026-03-28
Potential End Date: 2026-03-28 00:00:00
Last Modified: 2026-02-12
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