State Department Awards CGI Federal $324M for Passport Processing Support
Contract Overview
Contract Amount: $324,114,889 ($324.1M)
Contractor: CGI Federal Inc.
Awarding Agency: Department of State
Start Date: 2024-05-10
End Date: 2026-05-09
Contract Duration: 729 days
Daily Burn Rate: $444.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: TO PROVIDE COMPREHENSIVE ONSITE MANAGEMENT, ADMINISTRATION, AND PROCESSING SUPPORT AT THREE (3) PASSPORT CENTERS, AND TWENTY FOUR (24) PASSPORT AGENCIES NATIONWIDE. BOTH INITIAL AND RENEWAL OF PASSPORT BOOKS/CARD APPLICATIONS ARE PROCESSED UNDER THIS
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20052
Plain-Language Summary
Department of State obligated $324.1 million to CGI FEDERAL INC. for work described as: TO PROVIDE COMPREHENSIVE ONSITE MANAGEMENT, ADMINISTRATION, AND PROCESSING SUPPORT AT THREE (3) PASSPORT CENTERS, AND TWENTY FOUR (24) PASSPORT AGENCIES NATIONWIDE. BOTH INITIAL AND RENEWAL OF PASSPORT BOOKS/CARD APPLICATIONS ARE PROCESSED UNDER THIS Key points: 1. Contract supports passport processing at 27 locations nationwide. 2. CGI Federal Inc. is the sole awardee. 3. Risk of vendor lock-in and potential cost overruns due to lack of competition. 4. IT services sector, specifically facilities management and processing support.
Value Assessment
Rating: questionable
The contract is awarded on a Time and Materials basis, which can lead to cost overruns if not managed tightly. The total award value is substantial, and without competitive bidding, it's difficult to assess if the pricing is optimal.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers as there is no market pressure to offer competitive pricing.
Taxpayer Impact: The lack of competition raises concerns about the best use of taxpayer funds, as a sole-source award may not reflect the most cost-effective solution.
Public Impact
Impacts passport application processing times and efficiency for citizens. Ensures continued operation of passport services nationwide. Potential for increased wait times or reduced service quality if vendor performance falters without competitive pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Time and Materials contract type can lead to cost overruns.
- Lack of small business participation noted.
Positive Signals
- Provides essential services for passport processing.
- Ensures continuity of operations for a critical government function.
Sector Analysis
This contract falls within the IT and administrative support sector, specifically focusing on facilities management and application processing. Benchmarks for similar large-scale administrative support contracts are difficult to ascertain without competitive data.
Small Business Impact
The data indicates that small business participation is not a factor in this award (ss: false, sb: false). This suggests an opportunity missed to leverage small businesses for specific components of this large contract.
Oversight & Accountability
Oversight will be critical to manage the Time and Materials aspect of this sole-source contract. The Department of State will need robust mechanisms to track performance, costs, and ensure accountability from CGI Federal Inc.
Related Government Programs
- Computer Facilities Management Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Lack of competition
- Time and Materials contract type
- No small business participation
- Potential for cost overruns
- Vendor lock-in risk
Tags
computer-facilities-management-services, department-of-state, dc, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $324.1 million to CGI FEDERAL INC.. TO PROVIDE COMPREHENSIVE ONSITE MANAGEMENT, ADMINISTRATION, AND PROCESSING SUPPORT AT THREE (3) PASSPORT CENTERS, AND TWENTY FOUR (24) PASSPORT AGENCIES NATIONWIDE. BOTH INITIAL AND RENEWAL OF PASSPORT BOOKS/CARD APPLICATIONS ARE PROCESSED UNDER THIS
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 $324.1 million.
What is the period of performance?
Start: 2024-05-10. End: 2026-05-09.
What is the justification for awarding this contract sole-source, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or urgent needs. Without further details, it's presumed the Department of State has determined CGI Federal Inc. is the only viable option. To ensure fair pricing, rigorous oversight, detailed cost analysis, and potentially independent government cost estimates are crucial, alongside clear performance metrics and defined labor categories.
What are the potential risks associated with a sole-source Time and Materials contract for passport processing?
The primary risks include vendor lock-in, where the government becomes dependent on a single provider, potentially leading to inflated prices and reduced service innovation. Time and Materials contracts, without strict controls, can incentivize inefficiency and lead to cost overruns as the vendor is paid for time and materials used, rather than a fixed outcome.
How will the effectiveness of CGI Federal's support be measured to ensure taxpayer value?
Effectiveness will be measured through key performance indicators (KPIs) related to passport application processing times, accuracy rates, customer satisfaction scores, and operational uptime. Regular performance reviews, audits, and comparison against historical data or industry benchmarks (if available) will be essential to ensure CGI Federal is delivering value and meeting the Department of State's objectives.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
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: $324,114,889
Exercised Options: $324,114,889
Current Obligation: $324,114,889
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2024-05-10
Current End Date: 2026-05-09
Potential End Date: 2026-05-09 00:00:00
Last Modified: 2026-03-26
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