CGI Federal awarded $39.9M task order for Social Security Administration's electronic remittance and accounting systems support

Contract Overview

Contract Amount: $39,902,812 ($39.9M)

Contractor: CGI Federal Inc.

Awarding Agency: Social Security Administration

Start Date: 2025-09-29

End Date: 2026-09-28

Contract Duration: 364 days

Daily Burn Rate: $109.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: ESTABLISH A TASK ORDER UNDER INDEFINITE-DELIVERY, INDEFINITE-QUANTITY (IDIQ) CONTRACT SS00-17-60018 FOR SOCIAL SECURITY'S ELECTRONIC REMITTANCE SYSTEM (SERS) AND ONLINE ACCOUNTING AND REPORTING SYSTEM (SSOARS) SUPPORT SERVICES.

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Social Security Administration obligated $39.9 million to CGI FEDERAL INC. for work described as: ESTABLISH A TASK ORDER UNDER INDEFINITE-DELIVERY, INDEFINITE-QUANTITY (IDIQ) CONTRACT SS00-17-60018 FOR SOCIAL SECURITY'S ELECTRONIC REMITTANCE SYSTEM (SERS) AND ONLINE ACCOUNTING AND REPORTING SYSTEM (SSOARS) SUPPORT SERVICES. Key points: 1. Task order awarded under an existing IDIQ contract, indicating a pre-established relationship and potentially streamlined procurement. 2. The contract type is Time and Materials, which can pose cost control risks if not closely managed. 3. The award represents a significant investment in maintaining critical financial and reporting systems for the SSA. 4. The duration of the task order is one year, suggesting a need for ongoing support rather than a one-time project. 5. The contractor, CGI Federal, is a known entity in government IT services, implying a degree of familiarity with agency needs. 6. The specific services relate to electronic remittance and online accounting, core functions for financial operations.

Value Assessment

Rating: fair

The task order value of $39.9 million for a one-year period for IT support services appears substantial. Benchmarking against similar IT support contracts for large federal agencies is necessary to determine true value for money. The Time and Materials (T&M) contract type, while flexible, requires diligent oversight to prevent cost overruns and ensure efficient resource utilization. Without detailed breakdowns of labor categories and hours, a precise per-unit cost comparison is difficult, but the overall expenditure warrants scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The fact that it is a task order under an IDIQ suggests that the initial IDIQ contract itself was competed. The specific number of bidders for this particular task order is not provided, but the 'full and open' designation implies a competitive process was followed, which generally aids in price discovery and achieving fair market value.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple vendors to offer competitive pricing, potentially leading to cost savings for the government compared to sole-source or limited competition awards.

Public Impact

Beneficiaries include the Social Security Administration, which will receive continued support for its critical financial systems. Services delivered include maintenance and support for the Electronic Remittance System (SERS) and Online Accounting and Reporting System (SSOARS). The geographic impact is primarily within the operations of the Social Security Administration, likely supporting its national functions. Workforce implications may include the need for specialized IT personnel to manage and maintain these complex systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to uncontrolled costs if not managed rigorously.
Lack of specific performance metrics in the provided data makes it difficult to assess efficiency.
The substantial dollar amount for a one-year task order requires close monitoring of resource allocation and necessity.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Contractor (CGI Federal) has existing experience, potentially reducing ramp-up time and risks.
Task order supports critical financial systems, indicating essential operational continuity.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on software and system support. The market for government IT services is vast and highly competitive, with numerous large and small businesses vying for contracts. This task order for maintaining financial and accounting systems is a common requirement for federal agencies. Comparable spending benchmarks would involve looking at other agencies' expenditures on similar IT support and maintenance contracts, particularly those involving financial systems.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The primary contractor, CGI Federal, is a large business. While large prime contractors often engage small businesses as subcontractors on various projects, the specifics of such arrangements for this particular task order are not detailed here. The absence of a small business set-aside means opportunities for small businesses to directly compete for this specific award were limited.

Oversight & Accountability

Oversight for this task order would typically be managed by the contracting officer and program officials within the Social Security Administration. The contract type (Time and Materials) necessitates robust oversight to monitor labor hours, costs, and deliverables. Accountability measures would be tied to the performance work statement and delivery schedules. Transparency is generally facilitated through contract award databases, though detailed internal oversight processes are not publicly disclosed. The Inspector General for the Social Security Administration would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Social Security Administration IT Modernization Efforts
Federal Financial Management Systems Support
Electronic Payment Systems Contracts
Government Accounting and Reporting Software Maintenance

Risk Flags

Contract Type Risk (Time and Materials)
Potential for Cost Overruns
Vendor Lock-in Concerns
Reliance on Single Vendor for Critical Systems

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $39.9 million to CGI FEDERAL INC.. ESTABLISH A TASK ORDER UNDER INDEFINITE-DELIVERY, INDEFINITE-QUANTITY (IDIQ) CONTRACT SS00-17-60018 FOR SOCIAL SECURITY'S ELECTRONIC REMITTANCE SYSTEM (SERS) AND ONLINE ACCOUNTING AND REPORTING SYSTEM (SSOARS) SUPPORT SERVICES.

Who is the contractor on this award?

The obligated recipient is CGI FEDERAL INC..

Which agency awarded this contract?

Awarding agency: Social Security Administration (Social Security Administration).

What is the total obligated amount?

The obligated amount is $39.9 million.

What is the period of performance?

Start: 2025-09-29. End: 2026-09-28.

What is the historical spending pattern for Social Security Administration's Electronic Remittance System (SERS) and Online Accounting and Reporting System (SSOARS) support?

Analyzing historical spending for SERS and SSOARS support is crucial for context. While the provided data is for a single task order valued at $39.9 million, understanding the SSA's expenditure on these systems over previous years would reveal trends. This includes examining whether spending has been consistent, increasing, or decreasing, and whether previous contracts were also with CGI Federal or other vendors. A review of past contract awards, task orders under the parent IDIQ, and related solicitations would provide insights into the long-term investment in these systems. Significant deviations from historical spending could indicate a change in system requirements, scope, or potential inefficiencies. Without access to historical contract databases or agency budget documents specifically detailing SERS/SSOARS expenditures, a precise historical analysis is not possible based solely on the current task order data.

How does the $39.9 million task order value compare to similar IT support contracts for financial systems in other federal agencies?

Benchmarking this $39.9 million task order against similar IT support contracts for financial systems in other federal agencies is essential for assessing value for money. Contracts supporting critical financial infrastructure, such as remittance processing and accounting systems, often represent significant investments. Agencies like the IRS, Treasury, or even large departments like Defense or Health and Human Services procure similar services. The comparison should consider the contract duration (one year in this case), the specific services provided (maintenance, support, potential upgrades), and the contract type (Time and Materials). Factors like the size and complexity of the agency's operations, the age of the systems being supported, and the level of competition for the contract will influence pricing. A preliminary assessment suggests the amount is substantial, typical for maintaining complex federal financial systems, but a detailed comparison with publicly available contract award data for comparable services would be needed for a definitive conclusion on whether it represents good or fair value.

What are the specific risks associated with a Time and Materials (T&M) contract for IT support services, and how are they mitigated in this case?

Time and Materials (T&M) contracts carry inherent risks, primarily the potential for cost overruns if not managed diligently. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified rates and for the cost of materials. This structure can incentivize longer project durations or increased labor hours if oversight is lax. For this Social Security Administration task order, key risks include uncontrolled labor costs, scope creep without corresponding price adjustments, and potential inefficiencies in resource utilization. Mitigation strategies typically involve robust government oversight, including detailed tracking of labor hours, regular reviews of progress against the Performance Work Statement (PWS), and strict controls on any changes to the scope of work. The contracting officer's representative (COR) plays a critical role in monitoring performance and costs. The government must ensure that the PWS clearly defines deliverables and that the contractor's time and materials are reasonable and allocable to the contract requirements.

What is CGI Federal's track record with the Social Security Administration and similar government IT contracts?

CGI Federal is a well-established government IT contractor with a significant presence across various federal agencies. Their track record with the Social Security Administration (SSA) likely includes previous support for systems like SERS and SSOARS, given this is a task order under an existing IDIQ. Examining past performance evaluations, contract history, and any reported issues or successes related to CGI Federal's work with the SSA would provide valuable context. Beyond the SSA, CGI Federal holds numerous contracts with other federal entities for IT services, including system modernization, cloud migration, cybersecurity, and administrative support. Assessing their performance on comparable large-scale IT support contracts for financial or critical infrastructure systems in other agencies can indicate their capability, reliability, and ability to manage complex projects within budget and schedule. A review of federal procurement data and past performance databases would be necessary for a comprehensive assessment.

What are the potential performance implications of relying on a single vendor (CGI Federal) for critical financial system support over an extended period?

Relying on a single vendor like CGI Federal for critical financial system support, such as SERS and SSOARS, presents both potential benefits and risks. On the positive side, a long-term relationship can foster deep institutional knowledge, leading to more efficient problem-solving and system understanding. The vendor becomes intimately familiar with the agency's specific needs and operational nuances. However, the risks include potential vendor lock-in, reduced incentive for innovation if competition is limited in subsequent procurements, and the possibility of service degradation if the vendor becomes complacent or faces internal challenges. For the SSA, ensuring continued strong performance would require robust contract management, clear performance metrics, and potentially exploring competitive re-procurement strategies when the IDIQ or subsequent contracts approach expiration to maintain pressure on pricing and service quality.

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 - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

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, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $53,480,987

Exercised Options: $39,902,812

Current Obligation: $39,902,812

Actual Outlays: $4,377,758

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SS001760018

IDV Type: IDC

Timeline