NRC awards $17.8M task order for FAIMIS support to CGI Federal, a sole-source contract

Contract Overview

Contract Amount: $17,787,298 ($17.8M)

Contractor: CGI Federal Inc.

Awarding Agency: Nuclear Regulatory Commission

Start Date: 2023-01-26

End Date: 2027-01-31

Contract Duration: 1,466 days

Daily Burn Rate: $12.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NUCLEAR REGULATORY COMMISSION (NRC) FINANCIAL ACCOUNTING AND INTEGRATED MANAGEMENT INFORMATION SYSTEM (FAIMIS) SUPPORT SERVICES TASK ORDER

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Nuclear Regulatory Commission obligated $17.8 million to CGI FEDERAL INC. for work described as: NUCLEAR REGULATORY COMMISSION (NRC) FINANCIAL ACCOUNTING AND INTEGRATED MANAGEMENT INFORMATION SYSTEM (FAIMIS) SUPPORT SERVICES TASK ORDER Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. The contract duration of 1466 days suggests a need for sustained support. 3. Fixed-price contract type aims to control costs, but sole-source nature may inflate pricing. 4. The task order is for IT support services, specifically for financial accounting and management information systems. 5. Awarded to CGI Federal, a known large business contractor. 6. The contract value is significant for specialized IT support.

Value Assessment

Rating: fair

Benchmarking the value of this sole-source contract is challenging without comparable sole-source awards for similar FAIMIS support. The fixed-price nature provides some cost control, but the lack of competition means the NRC did not benefit from a competitive bidding process to ensure the lowest possible price. The total value of $17.8 million over approximately four years suggests a substantial investment in maintaining critical financial systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one contractor, CGI Federal, was solicited. This approach bypasses the competitive bidding process, which typically involves multiple vendors vying for the contract. While sole-source awards can be justified under specific circumstances (e.g., unique capabilities or urgent needs), they generally lead to less price discovery and potentially higher costs for the government compared to full and open competition.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of a competitive bidding environment. The government's ability to negotiate favorable terms is reduced when only one option is considered.

Public Impact

The Nuclear Regulatory Commission benefits from continued support for its critical financial accounting and integrated management information systems (FAIMIS). Ensures the operational continuity and efficiency of the NRC's financial management functions. Supports the agency's regulatory and oversight responsibilities by maintaining essential IT infrastructure. The contract impacts the IT services sector, particularly firms specializing in government financial systems support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Lack of transparency in the justification for sole-source award.
Potential for cost overruns if pricing was not adequately negotiated due to lack of competition.

Positive Signals

Fixed-price contract type helps to cap costs.
Contract awarded to a known entity, potentially reducing transition risks.
Sustained support ensures continuity of critical financial systems.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on custom computer programming services and IT management consulting. The market for government IT support services is substantial, with agencies increasingly relying on specialized vendors for maintaining complex financial and operational systems. The NRC's FAIMIS system is crucial for its regulatory functions, and the spending reflects the ongoing need for robust IT infrastructure in government operations. Comparable spending benchmarks would typically involve other agencies procuring similar financial system support or custom IT development services.

Small Business Impact

This contract was awarded to CGI Federal, a large business. There is no indication of a small business set-aside. The contract does not appear to have specific subcontracting requirements for small businesses mentioned in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal, and there is no explicit mechanism for small business participation through this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Nuclear Regulatory Commission's contracting officers and program managers responsible for the FAIMIS system. As a task order under a larger contract vehicle (though not specified here), it would be subject to the terms and conditions of that vehicle. Transparency is limited by the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Financial Management Systems Support
IT Services for Government Agencies
Custom Computer Programming Services
Nuclear Regulatory Commission IT Modernization

Risk Flags

Sole-source award raises concerns about competition and potential overpricing.
Lack of detailed justification for sole-source award in provided data.
Potential for vendor lock-in due to specialized system support.

Frequently Asked Questions

What is this federal contract paying for?

Nuclear Regulatory Commission awarded $17.8 million to CGI FEDERAL INC.. NUCLEAR REGULATORY COMMISSION (NRC) FINANCIAL ACCOUNTING AND INTEGRATED MANAGEMENT INFORMATION SYSTEM (FAIMIS) SUPPORT SERVICES TASK ORDER

Who is the contractor on this award?

The obligated recipient is CGI FEDERAL INC..

Which agency awarded this contract?

Awarding agency: Nuclear Regulatory Commission (Nuclear Regulatory Commission).

What is the total obligated amount?

The obligated amount is $17.8 million.

What is the period of performance?

Start: 2023-01-26. End: 2027-01-31.

What is the specific justification provided by the NRC for awarding this contract on a sole-source basis to CGI Federal?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source procurements are justified under circumstances such as when only one responsible source is available, or when there is a compelling urgency. Without the official justification document, it is impossible to ascertain the precise reasons. However, common justifications include unique technical capabilities, proprietary software, or a critical need that cannot be met through competitive means within the required timeframe. The NRC would have had to formally document and approve this justification to proceed with a sole-source award.

How does the pricing of this $17.8 million task order compare to similar IT support contracts awarded by the NRC or other federal agencies?

Direct price comparison is difficult due to the sole-source nature of this award and the lack of specific details on the services rendered and their unit costs. In a competitive environment, multiple bids would provide a benchmark for fair and reasonable pricing. For sole-source contracts, the government relies on cost and price analysis techniques, historical pricing, and negotiation to ensure value. Without access to CGI Federal's proposed pricing structure and the NRC's cost analysis, it's impossible to definitively state if this contract represents good value. However, the absence of competition inherently limits the government's leverage in achieving the lowest possible price.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this FAIMIS support task order, and how is CGI Federal's performance being measured?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this task order. Typically, IT support contracts include detailed SLAs related to system uptime, response times for issue resolution, data security, and project delivery timelines. Performance is usually measured through regular reporting by the contractor and oversight by the government's Contracting Officer's Representative (COR). The NRC would be responsible for monitoring CGI Federal's adherence to these metrics and taking corrective action if performance falls short of agreed-upon standards. The effectiveness of the FAIMIS system's support is contingent on these unstated performance metrics.

What is CGI Federal's track record with the NRC and other federal agencies for providing similar IT financial system support services?

CGI Federal is a large, established government contractor with a significant presence across various federal agencies, including the Department of Defense, Health and Human Services, and others. They have a history of providing a wide range of IT services, including financial management systems, enterprise resource planning (ERP) support, and custom software development. While specific details of their past performance with the NRC on FAIMIS are not provided here, their extensive experience suggests a baseline capability. However, a thorough review of past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) would be necessary to fully assess their track record for this specific type of support.

What is the historical spending pattern for FAIMIS support services by the NRC, and how does this $17.8 million task order fit into that trend?

The provided data only includes information for this specific task order. To understand historical spending patterns, one would need to analyze previous contracts awarded by the NRC for FAIMIS support or similar financial management IT services. This would involve examining contract databases for prior awards to CGI Federal or other vendors, their values, durations, and the nature of the services provided. Without this historical context, it's difficult to determine if this $17.8 million award represents an increase, decrease, or consistent level of spending for FAIMIS support. It is plausible that ongoing maintenance and upgrades for such a critical system would necessitate consistent, significant investment over time.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 31310023R0004

Pricing Type: FIRM FIXED PRICE (J)

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: $30,287,682

Exercised Options: $23,880,878

Current Obligation: $17,787,298

Actual Outlays: $15,959,089

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $553,346

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 31310023D0003

IDV Type: IDC

Timeline