VA Awards $98M to CGI Federal for Financial System Modernization

Contract Overview

Contract Amount: $98,283,894 ($98.3M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-02-02

End Date: 2027-02-01

Contract Duration: 364 days

Daily Burn Rate: $270.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE AWARD SUPPORTS THE FINANCIAL MANAGEMENT BUSINESS TRANSFORMATION EFFORT TO SUPPORT MIGRATING DEPARTMENT OF VETERANS AFFAIRS CURRENT FINANCIAL MANAGEMENT ENVIRONMENT TO THE NEW INTEGRATED FINANCIAL AND ACQUISITION MANAGEMENT SYSTEM (IFAMS).

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $98.3 million to CGI FEDERAL INC. for work described as: THE AWARD SUPPORTS THE FINANCIAL MANAGEMENT BUSINESS TRANSFORMATION EFFORT TO SUPPORT MIGRATING DEPARTMENT OF VETERANS AFFAIRS CURRENT FINANCIAL MANAGEMENT ENVIRONMENT TO THE NEW INTEGRATED FINANCIAL AND ACQUISITION MANAGEMENT SYSTEM (IFAMS). Key points: 1. Significant investment in IT infrastructure modernization for financial management. 2. CGI Federal is a major player in government IT services. 3. Potential risks include integration challenges and data migration issues. 4. The IT services sector is highly competitive, but this is a large, complex project.

Value Assessment

Rating: good

The award amount of $98.3M for a 364-day contract appears reasonable for a large-scale financial system transformation. Benchmarking against similar complex IT system implementations would provide further context on pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and value for the government.

Taxpayer Impact: Taxpayer funds are being used to improve the efficiency and accuracy of the VA's financial management systems, which could lead to long-term cost savings and better resource allocation.

Public Impact

Improved financial reporting and data accuracy for the VA. Streamlined acquisition and financial processes for agency personnel. Potential for enhanced cybersecurity and compliance with financial regulations. Modernized infrastructure could reduce long-term maintenance costs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Integration complexity
Data migration risks
Vendor lock-in potential

Positive Signals

Modernization of critical financial systems
Potential for improved operational efficiency
Competitive award process

Sector Analysis

This contract falls within the IT services sector, specifically focusing on financial management system modernization. Spending in this area is substantial across government agencies aiming to upgrade legacy systems.

Small Business Impact

The contract was awarded to CGI Federal, a large business. There is no explicit indication of small business participation in this specific award, which could be an area for future focus.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The fixed-price contract type provides some cost control, but ongoing monitoring of performance and deliverables is crucial.

Related Government Programs

Other Computer Related Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Complexity of integrating financial and acquisition management.
Potential for schedule delays in large IT projects.
Ensuring data security and privacy during migration.
Adequacy of user training and adoption support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $98.3 million to CGI FEDERAL INC.. THE AWARD SUPPORTS THE FINANCIAL MANAGEMENT BUSINESS TRANSFORMATION EFFORT TO SUPPORT MIGRATING DEPARTMENT OF VETERANS AFFAIRS CURRENT FINANCIAL MANAGEMENT ENVIRONMENT TO THE NEW INTEGRATED FINANCIAL AND ACQUISITION MANAGEMENT SYSTEM (IFAMS).

Who is the contractor on this award?

The obligated recipient is CGI FEDERAL INC..

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $98.3 million.

What is the period of performance?

Start: 2026-02-02. End: 2027-02-01.

What is the expected return on investment for this financial system transformation?

The ROI is expected to stem from increased operational efficiency, reduced manual processes, improved data accuracy for decision-making, and potentially lower long-term IT maintenance costs. Quantifying this requires detailed metrics on current system inefficiencies and projected benefits post-implementation.

What are the primary risks associated with migrating to a new integrated financial system?

Key risks include data integrity issues during migration, potential disruption to ongoing financial operations, user adoption challenges with the new system, and cybersecurity vulnerabilities during the transition. Robust testing, phased rollouts, and comprehensive training are critical mitigation strategies.

How will the effectiveness of the new IFAMS be measured post-implementation?

Effectiveness will likely be measured through key performance indicators (KPIs) such as reduction in processing times for financial transactions, improved accuracy rates in financial reporting, successful integration with other VA systems, user satisfaction surveys, and achievement of specific cost-saving targets.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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

Financial Breakdown

Contract Ceiling: $175,533,964

Exercised Options: $98,283,894

Current Obligation: $98,283,894

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F281DA

IDV Type: FSS

Timeline