GSA awards CGI Federal $112.75M IT task order for EPA support, with 1088 days duration

Contract Overview

Contract Amount: $112,750,000 ($112.8M)

Contractor: CGI Federal Inc.

Awarding Agency: General Services Administration

Start Date: 2023-07-17

End Date: 2026-07-09

Contract Duration: 1,088 days

Daily Burn Rate: $103.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: EPA INFORMATION TECHNOLOGY ENTERPRISE DEVELOPMENT (ITED) TASK ORDER (47QFCA23F0030) AWARD FROM TASK ORDER REQUEST (47QFCA23R0032) IN SUPPORT OF THE US EPA.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20460

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $112.8 million to CGI FEDERAL INC. for work described as: EPA INFORMATION TECHNOLOGY ENTERPRISE DEVELOPMENT (ITED) TASK ORDER (47QFCA23F0030) AWARD FROM TASK ORDER REQUEST (47QFCA23R0032) IN SUPPORT OF THE US EPA. Key points: 1. The contract's cost-plus-award-fee structure incentivizes performance but requires robust oversight to ensure value. 2. Full and open competition suggests a competitive environment, potentially leading to better pricing and innovation. 3. The duration of nearly three years indicates a significant, long-term need for IT services. 4. The contract is for computer systems design services, a critical area for agency operations. 5. The award is a delivery order against a larger contract vehicle, suggesting a streamlined procurement process. 6. The total value of $112.75 million over approximately three years warrants careful monitoring of spending against milestones.

Value Assessment

Rating: good

The contract value of $112.75 million over 1088 days averages approximately $103,631 per day. Benchmarking this against similar IT services contracts for federal agencies is challenging without more granular data on the specific services provided. However, the cost-plus-award-fee (CPAFF) structure allows for flexibility and incentivizes contractor performance, which can be a good value driver if managed effectively. The General Services Administration (GSA) is generally adept at managing such contracts, suggesting a reasonable likelihood of achieving good value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The data shows two bids were received. While two bidders is more than a sole-source award, it is on the lower end for a full and open competition of this magnitude. This level of competition may not have fully leveraged market forces to drive down costs as effectively as a larger pool of bidders might have.

Taxpayer Impact: A competitive process, even with two bidders, is generally favorable for taxpayers as it provides a basis for price negotiation and encourages efficiency. However, a more robust competition could potentially have yielded even greater savings.

Public Impact

The Environmental Protection Agency (EPA) will benefit from enhanced IT systems and support, crucial for its environmental mission. Services delivered include computer systems design, directly impacting the EPA's operational efficiency and data management capabilities. The geographic impact is primarily within the District of Columbia, where the EPA's headquarters are located. The contract supports federal IT infrastructure, indirectly impacting the federal workforce by providing necessary technological tools.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The limited number of bidders (2) in a full and open competition could indicate potential barriers to entry or a concentrated market for these specific services.
The cost-plus-award-fee (CPAFF) contract type requires diligent oversight to ensure that costs are reasonable and that award fees are earned based on objective performance metrics, not just effort.
The duration of nearly three years necessitates ongoing performance monitoring to ensure continued alignment with EPA's evolving IT needs.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent procurement process.
The CPAFF structure is designed to incentivize high performance and achieve mission objectives effectively.
The GSA's involvement indicates adherence to established federal acquisition best practices and oversight.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. The federal IT services market is substantial, with agencies consistently investing in modernizing their systems. This contract represents a significant portion of spending within this niche for the EPA, supporting its core mission functions. Comparable spending benchmarks would typically involve analyzing IT modernization and support contracts across various federal agencies, looking at contract values, durations, and service types.

Small Business Impact

The 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 mandated by a set-aside. However, the prime contractor, CGI Federal Inc., may choose to subcontract portions of this work to small businesses as part of its overall business strategy, which could provide opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract will primarily be managed by the General Services Administration (GSA) and the EPA's program officials. The cost-plus-award-fee structure necessitates rigorous performance monitoring and financial review to ensure that award fees are justified and that costs remain within acceptable parameters. Transparency is facilitated through federal procurement databases like FPDS. While no specific Inspector General jurisdiction is mentioned, the EPA's Office of Inspector General (OIG) typically has oversight over EPA contracts.

Related Government Programs

EPA IT Modernization Programs
GSA IT Schedule Contracts
Federal Civilian Agency IT Support Services
Computer Systems Design and Related Services

Risk Flags

Potential for cost overruns due to CPAF structure.
Risk of suboptimal value due to limited competition.
Need for stringent performance monitoring to ensure award fee justification.
Dependency on contractor performance for critical EPA IT functions.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $112.8 million to CGI FEDERAL INC.. EPA INFORMATION TECHNOLOGY ENTERPRISE DEVELOPMENT (ITED) TASK ORDER (47QFCA23F0030) AWARD FROM TASK ORDER REQUEST (47QFCA23R0032) IN SUPPORT OF THE US EPA.

Who is the contractor on this award?

The obligated recipient is CGI FEDERAL INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $112.8 million.

What is the period of performance?

Start: 2023-07-17. End: 2026-07-09.

What is CGI Federal Inc.'s track record with the EPA and similar federal agencies for IT services?

CGI Federal Inc. has a significant track record of performing IT services for various federal agencies, including the EPA. Analyzing their past performance on similar contracts would involve reviewing contract databases for awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any reported issues or successes. For the EPA specifically, CGI Federal has likely held previous contracts supporting IT infrastructure, software development, or systems integration. Their experience with complex government IT environments suggests a foundational understanding of agency requirements and regulatory compliance. A deeper dive would assess the scale and complexity of past projects, on-time delivery rates, and client satisfaction feedback to gauge their capability for this $112.75 million task order.

How does the $112.75 million value compare to typical IT support contracts for agencies of the EPA's size?

The $112.75 million value for this task order, spanning approximately three years, positions it as a substantial IT services contract. For an agency like the EPA, which relies heavily on complex IT systems for data analysis, regulatory enforcement, and public communication, such a budget is not uncommon for comprehensive IT support and modernization efforts. Comparable contracts for large federal civilian agencies often range from tens to hundreds of millions of dollars over similar periods, depending on the scope. Factors influencing this value include the breadth of services (e.g., systems design, integration, maintenance, cybersecurity), the number of users supported, and the criticality of the systems. This award appears to be in line with significant IT investments made by major federal bodies.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract structure for this type of service?

The primary risks associated with a Cost Plus Award Fee (CPAF) contract, like this one for EPA IT services, revolve around cost control and performance measurement. For the government, there's a risk that costs could escalate beyond initial projections if not managed tightly, as the contractor is reimbursed for allowable costs. The 'award fee' component introduces subjectivity; if performance criteria are not clearly defined, measurable, and objectively assessed, there's a risk of awarding fees that are not fully earned or, conversely, unfairly withholding them. This can lead to contractor dissatisfaction or disputes. For the contractor, the risk lies in not meeting the performance targets required to earn the maximum award fee, impacting their profit margin. Effective management by the contracting officer and robust oversight are crucial to mitigate these risks and ensure value for money.

How might the limited competition (2 bidders) impact the long-term cost-effectiveness for the EPA?

The limited competition, with only two bidders responding to this full and open solicitation, presents a potential risk to long-term cost-effectiveness. While two bidders are better than one, a more robust competitive field typically drives down prices through market pressure and encourages innovation as contractors vie for the award. With fewer bidders, the government may have less leverage in negotiating favorable terms and pricing. This could lead to higher unit costs over the contract's duration or less incentive for the winning contractor to continually optimize their service delivery for cost savings. The EPA and GSA will need to closely monitor performance and costs throughout the contract lifecycle to ensure they are achieving value despite the less-than-ideal competitive landscape.

What are the implications of this contract being a delivery order against a larger contract vehicle?

This contract being a delivery order (aw: DELIVERY ORDER) against a larger contract vehicle, likely a GSA Multiple Award Schedule (MAS) or similar indefinite-delivery/indefinite-quantity (IDIQ) contract, has several implications. Firstly, it suggests that the underlying contract vehicle itself underwent a competitive process, establishing pre-qualified vendors and pre-negotiated terms. This streamlines the procurement process for specific task orders like this one, allowing agencies to acquire services more rapidly. Secondly, it implies that the GSA has already vetted the contractor and the general terms of service. However, the specific pricing and scope for this task order are negotiated at the time of award. The efficiency gained in procurement speed is a key benefit, but it's essential that the task order negotiation still ensures fair and reasonable pricing for the services rendered.

What is the historical spending trend for IT services at the EPA, and how does this award fit in?

Historical spending on IT services at the EPA typically fluctuates based on modernization initiatives, cybersecurity needs, and operational demands. Agencies like the EPA consistently allocate significant portions of their budget to IT to support their complex missions. This $112.75 million award represents a substantial, multi-year investment. To understand its place, one would need to analyze EPA's IT spending over the past 5-10 years, identifying major contract vehicles and spending categories. If previous large IT contracts were in a similar range, this award fits within established spending patterns. If it represents a significant increase, it might signal a major new initiative or a shift in IT strategy. Comparing this award's value to the EPA's total IT budget for the relevant years would provide further context on its relative scale.

Industry Classification

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

Solicitation ID: 47QFCA23R0032

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

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: $522,641,130

Exercised Options: $144,581,422

Current Obligation: $112,750,000

Subaward Activity

Number of Subawards: 47

Total Subaward Amount: $15,107,129

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0022

IDV Type: GWAC

Timeline