GSA awards $1.3M for custom computer programming, with limited competition

Contract Overview

Contract Amount: $1,302,610 ($1.3M)

Contractor: CGI Federal Inc.

Awarding Agency: General Services Administration

Start Date: 2022-04-11

End Date: 2026-04-10

Contract Duration: 1,460 days

Daily Burn Rate: $892/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SYSTEMS INTEGRATION SUPPORT

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70114

State: Louisiana Government Spending

Plain-Language Summary

General Services Administration obligated $1.3 million to CGI FEDERAL INC. for work described as: SYSTEMS INTEGRATION SUPPORT Key points: 1. Contract value of $1.3M for custom computer programming services. 2. Limited competition raises questions about optimal price discovery. 3. Contract duration of 4 years suggests a need for sustained support. 4. Fixed-price contract type aims to control costs. 5. Services are for systems integration support. 6. Contract awarded by the General Services Administration.

Value Assessment

Rating: fair

The contract value of $1.3M for custom computer programming services appears moderate for a four-year engagement. Without specific benchmarks for similar systems integration support contracts within the federal government, it's challenging to definitively assess value for money. The fixed-price nature of the contract is a positive indicator for cost control, but the limited competition may have prevented a more aggressive pricing strategy.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed openly, indicating a limited competition scenario. The specific reasons for this limitation are not detailed in the provided data. A limited competition environment typically involves fewer bidders than a full and open competition, which can impact the government's ability to secure the most competitive pricing.

Taxpayer Impact: Limited competition may result in higher costs for taxpayers compared to a scenario with robust bidding from multiple vendors.

Public Impact

Federal agencies requiring systems integration support will benefit from these services. The contract supports custom computer programming, enhancing federal IT capabilities. Services are likely to be delivered remotely or at a federal facility, with a primary impact on federal IT infrastructure. The contract supports the federal workforce by providing necessary IT services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to suboptimal pricing.
Lack of detailed performance metrics makes it difficult to assess effectiveness.
The specific nature of 'systems integration support' is broad and requires further definition for full understanding.

Positive Signals

Fixed-price contract type helps manage cost certainty.
Contract duration of 4 years provides stability for service delivery.
Awarded by GSA, a central procurement agency, suggesting adherence to federal procurement standards.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. The federal IT services market is substantial, with agencies consistently investing in systems integration and custom software development to modernize operations and enhance capabilities. This contract represents a small portion of overall federal IT spending, focusing on specialized integration support.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) is false. This suggests that the contract was not set aside for small businesses, nor are there explicit indications of subcontracting requirements for small businesses within this specific award. Further analysis would be needed to determine if small businesses were excluded from bidding or if they participated as subcontractors to the prime.

Oversight & Accountability

Oversight for this contract would typically be managed by the General Services Administration (GSA) contracting officers and program managers. Accountability measures are inherent in the fixed-price contract type, requiring the contractor to deliver specified services within the agreed budget. Transparency is facilitated through federal procurement databases, though detailed performance reports may not always be publicly accessible.

Related Government Programs

IT Professional Services
Custom Computer Programming Services
Systems Integration

Risk Flags

Limited competition
Potential for suboptimal pricing
Lack of detailed performance data

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $1.3 million to CGI FEDERAL INC.. SYSTEMS INTEGRATION SUPPORT

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 $1.3 million.

What is the period of performance?

Start: 2022-04-11. End: 2026-04-10.

What is the track record of CGI Federal Inc. in delivering similar IT services to the federal government?

CGI Federal Inc. is a significant contractor with the U.S. federal government, often involved in large-scale IT modernization, systems integration, and business process outsourcing. Their track record includes numerous contracts across various agencies, such as the Department of Defense, Health and Human Services, and Treasury. While they possess extensive experience, the success and value of specific contracts can vary. A deeper dive into their performance history on comparable custom programming and systems integration contracts, including any past performance issues or commendations, would provide a more nuanced understanding of their reliability and effectiveness for this particular award.

How does the $1.3M contract value compare to similar systems integration support contracts awarded by GSA?

Benchmarking the $1.3M contract value requires comparing it against similar systems integration support contracts awarded by GSA or other agencies for comparable services and duration. Without access to a detailed database of historical GSA contracts for 'Custom Computer Programming Services' (NAICS 541511) with similar scopes and terms, a precise comparison is difficult. However, for a four-year contract, $1.3M suggests an average annual value of $325,000. This figure is on the lower to moderate end for federal IT services, especially for complex systems integration, implying either a focused scope of work, a smaller team, or potentially a less competitive bidding environment that influenced the final price.

What are the primary risks associated with a 'limited competition' award for IT services?

The primary risks associated with a limited competition award for IT services include potential overpayment due to reduced price pressure, a narrower pool of innovative solutions, and a diminished incentive for the awarded contractor to perform exceptionally well. When competition is limited, the government may not benefit from the full spectrum of market capabilities or the most cost-effective approaches. This can also lead to a lack of transparency in the procurement process and potentially lock the agency into a specific vendor's ecosystem, making future transitions more difficult and costly. Ensuring robust contract management and performance monitoring becomes even more critical in such scenarios.

How effective is the fixed-price contract type in ensuring value for money for custom computer programming?

The fixed-price contract type is generally effective in ensuring value for money for custom computer programming when the scope of work is well-defined and unlikely to change significantly. It shifts the risk of cost overruns to the contractor, incentivizing them to manage resources efficiently and deliver the project within the agreed budget. For services like systems integration support, where requirements can sometimes evolve, a fixed-price contract requires careful initial definition and potentially robust change order management processes to avoid scope creep that could negate the cost benefits. When executed properly, it provides cost certainty for the government.

What is the historical spending trend for custom computer programming services (NAICS 541511) by the General Services Administration?

The General Services Administration (GSA) is a significant procurer of IT services, including custom computer programming (NAICS 541511). Historical spending data indicates a consistent and often increasing trend in federal IT procurement, driven by modernization efforts and the need for specialized software solutions. GSA, through its various acquisition vehicles like MAS (Multiple Award Schedule), plays a crucial role in facilitating these purchases. While specific year-over-year spending for NAICS 541511 by GSA fluctuates based on agency needs and available contract vehicles, the overall trajectory points towards sustained investment in this category to support federal operations and digital transformation initiatives.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47QFLA22Q0027

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

Financial Breakdown

Contract Ceiling: $1,302,610

Exercised Options: $1,302,610

Current Obligation: $1,302,610

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QFLA21D0004

IDV Type: IDC

Timeline