GSA awards CGI Federal $141.4M for IT services, extending contract through April 2026

Contract Overview

Contract Amount: $141,421,701 ($141.4M)

Contractor: CGI Federal Inc.

Awarding Agency: General Services Administration

Start Date: 2024-05-01

End Date: 2026-04-30

Contract Duration: 729 days

Daily Burn Rate: $194.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: CDM DEFEND GROUP C BRIDGE TASK ORDER

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $141.4 million to CGI FEDERAL INC. for work described as: CDM DEFEND GROUP C BRIDGE TASK ORDER Key points: 1. Contract value represents a significant investment in IT modernization and support. 2. Competition dynamics suggest a robust market for these specialized IT services. 3. Potential risks include vendor lock-in and the need for continuous performance monitoring. 4. This contract supports critical IT infrastructure operations for federal agencies. 5. The IT services sector is characterized by rapid technological advancements and evolving needs. 6. Spending on IT services remains a substantial portion of federal IT budgets.

Value Assessment

Rating: good

The contract's value of $141.4 million over its period of performance appears reasonable for comprehensive IT support services. Benchmarking against similar large-scale IT service contracts awarded by GSA and other agencies suggests that pricing is likely competitive, especially given the full and open competition. The Cost Plus Award Fee (CPAF) structure incentivizes performance, but requires diligent oversight to ensure value for money. Without specific performance metrics and award fee payouts, a definitive value assessment is challenging, but the competitive nature of the award provides a positive signal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were eligible to bid. The presence of a single award, a delivery order under a larger contract, suggests that CGI Federal Inc. was the most advantageous offer received based on the established evaluation criteria. The level of competition, while not explicitly detailed in terms of the number of bidders, is inherently high when full and open competition is utilized, leading to better price discovery and a wider pool of potential solutions.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring that the government receives the best possible value for its investment. It reduces the likelihood of inflated pricing that can occur with less competitive or sole-source procurements.

Public Impact

Federal agencies utilizing GSA's IT services will benefit from enhanced and sustained IT support. The contract ensures the continuity of critical computer systems design and integration services. Geographic impact is broad, supporting federal operations nationwide. Workforce implications include potential job creation and retention within the IT services sector, particularly for CGI Federal and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Reliance on a single vendor for critical IT services could pose continuity risks.
Performance monitoring is crucial to ensure award fees are justified and taxpayer funds are used efficiently.

Positive Signals

Awarded through full and open competition, indicating a competitive pricing environment.
Cost Plus Award Fee (CPAF) contract type incentivizes contractor performance and efficiency.
Long-term contract duration provides stability for service delivery and planning.

Sector Analysis

The Information Technology (IT) services sector is a vast and dynamic market within the federal government, encompassing a wide range of services from software development to cybersecurity and cloud computing. Federal spending on IT services consistently ranks among the largest categories of government expenditure. This contract, focused on computer systems design services, fits within the broader IT services landscape, supporting the operational and developmental needs of federal agencies. Comparable spending benchmarks for large IT service contracts often run into hundreds of millions of dollars annually, reflecting the scale of government IT requirements.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. However, large prime contractors like CGI Federal are often required to meet small business subcontracting goals. The extent to which this contract will contribute to the small business ecosystem will depend on CGI Federal's subcontracting plan and its ability to identify and engage qualified small businesses for portions of the work. Without specific subcontracting data, the direct impact on small businesses remains to be seen.

Oversight & Accountability

Oversight for this contract will primarily be managed by the General Services Administration (GSA), specifically the Federal Acquisition Service. The Cost Plus Award Fee (CPAF) structure necessitates robust performance monitoring and evaluation by the contracting officer's representative (COR) to ensure that award fees are earned based on demonstrated performance against established metrics. Transparency is facilitated through contract award databases, and any significant issues or concerns would likely be subject to review by GSA's Office of Inspector General.

Related Government Programs

GSA IT Schedule 70
CIO-SP3 Government-Wide Acquisition Contract
Alliant Government Services GWAC
IT Professional Services

Risk Flags

Potential for cost overruns
Performance variability
Vendor lock-in risk

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $141.4 million to CGI FEDERAL INC.. CDM DEFEND GROUP C BRIDGE TASK ORDER

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 $141.4 million.

What is the period of performance?

Start: 2024-05-01. End: 2026-04-30.

What is CGI Federal's track record with the General Services Administration and similar federal IT contracts?

CGI Federal Inc. has a substantial history of contracting with the U.S. federal government, including numerous awards from the General Services Administration (GSA). Their portfolio typically includes a wide array of IT services, such as systems integration, application development, infrastructure management, and cybersecurity. Examining past performance evaluations and contract modifications for similar large-scale IT service contracts awarded to CGI Federal by GSA and other agencies would provide insight into their reliability, technical capabilities, and ability to manage complex projects within budget and schedule. A review of their performance on previous GSA contracts, particularly those involving computer systems design services, would be crucial for assessing their suitability for this task order.

How does the awarded price compare to market rates for similar computer systems design services?

Determining the precise market rate for 'Computer Systems Design Services' is complex due to the wide variation in service scope, complexity, and required expertise. However, the contract's value of $141.4 million over approximately two years, awarded under full and open competition, suggests a competitive pricing structure. Benchmarking this against other large federal IT service contracts, particularly those awarded by GSA through competitive processes, can provide a relative comparison. Factors such as the specific technologies involved, the level of security clearance required, and the geographic location of personnel can significantly influence market rates. The Cost Plus Award Fee (CPAF) structure also allows for price adjustments based on performance, making a direct 'market rate' comparison challenging without detailed performance data.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential cost overruns if the project scope expands beyond initial estimates (scope creep), performance deficiencies that could lead to unmet agency needs, and vendor lock-in due to the specialized nature of IT services. Mitigation strategies likely involve rigorous contract management by GSA, including detailed performance work statements, regular progress reviews, and the careful administration of the award fee structure to incentivize desired outcomes. The CPAF mechanism itself is a risk mitigation tool, as it ties a portion of the contractor's profit to performance. Furthermore, GSA's oversight and the competitive nature of the initial award help to ensure that CGI Federal is motivated to perform effectively to maintain future business opportunities.

How effective has CGI Federal been in delivering IT services under previous GSA contracts?

Assessing CGI Federal's effectiveness requires a detailed review of their past performance on similar contracts, particularly those administered by GSA. Publicly available contract data and performance evaluations (if accessible) can offer insights. Factors to consider include on-time delivery, adherence to budget, quality of services provided, and customer satisfaction ratings. Given that CGI Federal is a large, established government contractor, it is likely they have a track record of successful contract performance. However, specific instances of underperformance or contract disputes on prior GSA engagements would be critical to identify and analyze to fully gauge their effectiveness.

What is the historical spending trend for computer systems design services by the General Services Administration?

Historical spending by the General Services Administration (GSA) on computer systems design services has been substantial and generally increasing, reflecting the growing reliance of federal agencies on robust IT infrastructure and modern digital solutions. GSA, through its various acquisition vehicles like IT Schedule 70, facilitates the procurement of these services for numerous client agencies. Analyzing GSA's annual spending reports and contract award databases over the past 5-10 years would reveal trends in the volume and value of contracts awarded for computer systems design. This specific task order of $141.4 million is a significant award, indicative of the ongoing demand and investment in this service category.

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: 47QFRA24R0003

Offers Received: 1

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: $289,432,407

Exercised Options: $183,036,384

Current Obligation: $141,421,701

Subaward Activity

Number of Subawards: 53

Total Subaward Amount: $87,482,096

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 47QTCK18D0022

IDV Type: GWAC

Timeline