EPA awards CGI Federal $4.3M for COMPASS Hosting Support Services through full and open competition

Contract Overview

Contract Amount: $4,339,512 ($4.3M)

Contractor: CGI Federal Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2018-06-29

End Date: 2025-06-30

Contract Duration: 2,558 days

Daily Burn Rate: $1.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: EPA COMPASS HOSTING SUPPORT SERVICES

Place of Performance

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

State: District of Columbia Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $4.3 million to CGI FEDERAL INC. for work described as: EPA COMPASS HOSTING SUPPORT SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose cost control risks if not managed closely. 3. The duration of the contract extends over 7 years, indicating a long-term need for these services. 4. The agency's spending on this service category (NAICS 518210) is a significant portion of its IT infrastructure budget. 5. Performance is located in the District of Columbia, a common hub for federal IT services. 6. No small business set-aside was utilized, indicating the primary contractor is not a small business.

Value Assessment

Rating: fair

The contract's value of $4.3 million over approximately 7 years averages to about $614,000 annually. Benchmarking this against similar IT hosting and data processing contracts is challenging without more specific service details. However, the Time and Materials pricing structure warrants close monitoring to ensure costs remain within reasonable bounds and do not escalate beyond initial projections. The lack of a fixed price or ceiling could lead to cost overruns if not managed diligently by the EPA.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but this method generally fosters a competitive environment. A competitive process is expected to drive down prices and encourage innovative solutions from multiple vendors, leading to better value for the government.

Taxpayer Impact: Taxpayers benefit from a competitive award process that aims to secure the most cost-effective solution for essential IT infrastructure support.

Public Impact

The Environmental Protection Agency (EPA) benefits from continuous and reliable hosting support for its COMPASS system. This contract ensures the availability of critical data processing and web hosting services for EPA operations. The services are delivered within the District of Columbia, supporting the federal government's IT infrastructure in the capital region. The contract supports the IT workforce employed by CGI Federal Inc. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type increases risk of cost escalation without strict oversight.
Long contract duration (7 years) requires sustained vigilance to ensure continued value and performance.
Lack of specific performance metrics or KPIs in the provided data makes objective performance assessment difficult.

Positive Signals

Awarded through full and open competition, indicating a potentially competitive pricing environment.
The contractor, CGI Federal Inc., is a large, established entity with significant experience in government IT services.
The contract supports a critical function for the EPA, ensuring operational continuity.

Sector Analysis

The Information Technology sector, specifically within the Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services sub-sector (NAICS 518210), is a critical component of federal operations. Federal agencies increasingly rely on robust IT infrastructure for data management, application hosting, and digital service delivery. Spending in this area is substantial across government, with agencies like the EPA requiring specialized support for complex systems like COMPASS. Comparable spending benchmarks would typically involve analyzing IT service contracts for similar-sized agencies or specific hosting requirements.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting goals for small businesses in the provided data. This suggests that the primary contract was awarded to a large business, CGI Federal Inc. While large prime contracts can sometimes include subcontracting opportunities for small businesses, the absence of a set-aside or explicit subcontracting plan in this data means the direct impact on the small business ecosystem is not immediately apparent and may be limited unless proactively managed by the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily reside with the Environmental Protection Agency's contracting officers and program managers. They are responsible for monitoring performance, approving invoices, and ensuring compliance with contract terms, especially given the Time and Materials pricing structure. The contract's duration and value necessitate regular reviews to ensure continued value for money. Transparency is facilitated by public contract databases, but detailed internal oversight mechanisms and Inspector General jurisdiction would depend on specific EPA policies and the nature of any performance issues that may arise.

Related Government Programs

EPA IT Infrastructure Support
Cloud Computing Services
Data Center Operations
Government IT Hosting Contracts
Federal Civilian Agency IT Spending

Risk Flags

Cost Overrun Risk (Time and Materials)
Long-Term Contract Dependency
Potential Lack of Competition Visibility

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $4.3 million to CGI FEDERAL INC.. EPA COMPASS HOSTING SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is CGI FEDERAL INC..

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $4.3 million.

What is the period of performance?

Start: 2018-06-29. End: 2025-06-30.

What is the historical spending trend for EPA COMPASS Hosting Support Services?

The provided data indicates a single delivery order valued at $4,339,512.43, with a start date of June 29, 2018, and an end date of June 30, 2025, totaling approximately 2558 days or 7 years. This suggests a consistent need for these services over this period. Without access to prior contract history or detailed obligation data, it's difficult to establish a precise historical spending trend beyond this single contract's duration and value. However, the multi-year nature of this award implies that the EPA has budgeted and allocated funds for this service consistently throughout its term, reflecting a stable requirement for COMPASS hosting support.

How does the annual cost of this contract compare to industry benchmarks for similar hosting services?

The annual cost for this contract is approximately $614,000 ($4.34M / 7 years). Benchmarking this figure requires detailed knowledge of the specific services provided (e.g., server capacity, bandwidth, security, managed services) and current market rates. Generally, federal IT hosting costs can vary widely based on complexity, security requirements, and service level agreements. For large-scale, managed hosting solutions, this annual figure might be considered competitive, especially if it includes comprehensive support and maintenance. However, without a direct comparison to industry reports or similar government contracts with detailed scopes of work, a definitive assessment of value-for-money is challenging. The Time and Materials nature also introduces variability.

What are the key performance indicators (KPIs) used to evaluate CGI Federal Inc.'s performance on this contract?

The provided data does not specify the Key Performance Indicators (KPIs) used to evaluate CGI Federal Inc.'s performance. Typically, for IT hosting and support services, KPIs might include metrics such as system uptime/availability (e.g., 99.9% uptime), response times for issue resolution, data security compliance, successful backup and recovery rates, and adherence to service level agreements (SLAs). The EPA's contracting officer and program managers would be responsible for defining and monitoring these KPIs throughout the contract's lifecycle. Effective oversight would involve regular performance reviews against these established metrics to ensure the contractor is meeting its obligations.

What is the risk associated with the Time and Materials (T&M) contract type for this service?

The primary risk associated with a Time and Materials (T&M) contract type, like the one awarded to CGI Federal Inc., is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual labor hours and materials used, plus a fixed fee or நிர்ணயிக்கப்பட்ட दर. If not managed diligently, this can lead to costs exceeding initial estimates, as the government pays for the time and resources expended. To mitigate this risk, the EPA must implement robust oversight, closely monitor labor hours and material costs, establish clear ceilings or not-to-exceed clauses where possible, and ensure that the work performed is necessary and efficient. Regular performance reviews and detailed invoice scrutiny are crucial.

What is the significance of the NAICS code 518210 (Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services) for the EPA's IT strategy?

The NAICS code 518210 signifies that this contract falls under the core category of IT infrastructure services essential for modern government operations. For the EPA, this means the contract directly supports the foundational elements required to host and manage its critical applications and data, such as the COMPASS system. This service category is vital for ensuring data availability, system reliability, and security. The EPA's reliance on providers in this space indicates a strategic decision to leverage external expertise and infrastructure for core IT functions, likely to enhance scalability, reduce operational burdens, and potentially achieve cost efficiencies compared to maintaining all infrastructure in-house.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SOL-DC-16-00007

Pricing Type: TIME AND MATERIALS (Y)

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: $5,365,374

Exercised Options: $5,059,602

Current Obligation: $4,339,512

Actual Outlays: $1,715,530

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $65,000

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: EPW18008

IDV Type: IDC

Timeline