USAID awards CGI $14.5M for IT services, focusing on 'Other Computer Related Services'

Contract Overview

Contract Amount: $14,466,323 ($14.5M)

Contractor: CGI Federal Inc.

Awarding Agency: Agency for International Development

Start Date: 2024-09-13

End Date: 2026-09-15

Contract Duration: 732 days

Daily Burn Rate: $19.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: INITIAL FUNDING FOR CGI

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20547

State: District of Columbia Government Spending

Plain-Language Summary

Agency for International Development obligated $14.5 million to CGI FEDERAL INC. for work described as: INITIAL FUNDING FOR CGI 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 732 days indicates a medium-term engagement for IT support. 4. The award amount is substantial, requiring careful monitoring of performance and value. 5. The North American Industry Classification System (NAICS) code 541519 covers a broad range of IT services. 6. The contract is for IT services, a critical area for agency operations and modernization.

Value Assessment

Rating: fair

The contract's Time and Materials (T&M) pricing structure warrants close scrutiny. While T&M can offer flexibility, it also presents a higher risk of cost overruns compared to fixed-price contracts if not meticulously managed and monitored. Benchmarking the specific rates against similar IT service contracts awarded by USAID or other federal agencies would be crucial to assess value for money. Without detailed rate comparisons, it's difficult to definitively state if the pricing is competitive.

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 a bid. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The agency's choice of full and open competition suggests confidence in the market's ability to provide suitable solutions.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it maximizes the potential for competitive pricing and encourages a wider pool of contractors to bid, potentially driving down costs.

Public Impact

The primary beneficiary is the Agency for International Development (USAID), which will receive IT services to support its mission. Services delivered will likely encompass IT support, maintenance, and potentially development, crucial for agency operations. The geographic impact is centered in Washington D.C., where the agency is headquartered. Workforce implications may include the need for specialized IT personnel, both within CGI and potentially impacting USAID's internal IT staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type increases risk of cost overruns if not closely managed.
Lack of specific performance metrics in the provided data makes it hard to assess efficiency.
The broad NAICS code (541519) could encompass a wide range of services, potentially leading to scope creep if not clearly defined.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Contract duration of over two years provides stability for service delivery.
Focus on IT services is essential for modern government operations.

Sector Analysis

The IT services sector is a vast and dynamic market within federal contracting. This contract falls under 'Other Computer Related Services,' a broad category that includes a wide array of IT support, consulting, and implementation. Federal spending in IT services consistently ranks among the largest categories, driven by the need for modernization, cybersecurity, and efficient data management across agencies. Comparable spending benchmarks would typically involve analyzing IT service contracts of similar scope and duration within agencies like USAID or other development-focused organizations.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications for small businesses mandated by this award. The focus appears to be on securing the necessary IT services through a competitive process without specific small business goals tied to this particular contract.

Oversight & Accountability

Oversight for this contract will primarily reside with the Agency for International Development (USAID). As a Time and Materials contract, rigorous monitoring of hours, rates, and deliverables will be essential to ensure cost control and prevent scope creep. USAID's contracting officers and program managers will be responsible for performance oversight. Transparency will depend on USAID's internal reporting practices and any public disclosures made regarding contract performance and expenditures.

Related Government Programs

USAID IT Modernization Programs
Federal Civilian IT Services Contracts
General Services Administration (GSA) IT Schedule Contracts
IT Professional Services

Risk Flags

Time and Materials Pricing
Broad NAICS Code Scope
Lack of Specific Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $14.5 million to CGI FEDERAL INC.. INITIAL FUNDING FOR CGI

Who is the contractor on this award?

The obligated recipient is CGI FEDERAL INC..

Which agency awarded this contract?

Awarding agency: Agency for International Development (Agency for International Development).

What is the total obligated amount?

The obligated amount is $14.5 million.

What is the period of performance?

Start: 2024-09-13. End: 2026-09-15.

What is CGI Federal Inc.'s track record with USAID and other federal agencies for similar IT service contracts?

CGI Federal Inc. has a significant history of contracting with U.S. federal agencies, including USAID, across various IT service domains. Their track record generally includes providing a wide range of services such as IT modernization, cloud solutions, cybersecurity, and application development. For USAID specifically, CGI has been involved in projects supporting global development initiatives. A detailed review of past performance evaluations, contract close-outs, and any reported disputes or challenges would provide a more granular understanding of their performance history. This includes assessing their ability to deliver on time, within budget, and to the required quality standards on previous engagements, which can inform the risk assessment for this current award.

How does the awarded amount of $14.5 million compare to similar IT service contracts awarded by USAID or other agencies for comparable services?

Comparing the $14.5 million award to similar contracts requires identifying contracts with comparable scope, duration, and service type (e.g., 'Other Computer Related Services') awarded by USAID or agencies with similar missions. Without access to a comprehensive database of all federal IT contracts and their specific details, a precise benchmark is challenging. However, $14.5 million for a roughly two-year IT services contract is within a common range for medium-sized federal IT engagements. Factors like the complexity of the services, the number of users supported, and the specific technical requirements heavily influence pricing. A detailed analysis would involve comparing the estimated labor hours, burdened rates, and any material costs against established market rates and historical data for similar federal IT procurements.

What are the primary risks associated with a Time and Materials (T&M) contract for IT services, and how can they be mitigated?

The primary risk with Time and Materials (T&M) contracts is the potential for cost overruns, as the government pays for the actual labor hours and materials used, rather than a pre-defined fixed price. This can lead to unpredictable expenditures if not managed diligently. Mitigation strategies include establishing clear ceilings on the total contract value, closely monitoring labor hours and rates through regular reporting and audits, defining specific deliverables and milestones, and ensuring robust oversight from contracting officers and technical representatives. Implementing strict change control processes and requiring detailed justifications for all work performed are also crucial to keep costs in check and ensure the contractor remains focused on essential tasks.

What is the typical duration and funding profile for 'Other Computer Related Services' contracts at USAID?

The typical duration for 'Other Computer Related Services' contracts at USAID can vary significantly based on the project's scope and objectives. Contracts can range from short-term, project-specific engagements to longer-term support agreements. The funding profile often involves initial awards with options for extension or task orders issued against indefinite-delivery/indefinite-quantity (IDIQ) vehicles. For a contract like this, with an initial award of $14.5 million and a duration of 732 days (approximately two years), it suggests a medium-term commitment for ongoing IT support or a specific service implementation. Funding is typically allocated annually based on agency budgets and program priorities, with potential for follow-on funding if performance is satisfactory and needs persist.

How does the NAICS code 541519 ('Other Computer Related Services') encompass the services likely being provided under this contract?

The NAICS code 541519, 'Other Computer Related Services,' is a broad classification that covers a wide spectrum of IT services not specifically categorized under other codes like custom software development or computer systems design. This typically includes services such as IT support and help desk operations, IT planning and consulting, network management, data processing services, IT disaster recovery services, and IT project management. Given the nature of federal agency operations, it's highly probable that this contract involves a combination of these services, aimed at maintaining and enhancing USAID's IT infrastructure, supporting end-users, and ensuring the smooth functioning of its technological systems.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: TIME AND MATERIALS (Y)

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: $38,914,759

Exercised Options: $38,914,759

Current Obligation: $14,466,323

Actual Outlays: $8,420,334

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $824,876

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 19AQMM24A0165

IDV Type: BPA

Timeline