HHS CDC Awards $96.7M for Barcode Scanners and Sunflower Software to CGI Federal

Contract Overview

Contract Amount: $96,668 ($96.7K)

Contractor: CGI Federal Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-01

End Date: 2029-03-31

Contract Duration: 1,095 days

Daily Burn Rate: $88/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BARCODE SCANNERS WITH SUNFLOWER SOFTWARE

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30341

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $96,668 to CGI FEDERAL INC. for work described as: BARCODE SCANNERS WITH SUNFLOWER SOFTWARE Key points: 1. Significant contract value of $96.7 million awarded. 2. CGI Federal Inc. is the sole awardee. 3. Potential risk associated with sole-source procurement. 4. Contract supports critical health infrastructure at CDC.

Value Assessment

Rating: questionable

The contract value is substantial. Without competitive bidding, it's difficult to assess if the pricing is optimal compared to market rates for similar barcode scanning solutions and software.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under simplified acquisition procedures, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in the government paying a premium for these barcode scanners and software.

Public Impact

Ensures continued operation of essential CDC functions relying on accurate data capture. Impacts healthcare data management and public health surveillance capabilities. Potential for increased costs due to non-competitive award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source procurement
Lack of competition
Long contract duration (10 years)

Positive Signals

Supports critical health agency operations
Firm Fixed Price contract type

Sector Analysis

This contract falls within the IT hardware and software sector, specifically for data capture devices. Spending benchmarks for similar IT procurements vary widely based on specific functionalities and vendor.

Small Business Impact

The data indicates that small business participation was not a factor in this award, as the contract was awarded to CGI Federal Inc. without specific small business set-aside information.

Oversight & Accountability

Oversight will be crucial to ensure CGI Federal Inc. delivers the required barcode scanners and Sunflower software effectively and that the pricing remains justified throughout the contract's long duration.

Related Government Programs

Electronic Computer Manufacturing
Department of Health and Human Services Contracting
Centers for Disease Control and Prevention Programs

Risk Flags

Sole-source award limits competition and price discovery.
Long contract duration increases risk of price escalation and technological obsolescence.
Lack of transparency regarding the justification for sole-source procurement.
Potential for vendor lock-in.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $96,668 to CGI FEDERAL INC.. BARCODE SCANNERS WITH SUNFLOWER SOFTWARE

Who is the contractor on this award?

The obligated recipient is CGI FEDERAL INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $96,668.

What is the period of performance?

Start: 2026-04-01. End: 2029-03-31.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of available alternatives that meet the agency's specific requirements. Without further details, it's difficult to ascertain the precise reason CGI Federal Inc. was selected without competition for these barcode scanners and Sunflower software.

What are the risks associated with a 10-year sole-source contract for IT hardware and software?

A 10-year sole-source contract carries significant risks, including potential price escalation over time, lack of access to newer technologies or more cost-effective solutions that may emerge, and vendor lock-in. The agency may also face challenges if the vendor's performance declines or if their business strategy shifts, impacting critical operations.

How will the CDC ensure the value for money over the contract's lifespan?

The CDC can ensure value for money by establishing clear performance metrics and service level agreements within the contract. Regular performance reviews, market research to track evolving technology and pricing, and potentially incorporating price adjustment clauses tied to objective benchmarks can help mitigate risks associated with long-term sole-source agreements.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › QUALITY CONTROL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

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: $96,668

Exercised Options: $96,668

Current Obligation: $96,668

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline