CGI Federal Inc. contract for Momentum system support valued at $16.67M, spanning over 4 years

Contract Overview

Contract Amount: $16,671,542 ($16.7M)

Contractor: CGI Federal Inc.

Awarding Agency: U.S. Agency for Global Media

Start Date: 2010-09-30

End Date: 2015-09-02

Contract Duration: 1,798 days

Daily Burn Rate: $9.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 1.) MOMENTUM 2010 ANNUAL CLOSE; 2.) MOMENTUM SERVICING TRANSITION; 3.) LEVERAGING OF EXISTING FUNCTIONALITY (LEF); 4.) MOMENTUM AND CCRC 6.5 UPGRADE; 5.) MOMENTUM AND CCRC OPERATIONS AND MAINTENANCE, HOSTING AND ONSITE SUPPORT.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20237

State: District of Columbia Government Spending

Plain-Language Summary

U.S. Agency for Global Media obligated $16.7 million to CGI FEDERAL INC. for work described as: 1.) MOMENTUM 2010 ANNUAL CLOSE; 2.) MOMENTUM SERVICING TRANSITION; 3.) LEVERAGING OF EXISTING FUNCTIONALITY (LEF); 4.) MOMENTUM AND CCRC 6.5 UPGRADE; 5.) MOMENTUM AND CCRC OPERATIONS AND MAINTENANCE, HOSTING AND ONSITE SUPPORT. Key points: 1. The contract focused on maintaining and upgrading the Momentum system, a critical financial management platform. 2. Leveraging existing functionality was a key aspect, suggesting cost-efficiency in the upgrade approach. 3. The contract duration of nearly 5 years indicates a long-term need for system support. 4. The firm fixed-price structure likely provided cost certainty for the agency. 5. The contract was awarded through full and open competition, implying a robust bidding process.

Value Assessment

Rating: good

The total value of $16.67 million over approximately 5 years suggests a reasonable annual expenditure for maintaining a complex financial system. Benchmarking against similar large-scale IT system maintenance contracts would provide further context, but the scope appears to align with industry standards for such services. The firm fixed-price contract type generally indicates a well-defined scope, which can lead to better value if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive environment is generally expected to drive down prices and encourage innovation. The presence of two bids suggests a moderate level of competition for this specific contract.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best possible price and service for the government.

Public Impact

The U.S. Agency for Global Media (USAGM) benefits from continued operational support of its financial management system. The contract ensures the stability and functionality of the Momentum system, crucial for agency operations. The services delivered include system upgrades, maintenance, hosting, and onsite support. The primary geographic impact is within the District of Columbia, where the agency is headquartered.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the system becomes highly specialized or if follow-on contracts are not competitively bid.
Reliance on a single contractor for critical financial system maintenance could pose risks if the contractor faces financial instability or operational issues.

Positive Signals

The use of firm fixed-price contracts can provide budget predictability.
Full and open competition suggests a deliberate effort to obtain competitive pricing and quality.
The contract's focus on leveraging existing functionality may indicate efficient resource utilization.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on software and system maintenance for financial management. The market for government IT support is substantial, with agencies constantly seeking to maintain, upgrade, and secure their critical systems. Comparable spending benchmarks would involve looking at other large federal agencies' IT maintenance contracts, particularly those for financial systems like Momentum, which is used across multiple government entities.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary contractor, CGI Federal Inc., is a large business, and any subcontracting would be at their discretion.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Agency for Global Media's contracting officers and program managers. Transparency is facilitated through contract databases like FPDS. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified services. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Financial Management Systems
Government IT Modernization
Financial Systems Maintenance Contracts
Enterprise Resource Planning (ERP) Systems Support

Risk Flags

Potential for cost overruns if scope creep occurs despite firm fixed-price.
Risk of system performance degradation if maintenance is not comprehensive.
Dependency on contractor expertise for critical financial system functions.

Frequently Asked Questions

What is this federal contract paying for?

U.S. Agency for Global Media awarded $16.7 million to CGI FEDERAL INC.. 1.) MOMENTUM 2010 ANNUAL CLOSE; 2.) MOMENTUM SERVICING TRANSITION; 3.) LEVERAGING OF EXISTING FUNCTIONALITY (LEF); 4.) MOMENTUM AND CCRC 6.5 UPGRADE; 5.) MOMENTUM AND CCRC OPERATIONS AND MAINTENANCE, HOSTING AND ONSITE SUPPORT.

Who is the contractor on this award?

The obligated recipient is CGI FEDERAL INC..

Which agency awarded this contract?

Awarding agency: U.S. Agency for Global Media (U.S. Agency for Global Media).

What is the total obligated amount?

The obligated amount is $16.7 million.

What is the period of performance?

Start: 2010-09-30. End: 2015-09-02.

What is the historical spending trend for the Momentum system at the U.S. Agency for Global Media?

The provided data highlights a specific contract valued at $16.67 million awarded in 2010 and ending in 2015. To understand the historical spending trend, one would need to examine contract awards for the Momentum system prior to and following this period, as well as potentially across different agencies that utilize the system. Analyzing the total obligations over multiple fiscal years would reveal whether spending has been consistent, increasing, or decreasing, and whether this contract represented a significant investment or a routine maintenance expenditure.

How does the per-unit cost of this contract compare to similar IT maintenance contracts for financial systems?

The provided data does not include specific per-unit cost breakdowns (e.g., cost per user, cost per module maintained). The total contract value is $16.67 million over approximately 5 years. To compare per-unit costs, we would need to identify comparable contracts for similar financial management systems (like ERP systems) within other federal agencies or even state/local governments. Factors such as system complexity, number of users, scope of services (maintenance, upgrades, hosting), and contract duration would need to be normalized for a meaningful comparison. Without such granular data and comparable benchmarks, a precise per-unit cost assessment is not feasible.

What is CGI Federal Inc.'s track record with government IT contracts, particularly financial systems?

CGI Federal Inc. is a large, established government contractor with a significant portfolio of IT services, including financial management systems. They are known to provide services for various federal agencies. Their track record with financial systems would be assessed by examining past performance evaluations, contract history (including any awards or penalties), and the successful delivery of similar projects. A deeper dive would involve reviewing contract databases for other financial system contracts awarded to CGI Federal, their value, duration, and client agencies' satisfaction levels.

What were the specific risks associated with the Momentum system that necessitated this contract?

The contract descriptions mention 'MOMENTUM 2010 ANNUAL CLOSE', 'MOMENTUM SERVICING TRANSITION', 'LEVERAGING OF EXISTING FUNCTIONALITY (LEF)', and 'MOMENTUM AND CCRC 6.5 UPGRADE'. This suggests the system was either nearing end-of-life for certain components, required updates for compliance or functionality, or was undergoing a transition phase. Risks could include system obsolescence, security vulnerabilities in older versions, lack of vendor support for legacy components, potential data integrity issues, or failure to meet evolving financial reporting requirements. The contract aimed to mitigate these risks through upgrades and ongoing maintenance.

How effective has the Momentum system been in supporting the U.S. Agency for Global Media's financial operations?

The effectiveness of the Momentum system is not directly detailed in the provided contract data. However, the fact that the U.S. Agency for Global Media (USAGM) entered into a multi-year, multi-million dollar contract for its maintenance and upgrade suggests the system is considered essential for their financial operations. Effectiveness would typically be measured by factors such as system uptime, accuracy of financial reporting, efficiency gains, user satisfaction, and compliance with federal financial regulations. Post-contract performance reviews or agency reports would offer insights into its actual effectiveness.

What is the total value of IT services contracts awarded to CGI Federal Inc. by the U.S. Agency for Global Media over the last decade?

The provided data focuses on a single contract awarded to CGI Federal Inc. by the U.S. Agency for Global Media (USAGM) from 2010 to 2015, valued at $16.67 million. To determine the total value of IT services contracts over the last decade, a comprehensive search of contract databases (like FPDS) would be required, filtering for CGI Federal Inc. as the contractor and USAGM as the agency, across all contract types and IT service categories within the specified timeframe. This would provide a more complete picture of the business relationship.

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

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: CGI Inc (UEI: 248513116)

Address: 12601 FAIR LAKES CIRCLE, FAIRFAX, VA, 22033

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $16,671,542

Exercised Options: $16,671,542

Current Obligation: $16,671,542

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F4797H

IDV Type: FSS

Timeline