EPA's $160M CDX Support Services Contract Awarded to CGI Federal Faces Scrutiny

Contract Overview

Contract Amount: $160,867,441 ($160.9M)

Contractor: CGI Federal Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2012-01-01

End Date: 2017-11-15

Contract Duration: 2,145 days

Daily Burn Rate: $75.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: CENTRAL DATA EXCHANGE (CDX) 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 $160.9 million to CGI FEDERAL INC. for work described as: CENTRAL DATA EXCHANGE (CDX) SUPPORT SERVICES Key points: 1. Contract value of $160.87 million over 5 years. 2. CGI Federal Inc. secured the contract. 3. Competition method was Full and Open. 4. NAICS code 541512 indicates Computer Systems Design Services. 5. Contract type is Time and Materials.

Value Assessment

Rating: fair

The contract's Time and Materials pricing structure, coupled with a significant value, raises concerns about cost control and potential overruns compared to fixed-price contracts for similar IT support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the Time and Materials (T&M) contract type may limit price discovery and incentivize longer project durations.

Taxpayer Impact: Taxpayer funds totaling $160.87 million are allocated for these IT support services, with potential for increased costs due to the T&M structure.

Public Impact

Environmental data management and accessibility may be impacted by the quality of support services. Federal agencies rely on CDX for critical environmental data exchange. Contract performance directly affects EPA's mission effectiveness in environmental protection. Potential for cost overruns could divert funds from other environmental initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type
Lack of small business participation
Long contract duration

Positive Signals

Full and open competition
Established contractor

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Benchmarks for similar large-scale IT support contracts vary widely, but a $160M value over five years is substantial.

Small Business Impact

The data indicates no small business participation in this contract, which is a missed opportunity for fostering small business growth within the federal IT contracting landscape.

Oversight & Accountability

Oversight is crucial for Time and Materials contracts to ensure costs remain within reasonable bounds and that services are delivered efficiently. Regular performance reviews and cost audits are essential.

Related Government Programs

Computer Systems Design Services
Environmental Protection Agency Contracting
Environmental Protection Agency Programs

Risk Flags

Potential for cost overruns due to T&M pricing
Lack of small business participation
Limited transparency in performance metrics
Risk of service obsolescence over contract duration

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $160.9 million to CGI FEDERAL INC.. CENTRAL DATA EXCHANGE (CDX) 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 $160.9 million.

What is the period of performance?

Start: 2012-01-01. End: 2017-11-15.

What specific performance metrics were used to evaluate CGI Federal's services, and how did they align with the contract's objectives?

Performance metrics are critical for assessing the value of IT support services. Without specific details on metrics like system uptime, response times, and issue resolution rates, it's difficult to definitively gauge the contractor's effectiveness and ensure taxpayer funds are being used efficiently. A review of performance reports would be necessary.

How does the Time and Materials pricing structure compare to potential fixed-price alternatives for similar IT support services, and what is the estimated cost variance?

Time and Materials contracts can be less predictable in cost compared to fixed-price agreements. While they offer flexibility, they can also lead to higher overall expenditures if not closely managed. A comparative analysis with similar fixed-price contracts would reveal potential cost savings or overruns, highlighting the financial risk to taxpayers.

What measures are in place to ensure the long-term effectiveness and adaptability of the CDX support services, given the evolving nature of IT and environmental data needs?

Ensuring long-term effectiveness requires proactive contract management. This includes regular reviews of technological advancements, potential scope adjustments, and contractor innovation. Without clear mechanisms for adapting to changing needs, the services may become outdated, diminishing their value and impacting the EPA's mission.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: CGI Inc (UEI: 248513116)

Address: 12601 FAIR LAKES CIR, 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: $204,081,995

Exercised Options: $204,081,995

Current Obligation: $160,867,441

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $85,400

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0022

IDV Type: GWAC

Timeline