GSA Awards $23M for Integrated Financial System Hosting to CGI Federal Inc

Contract Overview

Contract Amount: $22,994,489 ($23.0M)

Contractor: CGI Federal Inc.

Awarding Agency: General Services Administration

Start Date: 2009-10-01

End Date: 2014-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $12.6K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INTEGRATED FINANCIAL SYSTEM HOSTING SERVICES PEGASYS/BAAR AND FMLOB

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20405

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $23.0 million to CGI FEDERAL INC. for work described as: INTEGRATED FINANCIAL SYSTEM HOSTING SERVICES PEGASYS/BAAR AND FMLOB Key points: 1. Contract awarded to CGI Federal Inc. for hosting services. 2. The contract value is $22,994,489.26 over 5 years. 3. This is a competitive delivery order under an existing contract. 4. The sector is IT services, specifically 'Other Computer Related Services'.

Value Assessment

Rating: fair

The contract was awarded as a competitive delivery order, suggesting some price discovery. However, without specific benchmarks for 'Other Computer Related Services' hosting, a precise value assessment is difficult. The firm fixed price structure provides cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This was a competitive delivery order, indicating that multiple vendors likely had an opportunity to bid. This method generally promotes better price discovery compared to sole-source awards. The competition was likely within the scope of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Taxpayer Impact: The competitive nature of the award suggests a reasonable effort to secure fair pricing, minimizing potential overspending for taxpayers.

Public Impact

Impacts federal financial management systems, affecting agencies using PEGASYS/BAAR and FMLOB. Ensures continuity of critical financial operations for government agencies. Supports the modernization and maintenance of essential government IT infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific per-unit cost data for benchmarking.
Potential for vendor lock-in if not managed carefully post-award.

Positive Signals

Competitive award process.
Firm fixed price contract type for cost certainty.
Long-term contract provides stability for essential services.

Sector Analysis

The IT services sector, particularly 'Other Computer Related Services,' is broad. Benchmarking hosting services requires detailed comparison against similar government or commercial contracts, which is not readily available from the provided data. The contract value is moderate for enterprise-level hosting.

Small Business Impact

The data indicates this contract was not awarded to a small business (ss: false, sb: false). Therefore, there is no direct benefit to small businesses from this specific award, though they may participate as subcontractors.

Oversight & Accountability

As a competitive delivery order, oversight likely occurred during the initial IDIQ contract selection and the specific delivery order competition. Ongoing oversight would focus on performance and adherence to contract terms by GSA.

Related Government Programs

Other Computer Related Services
General Services Administration Contracting
Office of the Administrator Programs

Risk Flags

Potential for vendor lock-in.
Lack of detailed performance metrics in provided data.
No small business participation noted.
Reliance on a single vendor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $23.0 million to CGI FEDERAL INC.. INTEGRATED FINANCIAL SYSTEM HOSTING SERVICES PEGASYS/BAAR AND FMLOB

Who is the contractor on this award?

The obligated recipient is CGI FEDERAL INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Office of the Administrator).

What is the total obligated amount?

The obligated amount is $23.0 million.

What is the period of performance?

Start: 2009-10-01. End: 2014-09-30.

What is the benchmark cost for similar integrated financial system hosting services in the federal market?

Benchmarking integrated financial system hosting services requires detailed analysis of contract vehicles like IT-Schedule 70 or specific agency IDIQs. Factors such as service level agreements, data center security, disaster recovery capabilities, and the specific financial applications supported (PEGASYS/BAAR, FMLOB) heavily influence pricing. Without these specifics, a precise benchmark is difficult, but comparable large-scale hosting contracts can range from tens to hundreds of dollars per server per month, excluding significant setup and migration costs.

What are the primary risks associated with relying on a single vendor for critical financial system hosting over a five-year period?

The primary risks include vendor lock-in, where switching providers becomes prohibitively expensive or complex. There's also the risk of service degradation if the vendor's performance declines or if they fail to innovate. Security vulnerabilities introduced by the vendor or their infrastructure pose a significant threat. Furthermore, price increases upon contract renewal or the vendor's potential financial instability are considerable concerns that require proactive management and contingency planning.

How effectively does the firm fixed price contract type ensure value for money in this hosting service scenario?

The firm fixed price (FFP) contract type is effective in providing cost certainty for the government, as the price is set regardless of the contractor's actual costs. This shifts the risk of cost overruns to CGI Federal. For stable, well-defined services like hosting, FFP generally promotes value by incentivizing the contractor to manage their costs efficiently. However, it can be less effective if the scope of work changes significantly, potentially leading to costly change orders.

Industry Classification

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

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: CGI Inc (UEI: 248513116)

Address: 12601 FAIR LAKES CIRCLE, FAIRFAX, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $22,998,489

Exercised Options: $22,998,489

Current Obligation: $22,994,489

Parent Contract

Parent Award PIID: GS35F4797H

IDV Type: FSS

Timeline