GSA's $23.8M CGI Federal Hosting Contract: Non-Competitive Delivery Order Raises Concerns

Contract Overview

Contract Amount: $23,857,395 ($23.9M)

Contractor: CGI Federal Inc.

Awarding Agency: General Services Administration

Start Date: 2005-11-22

End Date: 2010-03-31

Contract Duration: 1,590 days

Daily Burn Rate: $15.0K/day

Competition Type: NON-COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: HOSTING

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 $23.9 million to CGI FEDERAL INC. for work described as: HOSTING Key points: 1. Significant spending on hosting services over nearly 5 years. 2. Sole-source award limits competition and potentially inflates costs. 3. Long contract duration may not reflect current market rates. 4. Lack of competition is a key risk factor.

Value Assessment

Rating: questionable

The $23.8M total award value for hosting services over 1590 days is substantial. Without competitive bidding, it's difficult to assess if this price is reasonable compared to similar government or commercial hosting contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a non-competitive delivery order. This method bypasses the standard competitive procurement process, significantly limiting price discovery and potentially leading to higher costs for taxpayers.

Taxpayer Impact: The lack of competition means taxpayers may be paying more than necessary for these hosting services.

Public Impact

Citizens may not be receiving the best value for their tax dollars due to the absence of competition. Government efficiency could be impacted if funds are overspent on basic IT infrastructure. Transparency in government spending is reduced when contracts are awarded non-competitively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Non-competitive award
Long contract duration
Lack of clear justification for sole-source

Positive Signals

Services provided by CGI Federal Inc.
Firm Fixed Price contract type

Sector Analysis

Hosting services are a critical component of IT infrastructure for government agencies. Spending benchmarks vary widely based on the type of hosting (cloud, dedicated servers, etc.) and the scale of services required.

Small Business Impact

This contract was awarded to CGI Federal Inc., a large business. There is no indication that small businesses were involved in providing these hosting services, missing an opportunity for small business participation.

Oversight & Accountability

The non-competitive nature of this award warrants further review by oversight bodies to ensure the government received fair value and that the sole-source justification was appropriate.

Related Government Programs

General Services Administration Contracting
Office of Government-wide Policy Programs

Risk Flags

Potential for overpayment due to non-competitive award.
Lack of transparency in the procurement process.
Risk of outdated technology or services if not regularly re-competed.
Missed opportunity for small business participation.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $23.9 million to CGI FEDERAL INC.. HOSTING

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 Government-wide Policy).

What is the total obligated amount?

The obligated amount is $23.9 million.

What is the period of performance?

Start: 2005-11-22. End: 2010-03-31.

What was the specific justification for awarding this hosting contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without this information, it's impossible to fully assess the necessity of bypassing competition.

How does the per-unit cost of this hosting contract compare to industry benchmarks for similar services?

A per-unit cost benchmark cannot be determined from the provided data. The total award amount and duration are given, but the specific services, quantities, and pricing structure are not detailed. A comprehensive analysis would require access to the contract's detailed line items and comparison with current market rates for comparable hosting solutions.

What is the potential financial impact on taxpayers due to the lack of competition for this contract?

The lack of competition for this $23.8 million contract likely results in a negative financial impact on taxpayers. Non-competitive awards often lead to higher prices than those achieved through competitive bidding processes. The absence of market forces means CGI Federal Inc. may not have been incentivized to offer the most cost-effective solution, potentially overspending taxpayer funds.

Competition & Pricing

Extent Competed: NON-COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Groupe CGI Inc (UEI: 246801237)

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $23,857,395

Exercised Options: $23,857,395

Current Obligation: $23,857,395

Parent Contract

Parent Award PIID: GS35F4797H

IDV Type: FSS

Timeline