DoD's $31.5M Computer Systems Design Services Contract Awarded to CGI Federal Inc

Contract Overview

Contract Amount: $31,508,748 ($31.5M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of Defense

Start Date: 2011-09-30

End Date: 2013-09-29

Contract Duration: 730 days

Daily Burn Rate: $43.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: LABOR

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $31.5 million to CGI FEDERAL INC. for work described as: LABOR Key points: 1. The contract, valued at $31.5 million, was awarded for Computer Systems Design Services. 2. CGI Federal Inc. secured the award under full and open competition. 3. The contract duration is 730 days, ending September 29, 2013. 4. This award falls under the IT sector, specifically for Defense Information Systems Agency. 5. The contract type is Firm Fixed Price, indicating predictable costs.

Value Assessment

Rating: good

The contract's firm fixed price structure suggests clear cost expectations. Benchmarking against similar IT services contracts would provide a more precise value assessment, but the $31.5M over two years for specialized design services appears reasonable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, allowing any qualified vendor to bid. This method typically fosters competitive pricing and ensures the government receives the best value.

Taxpayer Impact: Competitive bidding under full and open processes generally leads to cost savings for taxpayers by driving down prices.

Public Impact

Ensures critical IT infrastructure support for the Department of Defense. Supports national security through advanced computer systems design. Provides specialized technical services to a key defense agency. Contributes to the efficiency and effectiveness of military operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is relatively short (2 years), potentially requiring re-competition soon.
No specific mention of small business participation, though not required for this contract type.

Positive Signals

Awarded under full and open competition, maximizing potential for best value.
Firm Fixed Price contract provides cost certainty.
Supports a critical defense agency (DISA).

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. Spending in this area is crucial for modern defense operations, enabling advanced communication, data analysis, and cybersecurity capabilities for agencies like DISA.

Small Business Impact

While the contract was awarded under full and open competition and does not explicitly mention small business set-asides, it's important to assess if subcontracting opportunities were made available to small businesses. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The award process under full and open competition suggests a structured procurement. Oversight would focus on contract performance, adherence to the firm fixed price, and timely delivery of services to the Defense Information Systems Agency.

Related Government Programs

Computer Systems Design Services
Department of Defense Contracting
Defense Information Systems Agency Programs

Risk Flags

Contract duration is relatively short.
No explicit mention of small business utilization.
Potential for vendor lock-in if services are highly specialized.
Dependence on a single contractor for critical IT design services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.5 million to CGI FEDERAL INC.. LABOR

Who is the contractor on this award?

The obligated recipient is CGI FEDERAL INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $31.5 million.

What is the period of performance?

Start: 2011-09-30. End: 2013-09-29.

What specific computer systems design services were rendered under this contract, and how did they align with DISA's strategic objectives?

The contract was for Computer Systems Design Services (NAICS 541512) awarded to CGI Federal Inc. by the Department of Defense's Defense Information Systems Agency (DISA). While the data doesn't detail the specific services, such contracts typically involve the design, development, integration, and maintenance of complex IT systems, including network infrastructure, software solutions, and cybersecurity architecture, all crucial for DISA's mission of providing and operating IT infrastructure for the DoD.

Given the firm fixed price, what mechanisms were in place to manage potential cost overruns or scope creep during the contract's two-year term?

A firm fixed price (FFP) contract places the primary cost risk on the contractor. To manage scope creep, DISA would have relied on clearly defined contract statements of work (SOW) and rigorous change control processes. Any deviation from the SOW would require formal modification and potentially a renegotiation of price and schedule, ensuring that the government only pays for agreed-upon changes.

How did the full and open competition process ensure the best value was achieved for these critical defense IT services?

Full and open competition allows all responsible sources to submit bids, fostering a competitive environment. This typically drives down prices and encourages innovation as contractors vie for the award. For DISA, this process likely resulted in multiple proposals being evaluated based on technical merit, past performance, and price, ensuring that the selected solution offered the optimal balance of capability and cost-effectiveness for essential IT systems design.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

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: $31,508,748

Exercised Options: $31,508,748

Current Obligation: $31,508,748

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: GS00Q09BGD0022

IDV Type: GWAC

Timeline