DoD awards $7M for electronic document management, with 3 bidders competing for a firm-fixed-price contract

Contract Overview

Contract Amount: $7,071,226 ($7.1M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of Defense

Start Date: 2024-09-01

End Date: 2026-08-31

Contract Duration: 729 days

Daily Burn Rate: $9.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CORPORATE ELECTRONIC DOCUMENT MANAGEMENT SYSTEM SUPPORT SERVICES

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $7.1 million to CGI FEDERAL INC. for work described as: CORPORATE ELECTRONIC DOCUMENT MANAGEMENT SYSTEM SUPPORT SERVICES Key points: 1. The contract value appears reasonable given the scope of IT support services. 2. Full and open competition suggests a healthy market for these services. 3. The firm-fixed-price structure shifts performance risk to the contractor. 4. This contract supports critical financial and accounting operations within the DoD. 5. The duration of the contract is approximately two years.

Value Assessment

Rating: good

The contract value of $7.07 million over two years for electronic document management support services appears to be within a reasonable range for similar IT services. Benchmarking against other government contracts for similar IT support and system maintenance would provide a more precise value-for-money assessment. The firm-fixed-price (FFP) contract type is generally favorable for the government when requirements are well-defined, as it caps the contractor's potential profit and incentivizes efficient performance. Without specific details on the scope of services, a direct comparison of per-unit costs is difficult, but the overall award seems competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of three bidders suggests a moderate level of competition for this specific requirement. While three bidders are better than one or two, a higher number of bidders could potentially drive prices down further and increase the likelihood of innovative solutions. The agency's decision to use full and open competition is a positive indicator for market engagement.

Taxpayer Impact: The full and open competition process, with three bidders, likely resulted in a fair market price for these essential IT services, benefiting taxpayers by ensuring competitive pricing.

Public Impact

The Department of Defense, specifically the Defense Finance and Accounting Service (DFAS), will benefit from enhanced electronic document management capabilities. Services delivered include support for a corporate electronic document management system, crucial for efficient record-keeping and retrieval. The geographic impact is primarily within the operational sphere of DFAS, supporting its nationwide or global financial operations. This contract supports IT professionals and potentially administrative staff involved in document management and system maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the system is highly proprietary.
Dependence on contractor expertise for system maintenance and upgrades.
Risk of scope creep if requirements are not tightly managed.

Positive Signals

Firm-fixed-price contract shifts cost overrun risk to the contractor.
Full and open competition promotes market-driven pricing.
Contract supports a critical function for financial operations.

Sector Analysis

The market for IT support services, particularly for document management systems, is robust and highly competitive. This contract falls within the broader category of IT services, which is a significant segment of federal spending. The size of this specific contract ($7.07 million) is moderate within the context of large federal IT procurements. Comparable spending benchmarks would involve looking at other agencies' contracts for similar enterprise content management (ECM) or document management system (DMS) support.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, CGI Federal Inc., is likely a large business. There is no explicit information regarding subcontracting plans for small businesses. Without a small business set-aside or specific subcontracting goals, the direct impact on the small business ecosystem for this particular award is likely minimal, though large prime contractors often utilize small businesses in their supply chains.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract specialist at the Defense Finance and Accounting Service (DFAS). Performance monitoring would likely involve regular reviews of deliverables, service level agreements, and contractor performance reports. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Finance and Accounting Service (DFAS) IT Support Contracts
DoD Enterprise Content Management Systems
Federal Electronic Records Management
IT Services for Financial Management Agencies

Risk Flags

Potential for vendor lock-in
Dependence on contractor expertise
Risk of scope creep
Security vulnerabilities in document management systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.1 million to CGI FEDERAL INC.. CORPORATE ELECTRONIC DOCUMENT MANAGEMENT SYSTEM SUPPORT SERVICES

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 Finance and Accounting Service).

What is the total obligated amount?

The obligated amount is $7.1 million.

What is the period of performance?

Start: 2024-09-01. End: 2026-08-31.

What is the track record of CGI Federal Inc. in performing similar electronic document management support services for the Department of Defense or other federal agencies?

CGI Federal Inc. has a substantial track record of providing IT services to the U.S. federal government, including the Department of Defense. They have experience with various IT modernization efforts, system integration, and support services. For electronic document management, their past performance would likely include support for large-scale systems, potentially involving document scanning, indexing, storage, retrieval, and workflow automation. A detailed review of their contract history in FPDS and agency performance evaluations (if publicly available) would reveal specific successes and challenges in delivering similar services. Their ability to secure this contract suggests they met the agency's performance requirements and demonstrated relevant experience.

How does the awarded price of $7.07 million compare to market rates for similar electronic document management system support services over a two-year period?

Benchmarking the $7.07 million award against market rates requires detailed analysis of the specific services included (e.g., system maintenance, software licenses, help desk support, upgrades, training). However, for a two-year contract supporting a corporate-level system within a major federal agency like the DoD, this figure appears within a reasonable range. Industry reports on IT services pricing, particularly for enterprise content management (ECM) solutions, often show significant variability based on system complexity, user base, and vendor. The firm-fixed-price nature of this contract suggests the agency aimed to secure predictable costs. A more precise comparison would involve analyzing the number of users supported, the criticality of the system, and the specific functionalities provided.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Key risks include potential contractor underperformance, system obsolescence, security vulnerabilities, and scope creep. Underperformance could lead to delays in accessing critical financial documents. System obsolescence is a risk if the contractor does not adequately plan for technology refreshes. Security vulnerabilities could expose sensitive DoD data. Scope creep, where the requirements expand beyond the original agreement, could lead to cost overruns (though mitigated by FFP) or schedule delays. Mitigation strategies likely include robust performance monitoring by DFAS, clearly defined service level agreements (SLAs), regular security audits, and strict change control processes for any modifications to the system or services.

How effective is the chosen contract vehicle (Delivery Order) for procuring these types of IT support services?

A Delivery Order (DO) is typically issued against an existing indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar multiple-award contract. This method is often effective for procuring IT support services because it allows agencies to obtain services quickly and efficiently once a broader contract vehicle has been established through a competitive process. For the DoD, using a DO against a pre-competed IDIQ contract can streamline the acquisition process, reduce administrative burden, and leverage pre-negotiated terms and pricing. The effectiveness hinges on the quality of the underlying IDIQ contract and the competition conducted for the DO itself, which in this case was full and open.

What is the historical spending pattern for electronic document management support services within the Defense Finance and Accounting Service (DFAS)?

Analyzing historical spending patterns for DFAS's electronic document management support services would require accessing historical contract data. Typically, agencies like DFAS rely on robust document management systems to handle vast amounts of financial and personnel records. Spending in this area is often consistent year-over-year, reflecting the ongoing need for system maintenance, software updates, and user support. Fluctuations might occur due to major system upgrades, migrations to new platforms, or changes in regulatory requirements. Understanding this history helps in assessing whether the current $7.07 million award represents an increase, decrease, or stable level of investment in this capability.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Timken Company

Address: 12601 FAIR LAKES CIR # 100, 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: $18,969,769

Exercised Options: $7,138,149

Current Obligation: $7,071,226

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $656,552

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F281DA

IDV Type: FSS

Timeline