Interior's $37.7M IT support contract awarded to CGI Federal without competition, raising value concerns

Contract Overview

Contract Amount: $37,705,645 ($37.7M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of the Interior

Start Date: 2014-05-07

End Date: 2020-02-03

Contract Duration: 2,098 days

Daily Burn Rate: $18.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF TAAMS STEADY STATE TASKS

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75254

State: Texas Government Spending

Plain-Language Summary

Department of the Interior obligated $37.7 million to CGI FEDERAL INC. for work described as: IGF::OT::IGF TAAMS STEADY STATE TASKS Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. Duration of the contract (over 5 years) suggests a need for stable IT support. 3. The firm fixed-price contract type shifts risk to the contractor, which can be beneficial if managed well. 4. Lack of competition may indicate limited market availability or a strategic decision by the agency. 5. Performance context is crucial to assess if the contractor delivered value despite the lack of competition. 6. IT services sector is highly dynamic, requiring continuous evaluation of technology and vendor capabilities.

Value Assessment

Rating: questionable

Without a competitive bidding process, it is difficult to benchmark the value for money received. The $37.7 million award over approximately five years for IT support services suggests a significant investment. Comparing this to similar sole-source IT support contracts within the federal government would be necessary to assess if the pricing is reasonable. The lack of competition inherently raises questions about whether the government secured the best possible price and quality.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that only one contractor, CGI Federal Inc., was solicited. This approach bypasses the standard competitive procurement process, which typically involves soliciting bids from multiple interested parties. The absence of competition means there was no direct comparison of offers, potentially leading to higher prices and less innovation than might be achieved through an open competition.

Taxpayer Impact: Taxpayers may have paid a premium for these services due to the lack of competitive pressure to drive down costs. The government did not benefit from the potential for lower prices or improved service offerings that a competitive environment could foster.

Public Impact

The Bureau of Indian Affairs and Bureau of Indian Education benefit from the continuity of IT support services. Essential IT infrastructure and operational support are maintained, enabling the agency to function. The contract supports IT personnel and potentially related technology vendors within the Texas region. Stable IT operations are critical for the effective delivery of services to Native American students and communities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially leading to overpayment.
Long contract duration without competition may mask inefficiencies.
Lack of transparency in the justification for sole-source award.
Performance metrics and outcomes are not readily available to assess value.
Potential for vendor lock-in due to specialized knowledge and long-term relationship.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Contract provides essential IT support, ensuring operational continuity.
CGI Federal is an established IT services provider with federal experience.
The contract supports critical functions for the Bureau of Indian Affairs and Education.

Sector Analysis

The Information Technology (IT) services sector is a vast and dynamic market within federal procurement. This contract falls under Computer Facilities Management Services, a sub-sector that includes maintaining and operating IT infrastructure. Federal spending in IT services is consistently high, driven by the need for modernization, cybersecurity, and operational support across all agencies. Benchmarking this contract's value would require comparing its per-year cost to similar sole-source or competitively awarded IT support contracts within agencies of similar size and mission.

Small Business Impact

There is no indication that this contract included small business set-asides or subcontracting requirements. As a sole-source award to a large prime contractor, it is less likely to directly benefit small businesses through prime contract opportunities. However, CGI Federal may engage small businesses as subcontractors, though this is not explicitly detailed in the provided data. The absence of set-asides means opportunities for small businesses to compete directly for this work were not pursued.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Interior's contracting officers and program managers. The Bureau of Indian Affairs and Bureau of Indian Education would be responsible for monitoring performance and ensuring compliance with contract terms. Inspector General reviews could occur if specific concerns or allegations of fraud, waste, or abuse arise. Transparency regarding the justification for the sole-source award and performance metrics would be key to assessing accountability.

Related Government Programs

IT Infrastructure Support Services
Computer Facilities Management
Federal IT Services Procurement
Sole-Source IT Contracts
Bureau of Indian Affairs IT Spending
Bureau of Indian Education IT Spending

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
Limited transparency on justification
Unclear performance evaluation metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $37.7 million to CGI FEDERAL INC.. IGF::OT::IGF TAAMS STEADY STATE TASKS

Who is the contractor on this award?

The obligated recipient is CGI FEDERAL INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Indian Affairs and Bureau of Indian Education).

What is the total obligated amount?

The obligated amount is $37.7 million.

What is the period of performance?

Start: 2014-05-07. End: 2020-02-03.

What was the specific justification provided for awarding this contract on a sole-source basis to CGI Federal Inc.?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified under circumstances such as urgency, unique capabilities of a single source, or when competition is deemed not to be in the government's best interest after market research. For this contract, the agency would have had to document why only CGI Federal could meet the requirement. Without this documentation, it is impossible to fully assess the appropriateness of the sole-source decision and its potential impact on cost and value.

How does the total contract value of $37.7 million compare to similar IT support contracts awarded by the Department of the Interior or other agencies?

A direct comparison is challenging without knowing the specific scope of services and performance period. However, $37.7 million over approximately five years averages to about $7.5 million per year. This figure is within the range for significant IT support contracts in the federal government. To assess value, one would need to compare it against similar contracts for Computer Facilities Management Services, considering factors like the number of users supported, systems managed, and geographic locations. Sole-source awards often tend to be higher than competitively won contracts for similar services.

What performance metrics or key performance indicators (KPIs) were established for CGI Federal under this contract, and how was performance evaluated?

The provided data does not contain information on the specific performance metrics or KPIs established for this contract. For a contract of this size and duration, it is expected that performance would be evaluated against defined standards for service availability, response times, issue resolution, and system uptime. The absence of this information makes it difficult to independently assess the contractor's performance and whether the government received adequate value for the funds expended. Contract administration and oversight would typically involve regular performance reviews.

What is CGI Federal Inc.'s track record with the Department of the Interior and other federal agencies for similar IT support services?

CGI Federal Inc. is a large, established government contractor with a significant presence across various federal agencies, including the Department of the Interior. They have a history of providing a wide range of IT services, including infrastructure management, software development, and cybersecurity. While their overall track record is extensive, the quality and value of specific contracts can vary. A detailed review of their past performance on similar contracts, including any past performance evaluations or disputes, would be necessary to fully assess their suitability and reliability for this specific requirement.

Given the sole-source nature, what mechanisms were in place to ensure fair pricing and prevent cost overruns?

In the absence of competition, ensuring fair pricing relies heavily on robust contract negotiation, cost analysis by the government, and effective contract administration. The government contracting officer would have likely conducted a price analysis, potentially including cost breakdowns from the contractor, to determine if the proposed price was fair and reasonable. The firm fixed-price (FFP) contract type itself helps control costs by shifting the risk of cost overruns to the contractor. However, the initial negotiation and ongoing monitoring of contract performance are critical to prevent inflated pricing.

What is the historical spending trend for IT support services by the Bureau of Indian Affairs and Bureau of Indian Education, and how does this contract fit within that trend?

The provided data only includes information for this specific contract (TAAMS STEADY STATE TASKS). To understand the historical spending trend, one would need to analyze procurement data for the Bureau of Indian Affairs (BIA) and Bureau of Indian Education (BIE) over several fiscal years, specifically looking at contracts for IT support, computer facilities management, and related services. This contract represents a significant portion of spending for IT support during its performance period. Without broader data, it's difficult to say if this represents an increase, decrease, or stable level of spending compared to prior or subsequent periods.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $39,933,688

Exercised Options: $37,705,645

Current Obligation: $37,705,645

Actual Outlays: $2,893,175

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $221,925

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: INA14PC00103

IDV Type: IDC

Timeline