DoD's Navy Awards CGI Federal $16.8M for MCPIC Sustainment, Ensuring System Operations

Contract Overview

Contract Amount: $16,793,635 ($16.8M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of Defense

Start Date: 2023-12-21

End Date: 2025-11-30

Contract Duration: 710 days

Daily Burn Rate: $23.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE PURPOSE OF THIS REQUIREMENT IS FOR A SINGLE PROVIDER TO PROVIDE SUSTAINMENT AND MAINTENANCE OF MCPIC TO ENSURE OPTIMAL SYSTEMS OPERATION FOR END-USERS.

Place of Performance

Location: ALBANY, DOUGHERTY County, GEORGIA, 31704

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $16.8 million to CGI FEDERAL INC. for work described as: THE PURPOSE OF THIS REQUIREMENT IS FOR A SINGLE PROVIDER TO PROVIDE SUSTAINMENT AND MAINTENANCE OF MCPIC TO ENSURE OPTIMAL SYSTEMS OPERATION FOR END-USERS. Key points: 1. The contract focuses on sustainment and maintenance of the MCPIC system. 2. CGI Federal Inc. is the sole awardee for this requirement. 3. The contract is valued at $16,793,634.99 over its duration. 4. This is a Firm Fixed Price contract, indicating price certainty. 5. The North American Industry Classification System (NAICS) code is 541330 (Engineering Services).

Value Assessment

Rating: fair

The contract value of $16.8M for a 710-day period appears reasonable for specialized system sustainment. Benchmarking against similar IT sustainment contracts would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the award is a Delivery Order, implying it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, which could limit the scope of initial competition.

Taxpayer Impact: The competitive award process aims to secure fair pricing for taxpayers, but the specific impact depends on the bidding landscape and final negotiated price.

Public Impact

Ensures continued operation of a critical system for end-users. Supports the Department of the Navy's technological infrastructure. Provides stability for the contractor through a multi-year award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if MCPIC is highly specialized.
Reliance on a single provider for critical system maintenance.
Scope creep risk in sustainment contracts.

Positive Signals

Clear contract duration and defined scope of work.
Firm Fixed Price contract provides cost predictability.
Awarded under full and open competition.

Sector Analysis

The IT services sector, particularly system sustainment and maintenance, is a significant area of government spending. Benchmarks for similar engineering and IT support contracts vary widely based on system complexity and criticality.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this award. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

The award is a Delivery Order under a larger contract, suggesting oversight mechanisms are in place. However, the effectiveness of oversight for sustainment contracts relies on robust performance monitoring and regular reviews.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for single-source dependency.
Lack of detail on system criticality.
Absence of specified performance metrics.
Limited insight into subcontractor participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.8 million to CGI FEDERAL INC.. THE PURPOSE OF THIS REQUIREMENT IS FOR A SINGLE PROVIDER TO PROVIDE SUSTAINMENT AND MAINTENANCE OF MCPIC TO ENSURE OPTIMAL SYSTEMS OPERATION FOR END-USERS.

Who is the contractor on this award?

The obligated recipient is CGI FEDERAL INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $16.8 million.

What is the period of performance?

Start: 2023-12-21. End: 2025-11-30.

What is the specific functionality and criticality of the MCPIC system to warrant a single provider for sustainment?

The criticality of the MCPIC system is not detailed in the provided data. Understanding its function (e.g., command and control, logistics, intelligence) and the impact of its downtime is crucial for assessing the justification for a single provider and the associated risks. This information would inform whether the chosen sustainment approach aligns with operational needs and risk tolerance.

How does the $16.8M contract value compare to industry benchmarks for similar IT sustainment services over a 710-day period?

Without specific details on the MCPIC system's complexity and the scope of 'sustainment and maintenance,' direct benchmarking is challenging. However, for complex IT systems requiring specialized engineering support, costs can range significantly. A preliminary assessment suggests the value is within a plausible range, but a detailed comparison with contracts for comparable systems is necessary for a definitive evaluation of cost-effectiveness.

What performance metrics and service level agreements (SLAs) are in place to ensure optimal system operation and contractor accountability?

The provided data does not specify the performance metrics or SLAs associated with this contract. Effective oversight of sustainment contracts relies heavily on clearly defined and measurable performance standards. Without these, it is difficult to assess the contractor's accountability and ensure the 'optimal systems operation' stated as the requirement's purpose is being met consistently.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: M6700424R3000

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12601 FAIR LAKES CIR # 100, FAIRFAX, VA, 22033

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $21,775,557

Exercised Options: $21,488,773

Current Obligation: $16,793,635

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $71,177

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7341

IDV Type: IDC

Timeline