DoD's $30M CGI Federal contract for computer systems design services shows fair value with 6 bidders

Contract Overview

Contract Amount: $29,986,039 ($30.0M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of Defense

Start Date: 2019-01-18

End Date: 2022-10-01

Contract Duration: 1,352 days

Daily Burn Rate: $22.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIXED PRICE INCENTIVE

Sector: IT

Official Description: LIMITED DEPLOYMENT

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $30.0 million to CGI FEDERAL INC. for work described as: LIMITED DEPLOYMENT Key points: 1. Contract value appears reasonable given the scope of computer systems design services. 2. Full and open competition suggests a healthy market for these services. 3. Fixed Price Incentive contract type introduces performance-based risk sharing. 4. Contract duration of over 3 years indicates a significant, long-term need. 5. The award to CGI Federal Inc. aligns with established government contracting players. 6. Virginia location may indicate specific operational or data center requirements.

Value Assessment

Rating: good

The contract's total value of approximately $30 million over 3.5 years for computer systems design services appears to be within a reasonable range for a Department of Defense contract of this nature. Benchmarking against similar IT services contracts awarded by the DoD suggests that the pricing structure, while not detailed here, likely reflects market rates for specialized technical expertise. The Fixed Price Incentive (FPI) contract type, if managed effectively, can drive value by incentivizing the contractor to meet performance targets while controlling costs.

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 6 bidders suggests a competitive environment for these computer systems design services. A higher number of bidders generally leads to better price discovery and potentially more favorable terms for the government, as contractors vie for the award.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely resulted in a more competitive price than a sole-source or limited competition award. This process helps ensure that government funds are used efficiently.

Public Impact

The Department of the Navy benefits from enhanced computer systems design and support. Services delivered likely include system integration, software development, and IT infrastructure management. The geographic impact is centered in Virginia, potentially supporting naval operations or data centers in the region. Workforce implications include the need for skilled IT professionals, both within the contractor and potentially government personnel overseeing the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Fixed Price Incentive contract type requires careful monitoring to ensure cost targets are met.
The long duration of the contract necessitates ongoing performance management to prevent scope creep or service degradation.
Reliance on a single contractor for critical systems design could pose a risk if performance falters.

Positive Signals

Full and open competition indicates a healthy market and potential for competitive pricing.
The award to an established contractor like CGI Federal Inc. suggests a level of confidence in their capabilities.
The contract's focus on computer systems design addresses a core IT requirement for the Navy.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically focusing on computer systems design services. The IT services market for the federal government is substantial, with agencies like the Department of Defense being major consumers. This contract likely supports the Navy's efforts to modernize or maintain its complex IT infrastructure, which is crucial for operational readiness. Comparable spending benchmarks in this area would typically involve analysis of other large-scale IT system integration and design contracts within the defense sector.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, CGI Federal Inc., may still engage small businesses as subcontractors, depending on their own subcontracting plans and the specific needs of the project. The absence of a small business set-aside means the primary competition was open to all eligible firms, regardless of size.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy contracting officers and program managers. Accountability measures are embedded within the Fixed Price Incentive contract type, which links payment to performance outcomes. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense IT Modernization Programs
Navy Enterprise IT Services
Computer Systems Design and Integration Contracts
Federal Civilian IT Services
Defense Information Systems Agency (DISA) Contracts

Risk Flags

Contract duration exceeds 3 years, requiring sustained oversight.
Fixed Price Incentive contract type necessitates careful monitoring of cost and performance targets.
Lack of specific performance metrics in summary data hinders detailed value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.0 million to CGI FEDERAL INC.. LIMITED DEPLOYMENT

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 $30.0 million.

What is the period of performance?

Start: 2019-01-18. End: 2022-10-01.

What is the specific performance criteria tied to the 'incentive' aspect of this Fixed Price Incentive contract, and how has CGI Federal Inc. historically performed against such metrics in similar DoD

The provided data does not detail the specific performance criteria for the incentive aspect of this Fixed Price Incentive (FPI) contract. FPI contracts typically include target costs, target profits, and incentive formulas that adjust profit based on cost savings or overruns relative to the target cost. To assess CGI Federal Inc.'s historical performance, one would need to examine past contract performance reports (e.g., CPARS) for this and similar DoD contracts. These reports would detail their track record in meeting cost, schedule, and performance objectives, providing insight into their ability to manage incentive-based contracts effectively and whether they have a history of achieving or exceeding performance targets, or conversely, facing penalties due to underperformance.

How does the awarded amount of approximately $30 million compare to the estimated value or ceiling of the contract, and what does this suggest about the government's utilization of the contract's full

The data indicates an awarded amount of $29,986,039.14, which represents the total value obligated or spent under the contract. Without knowing the initial ceiling or estimated value set forth in the contract solicitation, it's difficult to definitively state how this compares. However, if the awarded amount is close to the ceiling, it suggests the government fully utilized the scope of services envisioned. If the awarded amount is significantly below the ceiling, it might indicate that the full scope was not required, or that the contractor was highly efficient in delivering services below the maximum anticipated cost. Further analysis would require access to the contract's original terms and conditions, including its ceiling value and any modifications.

Given the 'Computer Systems Design Services' (NAICS 541512) classification, what specific types of systems or services were likely included, and were there any notable technological advancements or in

NAICS code 541512, 'Computer Systems Design Services,' typically encompasses a broad range of activities including analyzing user needs, designing and developing custom software, integrating hardware and software, and providing IT consulting. For the Department of the Navy, this could have involved designing and implementing new command and control systems, upgrading existing network infrastructure, developing specialized databases, or integrating various C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) components. The contract's duration (over 3 years) suggests it likely involved significant development or integration efforts, potentially incorporating emerging technologies to enhance naval capabilities, though specific details on technological advancements would require reviewing contract statements of work and technical documentation.

What is the significance of the contract being a 'DEFINITIVE CONTRACT' (aw: DEFINITIVE CONTRACT) awarded under 'FULL AND OPEN COMPETITION' (ct: FULL AND OPEN COMPETITION) with 6 bidders (no: 6)?

A 'Definitive Contract' is a fixed-price contract that provides for a definite quantity of supplies or services to be delivered during a fixed period of time. When awarded under 'Full and Open Competition' with multiple bidders (6 in this case), it signifies a standard, competitive procurement process. This means the government sought proposals from all eligible sources, received multiple bids, and selected the best value offer. The presence of 6 bidders suggests a healthy competitive market for these computer systems design services, which generally leads to better pricing and terms for the government compared to sole-source or limited competition scenarios. It indicates a transparent and fair process was followed.

Considering the contract's end date of October 1, 2022, what has been the subsequent spending or contracting activity by the Department of the Navy for similar computer systems design services?

To determine subsequent spending or contracting activity by the Department of the Navy for similar computer systems design services after October 1, 2022, one would need to analyze federal procurement databases (like FPDS or SAM.gov) for contracts awarded post-October 2022 under NAICS code 541512 or related codes, specifically from the Department of the Navy. This analysis would identify new contracts, task orders under indefinite-delivery/indefinite-quantity (IDIQ) vehicles, or contract modifications related to computer systems design. Examining this follow-on activity would reveal trends in Navy IT spending, potential shifts in contracting strategies, and the emergence of new prime contractors or technologies in this service area.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Address: 12601 FAIR LAKES CIR, 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: $209,899,902

Exercised Options: $36,189,132

Current Obligation: $29,986,039

Actual Outlays: $3,667,676

Subaward Activity

Number of Subawards: 49

Total Subaward Amount: $6,976,907

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline