State Department's $18.2M CGI Federal contract for visa support in West Africa shows fair value

Contract Overview

Contract Amount: $18,239,384 ($18.2M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of State

Start Date: 2010-11-23

End Date: 2020-08-25

Contract Duration: 3,563 days

Daily Burn Rate: $5.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDES GLOBAL SUPPORT STRATEGY FOR VISA SERVICES IN ANGLOPHONE WEST AFRICA

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $18.2 million to CGI FEDERAL INC. for work described as: PROVIDES GLOBAL SUPPORT STRATEGY FOR VISA SERVICES IN ANGLOPHONE WEST AFRICA Key points: 1. Contract value appears reasonable given the extended duration and scope of services. 2. Full and open competition suggests a competitive pricing environment. 3. Potential risks include contractor performance over a long period and geopolitical instability in the region. 4. This contract supports critical diplomatic functions in a challenging operational environment. 5. The IT services sector is characterized by rapid technological change and evolving security needs. 6. Spending on global support services is a significant component of diplomatic operations.

Value Assessment

Rating: fair

The contract's total value of $18.2 million over approximately 9.7 years suggests an average annual spend of around $1.88 million. This appears to be a fair valuation for providing global support strategy for visa services across multiple countries in Anglophone West Africa. Benchmarking against similar long-term, geographically dispersed IT support contracts would provide a more precise value-for-money assessment, but the duration and scope indicate a substantial undertaking.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bidders suggests a moderate level of competition for this requirement. While more bidders could potentially drive prices lower, full and open competition generally ensures a fair market price is achieved.

Taxpayer Impact: Taxpayers benefit from the assurance that the government sought the best possible price through a competitive process, rather than potentially overpaying through a sole-source or limited competition award.

Public Impact

Benefits the U.S. Department of State by ensuring the efficient and effective delivery of visa services. Facilitates international travel and diplomatic relations by supporting visa processing. Impacts citizens of Anglophone West African countries seeking U.S. visas. Supports a workforce involved in IT and administrative support functions within the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (nearly 10 years) increases risk of performance degradation or obsolescence of services.
Geopolitical instability in West Africa could impact service delivery and contractor operations.
Reliance on a single contractor for critical visa support functions poses a concentration risk.

Positive Signals

Full and open competition suggests a robust procurement process and potential for competitive pricing.
The contract's fixed-price nature provides cost certainty for the government.
The extended duration allows for stability and continuity in essential diplomatic support services.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on IT facilities management and support. The market for such services is vast and competitive, with numerous providers offering global support capabilities. The Department of State's spending in this area is consistent with the need for robust IT infrastructure and support to manage complex international operations and diplomatic missions effectively.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless CGI Federal actively engages small businesses as subcontractors. Further analysis of subcontracting reports would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of State. Accountability measures are inherent in the contract terms, including performance standards and payment schedules. Transparency is facilitated through contract databases like FPDS, though detailed operational oversight specifics are not publicly available.

Related Government Programs

Department of State IT Support Services
Global Diplomatic Infrastructure Support
Visa Processing and Consular Services Support
IT Professional Services

Risk Flags

Long contract duration
Geopolitical risk in service region
Potential for service degradation over time

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $18.2 million to CGI FEDERAL INC.. PROVIDES GLOBAL SUPPORT STRATEGY FOR VISA SERVICES IN ANGLOPHONE WEST AFRICA

Who is the contractor on this award?

The obligated recipient is CGI FEDERAL INC..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $18.2 million.

What is the period of performance?

Start: 2010-11-23. End: 2020-08-25.

What is CGI Federal Inc.'s track record with the Department of State and similar government contracts?

CGI Federal Inc. is a large government contractor with a significant history of serving various federal agencies, including the Department of State. They have been awarded numerous contracts across different sectors, including IT services, management consulting, and systems integration. While specific performance details for every contract are not always public, their continued success in winning competitive bids suggests a generally satisfactory performance history. However, like any large contractor, there may have been instances of performance issues or contract disputes on specific projects, which would require a deeper dive into contract performance reports and agency evaluations.

How does the per-unit cost or annual cost of this contract compare to similar IT support contracts for diplomatic missions?

Direct per-unit cost comparison is challenging without knowing the specific services rendered per unit (e.g., per user, per server, per location). However, the annual spend of approximately $1.88 million for comprehensive global support strategy for visa services in Anglophone West Africa appears reasonable given the scope and duration. Similar long-term, geographically dispersed IT support contracts for agencies operating in complex international environments often range from hundreds of thousands to millions of dollars annually, depending on the scale and criticality of the services. The firm-fixed-price nature provides cost predictability, but a detailed benchmark against contracts with identical service levels and geographic coverage would be necessary for a definitive value assessment.

What are the primary risks associated with this contract, beyond general contractor performance?

Beyond standard contractor performance risks, this contract faces specific challenges related to its geographic focus and service type. Geopolitical instability in West Africa presents a significant risk, potentially disrupting service delivery, affecting personnel safety, and increasing operational costs. The long duration of the contract (nearly 10 years) also introduces risks related to technological obsolescence, changes in government requirements, and potential shifts in the political landscape affecting visa policies. Furthermore, reliance on a single contractor for critical visa support functions creates a concentration risk; any failure in service delivery could have substantial diplomatic and operational consequences.

How effective has this contract been in supporting the Department of State's visa services in the specified region?

Assessing the effectiveness of this specific contract requires access to internal Department of State performance evaluations and metrics, which are not publicly available. However, the contract's renewal and continued funding over its extended period suggest a level of satisfaction with the services provided. The primary goal of such a contract is to ensure the smooth, efficient, and secure processing of visa applications, thereby supporting diplomatic relations and national security interests. Its longevity implies it has met the core objectives, though specific improvements in processing times, security, or cost-efficiency attributable solely to this contract would need detailed program analysis.

What has been the historical spending trend for similar global IT support contracts by the Department of State?

The Department of State historically spends significant amounts on IT support services to maintain its global infrastructure and operations. While precise historical spending trends for 'global support strategy for visa services' are not detailed in this data, overall IT spending by the State Department has been substantial, often in the billions of dollars annually, encompassing a wide range of services including network management, cybersecurity, application development, and end-user support across its embassies and consulates worldwide. Contracts for regional IT support, like this one, represent a portion of that larger IT budget, reflecting the ongoing need for specialized services in diverse operational environments.

What is the potential impact of this contract on the local IT workforce in Anglophone West Africa?

This contract likely has a positive impact on the local IT workforce in Anglophone West Africa by creating jobs directly or indirectly through CGI Federal Inc. or its potential subcontractors. These roles could range from IT technicians and help desk support to specialized system administrators and project managers. The presence of a long-term contract can provide stable employment opportunities and potentially foster skill development within the local IT sector. However, the extent of this impact depends on the company's policy regarding local hiring versus deploying expatriate staff and the specific subcontracting opportunities made available to local businesses.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: GSS-TO-04-10

Offers Received: 2

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: $18,239,384

Exercised Options: $18,239,384

Current Obligation: $18,239,384

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA10D0018

IDV Type: IDC

Timeline