State Department's $38.4M IT services contract awarded to CGI Federal Inc. for global support

Contract Overview

Contract Amount: $38,415,702 ($38.4M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of State

Start Date: 2011-11-23

End Date: 2017-02-28

Contract Duration: 1,924 days

Daily Burn Rate: $20.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: GSS PROGRAM FOR JAPAN, SOUTH KOREA, AUSTRALIA, FIJI, AND NEW ZEALAND.

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $38.4 million to CGI FEDERAL INC. for work described as: GSS PROGRAM FOR JAPAN, SOUTH KOREA, AUSTRALIA, FIJI, AND NEW ZEALAND. Key points: 1. Contract provides essential IT infrastructure and management services across multiple international locations. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract type helps manage cost certainty for the government. 4. Performance period spans over 1900 days, indicating a long-term need for these services. 5. The contract value is substantial, reflecting the complexity and scope of global IT support. 6. Focus on computer facilities management highlights critical infrastructure support for diplomatic missions.

Value Assessment

Rating: good

The contract value of approximately $38.4 million over its duration appears reasonable for providing comprehensive IT facilities management services to multiple international locations. Benchmarking against similar large-scale IT support contracts for government agencies, especially those with a global footprint, suggests that the pricing is within an expected range. The firm fixed-price structure provides cost control, although the total value reflects the extensive scope of services required. Without specific per-unit cost data, a precise value-for-money assessment is challenging, but the competitive award process likely contributed to a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bids suggests a moderate level of competition for this requirement. While two bidders participated, the specific details of the bidding process, such as the number of proposals received and the evaluation criteria, are not fully detailed here. A higher number of bidders typically leads to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages multiple companies to vie for the contract, potentially driving down costs through competitive pricing. Even with two bidders, the process ensures a baseline level of market engagement.

Public Impact

Benefits U.S. diplomatic missions and personnel in Japan, South Korea, Australia, Fiji, and New Zealand by ensuring reliable IT infrastructure. Delivers essential computer facilities management services, including maintenance, support, and potentially network operations. Geographic impact is significant, covering key regions in the Indo-Pacific, supporting critical foreign policy operations. Workforce implications include the potential for local IT support staff in each region, as well as the contractor's global workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized or integrated.
Dependence on a single contractor for critical IT infrastructure could pose risks if performance falters.
Ensuring consistent service quality across diverse international locations presents a management challenge.

Positive Signals

Awarded through full and open competition, indicating a fair and accessible process.
Firm fixed-price contract type provides cost predictability.
Long performance period suggests a stable, ongoing need and potential for long-term partnership.
Contractor's experience in federal IT services likely ensures a level of expertise.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on IT facilities management. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and upgrading its technological infrastructure. Contracts like this are crucial for enabling government operations, particularly in sensitive areas like foreign affairs and diplomacy. Comparable spending benchmarks for IT support services for federal agencies often run into hundreds of millions or billions of dollars annually, depending on the scope and scale of operations.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The prime contractor, CGI Federal Inc., is a large business, and any subcontracting opportunities would be at their discretion, not mandated by a set-aside program. This means small businesses would likely need to compete for subcontracts directly with CGI Federal.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and approving payments. The contract's firm fixed-price nature simplifies some aspects of financial oversight. Transparency is generally maintained through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Department of State IT Modernization Programs
Global IT Support Services for Federal Agencies
Computer Facilities Management Contracts
Indo-Pacific Region Federal Contracts

Risk Flags

Performance Risk: Ensuring consistent IT service delivery across diverse international locations.
Cybersecurity Risk: Protecting sensitive government data and systems from threats.
Vendor Lock-in: Potential difficulty in switching providers due to integrated systems.
Geopolitical Risk: Stability and accessibility of locations impacting service delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $38.4 million to CGI FEDERAL INC.. GSS PROGRAM FOR JAPAN, SOUTH KOREA, AUSTRALIA, FIJI, AND NEW ZEALAND.

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 $38.4 million.

What is the period of performance?

Start: 2011-11-23. End: 2017-02-28.

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

CGI Federal Inc. has a significant track record of providing IT and business services to various U.S. federal agencies, including the Department of State. Their experience often encompasses large-scale IT infrastructure management, cybersecurity, application development, and modernization efforts. For the Department of State specifically, CGI has been involved in contracts related to global IT support, financial systems, and other mission-critical functions. Their history suggests a capacity to handle complex, geographically dispersed IT requirements. However, a detailed review of past performance evaluations, past performance questionnaires (PPQs), and any contract disputes or terminations would be necessary for a comprehensive assessment of their specific performance on similar contracts.

How does the per-unit cost of these IT facilities management services compare to market rates or similar government contracts?

Determining a precise per-unit cost for this contract is challenging without granular data on the specific services delivered (e.g., per server managed, per user supported, per hour of support). The total contract value of $38.4 million over approximately 1924 days averages to roughly $20,000 per day or about $630,000 per month. This figure encompasses all aspects of IT facilities management across multiple international locations. Benchmarking requires comparing this blended rate against contracts for similar services in comparable regions. Generally, IT support in high-cost-of-living areas like major cities in Japan or Australia can be more expensive. The firm fixed-price nature suggests the government sought to cap costs, but the actual value-for-money depends heavily on the efficiency and effectiveness of CGI's service delivery relative to the agreed-upon price.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential performance failures impacting critical diplomatic operations, cybersecurity vulnerabilities within the managed IT infrastructure, cost overruns if the fixed-price contract doesn't adequately account for unforeseen issues, and vendor lock-in. Mitigation strategies likely involve robust performance monitoring by the Department of State, adherence to strict security protocols and audits, clear contract terms defining deliverables and responsibilities, and contingency planning. The competitive award process itself helps mitigate the risk of selecting an unqualified vendor. However, the long duration and global scope necessitate ongoing vigilance and proactive risk management from both the contractor and the government.

How effective has CGI Federal Inc. been in delivering IT facilities management services in previous contracts of similar scope and complexity?

Assessing CGI Federal's effectiveness requires examining their past performance records, including CPARS (Contractor Performance Assessment Reporting System) ratings, if available for similar contracts. Generally, CGI is a large, established IT services provider with extensive experience in the federal sector. Their ability to win and execute large contracts suggests a baseline level of competence. However, effectiveness can vary significantly based on the specific contract, agency requirements, and management. For this particular contract, the Department of State would have evaluated CGI's past performance during the procurement process. Without access to those specific evaluations, it's difficult to provide a definitive assessment of their effectiveness, but their continued presence in the federal contracting space indicates a generally satisfactory performance history.

What are the historical spending patterns for IT facilities management services by the Department of State, and how does this contract fit within them?

The Department of State has consistently allocated significant funding towards IT infrastructure and services to support its global operations. Historical spending patterns reveal a continuous need for IT facilities management, network support, and cybersecurity across its embassies and consulates worldwide. This $38.4 million contract represents a substantial, but not necessarily outlier, investment within the context of the Department's overall IT budget. It aligns with a pattern of outsourcing complex IT operations to specialized contractors to ensure reliable and secure communication and data management essential for diplomatic functions. The specific value reflects the geographic scope (Japan, South Korea, Australia, Fiji, New Zealand) and the duration of the requirement.

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

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: CGI Technologies and Solutions Inc. (UEI: 209664408)

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: $38,415,702

Exercised Options: $38,415,702

Current Obligation: $38,415,702

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA10D0018

IDV Type: IDC

Timeline