State Department's $40M Visa Support Contract Awarded to CGI Federal Amidst Full and Open Competition

Contract Overview

Contract Amount: $40,116,642 ($40.1M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of State

Start Date: 2012-04-23

End Date: 2012-04-16

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: GLOBAL SUPPORT STRATEGY FOR VISA SERVICES-EURECA

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $40.1 million to CGI FEDERAL INC. for work described as: GLOBAL SUPPORT STRATEGY FOR VISA SERVICES-EURECA Key points: 1. Contract value represents a significant investment in global visa support infrastructure. 2. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 3. The fixed-price contract type shifts performance risk to the contractor. 4. The contract duration and delivery order structure indicate a need for flexible, ongoing support. 5. CGI Federal's role highlights the importance of IT and facilities management in diplomatic operations. 6. The award falls within the broader category of IT services supporting government functions.

Value Assessment

Rating: good

The contract's value of over $40 million for global visa support services is substantial. Benchmarking this against similar large-scale IT and facilities management contracts for diplomatic services is challenging without more specific data on the scope of services. However, the firm fixed-price structure suggests that the government has negotiated a defined cost for the services, which is generally a positive indicator for value if the contractor can deliver within that budget. The absence of raw per-unit cost data makes a precise value-for-money assessment difficult, but the competitive award process provides a baseline for assessing reasonableness.

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 a bid. The presence of two bidders suggests a moderate level of competition for this significant contract. While more bidders would typically lead to greater price discovery and potentially lower prices, two bidders still provide a competitive dynamic that is preferable to sole-source or limited competition scenarios. The agency likely received proposals that allowed for a comparative evaluation of technical capabilities and pricing.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages multiple companies to vie for the contract, which can drive down costs and improve service quality through competitive pressures.

Public Impact

The primary beneficiaries are the U.S. Department of State and its diplomatic missions worldwide, which rely on efficient visa processing. The contract delivers essential IT and facilities management services crucial for the operation of global visa application systems. Geographic impact is global, supporting visa services across numerous countries where U.S. embassies and consulates operate. Workforce implications include the potential for employment opportunities within CGI Federal and its subcontractors to support these global operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the contractor's proprietary systems become deeply integrated.
Reliance on a single contractor for critical global infrastructure could pose risks if performance falters.
Ensuring consistent service quality across diverse international locations presents logistical challenges.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Firm fixed-price contract type transfers cost overrun risk to the contractor.
The contract supports a critical government function, ensuring continuity of essential services.
CGI Federal is an established contractor with experience in government IT services.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer facilities management services. The market for government IT services is substantial, with agencies increasingly relying on external contractors for specialized support. This contract is a significant component of the State Department's efforts to maintain and operate its global visa processing infrastructure, which is a critical diplomatic and national security function. Comparable spending benchmarks would likely be found in other large-scale IT outsourcing contracts for federal agencies managing complex, geographically dispersed 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, is a large business. While there is no explicit requirement for small business subcontracting in the provided data, large federal contractors often engage small businesses for various support roles, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Department of State's contracting officers and program managers. Accountability measures are typically embedded within the contract's performance work statement, including service level agreements (SLAs) and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse related to the contract arise.

Related Government Programs

Department of State IT Modernization Programs
Global Visa Application Systems
Federal Civilian IT Services Contracts
Computer Facilities Management Services
Consular Affairs IT Support

Risk Flags

Potential for vendor lock-in
Reliance on contractor for critical global infrastructure
Security risks associated with sensitive data
Ensuring consistent service quality across diverse international locations

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $40.1 million to CGI FEDERAL INC.. GLOBAL SUPPORT STRATEGY FOR VISA SERVICES-EURECA

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 $40.1 million.

What is the period of performance?

Start: 2012-04-23. End: 2012-04-16.

What is CGI Federal's track record with the Department of State and similar federal agencies?

CGI Federal Inc. has a significant history of contracting with the U.S. federal government, including the Department of State. They are a large IT services provider that has held numerous contracts across various agencies, often involving complex IT infrastructure management, software development, and modernization efforts. For the Department of State specifically, CGI Federal has been involved in contracts related to IT services, financial systems, and other operational support. Their track record generally indicates experience in managing large-scale government IT projects. However, a comprehensive assessment would require reviewing specific past performance evaluations, any past disputes or contract terminations, and the overall success metrics of their previous engagements with the State Department and other agencies to gauge their reliability and effectiveness in delivering similar services.

How does the $40.1 million contract value compare to similar global visa support or IT management contracts?

The $40.1 million contract value for global visa support services, encompassing IT and facilities management, is substantial but falls within the range of large-scale IT service contracts awarded by federal agencies. Without access to a detailed breakdown of the specific services rendered and their duration, direct comparison is difficult. However, contracts for managing complex IT infrastructure, supporting global operations, and providing mission-critical services for agencies like the Department of State can easily reach tens or hundreds of millions of dollars over their lifecycle. For instance, other agencies managing large IT networks or global operational support systems often award contracts in this magnitude. The key differentiator is the specific scope: visa services imply a high degree of security, reliability, and global reach, which justifies a significant investment.

What are the primary risks associated with this contract for the Department of State?

The primary risks associated with this contract include performance failure, where CGI Federal might not meet the required service levels for IT systems or facilities management, potentially disrupting visa processing operations. There's also a risk of cost overruns if the fixed-price contract doesn't adequately account for unforeseen complexities or scope creep, although the contractor bears this risk. Vendor lock-in is another concern, as the State Department could become heavily reliant on CGI Federal's specific systems and processes, making future transitions difficult and costly. Security breaches or data compromises related to the visa systems managed under this contract represent a critical risk, given the sensitive nature of the information handled. Finally, contractor personnel issues, such as turnover or lack of qualified staff, could impact service delivery.

How effective is the firm fixed-price contract type in ensuring value for money for this type of service?

The firm fixed-price (FFP) contract type is generally considered effective for ensuring value for money when the scope of work is well-defined and the risks are understood. For services like IT facilities management and support for visa systems, where the requirements can be relatively stable, an FFP contract incentivizes the contractor to control costs and operate efficiently to maximize profit. This shifts the financial risk of cost overruns to CGI Federal, meaning the Department of State pays a set price regardless of the contractor's actual costs. This structure encourages the contractor to be efficient and innovative in managing resources. However, if the scope is not perfectly defined or unforeseen issues arise, the contractor might be less willing to accommodate necessary changes without additional cost, potentially leading to disputes or a less flexible service.

What are the historical spending patterns for global visa support or related IT services at the Department of State?

Historical spending patterns for global visa support and related IT services at the Department of State have generally shown a consistent and significant investment in maintaining and modernizing its worldwide consular operations. The State Department manages a vast network of embassies and consulates, each requiring robust IT infrastructure and support for critical functions like visa processing. Over the years, spending in this area has likely increased due to the growing volume of applications, the need for enhanced security features, and the ongoing push for digital transformation and system modernization. Contracts for IT services, facilities management, and specialized software solutions supporting these operations are typically multi-year and substantial in value, reflecting the complexity and global scale of the Department's mission. This $40.1 million award is part of that ongoing investment strategy.

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 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: $40,116,642

Exercised Options: $40,116,642

Current Obligation: $40,116,642

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA10D0018

IDV Type: IDC

Timeline