State Department's $43.8M Visa Services IT Support Contract Awarded to CGI Federal

Contract Overview

Contract Amount: $43,804,195 ($43.8M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of State

Start Date: 2013-04-22

End Date: 2018-06-21

Contract Duration: 1,886 days

Daily Burn Rate: $23.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF THE TASK ORDER LAUNCHES A REGIONAL GLOBAL SUPPORT STRATEGY FOR VISA SERVICES PROGRAM FOR EGYPT, SAUDI ARABIA, ALGERIA, JORDAN, KUWAIT, LEBANON, BAHRAIN, TUNISIA, MOROCCO, QATAR AND OMAN.

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $43.8 million to CGI FEDERAL INC. for work described as: IGF::OT::IGF THE TASK ORDER LAUNCHES A REGIONAL GLOBAL SUPPORT STRATEGY FOR VISA SERVICES PROGRAM FOR EGYPT, SAUDI ARABIA, ALGERIA, JORDAN, KUWAIT, LEBANON, BAHRAIN, TUNISIA, MOROCCO, QATAR AND OMAN. Key points: 1. Contract provides IT support for visa services across multiple Middle Eastern and North African countries. 2. The contract was awarded using full and open competition, suggesting a competitive bidding process. 3. The duration of the contract is over 1800 days, indicating a long-term need for these services. 4. The fixed-price contract type may offer cost certainty for the government, but could limit flexibility. 5. The award value of approximately $43.8 million over five years suggests a significant investment in IT infrastructure for diplomatic missions. 6. The contractor, CGI Federal, has a track record with government contracts, requiring scrutiny of past performance. 7. The geographic scope covers a wide range of countries, implying complex logistical and operational requirements.

Value Assessment

Rating: fair

The contract value of $43.8 million over approximately five years averages to about $8.76 million per year. Benchmarking this against similar IT support contracts for large-scale government programs is difficult without more specific service details. However, given the broad geographic scope and the critical nature of visa services, the pricing appears within a reasonable range for complex IT operations. Further analysis would require comparing the specific deliverables and service levels to industry standards and other government IT support contracts.

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 bids. The presence of two bidders suggests a moderate level of competition for this requirement. While two bidders are better than one, a higher number of bidders typically leads to more robust price discovery and potentially lower costs for the government. The specific details of the bidding process and the evaluation criteria would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a competitive process. However, with only two bidders, the potential for cost savings might have been limited compared to a scenario with more robust competition.

Public Impact

Benefits U.S. Department of State personnel by providing essential IT infrastructure and support for visa operations. Facilitates smoother and more efficient visa processing for individuals seeking to travel to the United States from the covered regions. Supports diplomatic missions in Egypt, Saudi Arabia, Algeria, Jordan, Kuwait, Lebanon, Bahrain, Tunisia, Morocco, Qatar, and Oman. Impacts the workforce by requiring skilled IT professionals to manage and maintain the systems supporting visa services. Enhances national security by ensuring the integrity and efficiency of the visa application and screening process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the contractor's proprietary systems are heavily utilized.
Risk of service disruptions if IT systems experience failures or require extensive maintenance.
Challenges in ensuring consistent service quality across diverse geographic locations with varying infrastructure.
Dependency on contractor personnel for critical IT functions, raising concerns about knowledge transfer and continuity.
Potential for cost overruns if the fixed-price contract does not adequately account for unforeseen technical complexities or scope changes.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent procurement process.
Fixed-price contract type provides cost predictability for the government.
Contractor CGI Federal has experience with government IT services, potentially bringing established expertise.
Long contract duration allows for stable IT support and potential for long-term system improvements.
Geographic distribution of support indicates a comprehensive strategy for global visa operations.

Sector Analysis

This contract falls within the Information Technology (IT) and Professional Services sector, specifically focusing on Computer Facilities Management Services. The market for IT support services for government agencies is substantial, with numerous large and small businesses competing for these contracts. This particular contract addresses a critical function for the Department of State, supporting its global diplomatic and consular operations. Comparable spending benchmarks would involve looking at other large-scale IT support contracts awarded by federal agencies for similar mission-critical functions, considering factors like user base, system complexity, and geographic spread.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses indicated in the provided data. The primary award went to CGI Federal, a large business. This means that opportunities for small businesses would likely be through subcontracting if CGI Federal chooses to engage them, or through competition on future, smaller, or differently scoped requirements. The absence of explicit small business set-asides or goals in this large contract may limit direct opportunities for small businesses in this specific instance.

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 fixed-price nature may simplify some aspects of financial oversight but requires diligent monitoring of deliverables and service levels. Transparency is generally maintained through contract award databases and public reporting, though specific performance metrics and oversight reports may not always be publicly accessible. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

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

Risk Flags

Potential for service degradation due to geographic dispersion.
Cybersecurity risks associated with managing IT systems across multiple international locations.
Dependency on a single contractor for critical visa processing infrastructure.
Limited competition (2 bidders) may impact price optimization.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $43.8 million to CGI FEDERAL INC.. IGF::OT::IGF THE TASK ORDER LAUNCHES A REGIONAL GLOBAL SUPPORT STRATEGY FOR VISA SERVICES PROGRAM FOR EGYPT, SAUDI ARABIA, ALGERIA, JORDAN, KUWAIT, LEBANON, BAHRAIN, TUNISIA, MOROCCO, QATAR AND OMAN.

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 $43.8 million.

What is the period of performance?

Start: 2013-04-22. End: 2018-06-21.

What is CGI Federal's track record with similar large-scale IT support contracts for the Department of State or other federal agencies?

CGI Federal has a significant history of performing IT services for various U.S. federal agencies, including the Department of State. They have been involved in numerous large contracts related to IT infrastructure management, application development, and modernization efforts. For the Department of State specifically, CGI has previously held contracts for IT support services, including help desk operations, network management, and cybersecurity. Analyzing past performance reviews, any contract modifications, and the overall success of these prior engagements would provide a clearer picture of their capabilities and reliability in handling complex, geographically dispersed IT operations like the one for visa services. A review of their performance on similar contracts would highlight any recurring issues or consistent successes in delivering critical IT functions under demanding conditions.

How does the per-year cost of this contract compare to industry benchmarks for similar IT support services?

The contract's annual value is approximately $8.76 million ($43.8M / 5 years). Benchmarking this figure requires detailed comparison with industry standards for IT facilities management services, considering the scope, complexity, and geographic distribution. Factors such as the number of users supported, the criticality of the systems, the specific services provided (e.g., network management, help desk, cybersecurity, data center operations), and the geographic locations are crucial. Without these specifics, a precise comparison is challenging. However, for large-scale, multi-country IT support operations for a major federal agency, this annual cost may be considered competitive, especially if it includes comprehensive service level agreements and robust support. A detailed analysis would involve comparing the cost per user, cost per system, or cost per service against industry reports from firms like Gartner or IDC, and against other government contracts for similar services.

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

Key risks include potential service disruptions due to system failures or cyber threats, challenges in maintaining consistent service quality across diverse international locations, and the risk of vendor lock-in. Mitigation strategies likely involve robust Service Level Agreements (SLAs) with performance penalties, comprehensive cybersecurity protocols, contingency planning for system outages, and clear contract clauses regarding data security and intellectual property. The Department of State's oversight mechanisms, including regular performance reviews and audits, are crucial for identifying and addressing risks proactively. Furthermore, the fixed-price nature of the contract, while offering cost certainty, necessitates careful scope management to prevent cost overruns if unforeseen technical issues arise. The contractor's experience and established processes are also intended to mitigate operational risks.

What is the historical spending pattern for visa services IT support by the Department of State?

Historical spending data for visa services IT support by the Department of State would reveal trends in investment in this critical area. Analyzing past contracts, including their values, durations, and awarded contractors, can indicate whether spending has been consistent, increasing, or decreasing. This specific contract, valued at $43.8 million over approximately five years, represents a significant, ongoing investment. Understanding if this award is a continuation of previous support, an expansion, or a new initiative is important. For instance, if previous contracts were smaller or shorter in duration, it might suggest an increased focus or expanded scope for IT support in visa services. Conversely, if this contract is similar in scale to prior awards, it indicates a stable, long-term commitment to outsourcing these functions.

How does the geographic scope of this contract impact its complexity and cost?

The contract covers ten countries across the Middle East and North Africa (Egypt, Saudi Arabia, Algeria, Jordan, Kuwait, Lebanon, Bahrain, Tunisia, Morocco, Qatar, and Oman). This broad geographic scope significantly increases the contract's complexity and likely its cost. Managing IT infrastructure and support across multiple countries involves navigating different regulatory environments, varying levels of local infrastructure quality, diverse time zones, and potential language barriers. It requires a robust logistical framework, potentially distributed support teams, and sophisticated communication systems. The cost implications include higher travel expenses, potential for localized support staff, increased security requirements for data transit and storage across borders, and the need for a more complex management structure to oversee operations effectively across such a wide and diverse region.

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: $43,804,195

Exercised Options: $43,804,195

Current Obligation: $43,804,195

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA10D0018

IDV Type: IDC

Timeline