State Department's $45.3M CGI Federal contract for IT facilities management shows long duration and full competition

Contract Overview

Contract Amount: $45,345,380 ($45.3M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of State

Start Date: 2016-04-25

End Date: 2024-04-30

Contract Duration: 2,927 days

Daily Burn Rate: $15.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: VISA SERVICES - GSS RAISN IGF::CT::IGF

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $45.3 million to CGI FEDERAL INC. for work described as: VISA SERVICES - GSS RAISN IGF::CT::IGF Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract's long duration (over 8 years) may indicate a need for stable, long-term IT support. 3. Fixed-price contract type can offer cost certainty for the government, shifting risk to the contractor. 4. The primary NAICS code (541513) points to a focus on computer facilities management services. 5. Awarded as a delivery order, likely part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. The contractor, CGI Federal Inc., has a significant presence in government IT services. 7. The contract value is substantial, reflecting the critical nature of IT infrastructure support.

Value Assessment

Rating: good

The contract value of approximately $45.3 million over its duration suggests a significant investment in IT facilities management. Benchmarking this against similar contracts for large federal agencies would provide a clearer picture of value for money. The firm-fixed-price structure is generally favorable for cost control when requirements are well-defined. Without specific performance metrics or comparisons to industry standards for IT facilities management, a definitive value assessment is challenging, but the competitive award process is a positive indicator.

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 fact that it was a delivery order suggests it was likely competed as part of a broader IDIQ vehicle. The number of bidders is not specified, but full and open competition generally fosters a competitive environment, which can lead to better pricing and service offerings for the government.

Taxpayer Impact: Full and open competition is the most taxpayer-favorable method, as it maximizes the potential for cost savings through a robust bidding process and encourages contractors to offer their best pricing and capabilities.

Public Impact

The Department of State benefits from reliable IT facilities management, crucial for its global operations. Services delivered likely include maintenance, support, and management of computer systems and infrastructure. The geographic impact is primarily within the agency's operational locations, potentially domestic and international. Workforce implications may include the need for skilled IT professionals to manage and maintain the systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to vendor lock-in if not managed carefully.
Reliance on a single contractor for critical IT infrastructure poses a risk if performance degrades.
Potential for scope creep over the extended period, leading to cost overruns if not tightly managed.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm-fixed-price contract type provides cost predictability for the government.
The contractor, CGI Federal Inc., is an established provider of IT services to the government.
The contract's duration suggests a stable and ongoing need for these essential IT services.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer facilities management. This is a critical segment of the IT services market, encompassing the operation and maintenance of data centers, servers, networks, and related infrastructure. The market for these services is substantial, driven by government and commercial entities' increasing reliance on robust and secure IT systems. Comparable spending benchmarks would involve looking at other large federal agencies' IT infrastructure support contracts.

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 arising from a set-aside provision. However, the prime contractor, CGI Federal Inc., may engage small businesses as subcontractors, depending on their own subcontracting plans and the specific needs of the contract. The absence of a small business set-aside means larger, established companies were likely the primary focus of the competition.

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 firm-fixed-price contract type, which incentivizes the contractor to meet performance standards to receive full payment. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

IT Infrastructure Management Services
Computer Facilities Operations
IT Support Services
Department of State IT Modernization Efforts
Government IT Services Contracts

Risk Flags

Long Contract Duration
Potential for Vendor Lock-in
Reliance on Single Contractor for Critical Infrastructure

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $45.3 million to CGI FEDERAL INC.. VISA SERVICES - GSS RAISN IGF::CT::IGF

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 $45.3 million.

What is the period of performance?

Start: 2016-04-25. End: 2024-04-30.

What is the historical spending trend for this specific contract or similar IT facilities management contracts at the Department of State?

Analyzing historical spending for this contract (awarded 2016-04-25, ending 2024-04-30) reveals a total value of $45,345,379.81 over its approximately 8-year duration. This averages to roughly $5.6 million per year. To assess trends, one would need to examine annual obligations against the total award amount. For similar IT facilities management contracts at the Department of State, a broader analysis of agency IT budgets and procurement history would be necessary. This would involve looking at spending patterns for data center operations, network management, and end-user support over multiple fiscal years to identify any increases or decreases in investment in these areas, potentially correlating with modernization initiatives or shifts in IT strategy.

How does the per-unit cost or overall value of this contract compare to industry benchmarks for IT facilities management services?

Benchmarking the $45.3 million contract value against industry standards for IT facilities management requires detailed knowledge of the specific services rendered (e.g., server maintenance, network operations, data center management) and the scale of operations supported. Generally, IT facilities management costs can be estimated based on factors like the number of users supported, data center square footage, or number of servers managed. Without these specifics, a direct comparison is difficult. However, for large federal agencies, IT spending often represents a significant portion of their overall budget. Industry reports from firms like Gartner or IDC often provide benchmarks for IT operational expenditures as a percentage of IT budgets or per employee. If this contract represents a substantial portion of the State Department's IT operations budget, it might be considered in line with large-scale government IT service contracts, though potentially higher than commercial benchmarks due to specific government security and compliance requirements.

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

CGI Federal Inc. has a well-established track record as a major IT service provider to the U.S. federal government, including the Department of State. Publicly available contract data indicates numerous awards to CGI Federal across various agencies for a wide range of IT services, including infrastructure management, application development, and cybersecurity. Their long-standing presence suggests a capacity to handle large, complex government IT contracts. For the Department of State specifically, CGI Federal has likely been involved in supporting critical IT systems. A deeper dive into past performance reviews, any past disputes, or contract terminations associated with CGI Federal at State or other agencies would provide a more nuanced view of their reliability and effectiveness in delivering IT facilities management services.

What are the key performance indicators (KPIs) used to measure the success of this contract, and how has CGI Federal performed against them?

The specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data. However, typical KPIs for IT facilities management contracts include metrics such as system uptime/availability (e.g., 99.9% uptime for critical servers), response times for incident resolution (e.g., critical incidents resolved within 1 hour), patch management compliance rates (e.g., 95% of systems patched within 7 days of release), and user satisfaction scores. Performance against these KPIs would be documented in contract performance reports, which are usually part of the contract administration process. Without access to these reports, it's impossible to definitively assess CGI Federal's performance. However, the contract's continuation and delivery order structure suggest satisfactory performance, as agencies typically do not extend or issue new orders to underperforming contractors.

What is the potential impact of this contract's duration (over 8 years) on technological modernization and innovation within the Department of State's IT infrastructure?

A contract duration exceeding eight years for IT facilities management can present both opportunities and risks regarding technological modernization and innovation. On the positive side, it provides stability and allows the contractor to develop deep expertise in the agency's environment, potentially leading to more efficient operations and proactive maintenance. However, long-term contracts, especially those with fixed scopes, can sometimes stifle innovation if they create a 'vendor lock-in' scenario or discourage the adoption of newer technologies that fall outside the contract's purview. The Department of State would need robust contract management and regular reviews to ensure that CGI Federal is incorporating relevant technological advancements or that the contract is flexible enough to adapt to evolving IT landscapes. Without specific clauses encouraging innovation or regular re-competition, there's a risk that the infrastructure could become outdated over such an extended period.

How does the $45.3M contract value compare to the overall IT budget of the Department of State?

To accurately compare the $45.3 million contract value to the Department of State's overall IT budget, one would need access to the agency's historical IT budget allocations. The Department of State, like other large federal agencies, manages a complex and substantial IT infrastructure supporting global diplomatic and consular operations. Their total IT budget likely runs into hundreds of millions, if not billions, of dollars annually, encompassing various categories such as cybersecurity, network infrastructure, application development, end-user devices, and IT personnel. If this $45.3 million contract represents a significant portion (e.g., 5-10% or more) of the agency's annual IT operational expenses, it highlights the critical nature of IT facilities management. Conversely, if it's a smaller fraction, it suggests a diversified IT spending portfolio. Without the agency's specific IT budget figures, this comparison remains speculative but underscores the scale of investment in maintaining core IT functions.

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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $49,874,022

Exercised Options: $49,874,022

Current Obligation: $45,345,380

Actual Outlays: $5,992,975

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA10D0018

IDV Type: IDC

Timeline