State Dept. Awards $620M for Passport Production Support, CGI Federal Inc. Wins Contract

Contract Overview

Contract Amount: $619,983,107 ($620.0M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of State

Start Date: 2017-11-15

End Date: 2024-05-09

Contract Duration: 2,367 days

Daily Burn Rate: $261.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: PASSPORT PRODUCTION SUPPORT SERVICES (PPSS)IGF::OT::IGF

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $620.0 million to CGI FEDERAL INC. for work described as: PASSPORT PRODUCTION SUPPORT SERVICES (PPSS)IGF::OT::IGF Key points: 1. Contract value of $620M over 7 years indicates significant long-term need. 2. CGI Federal Inc. is the sole awardee, raising questions about competition. 3. Risk of vendor lock-in and potential for cost overruns exist. 4. IT services sector, specifically computer facilities management, is the focus.

Value Assessment

Rating: fair

The contract value of $620M over approximately 7 years suggests a substantial investment. Benchmarking against similar IT support contracts is difficult without more granular cost data, but the duration and scope imply a significant expenditure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is positive for price discovery. However, the award type is a Delivery Order, and the specific pricing mechanisms (Time and Materials) can lead to variability and potential cost escalation if not managed closely.

Taxpayer Impact: While competition was sought, the Time and Materials pricing structure necessitates vigilant oversight to ensure taxpayer funds are used efficiently and effectively.

Public Impact

Ensures continued operation of critical passport production systems. Supports the Department of State's mission in facilitating international travel. Impacts citizens by enabling timely passport issuance and renewals. Potential for job creation within CGI Federal and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

Time and Materials pricing can lead to cost overruns.
Lack of specific performance metrics in provided data.
Sole awardee for a large contract warrants scrutiny.

Positive Signals

Awarded under full and open competition.
Supports a critical government function.
Long-term contract provides stability.

Sector Analysis

This contract falls within the IT services sector, specifically Computer Facilities Management Services. Spending in this area is substantial across government agencies, supporting essential digital infrastructure and operations. Benchmarks vary widely based on service scope and duration.

Small Business Impact

The provided data does not indicate any specific set-asides for small businesses. Therefore, the extent of small business participation in this contract is unclear and may be limited unless subcontracting opportunities are actively pursued.

Oversight & Accountability

The contract is managed by the Department of State. Oversight will be crucial, particularly regarding the Time and Materials pricing, to ensure cost control and adherence to performance requirements. The presence of a Delivery Order suggests ongoing management and potential for task-specific oversight.

Related Government Programs

Computer Facilities Management Services
Department of State Contracting
Department of State Programs

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Lack of transparency on small business participation.
Sole awardee status for a large contract warrants further investigation into competition.
Long contract duration increases risk of vendor lock-in and technological obsolescence.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $620.0 million to CGI FEDERAL INC.. PASSPORT PRODUCTION SUPPORT SERVICES (PPSS)IGF::OT::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 $620.0 million.

What is the period of performance?

Start: 2017-11-15. End: 2024-05-09.

What is the estimated total cost per year, and how does it compare to industry benchmarks for similar IT support services?

The total contract value is $619,983,106.65 over approximately 2367 days (about 6.5 years). This averages to roughly $95.4 million per year. Direct comparison to industry benchmarks is challenging without detailed service level agreements and specific IT infrastructure details. However, for large-scale IT facilities management, this annual figure falls within a plausible range, though vigilance is needed to ensure it represents good value.

What are the specific risks associated with the Time and Materials (T&M) pricing model in this contract, and how are they being mitigated?

The primary risk of T&M is the potential for uncontrolled cost escalation as labor hours and material costs accumulate without a fixed ceiling. Mitigation strategies typically involve robust oversight, detailed tracking of hours and materials, defined labor categories with capped rates, and clear performance standards. The Department of State must actively monitor expenditures and task completion to prevent overspending and ensure efficiency.

How effectively does this contract support the Department of State's mission, and what are the key performance indicators (KPIs) for success?

This contract is crucial for the Department of State's mission by ensuring the reliable operation of passport production systems, which are vital for national security and international relations. Key performance indicators would likely include system uptime, passport processing speed, data security compliance, and response times for technical issues. Without explicit KPIs, assessing effectiveness remains qualitative, but the contract's longevity suggests perceived value.

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: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Timken Company

Address: 12601 FAIR LAKES CIR, FAIRFAX, VA, 22033

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $844,269,641

Exercised Options: $620,185,766

Current Obligation: $619,983,107

Actual Outlays: $190,995,377

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA17D0109

IDV Type: IDC

Timeline