DoD's $34.5M Labor-Technology Insertion Program contract awarded to CGI Inc. for computer systems design

Contract Overview

Contract Amount: $34,470,949 ($34.5M)

Contractor: Government Secure Solutions CGI Inc.

Awarding Agency: Department of Defense

Start Date: 2013-08-30

End Date: 2015-05-20

Contract Duration: 628 days

Daily Burn Rate: $54.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: LABOR-TECHNOLOGY INSERTION PROGRAM

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $34.5 million to GOVERNMENT SECURE SOLUTIONS CGI INC. for work described as: LABOR-TECHNOLOGY INSERTION PROGRAM Key points: 1. The contract's fixed fee structure, while common, warrants scrutiny for cost control. 2. Limited competition for this contract may have impacted overall value for money. 3. The duration of 628 days suggests a significant project scope requiring careful performance monitoring. 4. This contract falls within the IT services sector, a major area of federal spending. 5. The absence of small business set-asides indicates a focus on larger prime contractors.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed cost breakdowns. The Cost Plus Fixed Fee (CPFF) pricing structure can sometimes lead to cost overruns if not managed tightly. Comparing it to similar computer systems design services contracts would require access to proprietary pricing data, but the overall award amount of $34.5 million is within the typical range for complex IT projects of this nature.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This approach is typically used when only one vendor possesses the necessary specialized capabilities or when urgency dictates a rapid award. The lack of competition limits the government's ability to leverage market forces to achieve the best possible pricing and terms.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government does not benefit from competitive bidding to drive down prices.

Public Impact

The Department of Defense benefits from enhanced labor and technology integration. Services delivered likely include system design, integration, and potentially implementation of new technologies. The geographic impact is primarily within the Department of the Army's operational areas. Workforce implications may involve the need for specialized IT personnel within the Army.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
CPFF contracts require robust oversight to prevent cost creep.
Lack of transparency in sole-source justifications can obscure true necessity.
Contract duration may indicate potential for scope creep or delays.

Positive Signals

Award to CGI Inc., a known entity in government contracting.
Focus on labor-technology insertion suggests modernization efforts.
Fixed fee component provides some cost predictability.

Sector Analysis

This contract operates within the broader IT services sector, specifically focusing on computer systems design. This sector is characterized by rapid technological advancements and significant government investment. Comparable spending benchmarks for similar IT modernization and system design contracts within the federal government can range from tens to hundreds of millions of dollars, depending on scope and complexity.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting plans for small businesses in the provided data. This suggests that the prime contractor, CGI Inc., is expected to perform the majority of the work. The absence of small business participation may limit opportunities for smaller firms within this specific contract's ecosystem.

Oversight & Accountability

Oversight for this contract would fall under the Department of the Army's contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to ensure costs remain within the fixed fee parameters and that the government is receiving value. Transparency would depend on the agency's policies regarding the release of contract details and performance reports.

Related Government Programs

Department of Defense IT Modernization Programs
Army Command and Control Systems
Technology Insertion Initiatives
Computer Systems Design Services Contracts

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.5 million to GOVERNMENT SECURE SOLUTIONS CGI INC.. LABOR-TECHNOLOGY INSERTION PROGRAM

Who is the contractor on this award?

The obligated recipient is GOVERNMENT SECURE SOLUTIONS CGI INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $34.5 million.

What is the period of performance?

Start: 2013-08-30. End: 2015-05-20.

What is CGI Inc.'s track record with the Department of Defense for similar IT services?

CGI Inc. has a substantial history of contracting with the Department of Defense and other federal agencies for a wide range of IT services, including systems design, integration, and support. Their track record generally indicates experience with large-scale government projects. However, specific performance metrics, past issues, or commendations related to similar 'Labor-Technology Insertion' programs would require a deeper dive into contract performance databases and agency reports. Analyzing past performance on Cost Plus Fixed Fee contracts would be particularly relevant to assess their ability to manage costs and deliver within agreed-upon parameters for this specific contract type.

How does the $34.5 million award compare to other similar computer systems design contracts?

The $34.5 million award for computer systems design services is a significant but not extraordinary amount for a federal contract of this nature, especially considering its 628-day duration. Similar contracts for complex IT system design and integration within the Department of Defense or other large federal agencies can range widely, from a few million to hundreds of millions of dollars. Factors influencing cost include the scope of work, the level of technological innovation required, the number of users or systems affected, and the specific security requirements. Without detailed scope of work and performance period comparisons, it's difficult to definitively benchmark this contract's value against others, but it falls within a common range for substantial IT projects.

What are the primary risks associated with a sole-source Cost Plus Fixed Fee contract for IT services?

The primary risks associated with a sole-source Cost Plus Fixed Fee (CPFF) contract for IT services are multifaceted. Sole-sourcing eliminates the benefit of competitive bidding, potentially leading to higher prices and less favorable terms for the government. The CPFF structure, while providing some cost certainty through the fixed fee, carries the risk of cost overruns if the 'cost' portion is not meticulously managed and audited. Contractors may have less incentive to control costs aggressively compared to fixed-price contracts. For IT services, risks also include potential for scope creep, technological obsolescence during a long performance period, and contractor performance issues that are harder to rectify without competitive alternatives. Robust government oversight is critical to mitigate these risks.

What is the expected effectiveness of the 'Labor-Technology Insertion Program' based on its objectives?

The expected effectiveness of a 'Labor-Technology Insertion Program' hinges on its specific objectives, which are not detailed here but generally aim to improve workforce efficiency, capability, or safety through the integration of new technologies. If successful, such a program could lead to streamlined processes, enhanced data analysis, improved decision-making, and potentially reduced operational costs or risks. The effectiveness would be measured by the degree to which the inserted technologies meet the defined requirements, are adopted by the workforce, and yield measurable improvements in the targeted areas. Challenges could include workforce resistance to change, integration complexities, and the rapid pace of technological evolution potentially making solutions obsolete quickly.

How has federal spending on computer systems design services evolved over recent years?

Federal spending on computer systems design services has generally trended upwards over recent years, reflecting the increasing reliance of government agencies on sophisticated IT infrastructure and digital transformation initiatives. Agencies across the board, including the Department of Defense, are investing heavily in modernizing legacy systems, enhancing cybersecurity, and adopting cloud computing and data analytics capabilities. This sustained demand is driven by evolving threats, the need for greater operational efficiency, and the push for digital services. While specific year-over-year fluctuations occur, the overall trajectory indicates a strong and consistent market for these services within the federal sector.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W911W413R0011

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: CGI Inc (UEI: 248513116)

Address: 9700 CAPITAL CT STE 200, MANASSAS, VA, 20110

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

Financial Breakdown

Contract Ceiling: $40,529,242

Exercised Options: $40,529,242

Current Obligation: $34,470,949

Contract Characteristics

Cost or Pricing Data: YES

Timeline