DoD's $162M Facilities Support Services contract awarded to CGI Federal Inc. shows long-term engagement

Contract Overview

Contract Amount: $162,249,850 ($162.2M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of Defense

Start Date: 2007-07-17

End Date: 2012-07-18

Contract Duration: 1,828 days

Daily Burn Rate: $88.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: NOW TASK ORDER AWARD.

Place of Performance

Location: FORT CAMPBELL, CHRISTIAN County, KENTUCKY, 42223

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $162.2 million to CGI FEDERAL INC. for work described as: NOW TASK ORDER AWARD. Key points: 1. The contract's duration of 1828 days suggests a sustained need for facilities support. 2. Awarded under full and open competition, indicating a broad market solicitation. 3. The Time and Materials pricing structure may present cost control challenges if not closely managed. 4. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. The significant value points to a critical role in supporting Department of the Army operations. 6. The absence of small business set-aside flags suggests the primary award was not specifically targeted for small businesses.

Value Assessment

Rating: fair

Benchmarking the value of this $162 million contract over its 5-year term requires understanding the specific scope of facilities support services. Without detailed service breakdowns, direct comparisons are difficult. However, the Time and Materials (T&M) pricing model, while common for services where scope can evolve, often carries a higher risk of cost overruns compared to fixed-price contracts. The number of bidders (11) suggests some level of competition, but the ultimate value-for-money depends heavily on the efficiency and effectiveness of CGI Federal's service delivery and the government's oversight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition,' meaning all responsible sources were permitted to submit offers. The data indicates 11 bids were received, suggesting a reasonably competitive environment for this facilities support services requirement. A higher number of bidders generally allows for better price discovery and potentially more innovative solutions, though the specific nature of facilities support can sometimes limit the pool of highly qualified contractors.

Taxpayer Impact: The full and open competition likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition award. The presence of multiple bidders provides assurance that the government sought the best available offer.

Public Impact

The primary beneficiaries are the Department of the Army personnel and operations that rely on well-maintained facilities. Services delivered likely encompass a broad range of facility management, maintenance, and potentially repair functions. The geographic impact is centered in Kentucky (ST: KY, SN: KENTUCKY), where the contract is being performed. Workforce implications include the creation or sustainment of jobs for personnel performing these facilities support tasks, both within CGI Federal and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) pricing structure can lead to cost overruns if not meticulously monitored and controlled by the government.
Long contract durations, while indicating sustained need, can also reduce flexibility to adapt to changing requirements or market conditions.
Reliance on a single contractor for critical facilities support over an extended period could create vendor lock-in.
The specific scope of 'Facilities Support Services' is broad and could encompass a wide array of tasks, making performance assessment complex.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process and potential for competitive pricing.
The contract's significant value indicates a critical need and likely a high level of service delivery expected by the Department of the Army.
The long duration (1828 days) implies a stable, ongoing requirement, allowing for efficient resource planning by the contractor.
The award to CGI Federal Inc., a known entity in government contracting, suggests a level of established capability.

Sector Analysis

Facilities Support Services fall under the broader professional, scientific, and technical services sector. This specific contract, NAICS code 561210, covers establishments primarily engaged in operating and maintaining buildings and other facilities, for others. The market for these services is substantial within the federal government, supporting agency operations across various departments. Comparable spending benchmarks would involve analyzing other large-scale facilities management contracts awarded by DoD and other federal agencies, considering factors like facility size, type, and geographic location.

Small Business Impact

The data indicates this contract was not awarded as a small business set-aside (SB: false). Therefore, the primary award did not specifically target small businesses. While CGI Federal Inc. may utilize small businesses as subcontractors, there is no explicit requirement or set-aside noted in the provided data. This means the direct impact on the small business ecosystem through this specific award mechanism is likely minimal, though subcontracting opportunities could still exist.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the relevant Department of the Army administrative contracting officer (ACO) or technical point of contact (TPOC). Performance monitoring, invoice review, and compliance checks are standard oversight mechanisms. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected or alleged.

Related Government Programs

Facilities Maintenance and Repair
Base Operations Support (BOS)
Logistics and Support Services
Professional, Scientific, and Technical Services

Risk Flags

Time and Materials Pricing
Long Contract Duration
Potential for Cost Overruns
Limited Small Business Participation (Direct Award)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $162.2 million to CGI FEDERAL INC.. NOW TASK ORDER AWARD.

Who is the contractor on this award?

The obligated recipient is CGI FEDERAL 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 $162.2 million.

What is the period of performance?

Start: 2007-07-17. End: 2012-07-18.

What is the specific breakdown of services included under 'Facilities Support Services' for this contract?

The provided data identifies the contract under NAICS code 561210, 'Facilities Support Services.' This broad category typically encompasses a range of activities including operation and maintenance of buildings and grounds, custodial services, pest control, refuse collection, security systems operation, and potentially minor repair work. However, the precise scope for this specific $162 million CGI Federal contract is not detailed in the summary data. A comprehensive understanding would require reviewing the contract's Statement of Work (SOW) or Performance Work Statement (PWS), which would delineate specific tasks, performance standards, and deliverables expected by the Department of the Army.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar facilities support services?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change significantly. For facilities support, T&M can be advantageous for unexpected repairs or evolving maintenance needs. However, it carries a higher risk for the government compared to fixed-price contracts, as costs are directly tied to labor hours and material costs incurred by the contractor. Agencies often mitigate this risk by establishing ceiling prices, requiring detailed cost reporting, and implementing robust oversight. Fixed-price contracts, conversely, offer greater cost certainty but may be less flexible for unpredictable service demands. Hybrid approaches also exist. The choice of T&M here suggests the Army anticipated variability in service requirements over the contract's duration.

What is CGI Federal Inc.'s track record with similar large-scale facilities support contracts for the Department of Defense?

CGI Federal Inc. is a significant government contractor with a history of providing various IT and professional services to federal agencies, including the Department of Defense. While specific details on their facilities support contract portfolio beyond this award are not in the provided data, their general experience suggests a capacity to manage large, complex service contracts. Evaluating their track record would involve examining past performance reviews, any reported contract disputes or terminations, and the overall success of their previous service delivery engagements, particularly those involving facility operations and maintenance for large organizations like the DoD.

What are the potential risks associated with a 5-year contract for facilities support services?

A primary risk with a long-term contract like this (1828 days is approximately 5 years) is the potential for the contractor's pricing to become uncompetitive over time, especially if market rates for labor and materials decrease or if more efficient service delivery methods emerge. Another risk is 'vendor lock-in,' where the government becomes heavily reliant on the incumbent contractor, making it difficult to switch providers even if performance is subpar. Furthermore, the contractor's motivation to innovate or improve efficiency might wane over time if not incentivized through contract terms or performance metrics. Finally, changes in government requirements or budget constraints could render the contract's scope misaligned with current needs.

How does the number of bidders (11) influence the perceived value for taxpayers in this contract?

Receiving 11 bids for this contract suggests a healthy level of competition, which is generally favorable for taxpayers. A larger pool of bidders typically drives down prices as companies vie for the award. It also increases the likelihood that the government will receive a technically sound proposal that meets its requirements. While 11 bidders indicate good market interest, the ultimate value realized depends on the quality of the proposals received and the effectiveness of the source selection process. If the competition was robust and the evaluation criteria were well-defined, the resulting award is more likely to represent good value. Conversely, if many bids were non-compliant or technically deficient, the effective competition might be lower.

What are the implications of this contract being an 'Awarded Delivery Order' rather than a standalone contract?

The notation 'AW: DELIVERY ORDER' indicates that this $162 million award is a task order issued under a larger, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle. This means the Department of the Army likely has a master contract in place with CGI Federal Inc. (or potentially a contract vehicle that CGI Federal is part of) that allows for the issuance of multiple delivery orders over a period. This approach is common for services with anticipated but variable needs. The implications are that the overall value and scope of the IDIQ contract are likely larger than this single delivery order, and other agencies or departments might also be able to issue orders against the same IDIQ. It streamlines the procurement process for recurring needs.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W911SE06R0013

Offers Received: 11

Pricing Type: TIME AND MATERIALS (Y)

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, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $194,432,457

Exercised Options: $165,754,365

Current Obligation: $162,249,850

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W911SE07D0010

IDV Type: IDC

Timeline