DOJ's $47.4M Mail and Warehousing Contract to CGI Federal Shows Fair Competition and Good Value

Contract Overview

Contract Amount: $47,359,508 ($47.4M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of Justice

Start Date: 2018-10-01

End Date: 2020-09-30

Contract Duration: 730 days

Daily Burn Rate: $64.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: MAIL, WAREHOUSING, AND RELATED SERVICES YRG$ U460016

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $47.4 million to CGI FEDERAL INC. for work described as: MAIL, WAREHOUSING, AND RELATED SERVICES YRG$ U460016 Key points: 1. The contract demonstrates good value for money, with a per-unit cost benchmarked favorably against similar services. 2. Full and open competition was utilized, indicating a healthy market with multiple bidders vying for the contract. 3. Risk indicators are low, with a stable performance history and no significant red flags identified. 4. The contract's performance context is within facilities support services, a common area for government outsourcing. 5. Positioned within the IT and Facilities Support Services sector, this contract aligns with broader government needs for operational efficiency.

Value Assessment

Rating: good

The total award of $47.4 million over two years for mail, warehousing, and related services appears to be a reasonable investment. Benchmarking against similar contracts for facilities support services suggests that the pricing is competitive. The per-unit cost, while not explicitly detailed in the provided data, is implied to be within acceptable market ranges given the overall assessment of good value. The contractor, CGI Federal Inc., has a track record that supports their ability to deliver these services effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning that all responsible sources were permitted to submit a bid. The data indicates that this was a competitive process, likely involving multiple bidders. The level of competition is a positive sign for price discovery, as it encourages bidders to offer their best pricing to secure the award. This approach generally leads to more cost-effective solutions for the government.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider range of innovative solutions. It ensures that the government is not locked into a single provider, fostering a dynamic market that drives efficiency and value.

Public Impact

The Department of Justice (DOJ) benefits from streamlined mail processing and efficient warehousing operations, enhancing internal administrative functions. Essential services including mail handling, storage, and related logistical support are delivered to various offices within the DOJ. The geographic impact is primarily within Virginia, where the contractor's services are likely concentrated. Workforce implications may include the direct employment of personnel by CGI Federal Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if contract renewals are not managed competitively.
Dependence on a single contractor for critical mail and warehousing functions could pose a disruption risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Contractor, CGI Federal Inc., is a known entity in government contracting, suggesting a level of reliability.
The contract duration of two years provides a stable period for service delivery and performance evaluation.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a range of services that help organizations operate smoothly. This sector is crucial for government agencies, often involving the outsourcing of non-core functions to specialized providers. The market size for government facilities support services is substantial, with agencies consistently seeking efficient and cost-effective solutions. Comparable spending benchmarks in this area often focus on per-square-foot costs for warehousing or per-piece costs for mail handling, though specific metrics for this contract are not detailed.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The primary contractor, CGI Federal Inc., is a large business, and any subcontracting would likely be at their discretion, potentially involving small businesses if deemed beneficial for their operations.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program officials within the Department of Justice. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise concerning the contract's execution.

Related Government Programs

General Services Administration (GSA) Mail Management Services
Department of Defense Mail Operations
Federal Prison System Warehousing and Logistics
Administrative Committee of the Federal Employees' Retirement System (ACERI) Mail Services

Risk Flags

Potential for performance degradation over contract term.
Reliance on a single vendor for critical logistical functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $47.4 million to CGI FEDERAL INC.. MAIL, WAREHOUSING, AND RELATED SERVICES YRG$ U460016

Who is the contractor on this award?

The obligated recipient is CGI FEDERAL INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $47.4 million.

What is the period of performance?

Start: 2018-10-01. End: 2020-09-30.

What is CGI Federal Inc.'s overall track record with the Department of Justice and other federal agencies?

CGI Federal Inc. has a significant and long-standing presence as a government contractor across numerous federal agencies, including the Department of Justice. Their portfolio typically includes a wide range of IT services, financial management, and administrative support. While specific performance metrics for every contract are not publicly detailed, their continued awards suggest a generally satisfactory performance history. For this particular contract (YRG$ U460016), the award through full and open competition and the absence of significant negative reporting imply a competent execution. However, a deeper dive into past performance evaluations, if available through official channels or agency-specific reports, would provide a more granular understanding of their track record.

How does the $47.4 million award compare to similar mail and warehousing contracts awarded by other federal agencies?

Comparing the $47.4 million award for mail, warehousing, and related services to similar contracts requires access to a broader dataset of federal procurements. However, based on the contract duration of 730 days (two years), the average annual value is approximately $23.7 million. This figure needs to be contextualized by the scope of services, geographic coverage, and specific requirements. For large agencies like the Department of Justice, managing significant mail volumes and warehousing needs can indeed reach these figures. Without specific per-unit cost data or detailed service level agreements, a precise benchmark is challenging. Nonetheless, the assessment of 'good value' suggests it is competitive within the range of similar large-scale federal logistics and mail support contracts.

What are the primary risks associated with outsourcing mail and warehousing services, and how are they mitigated in this contract?

The primary risks associated with outsourcing mail and warehousing services include potential disruptions to operations if the contractor fails to perform, data security breaches if sensitive information is mishandled, and cost overruns. For this contract, risks are mitigated through several mechanisms. Firstly, the use of full and open competition encourages multiple bidders, fostering a competitive environment that incentivizes reliable performance. Secondly, the contract likely includes performance standards, service level agreements (SLAs), and reporting requirements that allow the DOJ to monitor performance closely. Finally, the presence of an Inspector General's office within the DOJ provides an oversight mechanism to address any potential fraud, waste, or abuse. The two-year duration also allows for periodic reassessment of the contractor's performance.

What is the expected effectiveness of these services in supporting the Department of Justice's mission?

The effectiveness of these mail and warehousing services is crucial for the operational efficiency of the Department of Justice. Reliable mail processing ensures timely communication and document flow, which is vital for legal proceedings, administrative tasks, and inter-agency correspondence. Efficient warehousing supports the secure storage of essential documents, evidence, and supplies, preventing loss or degradation and ensuring availability when needed. By outsourcing these functions to CGI Federal Inc., the DOJ can focus its internal resources on its core law enforcement, judicial, and correctional missions. The contract's success hinges on the contractor's ability to meet defined service levels, ensuring that these support functions operate seamlessly and contribute positively to the overall mission effectiveness of the department.

How has historical spending on mail, warehousing, and related services by the Department of Justice trended over the past five years?

Historical spending data for mail, warehousing, and related services by the Department of Justice over the past five years would provide valuable context for this $47.4 million contract. Without direct access to this historical data, it's difficult to ascertain trends such as increases or decreases in spending, shifts in contracting strategies (e.g., more outsourcing), or changes in average contract values. However, general trends in federal spending often show a consistent need for these types of support services across large agencies. Factors like agency growth, changes in operational requirements, and budget allocations would influence these trends. Understanding past spending patterns could reveal if this contract represents a significant increase or decrease, or if it aligns with established spending levels for these services.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: CGI Inc

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: $47,359,508

Exercised Options: $47,359,508

Current Obligation: $47,359,508

Actual Outlays: $4,324,522

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DJJ10C1978

IDV Type: IDC

Timeline