DOJ's $65.5M Mail & Warehouse Management Contract Awarded to CGI Federal Inc
Contract Overview
Contract Amount: $65,466,562 ($65.5M)
Contractor: CGI Federal Inc.
Awarding Agency: Department of Justice
Start Date: 2024-10-01
End Date: 2025-09-30
Contract Duration: 364 days
Daily Burn Rate: $179.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: GSS DCN16 MAIL AND WAREHOUSE MGMT - GEN SUPPORT SERVICES - OP4
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033
State: Virginia Government Spending
Plain-Language Summary
Department of Justice obligated $65.5 million to CGI FEDERAL INC. for work described as: GSS DCN16 MAIL AND WAREHOUSE MGMT - GEN SUPPORT SERVICES - OP4 Key points: 1. Contract value of $65.5M over 1 year. 2. CGI Federal Inc. is the sole awardee. 3. Potential risk associated with a single vendor for essential services. 4. Facilities Support Services sector, NAICS 561210.
Value Assessment
Rating: fair
The contract value of $65.5M for a 1-year period appears high for facilities support services. Benchmarking against similar contracts for mail and warehouse management is needed to assess pricing reasonableness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the specific award mechanism (Delivery Order) and the single awardee warrant further scrutiny regarding price discovery.
Taxpayer Impact: Taxpayer funds are being utilized for essential mail and warehouse management services. Ensuring competitive pricing through robust oversight is crucial for maximizing value.
Public Impact
Ensures continuity of essential mail and warehouse operations for the Department of Justice. Supports administrative functions across various DOJ offices and divisions. Potential impact on service delivery if vendor performance falters.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Single awardee for a significant contract value.
- Time and Materials pricing structure can lead to cost overruns.
- Lack of small business participation.
Positive Signals
- Awarded under full and open competition.
- Clear performance period (1 year).
Sector Analysis
This contract falls within the Facilities Support Services sector, which includes a wide range of services necessary for the operation of buildings and grounds. Spending in this sector can vary significantly based on the scope and duration of services required.
Small Business Impact
There is no indication of small business participation in this contract, which is a missed opportunity to support small business growth and potentially introduce innovative solutions.
Oversight & Accountability
Oversight will be critical to ensure CGI Federal Inc. meets performance expectations and that the Time and Materials pricing is managed effectively to prevent cost overruns.
Related Government Programs
- Facilities Support Services
- Department of Justice Contracting
- Offices, Boards and Divisions Programs
Risk Flags
- High contract value for a single year.
- Time and Materials pricing.
- No small business participation.
- Sole awardee for essential services.
Tags
facilities-support-services, department-of-justice, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $65.5 million to CGI FEDERAL INC.. GSS DCN16 MAIL AND WAREHOUSE MGMT - GEN SUPPORT SERVICES - OP4
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 $65.5 million.
What is the period of performance?
Start: 2024-10-01. End: 2025-09-30.
What is the specific breakdown of services included in this mail and warehouse management contract, and how does the $65.5M value align with industry benchmarks for similar scope and duration?
The contract encompasses general support services for mail and warehouse management. A detailed service breakdown is necessary to accurately benchmark the $65.5M value. Without this, it's difficult to ascertain if the pricing is competitive or inflated compared to industry standards for similar facilities support contracts.
Given the Time and Materials pricing structure, what mechanisms are in place to mitigate the risk of cost overruns and ensure efficient service delivery by CGI Federal Inc.?
The Time and Materials (T&M) pricing structure inherently carries a risk of cost escalation. Robust oversight, including detailed tracking of labor hours and material costs, along with clearly defined ceiling prices and performance metrics, are essential to mitigate these risks and ensure the government receives value for its expenditure.
How effectively does this contract contribute to the Department of Justice's mission, and are there alternative solutions that could offer better value or performance?
This contract supports the DOJ's operational efficiency by ensuring smooth mail and warehouse management. However, the lack of small business involvement and the T&M pricing raise questions about optimal value. Exploring performance-based contracts or involving small businesses could potentially enhance effectiveness and cost-efficiency.
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: 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: $75,418,469
Exercised Options: $75,418,469
Current Obligation: $65,466,562
Actual Outlays: $65,466,562
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 15JPSS20D00000453
IDV Type: IDC
Timeline
Start Date: 2024-10-01
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2026-03-24
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