DOJ's $65M Mail & Warehouse Management Contract Awarded to CGI Federal Inc

Contract Overview

Contract Amount: $64,978,403 ($65.0M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $178.5K/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 - OP5

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $65.0 million to CGI FEDERAL INC. for work described as: GSS DCN16 MAIL AND WAREHOUSE MGMT - GEN SUPPORT SERVICES - OP5 Key points: 1. Contract provides essential facilities support services for the Department of Justice. 2. CGI Federal Inc. secured this contract through full and open competition. 3. The contract duration is approximately one year, with a potential for extensions. 4. Services include mail and warehouse management, indicating a focus on operational efficiency. 5. The award value suggests a significant investment in maintaining critical administrative functions. 6. Performance is located in Virginia, impacting the local workforce and economy.

Value Assessment

Rating: good

The contract's value of $65 million for a one-year period for mail and warehouse management services appears reasonable given the scope of support for a large federal agency like the Department of Justice. Benchmarking against similar facilities support contracts is challenging without more granular service details, but the pricing structure (Time and Materials) allows for flexibility. The contractor, CGI Federal Inc., has a substantial presence in the federal contracting space, suggesting experience in delivering such services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this procurement method generally fosters competitive pricing and allows the government to select the best value offer. The open competition suggests a healthy market for these types of facilities support services.

Taxpayer Impact: Taxpayers benefit from the competitive process, which is expected to drive down costs and ensure the government receives high-quality services at a fair price.

Public Impact

The Department of Justice benefits from streamlined mail and warehouse operations, ensuring efficient handling of official documents and supplies. Federal employees within the DOJ will experience improved logistical support, contributing to their overall productivity. The contract's execution in Virginia supports local employment and economic activity within the state. The services provided are critical for the day-to-day administrative functions of various DOJ offices, boards, and divisions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with Time and Materials pricing if not closely monitored.
Dependence on a single contractor for critical mail and warehouse functions could pose a risk if performance falters.
Scope creep could increase the overall cost beyond the initial award value without adequate change control.

Positive Signals

Award to an established contractor like CGI Federal Inc. suggests a higher likelihood of successful performance.
Full and open competition indicates a robust market and potential for competitive pricing.
The contract's focus on essential operational support ensures continuity of government functions.

Sector Analysis

The facilities support services sector within the federal government is a significant market, encompassing a wide range of services from janitorial to complex logistics. This contract, specifically for mail and warehouse management, falls under the broader category of facilities support. Spending in this area is consistent across many agencies that require efficient operational infrastructure. Comparable contracts often involve significant dollar values due to the scale and criticality of maintaining government facilities and their associated logistics.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While CGI Federal Inc. is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of subcontracting to small businesses will depend on CGI Federal's strategy and the specific requirements of the contract, which could impact the small business ecosystem if not actively managed.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant program officials within the Department of Justice. Performance metrics and reporting requirements will be key accountability measures. Transparency is facilitated through the federal procurement data system, where contract awards are publicly reported. The Inspector General's office may conduct audits or investigations if performance issues or potential fraud are identified.

Related Government Programs

General Services Administration (GSA) Federal Supply Schedule Contracts
Department of Defense Mail Management Services
Facilities Operations and Maintenance Contracts
Logistics and Supply Chain Management Services

Risk Flags

Potential for cost overruns due to T&M pricing structure.
Contractor performance risk if service levels are not maintained.
Dependence on contractor for critical operational support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $65.0 million to CGI FEDERAL INC.. GSS DCN16 MAIL AND WAREHOUSE MGMT - GEN SUPPORT SERVICES - OP5

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 $65.0 million.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is CGI Federal Inc.'s track record with similar facilities support contracts within the federal government?

CGI Federal Inc. has a substantial history of performing various IT and professional services contracts for the federal government, including those related to logistics and operational support. While specific details on their mail and warehouse management performance for the DOJ are not immediately available from this data, their broader federal contracting experience suggests a capacity to handle complex service delivery. Analyzing past performance evaluations and contract close-out reports for similar contracts would provide a more detailed assessment of their reliability, quality of service, and ability to meet deadlines and budget constraints in the past.

How does the awarded value of $65 million compare to similar mail and warehouse management contracts for federal agencies of comparable size?

Direct comparison of the $65 million award for this one-year contract is difficult without knowing the exact scope and volume of services required by the Department of Justice. However, for large federal agencies with extensive mailroom operations, secure storage needs, and distribution requirements, such a figure is not unusual. Contracts for comprehensive facilities support, including mail and warehouse management, can range from tens to hundreds of millions of dollars annually depending on the agency's footprint, number of employees, and the complexity of its logistical needs. Benchmarking against contracts from agencies like the General Services Administration or the Department of Defense for similar services would provide a more precise value assessment.

What are the primary risks associated with a Time and Materials (T&M) contract for these services, and how are they mitigated?

The primary risk with a Time and Materials contract is the potential for cost overruns, as the government pays for the labor hours and materials used, plus a fixed fee or percentage. This can occur if work is inefficiently performed or if the scope expands without proper controls. Mitigation strategies include establishing clear labor categories with defined rates, setting a ceiling price that cannot be exceeded without modification, and implementing robust oversight and monitoring of labor hours and material usage. Regular performance reviews and detailed invoicing requirements also help manage these risks and ensure value for taxpayer money.

What is the expected impact of this contract on the operational efficiency of the Department of Justice?

This contract is expected to enhance the operational efficiency of the Department of Justice by ensuring reliable and professional management of its mail and warehouse functions. Efficient mail processing reduces delays in communication and document flow, while effective warehouse management ensures that necessary supplies and equipment are available when needed, preventing disruptions to critical operations. By outsourcing these functions to a specialized contractor like CGI Federal Inc., the DOJ can focus its internal resources on its core law enforcement and justice-related missions, potentially leading to improved overall agency performance and responsiveness.

What historical spending patterns exist for mail and warehouse management services within the Department of Justice or similar agencies?

Historical spending on mail and warehouse management services within the Department of Justice and similar large federal agencies typically shows a consistent need for these operational support functions. Agencies often rely on a mix of in-house services and contracted support, with spending fluctuating based on budget allocations, agency reorganizations, and the decision to outsource specific functions. Contracts for these services are often awarded through competitive bidding processes, with values varying based on contract duration, scope, and the number of facilities supported. Analyzing past contract awards and spending data for the DOJ and comparable agencies can reveal trends in outsourcing, cost-effectiveness, and contractor performance over time.

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: $75,475,798

Exercised Options: $75,475,798

Current Obligation: $64,978,403

Actual Outlays: $12,548,038

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