DoD's $32.5M Facilities Support Contract with CGI Federal Faces Scrutiny Over Value and Competition

Contract Overview

Contract Amount: $32,487,418 ($32.5M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of Defense

Start Date: 2009-11-24

End Date: 2014-06-29

Contract Duration: 1,678 days

Daily Burn Rate: $19.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: G8 FINANCIAL MANAGEMENT SERVICES REACH-BACK THEATER FIN MGT SU

Plain-Language Summary

Department of Defense obligated $32.5 million to CGI FEDERAL INC. for work described as: G8 FINANCIAL MANAGEMENT SERVICES REACH-BACK THEATER FIN MGT SU Key points: 1. The contract awarded to CGI Federal Inc. for facilities support services represents a significant expenditure of $32.5 million. 2. While awarded under full and open competition, the duration and lack of specific performance metrics raise questions about ongoing value. 3. Potential risks include cost overruns and a lack of clear benchmarks for service effectiveness over the contract's extended period. 4. The sector is facilities support, which is crucial for operational readiness but often subject to efficiency challenges.

Value Assessment

Rating: fair

The contract's total value of $32.5 million over nearly five years suggests a moderate annual spend. Without specific performance data or comparison to similar contracts, assessing the true value for money is difficult. The firm-fixed-price structure provides some cost certainty, but the overall efficiency remains unclear.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating an initial effort to secure competitive pricing. However, the subsequent delivery order structure and long duration might have limited ongoing price discovery and competition for task-specific services.

Taxpayer Impact: Taxpayer funds were used for facilities support services. While competition was initially sought, the long-term nature of the contract necessitates ongoing vigilance to ensure cost-effectiveness and prevent potential overspending.

Public Impact

Ensures essential facilities support for Department of the Army operations. Long contract duration may impact adaptability to changing needs or technological advancements. Potential for cost efficiencies or inefficiencies over the contract's lifespan. Requires robust oversight to ensure services meet required standards.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration without clear performance incentives.
Limited visibility into ongoing cost-effectiveness.
Potential for scope creep or unmonitored service expansion.

Positive Signals

Awarded through full and open competition.
Firm-fixed-price contract provides cost certainty.
Essential services for military operations.

Sector Analysis

Facilities support services are critical for maintaining operational readiness and infrastructure for government agencies. Benchmarks for this sector often focus on cost per square foot, energy efficiency, and response times for maintenance requests. This contract's value appears moderate for the scope and duration.

Small Business Impact

The provided data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation in this contract.

Oversight & Accountability

The contract's long duration and delivery order structure necessitate strong oversight from the Department of the Army to ensure performance standards are met and costs remain controlled. Regular performance reviews and audits are crucial for accountability.

Related Government Programs

Facilities Support Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of specific performance metrics.
Long contract duration may reduce flexibility.
Potential for limited ongoing price competition.
Oversight challenges with extended contracts.
Unclear small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.5 million to CGI FEDERAL INC.. G8 FINANCIAL MANAGEMENT SERVICES REACH-BACK THEATER FIN MGT SU

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 $32.5 million.

What is the period of performance?

Start: 2009-11-24. End: 2014-06-29.

What specific performance metrics were established to ensure the quality and efficiency of the facilities support services provided by CGI Federal?

The provided data does not detail specific performance metrics. A firm-fixed-price contract offers cost certainty, but without clearly defined Key Performance Indicators (KPIs) and service level agreements (SLAs), it is challenging to objectively assess the quality and efficiency of the services rendered. This lack of detail hinders a comprehensive value assessment.

How did the initial full and open competition ensure the best possible pricing and service offerings for the duration of this nearly five-year contract?

While full and open competition is a strong starting point for price discovery, the long duration of this contract (over 1600 days) and its structure as a delivery order against a basic contract may have limited ongoing competitive pressure. Subsequent task orders might not have undergone the same level of rigorous competition, potentially impacting long-term cost-effectiveness and service innovation.

What is the estimated taxpayer impact if the services provided by CGI Federal were found to be inefficient or overpriced over the contract's lifespan?

The total contract value is $32.5 million. If inefficiencies or overpricing occurred, taxpayers could bear the burden of paying for services that did not deliver optimal value or were procured at inflated rates. Without detailed performance and cost audits, quantifying this potential impact is difficult, but it represents a risk to fiscal responsibility.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

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

Financial Breakdown

Contract Ceiling: $32,487,418

Exercised Options: $32,487,418

Current Obligation: $32,487,418

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911SE07D0010

IDV Type: IDC

Timeline