DoD Awards CGI Federal $130M for Fires Support Services R&D
Contract Overview
Contract Amount: $129,733,762 ($129.7M)
Contractor: CGI Federal Inc.
Awarding Agency: Department of Defense
Start Date: 2011-11-07
End Date: 2015-05-06
Contract Duration: 1,276 days
Daily Burn Rate: $101.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: TASK ORDER FOR FIRES SUPPORT SERVICES
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $129.7 million to CGI FEDERAL INC. for work described as: TASK ORDER FOR FIRES SUPPORT SERVICES Key points: 1. Significant investment in R&D for advanced fires support capabilities. 2. CGI Federal, a large business, secured the contract. 3. Full and open competition after exclusion of sources indicates a specific, limited approach. 4. Contract duration spans over 3 years, suggesting a substantial project lifecycle.
Value Assessment
Rating: fair
The contract value of $130M for a 3+ year R&D effort appears substantial. Benchmarking against similar complex R&D contracts is difficult without more specific service details, but the cost-plus-fixed-fee structure warrants scrutiny for potential cost overruns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method suggests a pre-qualification or specific requirement that limited the pool of bidders. This approach can sometimes lead to higher prices if the excluded sources represent significant competition.
Taxpayer Impact: Taxpayer funds are allocated to advanced defense R&D. The effectiveness and ultimate utility of the developed fires support services will determine the true value for money.
Public Impact
Enhances critical defense capabilities for battlefield operations. Supports technological advancement in military research and development. Potential for improved efficiency and effectiveness in future military engagements. Funds allocated to a large, established federal contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises price discovery concerns.
- Cost-plus-fixed-fee contracts can incentivize higher spending.
- Lack of small business participation noted.
Positive Signals
- Addresses critical R&D needs for national security.
- Long-term contract provides stability for development.
- Focus on advanced fires support technology.
Sector Analysis
This contract falls under Research and Development in Physical, Engineering, and Life Sciences. Spending in this sector is crucial for maintaining technological superiority but can be prone to cost overruns due to the inherent uncertainties of R&D.
Small Business Impact
The contract was awarded to CGI Federal Inc., a large business. There is no indication of small business subcontracting goals or participation in this award, which could be an area for improvement.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA), indicating oversight. However, the cost-plus-fixed-fee structure necessitates close monitoring to ensure cost control and prevent inefficiencies.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to Cost Plus Fixed Fee structure.
- Limited competition may have resulted in a higher price.
- Lack of small business participation.
- R&D projects inherently carry risk of not achieving desired outcomes.
Tags
research-and-development-in-the-physical, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $129.7 million to CGI FEDERAL INC.. TASK ORDER FOR FIRES SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is CGI FEDERAL INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $129.7 million.
What is the period of performance?
Start: 2011-11-07. End: 2015-05-06.
What specific technological advancements are expected from this $130M R&D investment, and how will they directly enhance warfighter capabilities?
The contract aims to develop advanced fires support services, likely encompassing areas like improved targeting, communication systems, and data integration for artillery and missile systems. Expected advancements include enhanced accuracy, reduced collateral damage, and faster response times. These will directly improve warfighter effectiveness by providing more precise and timely support, reducing risk to friendly forces and civilians.
Given the 'limited' competition, what measures were in place to ensure a fair and reasonable price was negotiated for these R&D services?
While the competition was limited, the contracting agency likely employed techniques such as historical price analysis, should-cost modeling, and potentially independent government cost estimates. Negotiation teams would have scrutinized the contractor's proposed costs and profit margins. However, the effectiveness of these measures in achieving optimal pricing without broader competition remains a key consideration.
How will the success and effectiveness of the developed fires support services be measured and validated post-delivery to ensure taxpayer value?
Success will likely be measured through rigorous testing and evaluation phases, including simulations and field exercises, comparing performance against defined requirements and benchmarks. Post-delivery validation may involve operational assessments by end-users and tracking key performance indicators related to accuracy, reliability, and integration. Feedback loops will be crucial for iterative improvements and confirming long-term value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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: $183,949,885
Exercised Options: $138,437,786
Current Obligation: $129,733,762
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC102808D2009
IDV Type: IDC
Timeline
Start Date: 2011-11-07
Current End Date: 2015-05-06
Potential End Date: 2015-05-06 00:00:00
Last Modified: 2022-09-21
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