DoD's $34.5M contract for engineering services awarded to CGI Federal Inc. shows fair value

Contract Overview

Contract Amount: $34,468,092 ($34.5M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of Defense

Start Date: 2021-12-01

End Date: 2025-12-31

Contract Duration: 1,491 days

Daily Burn Rate: $23.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PLANS AND DATA SUPPORT SERVICES

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32226

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $34.5 million to CGI FEDERAL INC. for work described as: PLANS AND DATA SUPPORT SERVICES Key points: 1. Contract value represents a moderate investment in critical engineering support. 2. Competition was robust, suggesting a healthy market for these services. 3. Performance risk appears manageable given the contractor's experience. 4. This contract supports long-term naval engineering needs. 5. The award falls within typical spending ranges for similar government engineering contracts. 6. Focus on fixed-fee structure aims to control costs while ensuring quality.

Value Assessment

Rating: fair

The contract's total value of $34.5 million over its period of performance appears reasonable when benchmarked against similar engineering support contracts awarded by the Department of Defense. The Cost Plus Fixed Fee (CPFF) pricing structure, while allowing for flexibility, necessitates careful oversight to ensure costs remain aligned with the fixed fee. Without specific per-unit cost data, a direct comparison is challenging, but the overall value seems to be in line with market expectations for specialized engineering 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 qualified vendors had the opportunity to bid. The presence of 3 bids suggests a competitive environment, which typically drives better pricing and service offerings for the government. The level of competition is adequate for this type of specialized engineering service.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a marketplace where contractors are incentivized to offer competitive pricing and innovative solutions, leading to better value for public funds.

Public Impact

The Department of the Navy benefits from enhanced engineering and data support capabilities. Services delivered are crucial for maintaining and modernizing naval assets. Geographic impact is primarily in Florida, supporting regional naval operations. The contract supports a specialized workforce in engineering and data analysis.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in CPFF contracts if not closely monitored.
Reliance on a single contractor for critical engineering data support could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Contractor has a track record with government contracts, suggesting familiarity with requirements.
Fixed fee component provides a degree of cost certainty for the government.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of government procurement supporting various agencies' technical needs. The market for these services is substantial, with numerous firms capable of providing specialized expertise. This particular award contributes to the broader ecosystem of defense contractors supporting naval modernization and operational readiness.

Small Business Impact

While this contract was not specifically set aside for small businesses, the prime contractor, CGI Federal Inc., may engage small businesses as subcontractors. Analysis of subcontracting plans would be necessary to determine the extent of small business participation and its impact on the small business ecosystem. Without specific subcontracting data, the direct impact remains unclear.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting officers and program managers. Accountability measures are typically embedded within the contract's terms and conditions, including performance metrics and reporting requirements. Transparency is facilitated through contract award databases, though detailed performance data may be less accessible.

Related Government Programs

Department of Defense IT Services
Naval Engineering Support Contracts
Government Data Analysis Services
Engineering Consulting Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Performance monitoring is crucial to ensure quality and timeliness of engineering services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.5 million to CGI FEDERAL INC.. PLANS AND DATA 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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $34.5 million.

What is the period of performance?

Start: 2021-12-01. End: 2025-12-31.

What is CGI Federal Inc.'s track record with similar Department of Defense contracts?

CGI Federal Inc. has a significant history of performing contracts for the Department of Defense across various agencies and service areas. Their portfolio often includes IT services, management consulting, and engineering support. While specific performance metrics for past DoD contracts are not detailed here, their continued success in securing government awards suggests a generally positive track record. However, a deeper dive into past performance reviews, any past disputes, or contract modifications would provide a more comprehensive understanding of their reliability and effectiveness in delivering complex services to the DoD.

How does the pricing structure (Cost Plus Fixed Fee) compare to other contract types for similar services?

Cost Plus Fixed Fee (CPFF) contracts are common for services where the scope of work is not precisely defined at the outset, or where innovation and flexibility are paramount, such as research and development or complex engineering projects. This structure reimburses the contractor for allowable costs plus a predetermined fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers less cost certainty for the government but greater flexibility for the contractor to adapt to evolving requirements. Cost-Reimbursement contracts without a fixed fee offer even less cost control. For engineering services, CPFF is often chosen to balance the need for technical expertise and adaptability with a degree of cost predictability through the fixed fee component.

What are the primary risks associated with this specific contract and how are they being mitigated?

The primary risks associated with this CPFF contract include potential cost overruns if the contractor's expenses exceed initial estimates, and performance risks if the quality or timeliness of the engineering and data support does not meet the Navy's requirements. Mitigation strategies likely involve robust oversight by the Navy's contracting officer and technical representatives, detailed performance work statements, regular progress reviews, and clear deliverables. The fixed fee component itself acts as a risk mitigation tool by capping the contractor's profit, incentivizing efficiency. Furthermore, the contractor's experience and the competitive award process suggest a baseline level of capability, reducing the likelihood of severe performance failures.

How does this contract's value and duration align with historical spending patterns for naval engineering support?

The contract's value of approximately $34.5 million over a period of roughly 4 years (December 2021 to December 2025) aligns with typical spending patterns for specialized engineering and data support services within the Department of the Navy. Naval modernization and maintenance efforts often require sustained, multi-year support contracts in the tens of millions of dollars. Shorter-term or smaller contracts might exist for specific, limited-scope tasks, while larger, more comprehensive programs could exceed this value. This contract appears to represent a mid-range investment for ongoing, critical support functions.

What is the potential impact of this contract on the specific engineering services market in Florida?

Given the contract's stated location in Florida (ST: FL, SN: FLORIDA), this award could have a notable impact on the local engineering services market. It signifies a significant investment by the federal government in that region, potentially creating or sustaining high-skilled jobs in engineering and data analysis. CGI Federal Inc. may expand its local presence or leverage existing Florida-based resources to fulfill the contract. This could also stimulate competition among other engineering firms in Florida seeking to secure subcontracting opportunities or future government contracts, thereby boosting the overall economic activity within the state's technical sector.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: M6700421R3003

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 12601 FAIR LAKES CIR # 100, 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: $36,255,458

Exercised Options: $36,159,461

Current Obligation: $34,468,092

Subaward Activity

Number of Subawards: 18

Total Subaward Amount: $1,843,996

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7341

IDV Type: IDC

Timeline