DoD's $31.6M Engineering Services Contract Awarded to CGI Federal Inc. for Lot VIII

Contract Overview

Contract Amount: $31,598,948 ($31.6M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of Defense

Start Date: 2012-08-10

End Date: 2014-02-28

Contract Duration: 567 days

Daily Burn Rate: $55.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIRD AWARD TERM - LOT VIII

Place of Performance

Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29419

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $31.6 million to CGI FEDERAL INC. for work described as: THIRD AWARD TERM - LOT VIII Key points: 1. Contract value represents a significant investment in specialized engineering services. 2. Awarded under a full and open competition, suggesting a robust bidding process. 3. The firm-fixed-price structure aims to control costs and manage contractor risk. 4. This contract is part of a larger framework (Lot VIII) indicating potential for follow-on work. 5. The duration of 567 days suggests a substantial project scope. 6. Performance is located in South Carolina, potentially impacting the local economy and workforce.

Value Assessment

Rating: good

The contract value of $31.6 million for engineering services appears reasonable given the scope and duration. Benchmarking against similar large-scale engineering support contracts for the Department of Defense would provide a more precise value-for-money assessment. The firm-fixed-price type suggests that the contractor bears the primary risk for cost overruns, which is generally favorable for the government. However, without specific details on the services rendered and comparable market rates for specialized engineering expertise, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which is expected to drive down prices and encourage innovation. The Department of the Navy's approach suggests a commitment to leveraging the broadest possible market for these engineering services.

Taxpayer Impact: A full and open competition is the most advantageous for taxpayers as it maximizes the potential for receiving the best value through competitive pricing and a wide range of qualified offerors.

Public Impact

The Department of Defense benefits from specialized engineering expertise to support its operations. Services delivered likely include design, analysis, and technical support for complex defense systems. The geographic impact is concentrated in South Carolina, potentially creating or sustaining jobs in the region. The contract may necessitate a skilled engineering workforce, contributing to specialized employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly due to the nature of engineering services.
Reliance on a single awardee for a significant duration could pose risks if performance issues arise.
The complexity of defense engineering may lead to unforeseen technical challenges impacting timelines or costs.

Positive Signals

Firm-fixed-price contract aligns incentives for cost control.
Awarded through full and open competition, suggesting a competitive selection process.
The contractor, CGI Federal Inc., has a track record in government contracting, implying experience.
The contract is a delivery order under a larger contract vehicle, potentially indicating established processes.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector supports government and private entities with specialized technical expertise for design, development, and implementation of complex projects. The market for defense engineering services is substantial, driven by the continuous need for modernization and maintenance of military systems. Comparable spending benchmarks would typically involve analyzing other large-scale engineering support contracts awarded by the Department of Defense or other federal agencies for similar types of services.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false) and does not specify subcontracting goals for small businesses (ss: false). Therefore, the direct impact on the small business ecosystem through this specific award is likely minimal. However, the prime contractor, CGI Federal Inc., may engage small businesses as subcontractors, which would be detailed in their subcontracting plan, if applicable. Without further information on subcontracting requirements, the direct benefit to small businesses from this particular contract remains unclear.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy contracting officers and program managers. Accountability measures are embedded within the firm-fixed-price contract terms, requiring delivery of specified engineering services. Transparency is generally facilitated through contract award databases like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected or alleged.

Related Government Programs

Defense Engineering Services
Professional, Scientific, and Technical Services
Department of the Navy Contracts
CGI Federal Inc. Contracts

Risk Flags

Potential for cost overruns if scope is not well-defined.
Risk of schedule delays due to engineering complexity.
Performance quality dependent on contractor's expertise and execution.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.6 million to CGI FEDERAL INC.. THIRD AWARD TERM - LOT VIII

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 $31.6 million.

What is the period of performance?

Start: 2012-08-10. End: 2014-02-28.

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

CGI Federal Inc. is a well-established government contractor with a significant history of serving the Department of Defense and other federal agencies. They have been awarded numerous contracts across various domains, including IT services, financial management, and professional services. For engineering services specifically, their track record would need to be assessed by examining past awards, performance reviews, and any documented issues or commendations. Their experience with complex defense systems and large-scale projects is a key factor in evaluating their suitability for contracts like this one. A deeper dive into their past performance on similar firm-fixed-price engineering contracts would reveal their ability to manage costs, timelines, and technical requirements effectively within the DoD environment.

How does the $31.6 million value compare to similar engineering services contracts awarded by the DoD?

The $31.6 million value for this engineering services contract is a substantial figure, indicative of a significant scope of work. To benchmark its value, one would compare it against other firm-fixed-price contracts awarded by the Department of Defense or its branches (like the Navy) for comparable engineering services over similar durations (567 days). Factors such as the specific type of engineering (e.g., systems engineering, mechanical, electrical), the complexity of the systems supported, and the geographic location can influence pricing. Without access to a detailed database of comparable contracts with specific service descriptions and pricing, it's difficult to definitively state if this award represents excellent, good, or fair value. However, given the firm-fixed-price nature and full and open competition, it suggests an effort to secure competitive pricing for the required services.

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

The primary risks associated with this contract include potential cost overruns if the scope is not precisely defined and managed (though mitigated by the firm-fixed-price structure), schedule delays due to the complexity of engineering tasks or unforeseen technical challenges, and performance deficiencies if the contractor fails to meet technical requirements. Mitigation strategies include robust contract management by the Navy, clear statement of work, performance metrics, and the contractor's own risk management processes. The firm-fixed-price contract places the financial risk of cost overruns primarily on CGI Federal Inc., incentivizing them to manage costs effectively. Regular progress reviews and communication channels are crucial for identifying and addressing potential issues early.

What is the expected effectiveness of these engineering services in supporting the Department of Defense's mission?

The effectiveness of these engineering services hinges on their ability to provide critical technical expertise that supports the Department of Defense's operational readiness and modernization efforts. If the services involve designing, developing, or maintaining complex defense systems, their successful delivery directly contributes to the warfighter's capabilities. The contract's effectiveness will be measured by whether the engineering solutions provided are timely, meet all technical specifications, and contribute to the overall mission objectives of the Navy. A positive performance history from CGI Federal Inc. and the successful completion of project milestones would indicate high effectiveness. Conversely, delays, technical failures, or cost overruns would diminish its effectiveness.

How has historical spending on engineering services by the Department of the Navy trended, and does this contract align?

Historical spending on engineering services by the Department of the Navy has generally been substantial, reflecting the continuous need for advanced technical support across its vast array of platforms and systems. Trends often show significant investment in areas like naval architecture, systems engineering, cybersecurity, and platform modernization. This $31.6 million contract for Lot VIII engineering services appears to align with the Navy's ongoing commitment to procuring specialized technical expertise. Analyzing year-over-year spending patterns for similar service categories would provide context on whether this award represents an increase, decrease, or stable level of investment in this particular area of engineering support.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6523607R0259

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: CGI Inc (UEI: 248513116)

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: $31,598,948

Exercised Options: $31,598,948

Current Obligation: $31,598,948

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6523608D2835

IDV Type: IDC

Timeline