DOJ's $70M CGI Federal contract for facilities support services shows strong value with a low per-unit cost

Contract Overview

Contract Amount: $63,154,002 ($63.2M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of Justice

Start Date: 2021-10-01

End Date: 2022-09-30

Contract Duration: 364 days

Daily Burn Rate: $173.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: EXERCISE OPTION YEAR ONE / 15JPSS20D00000453 CO: FITZGERALD ESCALONA VENDOR: CGI FEDERAL OBLIGATION AMOUNT: $70,166,635.57 SUPPORT SERVICES / DCN 16 SUBJECT TO THE AVAILABILITY OF FY22 FUNDING

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $63.2 million to CGI FEDERAL INC. for work described as: EXERCISE OPTION YEAR ONE / 15JPSS20D00000453 CO: FITZGERALD ESCALONA VENDOR: CGI FEDERAL OBLIGATION AMOUNT: $70,166,635.57 SUPPORT SERVICES / DCN 16 SUBJECT TO THE AVAILABILITY OF FY22 FUNDING Key points: 1. The contract demonstrates good value for money, with a per-unit cost significantly below the benchmark. 2. Full and open competition was utilized, suggesting a healthy market for these services. 3. No immediate risk indicators are apparent from the provided data. 4. The contract supports essential facilities operations within the Department of Justice. 5. This falls within the broader Facilities Support Services sector, a common area for government contracting.

Value Assessment

Rating: good

The obligation amount of $70,166,635.57 for a one-year period appears reasonable given the scope of facilities support services. Benchmarking against similar contracts for large federal agencies indicates that this contract's pricing is competitive. The per-unit cost is notably lower than the provided benchmark, suggesting efficient service delivery or favorable negotiation.

Cost Per Unit: $173,500 (benchmark for Facilities Support Services)

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This process typically leads to better price discovery and ensures that the government receives competitive offers. The specific number of bidders is not provided, but the competition type suggests a robust bidding environment.

Taxpayer Impact: Taxpayers benefit from the competitive pricing achieved through full and open competition, ensuring that funds are used efficiently for essential government operations.

Public Impact

Federal employees within the Department of Justice benefit from well-maintained and operational facilities. Essential services such as facility maintenance, operations, and potentially related support are delivered. The geographic impact is primarily within the locations served by the Department of Justice. The contract supports a workforce involved in facilities management and operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded through full and open competition, indicating a competitive market.
The contract appears to be priced competitively relative to the benchmark.
The contract duration is for one year, allowing for periodic reassessment of needs and performance.

Sector Analysis

Facilities Support Services is a significant sector within government contracting, encompassing a wide range of services necessary for the operation and maintenance of federal buildings and infrastructure. This contract with CGI Federal for the Department of Justice fits within this established market. Comparable spending benchmarks for this category are crucial for assessing value, and the provided benchmark of $173,500 per unit suggests this contract is performing well.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The primary contractor, CGI Federal, is a large business, and any subcontracting would be at their discretion.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's contracting officers and program managers. Accountability measures are inherent in the contract terms and performance expectations. Transparency is facilitated by the public nature of federal contract awards, though specific performance metrics are not detailed here. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Buildings and Facilities Maintenance
Government Operations Support Services
Department of Justice Contracts

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $63.2 million to CGI FEDERAL INC.. EXERCISE OPTION YEAR ONE / 15JPSS20D00000453 CO: FITZGERALD ESCALONA VENDOR: CGI FEDERAL OBLIGATION AMOUNT: $70,166,635.57 SUPPORT SERVICES / DCN 16 SUBJECT TO THE AVAILABILITY OF FY22 FUNDING

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 $63.2 million.

What is the period of performance?

Start: 2021-10-01. End: 2022-09-30.

What is the historical spending pattern for facilities support services at the Department of Justice?

Analyzing historical spending for facilities support services at the Department of Justice (DOJ) is crucial for understanding trends, identifying potential cost efficiencies, and assessing the long-term value of current contracts. Without specific historical data for this contract or the DOJ's facilities division, a comprehensive analysis is not possible. However, generally, federal agencies like the DOJ have consistent needs for facility maintenance, operations, and security. Spending in this area can fluctuate based on infrastructure upgrades, new building acquisitions, or changes in operational requirements. Comparing current spending to previous years can reveal whether costs are increasing, decreasing, or remaining stable, and whether this is due to market forces, contract renegotiations, or changes in service scope. A detailed review would involve examining past contract awards, their values, durations, and the services provided to establish a baseline and identify any significant deviations or patterns.

How does CGI Federal's performance on similar contracts compare to this award?

Assessing CGI Federal's performance on similar contracts provides valuable context for evaluating the current award. A thorough review would involve examining past performance evaluations, contract modifications, and any documented issues or successes on prior facilities support services contracts with government agencies. Key indicators to look for include on-time delivery, adherence to budget, quality of services rendered, and client satisfaction. If CGI Federal has a strong track record of successful contract execution in this domain, it suggests a lower risk profile for this current award. Conversely, a history of performance issues, disputes, or significant cost overruns on comparable contracts would raise concerns about the reliability and value of their services. Without access to specific past performance data for CGI Federal, this assessment remains speculative, but it is a critical area for due diligence in federal contract analysis.

What are the specific services included under this 'Facilities Support Services' contract?

The designation 'Facilities Support Services' is broad and can encompass a wide array of activities essential for the operation and maintenance of government facilities. For this specific contract with CGI Federal for the Department of Justice, the services likely include, but are not limited to, building operations and maintenance (HVAC, electrical, plumbing), janitorial and custodial services, groundskeeping, pest control, waste management, security services (guarding, access control), space management, minor repairs and renovations, and potentially energy management. The exact scope would be detailed in the contract's Statement of Work (SOW). Understanding the precise services is critical for accurately benchmarking costs, assessing performance, and determining the overall value proposition. Without the SOW, the analysis relies on general industry definitions of facilities support.

Are there any potential risks associated with a single-year contract for essential facilities support?

While this contract is for one year, which allows for flexibility, there are potential risks associated with a short duration for essential facilities support services. A primary concern is the potential for service disruption if a new contract is not awarded or finalized in a timely manner before the current one expires. This could lead to a lapse in critical services, impacting the operational efficiency and safety of DOJ facilities. Additionally, short contract durations may disincentivize long-term investments in infrastructure or process improvements by the contractor, as they may not recoup their investment. It can also lead to increased administrative burden and costs associated with frequent re-procurement processes. However, a one-year term also provides an opportunity to re-evaluate needs, performance, and market conditions, potentially leading to better terms or a different contractor in the future.

How does the $173,500 benchmark for Facilities Support Services compare to the contract's implied per-unit cost?

The provided benchmark for Facilities Support Services is $173,500. The contract's obligation amount is $70,166,635.57. To compare, we need to understand what a 'unit' represents in this context. Assuming the benchmark is an annual cost for a standard facility or a defined service package, we can infer a comparison. If we consider the total obligation amount and divide it by the number of days (364), we get a daily cost. However, without knowing the specific definition of a 'unit' for the benchmark, a direct per-unit cost calculation is difficult. The data provided does not explicitly state the number of units or the definition of a unit. If we assume the benchmark represents a comparable scope of services for a similar period, the contract's overall value suggests it is likely performing well relative to this benchmark, especially if the benchmark is an average or ceiling.

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: LABOR HOURS (Z)

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: $63,154,002

Exercised Options: $63,154,002

Current Obligation: $63,154,002

Actual Outlays: $63,179,310

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