DOJ Exercises $76.4M Option Year for CGI Federal Facilities Support, Funding Dependent
Contract Overview
Contract Amount: $67,706,195 ($67.7M)
Contractor: CGI Federal Inc.
Awarding Agency: Department of Justice
Start Date: 2023-10-01
End Date: 2024-09-30
Contract Duration: 365 days
Daily Burn Rate: $185.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: EXERCISE THIRD OPTION YEAR FOR ZERO DOLLAR CONTRACTING OFFICER: FITZGERALD ESCALONA VENDOR NAME: CGI FEDERAL SUPPORT SERVICES Z460016 AMOUNT: $76,363,976.98 SUBJECT TO THE AVAILABILITY OF FY 2024 FUNDING
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033
State: Virginia Government Spending
Plain-Language Summary
Department of Justice obligated $67.7 million to CGI FEDERAL INC. for work described as: EXERCISE THIRD OPTION YEAR FOR ZERO DOLLAR CONTRACTING OFFICER: FITZGERALD ESCALONA VENDOR NAME: CGI FEDERAL SUPPORT SERVICES Z460016 AMOUNT: $76,363,976.98 SUBJECT TO THE AVAILABILITY OF FY 2024 FUNDING Key points: 1. Vendor: CGI Federal Inc. secured a significant contract extension. 2. Contract Type: Firm Fixed Price with a $76.4M value for FY24. 3. Competition: Awarded under Full and Open Competition. 4. Sector: Facilities Support Services (NAICS 561210).
Value Assessment
Rating: fair
The $76.4M option year represents a substantial investment. Benchmarking against similar facilities support contracts is crucial to assess if this pricing is competitive, especially given the zero-dollar initial exercise indicating potential for future funding adjustments.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under Full and Open Competition, suggesting a competitive bidding process. However, the zero-dollar initial exercise and reliance on FY24 funding availability may impact price discovery and long-term cost certainty.
Taxpayer Impact: Taxpayer funds are committed for facilities support services, with the final expenditure contingent on FY24 appropriations. The fixed-price nature provides some cost predictability if funding is secured.
Public Impact
Ensures continuity of essential facilities support services for the Department of Justice. Potential for cost savings if competitive bidding effectively drove down prices. Taxpayer exposure is tied to future budget allocations for FY24. Supports a large federal agency's operational needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Funding Contingency: Contract value is subject to FY24 funding availability.
- Option Year Exercise: Zero-dollar initial exercise raises questions about immediate need or phased funding.
- Vendor Lock-in Risk: Long-term reliance on a single vendor can reduce future competition.
Positive Signals
- Full and Open Competition: Indicates a potentially competitive award process.
- Firm Fixed Price: Provides cost certainty once funding is confirmed.
- Established Vendor: CGI Federal has a track record with government contracts.
Sector Analysis
This contract falls within the Facilities Support Services sector, which includes a wide range of services like building maintenance, cleaning, and security. Spending in this sector is generally stable, driven by the operational needs of government agencies.
Small Business Impact
The data does not indicate any specific set-aside for small businesses. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
The contract's reliance on future funding and the zero-dollar initial exercise warrant close oversight to ensure fiscal responsibility and adherence to procurement regulations.
Related Government Programs
- Facilities Support Services
- Department of Justice Contracting
- Offices, Boards and Divisions Programs
Risk Flags
- Funding Uncertainty
- Potential for Cost Overruns
- Vendor Lock-in
- Lack of Small Business Participation (potential)
- Scope Creep Risk
Tags
facilities-support-services, department-of-justice, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $67.7 million to CGI FEDERAL INC.. EXERCISE THIRD OPTION YEAR FOR ZERO DOLLAR CONTRACTING OFFICER: FITZGERALD ESCALONA VENDOR NAME: CGI FEDERAL SUPPORT SERVICES Z460016 AMOUNT: $76,363,976.98 SUBJECT TO THE AVAILABILITY OF FY 2024 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 $67.7 million.
What is the period of performance?
Start: 2023-10-01. End: 2024-09-30.
What is the historical performance of CGI Federal in providing facilities support services to the DOJ?
Assessing CGI Federal's past performance is critical. Reviewing past contract performance metrics, client feedback, and any documented issues or successes will provide insight into their reliability and effectiveness in delivering facilities support. This historical data helps validate the decision to exercise an option year and informs future procurement strategies.
How does the $76.4M price compare to market rates for similar facilities support services in the region?
A thorough market analysis is needed to benchmark the $76.4M against industry standards for comparable facilities support contracts. This involves comparing scope of work, service levels, and contract duration. Understanding the market rate helps determine if the government is receiving fair value and identifies potential overpricing or cost-saving opportunities.
What are the specific risks associated with the 'availability of FY 2024 funding' clause?
The primary risk is that the contract may be terminated or significantly scaled back if FY24 appropriations are not approved or are insufficient. This creates uncertainty for service delivery and vendor planning. It could also lead to contract renegotiations or a scramble for alternative solutions if funding is ultimately denied, impacting agency operations.
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: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
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: $76,363,977
Exercised Options: $76,363,977
Current Obligation: $67,706,195
Actual Outlays: $67,706,195
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
Start Date: 2023-10-01
Current End Date: 2024-09-30
Potential End Date: 2024-09-30 00:00:00
Last Modified: 2024-12-06
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