DOJ's $65.5M Mail & Warehouse Management Contract Awarded to CGI Federal Inc

Contract Overview

Contract Amount: $65,466,562 ($65.5M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of Justice

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $179.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: GSS DCN16 MAIL AND WAREHOUSE MGMT - GEN SUPPORT SERVICES - OP4

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $65.5 million to CGI FEDERAL INC. for work described as: GSS DCN16 MAIL AND WAREHOUSE MGMT - GEN SUPPORT SERVICES - OP4 Key points: 1. Contract value of $65.5M over 1 year. 2. CGI Federal Inc. is the sole awardee. 3. Potential risk associated with a single vendor for essential services. 4. Facilities Support Services sector, NAICS 561210.

Value Assessment

Rating: fair

The contract value of $65.5M for a 1-year period appears high for facilities support services. Benchmarking against similar contracts for mail and warehouse management is needed to assess pricing reasonableness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the specific award mechanism (Delivery Order) and the single awardee warrant further scrutiny regarding price discovery.

Taxpayer Impact: Taxpayer funds are being utilized for essential mail and warehouse management services. Ensuring competitive pricing through robust oversight is crucial for maximizing value.

Public Impact

Ensures continuity of essential mail and warehouse operations for the Department of Justice. Supports administrative functions across various DOJ offices and divisions. Potential impact on service delivery if vendor performance falters.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Facilities Support Services sector, which includes a wide range of services necessary for the operation of buildings and grounds. Spending in this sector can vary significantly based on the scope and duration of services required.

Small Business Impact

There is no indication of small business participation in this contract, which is a missed opportunity to support small business growth and potentially introduce innovative solutions.

Oversight & Accountability

Oversight will be critical to ensure CGI Federal Inc. meets performance expectations and that the Time and Materials pricing is managed effectively to prevent cost overruns.

Related Government Programs

Risk Flags

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 $65.5 million to CGI FEDERAL INC.. GSS DCN16 MAIL AND WAREHOUSE MGMT - GEN SUPPORT SERVICES - OP4

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 $65.5 million.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What is the specific breakdown of services included in this mail and warehouse management contract, and how does the $65.5M value align with industry benchmarks for similar scope and duration?

The contract encompasses general support services for mail and warehouse management. A detailed service breakdown is necessary to accurately benchmark the $65.5M value. Without this, it's difficult to ascertain if the pricing is competitive or inflated compared to industry standards for similar facilities support contracts.

Given the Time and Materials pricing structure, what mechanisms are in place to mitigate the risk of cost overruns and ensure efficient service delivery by CGI Federal Inc.?

The Time and Materials (T&M) pricing structure inherently carries a risk of cost escalation. Robust oversight, including detailed tracking of labor hours and material costs, along with clearly defined ceiling prices and performance metrics, are essential to mitigate these risks and ensure the government receives value for its expenditure.

How effectively does this contract contribute to the Department of Justice's mission, and are there alternative solutions that could offer better value or performance?

This contract supports the DOJ's operational efficiency by ensuring smooth mail and warehouse management. However, the lack of small business involvement and the T&M pricing raise questions about optimal value. Exploring performance-based contracts or involving small businesses could potentially enhance effectiveness and cost-efficiency.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesFacilities Support ServicesFacilities 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: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Timken Company

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: $75,418,469

Exercised Options: $75,418,469

Current Obligation: $65,466,562

Actual Outlays: $65,466,562

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: 2024-10-01

Current End Date: 2025-09-30

Potential End Date: 2025-09-30 00:00:00

Last Modified: 2026-03-24

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