DOJ's Mail Management Support Services contract awarded to CGI Federal Inc. for over $37.6 million

Contract Overview

Contract Amount: $37,674,876 ($37.7M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of Justice

Start Date: 2016-10-01

End Date: 2017-09-30

Contract Duration: 364 days

Daily Burn Rate: $103.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: IGF::OT::IGF MAIL MANAGEMENT, WAREHOUSING, AND RELATED (MMW&R) SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20530

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $37.7 million to CGI FEDERAL INC. for work described as: IGF::OT::IGF MAIL MANAGEMENT, WAREHOUSING, AND RELATED (MMW&R) SUPPORT SERVICES Key points: 1. The contract value represents a significant investment in essential mail management and warehousing operations. 2. Competition dynamics for this contract are crucial for ensuring cost-effectiveness and service quality. 3. Performance metrics and contractor track record are key indicators of value for money. 4. The duration of the contract and delivery order structure provide insights into operational continuity. 5. This contract falls within the broader Facilities Support Services sector, highlighting its operational importance.

Value Assessment

Rating: fair

The total award of $37.6 million over one year for mail management, warehousing, and related support services appears substantial. Benchmarking against similar contracts for facilities support services is necessary to determine if this represents good value. Without specific performance metrics or a breakdown of services, a precise value-for-money assessment is challenging. The contract type (labor hours) can sometimes lead to cost overruns if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders likely participated. This competitive process is generally expected to drive down prices and encourage innovation. The number of bidders and the specific evaluation criteria would provide further insight into the effectiveness of the competition in securing the best possible terms for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it promotes a competitive environment, potentially leading to lower costs and higher quality services compared to sole-source or limited competition awards.

Public Impact

The Department of Justice benefits from efficient and reliable mail management and warehousing operations. Essential services supporting the internal functions of various DOJ offices, boards, and divisions are delivered. The primary geographic impact is within the District of Columbia, where the services are likely performed. The contract supports jobs within the facilities support and logistics sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep due to labor hour contract type if not closely monitored.
Ensuring consistent service quality across all mail management and warehousing functions.
Dependence on a single contractor for critical operational support.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Clear definition of services (mail management, warehousing) indicates focused scope.
Contract duration provides a period for stable service delivery.

Sector Analysis

This contract falls under the Facilities Support Services industry, a broad sector encompassing a range of services that enable the functioning of commercial and government facilities. The North American Industry Classification System (NAICS) code 561210, Facilities Support Services, covers establishments primarily engaged in operating and maintaining buildings with associated utilities for others. Spending in this sector is driven by the need for efficient operations, security, and maintenance of government infrastructure.

Small Business Impact

There is no indication that this contract included small business set-asides, nor is there information on subcontracting plans. The award to CGI Federal Inc., a large business, suggests that small businesses may not have been primary participants in the direct award. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program officials within the Department of Justice. Performance monitoring, invoice review, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract award databases, though detailed performance reports may not always be publicly accessible.

Related Government Programs

General Services Administration (GSA) Federal Supply Schedule contracts for logistics and administrative support.
Department of Defense mail and logistics support contracts.
Other federal agency contracts for facilities management and operational support.

Risk Flags

Potential for cost overruns due to labor hour contract type.
Dependence on contractor for critical operational support.
Ensuring consistent service quality and performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $37.7 million to CGI FEDERAL INC.. IGF::OT::IGF MAIL MANAGEMENT, WAREHOUSING, AND RELATED (MMW&R) 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 Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $37.7 million.

What is the period of performance?

Start: 2016-10-01. End: 2017-09-30.

What is the historical spending pattern for mail management and warehousing support services at the Department of Justice?

Analyzing historical spending for similar services at the Department of Justice would provide context for the $37.6 million award. This includes examining previous contract values, durations, and awarded contractors for mail management, warehousing, and related support. Understanding trends in spending, such as increases or decreases over time, can indicate shifts in operational needs or budget allocations. For instance, if previous contracts were significantly smaller, this award might represent an expansion of services or an increase in costs. Conversely, if spending has been consistently high, this award aligns with established operational requirements. Data on prior contract performance and competition levels would also inform whether past investments yielded satisfactory results and value for taxpayer dollars.

How does the cost per unit for mail handling services under this contract compare to industry benchmarks?

Determining the cost per unit for mail handling services under this contract requires a breakdown of the services provided and their associated costs, which is not fully detailed in the provided data. Typically, this would involve analyzing metrics such as cost per piece of mail processed, cost per package handled, or cost per square foot of warehousing space utilized. Benchmarking these figures against industry standards for similar government or commercial contracts would reveal whether CGI Federal Inc.'s pricing is competitive. If specific unit costs are available, they can be compared to data from organizations like the National Postal Forum or industry consulting firms. A higher-than-average cost per unit, without a clear justification (e.g., specialized handling, security requirements), could indicate potential value-for-money concerns.

What is CGI Federal Inc.'s track record with similar government contracts, particularly in facilities support and logistics?

CGI Federal Inc. has a significant track record of performing various IT and professional services contracts for the federal government. For contracts specifically related to facilities support, mail management, and warehousing, a review of their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) would be essential. Examining the size, duration, and complexity of previous similar contracts awarded to CGI Federal would provide insight into their capabilities and reliability. Positive performance indicators would include consistent on-time delivery, adherence to budget, effective management of resources, and high customer satisfaction ratings. Conversely, any history of performance issues, contract disputes, or significant cost overruns on comparable contracts would raise concerns about their suitability for this role.

What are the key performance indicators (KPIs) used to measure the success of this mail management and warehousing contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for mail management and warehousing services, typical KPIs would likely include metrics such as mail processing accuracy, on-time delivery rates for outgoing mail, package handling efficiency, inventory accuracy for warehousing, response times for service requests, and overall cost efficiency. The Department of Justice would establish these KPIs in the contract's Performance Work Statement (PWS) to ensure that CGI Federal Inc. meets defined service levels. Regular performance reviews and reporting against these KPIs are crucial for assessing the contractor's effectiveness and ensuring the government receives the expected value for its investment.

Are there any identified risks associated with the contractor's performance or the nature of the services provided?

Potential risks associated with this contract include operational disruptions if mail management or warehousing services are not performed reliably, leading to delays in critical government functions. Given the labor-hour contract type, there is a risk of cost overruns if work hours are not managed efficiently or if the scope of work expands unexpectedly. Contractor performance risk also exists, where the quality of service may not meet expectations, requiring corrective actions or potential re-competition. Furthermore, reliance on a single contractor for essential support services introduces a dependency risk. Security risks related to handling sensitive mail and managing warehouse inventory also need to be considered and mitigated through appropriate security protocols.

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 Technologies and Solutions Inc. (UEI: 209664408)

Address: 12601 FAIR LAKES CIR, FAIRFAX, VA, 22033

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,674,876

Exercised Options: $37,674,876

Current Obligation: $37,674,876

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DJJ10C1978

IDV Type: IDC

Timeline