DoD's NAVAIR Kitting Operations Support Contract Awarded to CGI Federal for $30.5M

Contract Overview

Contract Amount: $30,524,177 ($30.5M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of Defense

Start Date: 2011-09-07

End Date: 2018-03-04

Contract Duration: 2,370 days

Daily Burn Rate: $12.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST NO FEE

Sector: Defense

Official Description: NAVAIR CENTRAL KITTING ACTIVITY (CKA) OPERATIONS SUPPORT

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $30.5 million to CGI FEDERAL INC. for work described as: NAVAIR CENTRAL KITTING ACTIVITY (CKA) OPERATIONS SUPPORT Key points: 1. Contract awarded to CGI Federal Inc. for engineering services. 2. Significant contract value of $30.5 million over its duration. 3. Full and open competition was utilized for this award. 4. The contract supports NAVAIR Central Kitting Activity operations. 5. This is a delivery order under a larger contract.

Value Assessment

Rating: fair

The contract type is Cost No Fee, which offers limited incentive for cost control. The award value of $30.5M over approximately 6.5 years suggests a moderate annual spend. Benchmarking is difficult without specific service details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. However, as a delivery order, the specific pricing for this order is not detailed.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers by promoting competitive pricing. The total value of $30.5M represents a significant but potentially well-priced investment if competition was effective.

Public Impact

Supports critical Department of Defense aviation logistics and readiness. Ensures efficient kitting operations for naval aircraft components. Impacts the supply chain and maintenance capabilities for naval aviation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost No Fee contract type may limit cost control incentives.
Delivery Order structure makes detailed pricing analysis challenging.
Lack of specific performance metrics makes value assessment difficult.

Positive Signals

Awarded under full and open competition.
Supports essential defense operations.
Long-term contract provides stability for operations.

Sector Analysis

This contract falls under Engineering Services within the Defense sector. Spending in this area is crucial for maintaining military readiness and technological superiority. Benchmarks for similar operations support contracts vary widely based on scope and complexity.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as the 'sb' field is false. Further analysis would be needed to determine if small business subcontracting opportunities were included or pursued.

Oversight & Accountability

The contract is managed by the Defense Contract Management Agency (DCMA), suggesting established oversight mechanisms. However, the 'Cost No Fee' structure warrants careful monitoring to ensure efficient resource utilization.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Potential for cost creep due to 'Cost No Fee' structure.
Limited transparency on specific service deliverables and performance metrics.
Reliance on a single contractor (CGI Federal) for a significant operational support function.
Lack of small business participation noted in the award data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.5 million to CGI FEDERAL INC.. NAVAIR CENTRAL KITTING ACTIVITY (CKA) OPERATIONS SUPPORT

Who is the contractor on this award?

The obligated recipient is CGI FEDERAL INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $30.5 million.

What is the period of performance?

Start: 2011-09-07. End: 2018-03-04.

What specific engineering services are provided under this contract, and how do they contribute to NAVAIR's mission effectiveness?

The contract supports the NAVAIR Central Kitting Activity (CKA) operations. This likely involves the provision of engineering expertise related to the kitting, packaging, and logistics of aircraft parts and components. These services are crucial for ensuring that the right parts are available in the correct configurations for aircraft maintenance and repair, thereby directly contributing to naval aviation readiness and operational effectiveness.

Given the 'Cost No Fee' structure, what mechanisms are in place to ensure cost control and prevent potential overruns?

A 'Cost No Fee' contract typically means the contractor is reimbursed for allowable costs but receives no fee or profit. While this can reduce contractor risk, it may also lessen their incentive for aggressive cost control. Oversight from the Defense Contract Management Agency (DCMA) is critical. They would monitor costs, ensure compliance with contract terms, and verify the necessity and reasonableness of expenditures to mitigate potential overruns.

How does the utilization of full and open competition for this delivery order ensure optimal value for taxpayer dollars?

Full and open competition is designed to maximize the number of potential bidders, thereby fostering a competitive environment that drives down prices and encourages innovation. For this delivery order, it suggests that multiple qualified contractors had the opportunity to bid, leading to a price that is likely more favorable to the government than a sole-source or limited competition award. This process enhances the likelihood of achieving good value for the $30.5 million investment.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002410R3204

Offers Received: 2

Pricing Type: COST NO FEE (S)

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: $31,746,821

Exercised Options: $31,746,821

Current Obligation: $30,524,177

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4128

IDV Type: IDC

Timeline