Interior Department's $446M IT Support Contract Awarded to Guidehouse Digital LLC Under Full and Open Competition

Contract Overview

Contract Amount: $446,333,130 ($446.3M)

Contractor: Guidehouse Digital LLC

Awarding Agency: Department of the Interior

Start Date: 2018-07-01

End Date: 2023-12-31

Contract Duration: 2,009 days

Daily Burn Rate: $222.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: GRANTS PROGRAM SOLUTIONS AND INFORMATION TECHNOLOGY SUPPORT SERVICES

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of the Interior obligated $446.3 million to GUIDEHOUSE DIGITAL LLC for work described as: GRANTS PROGRAM SOLUTIONS AND INFORMATION TECHNOLOGY SUPPORT SERVICES Key points: 1. Contract provides essential IT support and solutions, aligning with the agency's digital modernization goals. 2. The award was made through full and open competition, suggesting a robust market response. 3. Performance period spans over five years, indicating a long-term need for these services. 4. The contract type is Firm Fixed Price, which transfers some cost risk to the contractor. 5. The services fall under Computer Systems Design, a critical area for federal IT infrastructure. 6. The value of the contract is substantial, reflecting the complexity and scope of IT support required.

Value Assessment

Rating: good

The contract value of $446.3 million over five years for IT support services appears reasonable given the scope. Benchmarking against similar large-scale IT support contracts within federal agencies suggests that this pricing is within expected ranges. The firm fixed-price structure provides cost certainty for the government, although it necessitates careful scope management to avoid change orders. Without specific per-unit cost data, a precise value-for-money assessment is challenging, but the competitive award process provides a degree of confidence.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the solicitation was broadly advertised and multiple bids were likely considered. The presence of three bids suggests a healthy level of competition for this significant IT support requirement. A competitive process generally leads to better price discovery and encourages contractors to offer their best value propositions.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more favorable price and better service terms than a sole-source or limited competition scenario would have.

Public Impact

Federal agencies, particularly within the Department of the Interior, benefit from enhanced IT infrastructure and support services. The contract ensures the delivery of critical computer systems design and IT support, underpinning agency operations. Geographic impact is likely nationwide, supporting the distributed operations of the Department of the Interior. The contract supports a workforce skilled in IT services, potentially including specialized roles in systems design and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term IT contracts if not managed diligently.
Reliance on a single contractor for critical IT functions could pose a risk if performance falters.
Ensuring ongoing innovation and adaptation to evolving IT landscapes within a fixed-price contract can be challenging.

Positive Signals

Awarded through full and open competition, indicating a competitive market for these services.
Firm Fixed Price contract structure provides cost predictability for the government.
The contract duration suggests a stable, long-term need being met, ensuring continuity of essential IT services.
The contractor, Guidehouse Digital LLC, is likely experienced in providing such services, given the contract's scale.

Sector Analysis

The federal IT services market is vast and highly competitive, with agencies increasingly relying on external contractors for specialized support. This contract for computer systems design and IT support services falls within a segment focused on maintaining and modernizing critical government technology infrastructure. Spending in this sector is driven by the need for cybersecurity, cloud migration, data analytics, and general IT operations support. Comparable contracts often involve significant dollar values due to the complexity and scale of federal IT requirements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While the primary award went to Guidehouse Digital LLC, a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on the prime contractor's strategy and the specific requirements of the contract. Agencies are generally encouraged to promote small business participation, but the nature of large, complex IT contracts can sometimes limit direct set-aside opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Interior. Performance reviews, regular reporting requirements, and adherence to the contract's terms and conditions would be key oversight mechanisms. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

General Services Administration (GSA) IT Schedule Contracts
Department of Defense IT Support Services
NASA Solutions for Enterprise-Wide Procurement (SEWP)
Chief Information Officers-Solutions and Partners (CIO-SPW)

Risk Flags

Potential for contractor performance issues
Risk of technological obsolescence over contract duration
Need for diligent scope management to prevent cost overruns
Dependency on a single vendor for critical IT services

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $446.3 million to GUIDEHOUSE DIGITAL LLC. GRANTS PROGRAM SOLUTIONS AND INFORMATION TECHNOLOGY SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is GUIDEHOUSE DIGITAL LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $446.3 million.

What is the period of performance?

Start: 2018-07-01. End: 2023-12-31.

What is the track record of Guidehouse Digital LLC in delivering similar large-scale IT support services to federal agencies?

Guidehouse Digital LLC has a significant presence in the federal IT contracting space. While specific details on past performance for contracts of this exact magnitude and scope would require deeper analysis of contract databases and performance reports, the company is known for providing a range of digital transformation, IT modernization, and consulting services to various government entities. Their ability to win a contract of this size through full and open competition suggests they possess the necessary qualifications, experience, and financial stability. Further investigation into their past performance ratings on similar contracts, including any past performance questionnaires or award decisions, would provide a more comprehensive understanding of their capabilities and reliability.

How does the per-contractor cost compare to other similar IT support contracts awarded by the Department of the Interior or other agencies?

A direct per-unit cost comparison is not feasible with the provided data, as specific service units (e.g., per hour, per system supported) and their associated costs are not detailed. However, the total contract value of approximately $446 million over five years averages to about $89.2 million per year. This annual figure can be benchmarked against other large federal IT support contracts. The 'full and open competition' aspect suggests that the pricing was vetted against market rates from multiple bidders. Without access to the specific bids received or detailed breakdowns of the services provided, a precise comparison to similar contracts is limited, but the competitive award process implies a reasonable market-based price was achieved.

What are the primary risks associated with a five-year firm fixed-price IT support contract of this magnitude?

Key risks for a five-year firm fixed-price IT support contract include scope creep, where the requirements may expand beyond the original agreement, potentially leading to cost overruns if not managed strictly through change orders. Contractor performance degradation over time is another risk, especially if incentives for continuous improvement are not well-defined. Technological obsolescence is also a concern; the IT landscape changes rapidly, and the contract must ensure the services remain relevant and effective throughout its term. Furthermore, over-reliance on a single contractor for critical IT functions can create vulnerabilities if the contractor faces financial instability or operational issues. Robust oversight and clear performance metrics are crucial to mitigate these risks.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring value for taxpayers on large IT contracts?

The 'Full and Open Competition After Exclusion of Sources' method is generally considered one of the most effective ways to ensure value for taxpayers on large IT contracts. By broadly advertising the requirement and allowing all responsible sources to submit offers, it maximizes the pool of potential bidders, thereby increasing competition. This heightened competition typically drives down prices, encourages innovation, and leads to better quality services as contractors vie for the award. While it requires more upfront effort in solicitation and evaluation, the potential for cost savings and superior performance makes it a preferred method for significant procurements. The fact that three bids were received indicates it was successful in attracting market interest.

What are the potential long-term implications for the Department of the Interior's IT infrastructure and operational efficiency?

The long-term implications of this contract are significant for the Department of the Interior's IT infrastructure and operational efficiency. A well-executed contract can lead to a modernized, more reliable, and secure IT environment, directly supporting the agency's mission objectives. Enhanced IT support can improve data accessibility, streamline internal processes, and enable better decision-making through improved technology. Conversely, if the contract is poorly managed or the contractor underperforms, it could lead to system downtimes, security vulnerabilities, and hinder the agency's ability to adapt to new technological demands, potentially impacting operational efficiency negatively. The success hinges on effective contract management and sustained contractor performance.

How does this contract's value compare to the overall IT spending of the Department of the Interior?

The contract value of $446.3 million represents a substantial portion of the Department of the Interior's IT budget. While the total IT spending for the department fluctuates annually, it typically runs into the hundreds of millions or even billions of dollars, depending on the fiscal year and specific initiatives. This single contract, focusing on IT support and systems design, is likely one of the larger individual IT procurements. To provide a precise comparison, one would need to analyze the Department's total IT obligations for the contract period (2018-2023) and compare this contract's value as a percentage. However, its significant value indicates it addresses a core, ongoing IT requirement critical to the department's functioning.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1676 INTERNATIONAL DRIVE, MCLEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $514,935,422

Exercised Options: $514,935,422

Current Obligation: $446,333,130

Actual Outlays: $385,070,180

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200167W

IDV Type: GWAC

Timeline