Interior Department Awards $403M for Grants Management IT Support to Guidehouse Inc

Contract Overview

Contract Amount: $403,074,000 ($403.1M)

Contractor: Guidehouse Inc.

Awarding Agency: Department of the Interior

Start Date: 2023-09-17

End Date: 2026-12-31

Contract Duration: 1,201 days

Daily Burn Rate: $335.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: THE PURPOSE OF THIS REQUIREMENT FOR GRANTS PROGRAM SOLUTIONS AND IT SUPPORT SERVICES IS TO PROVIDE EFFICIENT AND EFFECTIVE GRANT, FINANCIAL, AND CONTRACT MANAGEMENT SERVICES, IT SOLUTIONS, AND SUPPORT TO THE GRANTSOLUTIONS AND ITS PARTNERS.

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of the Interior obligated $403.1 million to GUIDEHOUSE INC. for work described as: THE PURPOSE OF THIS REQUIREMENT FOR GRANTS PROGRAM SOLUTIONS AND IT SUPPORT SERVICES IS TO PROVIDE EFFICIENT AND EFFECTIVE GRANT, FINANCIAL, AND CONTRACT MANAGEMENT SERVICES, IT SOLUTIONS, AND SUPPORT TO THE GRANTSOLUTIONS AND ITS PARTNERS. Key points: 1. Significant contract value of $403 million for IT support and grant management. 2. Competition was full and open, suggesting a competitive bidding process. 3. Risk is moderate, given the long duration and IT service nature. 4. Sector is IT services, specifically computer systems design.

Value Assessment

Rating: good

The contract value of $403 million over approximately 3 years appears reasonable for comprehensive IT support and grant management services. Benchmarking against similar large-scale IT service contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely drove down costs compared to a sole-source or limited competition scenario.

Public Impact

Ensures efficient grant, financial, and contract management for the Department of the Interior. Provides critical IT solutions and support to Grantsolv and its partners. Supports federal agencies in their grant-making processes, impacting various programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (1201 days) increases risk of scope creep or vendor lock-in.
Time and Materials pricing could lead to cost overruns if not managed closely.
Reliance on a single vendor for critical IT and grant management functions.

Positive Signals

Full and open competition suggests a robust procurement process.
Contract supports essential government functions related to grants and finance.
Experienced contractor (Guidehouse Inc.) likely brings valuable expertise.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Spending in this area is substantial across government, supporting modernization and operational efficiency. Benchmarks for similar large-scale IT support contracts are typically in the hundreds of millions.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses were likely not primary awardees, though they may participate as subcontractors.

Oversight & Accountability

Oversight will be crucial to manage the Time and Materials pricing structure and ensure the contractor delivers on all IT support and grant management requirements effectively throughout the contract's duration.

Related Government Programs

Computer Systems Design Services
Department of the Interior Contracting
Departmental Offices Programs

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Risk of vendor lock-in given the long contract duration.
Dependency on a single vendor for critical operational functions.
Need for strong contract management and oversight to ensure performance.
Potential impact on grant recipients if services are disrupted.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $403.1 million to GUIDEHOUSE INC.. THE PURPOSE OF THIS REQUIREMENT FOR GRANTS PROGRAM SOLUTIONS AND IT SUPPORT SERVICES IS TO PROVIDE EFFICIENT AND EFFECTIVE GRANT, FINANCIAL, AND CONTRACT MANAGEMENT SERVICES, IT SOLUTIONS, AND SUPPORT TO THE GRANTSOLUTIONS AND ITS PARTNERS.

Who is the contractor on this award?

The obligated recipient is GUIDEHOUSE INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $403.1 million.

What is the period of performance?

Start: 2023-09-17. End: 2026-12-31.

How will the Department of the Interior ensure cost control with a Time and Materials contract of this magnitude and duration?

Effective oversight, detailed performance metrics, and regular reviews will be essential. The agency should implement strict controls on labor hours and rates, conduct thorough audits, and ensure clear deliverables are met before approving payments. Proactive communication with the contractor to manage scope and identify potential inefficiencies early is also key.

What are the potential risks if Guidehouse Inc. underperforms in providing these critical IT and grant management services?

Underperformance could lead to significant disruptions in grant processing, financial management, and contract administration within the Department of the Interior and its partners. This could result in delayed funding for grant recipients, financial inaccuracies, and reputational damage. The long duration means any performance issues could have prolonged negative impacts.

Does the competitive award ensure the best value beyond just price for these complex IT and grant management solutions?

Full and open competition generally favors best value by allowing multiple vendors to compete on technical approach, past performance, and price. However, the agency must have robust evaluation criteria to ensure the selected solution truly meets the complex needs of grant management and IT support, not just the lowest price.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140D0423R0039

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Veritas Capital Fund Management, L.L.C.

Address: 1676 INTERNATIONAL DR STE 800, MCLEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $948,923,919

Exercised Options: $563,143,029

Current Obligation: $403,074,000

Actual Outlays: $304,343,981

Subaward Activity

Number of Subawards: 32

Total Subaward Amount: $95,795,951

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSN316201200040W

IDV Type: GWAC

Timeline