State Department awards $39.6M contract for IT systems design to Guidehouse LLP, with 5 years of performance

Contract Overview

Contract Amount: $39,589,703 ($39.6M)

Contractor: Guidehouse LLP

Awarding Agency: Department of State

Start Date: 2021-09-15

End Date: 2026-09-14

Contract Duration: 1,825 days

Daily Burn Rate: $21.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: OPERATIONS AND MAINTENANCE

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $39.6 million to GUIDEHOUSE LLP for work described as: OPERATIONS AND MAINTENANCE Key points: 1. Contract value appears reasonable for a 5-year IT systems design and support engagement. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Potential risks include contractor performance over the long duration and evolving technology needs. 4. This contract supports essential IT operations and maintenance for the Department of State. 5. The IT services sector is characterized by rapid innovation and a need for specialized expertise.

Value Assessment

Rating: good

The contract value of approximately $39.6 million over five years for computer systems design services appears to be within a reasonable range for a federal agency of the Department of State's size and complexity. Benchmarking against similar contracts for IT systems design and support services would provide a more precise assessment of value for money. However, given the duration and scope, the annual value is not excessively high.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This typically leads to a more robust selection of qualified contractors and potentially better pricing due to market forces. The number of bidders is not specified, but the method of competition suggests a healthy level of interest from the market.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received.

Public Impact

The Department of State benefits through the provision of essential IT systems design and maintenance services. This contract ensures the continued operation and potential enhancement of critical IT infrastructure. The services delivered are likely to impact the agency's ability to conduct foreign affairs and manage its global operations. Workforce implications may include the need for specialized IT personnel within Guidehouse LLP and potentially within the Department of State for oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the long contract duration and evolving IT needs.
Dependence on a single contractor for critical IT systems design could pose a risk if performance falters.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
Contractor has a track record with federal agencies, implying some level of established capability.
Clear performance period (5 years) allows for consistent service delivery.

Sector Analysis

The IT services sector is a large and dynamic market within the federal government, encompassing a wide range of needs from software development to cybersecurity and systems integration. Contracts for computer systems design services, like this one, are crucial for agencies to maintain and modernize their technological infrastructure. Spending in this category is consistently high across various federal agencies, reflecting the increasing reliance on digital systems for operations.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not provided in the data. As the contract was awarded under full and open competition, it does not appear to have been specifically set aside for small businesses. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of State. Accountability measures are usually embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

IT Systems Modernization Programs
Computer Systems Design Services
Information Technology Support Contracts
Department of State IT Infrastructure

Risk Flags

Long contract duration may lead to technology obsolescence.
Performance monitoring is critical for a 5-year service contract.
Potential for vendor lock-in if not managed carefully.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $39.6 million to GUIDEHOUSE LLP. OPERATIONS AND MAINTENANCE

Who is the contractor on this award?

The obligated recipient is GUIDEHOUSE LLP.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $39.6 million.

What is the period of performance?

Start: 2021-09-15. End: 2026-09-14.

What is Guidehouse LLP's past performance record with the Department of State and other federal agencies for similar IT services?

Guidehouse LLP has a history of performing IT services for various federal agencies, including the Department of State. Their past performance record would be assessed during the source selection process for this contract. Agencies typically review past performance evaluations, contract history, and client references to gauge a contractor's reliability, technical capability, and management effectiveness. A review of federal procurement data would likely reveal other contracts awarded to Guidehouse for IT systems design, implementation, and support, providing a basis for understanding their experience and success rates in delivering similar services.

How does the awarded contract value compare to the average cost for similar IT systems design services in the federal market?

The awarded contract value of approximately $39.6 million over five years translates to an average annual value of roughly $7.9 million. To benchmark this effectively, one would compare it against the average contract values for 'Computer Systems Design Services' (NAICS code 541512) awarded by agencies of similar size and mission to the Department of State. Factors such as the specific technical requirements, labor categories, geographic locations, and contract type (Time and Materials in this case) influence pricing. Without specific market data on comparable contracts, it's challenging to definitively state if this represents a premium or a discount, but the full and open competition suggests market forces were at play.

What are the primary risks associated with a five-year contract for IT systems design and maintenance?

The primary risks associated with a five-year IT systems design and maintenance contract include technological obsolescence, where the systems designed may become outdated before the contract ends; scope creep, where requirements expand beyond the original agreement, potentially increasing costs and timelines; contractor performance issues, where the awarded vendor may fail to meet performance standards; and security vulnerabilities, as IT systems are constant targets for cyber threats. Additionally, long-term dependence on a single vendor can reduce flexibility and bargaining power for future procurements. Effective risk mitigation strategies, including robust contract management, regular performance reviews, and clear change control processes, are crucial.

How effective are the current IT systems at the Department of State, and how will this contract contribute to their improvement?

The effectiveness of the Department of State's current IT systems is not detailed in the provided data. However, this contract for 'Computer Systems Design Services' implies a need for ongoing support, potential upgrades, or the development of new systems to maintain or enhance operational capabilities. The services procured are intended to ensure that the IT infrastructure remains functional, secure, and capable of supporting the agency's mission. The specific contributions to improvement would depend on the tasks outlined in the delivery order, which could range from system architecture design to implementation of new software or hardware solutions.

What has been the historical spending trend for IT systems design services at the Department of State over the past five years?

Historical spending trends for IT systems design services at the Department of State over the past five years are not provided in the data. To ascertain this, one would need to analyze federal procurement databases (like USASpending.gov) for contracts awarded under NAICS code 541512 or similar categories to the Department of State. This analysis would reveal the total amount spent annually on such services, identify major contractors, and show any fluctuations or growth in spending, which could indicate increasing reliance on IT or modernization efforts.

What specific IT systems or platforms does this contract focus on supporting or designing?

The provided data specifies the contract is for 'Computer Systems Design Services' (NAICS 541512) awarded to Guidehouse LLP by the Department of State. However, it does not detail the specific IT systems, platforms, or applications that this contract will focus on supporting or designing. This level of detail would typically be found within the Statement of Work (SOW) or the specific delivery order issued under the contract. These services could encompass a broad range of IT functions, from network infrastructure design to application development or database management.

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: NEGOTIATED PROPOSAL/QUOTE

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, MC LEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $47,446,445

Exercised Options: $47,086,908

Current Obligation: $39,589,703

Actual Outlays: $11,630,704

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM20D0026

IDV Type: IDC

Timeline