Guidehouse Digital LLC awarded $32.4M for enterprise identity credentialing services by GSA

Contract Overview

Contract Amount: $32,443,192 ($32.4M)

Contractor: Guidehouse Digital LLC

Awarding Agency: General Services Administration

Start Date: 2022-09-27

End Date: 2026-09-26

Contract Duration: 1,460 days

Daily Burn Rate: $22.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IDENTITY CREDENTIAL ENTERPRISE SOLUTIONS SERVICES ICES2

Place of Performance

Location: SEASIDE, MONTEREY County, CALIFORNIA, 93955

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $32.4 million to GUIDEHOUSE DIGITAL LLC for work described as: IDENTITY CREDENTIAL ENTERPRISE SOLUTIONS SERVICES ICES2 Key points: 1. Contract value appears reasonable given the 4-year duration and scope of enterprise identity solutions. 2. Full and open competition suggests a healthy market for these services, potentially leading to competitive pricing. 3. The contract type (Time and Materials) carries inherent risk of cost overruns if not closely managed. 4. This contract supports critical federal IT infrastructure related to identity and access management. 5. The award falls within the broad category of IT professional services, a significant area of federal spending.

Value Assessment

Rating: good

The total contract value of $32.4 million over four years averages to $8.1 million annually. This figure seems within a reasonable range for enterprise-level identity credentialing solutions, which are complex and require specialized expertise. Benchmarking against similar large-scale IT service contracts for identity management suggests this pricing is competitive, especially considering it was awarded under full and open competition. The Time and Materials pricing model, however, necessitates diligent oversight to ensure costs remain aligned with the value delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple vendors were eligible to bid. The presence of 4 bidders suggests a reasonably competitive environment for this type of service. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government. The fact that Guidehouse Digital LLC was selected implies they offered the best value proposition among the competing firms.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it fosters a competitive marketplace, driving down prices and encouraging innovation among contractors. This ensures that government funds are used efficiently and effectively.

Public Impact

Federal employees and authorized personnel will benefit from secure and streamlined identity credentialing. The services delivered will enhance the security posture of federal systems by ensuring only authorized individuals gain access. The contract's geographic impact is nationwide, supporting federal agencies across the United States. This contract supports a specialized segment of the IT workforce focused on cybersecurity and identity management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not managed effectively.
Scope creep could increase costs beyond the initial $32.4 million estimate.
Reliance on a single vendor for critical identity solutions may pose a long-term risk if not properly managed.

Positive Signals

Awarded under full and open competition, indicating a competitive process.
The contract duration of 4 years provides stability for service delivery.
The contractor, Guidehouse Digital LLC, likely possesses specialized expertise in identity credentialing.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design and related services. The market for identity and access management (IAM) solutions is substantial and growing, driven by increasing cybersecurity threats and the need for robust digital security. Federal spending in this area is significant as agencies modernize their IT infrastructure and comply with security mandates. Comparable spending benchmarks for enterprise IAM solutions can vary widely based on scope, but contracts in the tens of millions of dollars are common for large federal agencies.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to Guidehouse Digital LLC, a presumably larger entity, suggests that the primary focus was on technical capability and overall value rather than small business participation. This could mean limited direct opportunities for small businesses on this specific contract, though they may participate indirectly through the supply chain.

Oversight & Accountability

Oversight for this contract will likely be managed by the General Services Administration (GSA) through its Federal Acquisition Service. The Time and Materials (T&M) pricing structure necessitates close monitoring of labor hours and material costs to prevent overspending. Performance metrics and regular reporting from Guidehouse Digital LLC will be crucial for accountability. Transparency is generally maintained through federal procurement databases, but detailed operational oversight rests with the contracting officer and their team.

Related Government Programs

Federal Identity, Credential, and Access Management (FICAM)
Cybersecurity Services
IT Professional Services
Enterprise IT Solutions

Risk Flags

Time and Materials contract type carries inherent cost overrun risk.
Potential for scope creep without stringent management.
Dependence on contractor performance for critical identity services.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $32.4 million to GUIDEHOUSE DIGITAL LLC. IDENTITY CREDENTIAL ENTERPRISE SOLUTIONS SERVICES ICES2

Who is the contractor on this award?

The obligated recipient is GUIDEHOUSE DIGITAL LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $32.4 million.

What is the period of performance?

Start: 2022-09-27. End: 2026-09-26.

What is Guidehouse Digital LLC's track record with similar federal contracts, particularly in identity management?

Guidehouse Digital LLC has a notable presence in the federal contracting space, often involved in IT modernization, digital transformation, and cybersecurity initiatives. While specific details on their past identity management contracts require deeper database searches, their general portfolio suggests experience with complex IT solutions for government agencies. Their ability to win a full and open competition award for enterprise identity credentialing services from GSA indicates a level of demonstrated capability and past performance that met stringent government requirements. Further analysis would involve examining their contract history for similar scope, value, and agency clients to fully assess their expertise in this niche.

How does the $32.4 million contract value compare to other federal spending on identity credentialing services?

The $32.4 million contract value for Guidehouse Digital LLC's enterprise identity credentialing services over four years represents an average annual spend of $8.1 million. This figure is substantial but falls within the expected range for large-scale federal IT projects focused on identity management. Federal spending on identity solutions can vary significantly, with some contracts reaching hundreds of millions of dollars for comprehensive agency-wide implementations or national security programs. However, for a specific service delivery order under a broader IDIQ or a focused enterprise solution, $8.1 million annually is a significant investment, suggesting a critical need and broad application within the supported agency or agencies.

What are the primary risks associated with the Time and Materials (T&M) contract type for this service?

The primary risk with a Time and Materials (T&M) contract type for enterprise identity credentialing services is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours and materials used, plus a fixed fee or profit. If the project scope is not tightly defined, or if project management is weak, the contractor could incur more hours or use more resources than initially anticipated, driving up the total cost beyond the government's budget. This necessitates robust oversight from the government to monitor labor hours, resource utilization, and ensure that work performed is efficient and directly contributes to the contract's objectives. Without diligent management, T&M contracts can become significantly more expensive than initially projected.

How effective is the Federal Acquisition Service (FAS) in managing IT service contracts of this nature?

The General Services Administration's Federal Acquisition Service (FAS) is a primary channel for procuring a wide range of goods and services for the federal government, including IT services. FAS manages numerous complex IT contracts and delivery orders annually, leveraging established procurement processes and experienced contracting officers. Their effectiveness in managing IT service contracts like this one hinges on several factors: the clarity of the requirement, the diligence of contract oversight, the expertise of the contracting team, and the performance of the awarded contractor. While FAS generally provides a structured framework for contract management, the specific effectiveness for this particular contract depends on the day-to-day execution of oversight, performance monitoring, and risk mitigation by the assigned GSA personnel.

What is the historical spending trend for 'Computer Systems Design Services' (NAICS 541512) by the General Services Administration?

The General Services Administration (GSA) is a significant procurer of 'Computer Systems Design Services' (NAICS 541512), reflecting its role in providing IT infrastructure and support across the federal government. Historical spending data indicates a consistent and substantial investment in this category by GSA, often in the billions of dollars annually, supporting a wide array of IT modernization, cybersecurity, and system integration efforts. Spending trends within this NAICS code are generally upward, driven by the continuous need for agencies to update legacy systems, adopt cloud technologies, and enhance digital services. The specific award to Guidehouse Digital LLC for identity credentialing services is a component of this larger GSA spending pattern in IT design and integration services.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFMA22R0004

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1676 INTERNATIONAL DRIVE, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $48,149,357

Exercised Options: $34,827,441

Current Obligation: $32,443,192

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0024

IDV Type: GWAC

Timeline