DHS awards $18.9M for IT modernization, with Guidehouse LLP securing a significant portion for system support

Contract Overview

Contract Amount: $18,873,835 ($18.9M)

Contractor: Guidehouse LLP

Awarding Agency: Department of Homeland Security

Start Date: 2023-08-11

End Date: 2025-06-30

Contract Duration: 689 days

Daily Burn Rate: $27.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENROLLMENT AND CREDENTIAL SYSTEM MODERNIZATION (ECSM) PRODUCTS AND SUPPORT SERVICES

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22150

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $18.9 million to GUIDEHOUSE LLP for work described as: ENROLLMENT AND CREDENTIAL SYSTEM MODERNIZATION (ECSM) PRODUCTS AND SUPPORT SERVICES Key points: 1. The contract focuses on modernizing critical IT systems, aiming to improve efficiency and user experience. 2. Guidehouse LLP, a known entity in government contracting, is the primary awardee. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. The duration of the contract is substantial, spanning over 689 days, indicating a long-term need. 5. The award is a Delivery Order under a larger contract vehicle, suggesting a phased approach to modernization. 6. The services are categorized under Computer Systems Design, a common area for IT modernization efforts.

Value Assessment

Rating: good

The award of $18.9 million for IT modernization services appears reasonable given the scope of modernizing complex systems like the Enrollment and Credential System. Benchmarking against similar large-scale IT modernization contracts within DHS and other agencies suggests that pricing is competitive, especially considering the specialized nature of the services. The Firm Fixed Price contract type provides cost certainty for the government, although it requires careful scope management to avoid change orders. The value proposition hinges on the successful modernization and improved operational efficiency promised by the ECSM project.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competitive process. This level of competition is generally expected to drive down prices and encourage innovation as contractors vie for the award. The government's ability to select from a wide pool of qualified vendors enhances the likelihood of obtaining the best value.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that can lead to better pricing and higher quality services.

Public Impact

Citizens and personnel requiring enrollment and credentialing services will benefit from a modernized, more efficient system. The Department of Homeland Security (DHS) will see improved operational capabilities and potentially reduced long-term IT maintenance costs. The contract supports IT modernization efforts within the federal government, aligning with broader digital transformation goals. The workforce involved in managing and operating the enrollment and credentialing systems will experience updated tools and processes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term IT modernization projects, requiring diligent oversight.
Dependence on a single contractor for critical system support could pose a risk if performance falters.
Ensuring seamless integration of modernized systems with existing infrastructure is a common challenge.

Positive Signals

The contract is awarded under full and open competition, suggesting a competitive pricing environment.
The Firm Fixed Price contract type provides cost predictability for the government.
The modernization effort addresses a critical operational need for DHS, promising significant efficiency gains.

Sector Analysis

The IT services sector, particularly within government contracting, is highly competitive and dynamic. This contract falls under Computer Systems Design Services, a broad category encompassing the design, development, and implementation of IT systems. The federal government is a significant investor in IT modernization, with agencies like DHS continually seeking to upgrade legacy systems to improve security, efficiency, and user experience. Spending in this area is driven by the need to keep pace with technological advancements and address evolving cybersecurity threats. Comparable contracts often involve multi-year efforts to overhaul core infrastructure or develop new digital platforms.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, Guidehouse LLP, may engage small businesses as subcontractors to fulfill specific aspects of the contract, depending on their own subcontracting plans and the nature of the work. The absence of a small business set-aside means that larger, more established firms were the primary focus of this competition.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the program office within the Department of Homeland Security responsible for the Enrollment and Credential System Modernization. Performance will be monitored against the terms and conditions of the Firm Fixed Price delivery order, including adherence to schedules and delivery of specified IT products and support services. Transparency is generally maintained through contract award databases and reporting requirements. While specific Inspector General (IG) jurisdiction is not detailed here, the DHS OIG has broad authority to investigate waste, fraud, and abuse within the department's contracts.

Related Government Programs

DHS IT Modernization Initiatives
Federal Civilian IT Modernization Programs
Computer Systems Design Services Contracts
Enrollment and Credentialing Systems
Guidehouse LLP Government Contracts

Risk Flags

Potential for technical integration challenges
Risk of scope creep in long-term IT projects
Contractor performance monitoring is crucial
Data security during modernization requires vigilance

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $18.9 million to GUIDEHOUSE LLP. ENROLLMENT AND CREDENTIAL SYSTEM MODERNIZATION (ECSM) PRODUCTS AND SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is GUIDEHOUSE LLP.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $18.9 million.

What is the period of performance?

Start: 2023-08-11. End: 2025-06-30.

What is Guidehouse LLP's track record with the Department of Homeland Security and similar IT modernization projects?

Guidehouse LLP has a significant history of contracting with various federal agencies, including the Department of Homeland Security (DHS). They have been involved in a range of services, often including IT modernization, consulting, and program management. For DHS specifically, their past performance would likely include support for various operational and administrative systems. Analyzing their portfolio of past IT modernization contracts, particularly those involving system design and implementation, would reveal their experience with similar scopes of work, complexity, and scale. Their success in delivering on previous DHS contracts, especially those requiring system integration and user-focused improvements, would be a key indicator of their capability for the ECSM project. A review of contract performance reports and any past performance evaluations would provide further insight into their reliability and effectiveness in delivering complex IT solutions.

How does the $18.9 million award compare to other federal IT modernization contracts of similar scope?

The $18.9 million award for the Enrollment and Credential System Modernization (ECSM) products and support services needs to be contextualized against the broader landscape of federal IT modernization efforts. Large-scale system overhauls, especially those involving legacy system replacement and the integration of new technologies, can range from tens of millions to hundreds of millions of dollars over their lifecycle. The specific amount for this delivery order suggests a significant phase or component of a larger modernization program. When compared to contracts for enterprise resource planning (ERP) system implementations, cloud migration projects, or the development of new citizen-facing portals, $18.9 million for a defined period (approximately two years) appears to be within a reasonable range for specialized IT system design and support services. Factors like the complexity of the existing systems, the number of users, the required security protocols, and the scope of modernization (e.g., re-platforming vs. full re-architecture) heavily influence cost.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this IT modernization contract include potential technical challenges in integrating new systems with legacy infrastructure, the possibility of scope creep leading to cost overruns (despite the FFP structure, change orders can occur), and performance issues from the contractor. Ensuring the security of sensitive enrollment and credentialing data throughout the modernization process is also a critical risk. Mitigation strategies likely involve rigorous technical reviews, phased implementation with clear milestones, robust testing protocols, and strong contract management by DHS. The Firm Fixed Price (FFP) contract type itself mitigates cost risk for the government by placing the onus on the contractor to deliver within the agreed price. Clear definition of requirements and change control processes are essential to manage scope creep. Performance monitoring and regular status meetings with Guidehouse LLP will be key to addressing any emerging issues proactively.

How effective is the chosen contract vehicle (Delivery Order under a larger contract) for managing this type of IT modernization effort?

Using a Delivery Order (DO) under a larger contract vehicle, such as an Indefinite Delivery/Indefinite Quantity (IDIQ) contract, is a common and often effective strategy for managing IT modernization efforts, especially when requirements may evolve or be phased over time. This approach allows the agency to procure specific services or products as needed, providing flexibility. For a project like ECSM, a DO allows DHS to fund distinct modernization phases or components without needing to re-compete the entire effort each time. It leverages a pre-established, competed contract vehicle, potentially saving time and administrative costs. The effectiveness hinges on the initial competition for the base IDIQ contract and the clarity of the Statement of Work (SOW) for each DO. It allows for agile adaptation to technological advancements or changing operational needs, which is crucial in IT modernization.

What is the historical spending pattern for IT modernization within DHS, and how does this award fit?

The Department of Homeland Security (DHS) historically allocates substantial funding towards IT modernization, reflecting the complexity and critical nature of its mission. Spending in this area typically encompasses upgrades to core infrastructure, development of new digital services, cybersecurity enhancements, and the modernization of various mission-critical systems. DHS's IT modernization spending often fluctuates based on strategic priorities, technological shifts, and the lifecycle of existing systems. Awards like the $18.9 million for ECSM products and support services are integral components of this broader modernization strategy. They represent specific investments aimed at improving foundational capabilities, such as identity management and credentialing, which are vital across multiple DHS components. This award fits within the pattern of DHS investing in targeted, significant IT upgrades to enhance operational effectiveness and security.

Industry Classification

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

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 70RDAD23Q00000190

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Peraton Technology Services Inc.

Address: 1676 INTERNATIONAL DR STE 800, MCLEAN, 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: $18,873,835

Exercised Options: $18,873,835

Current Obligation: $18,873,835

Actual Outlays: $18,798,788

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RDAD23D00000002

IDV Type: IDC

Timeline