DOJ's $34M IT support contract for COPS program awarded to Guidehouse Digital LLC

Contract Overview

Contract Amount: $34,191,026 ($34.2M)

Contractor: Guidehouse Digital LLC

Awarding Agency: Department of Justice

Start Date: 2012-07-18

End Date: 2020-03-31

Contract Duration: 2,813 days

Daily Burn Rate: $12.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF OTHER FUNCTION - IT SUPPORT SERVICES FOR THE OFFICE OF COMMUNITY ORIENTED POLICING SERVICES (COPS)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20530

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $34.2 million to GUIDEHOUSE DIGITAL LLC for work described as: IGF::OT::IGF OTHER FUNCTION - IT SUPPORT SERVICES FOR THE OFFICE OF COMMUNITY ORIENTED POLICING SERVICES (COPS) Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of approximately 7.7 years indicates a long-term need for IT support services. 3. The Time and Materials pricing model can pose a risk of cost overruns if not managed closely. 4. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. The services provided fall under Computer Systems Design, a common IT support category. 6. The contract's value of over $34 million over its term warrants scrutiny for value for money.

Value Assessment

Rating: fair

The contract's total value of $34.2 million over nearly 8 years averages to approximately $4.4 million annually. Without specific benchmarks for similar IT support contracts within the Department of Justice or for community policing initiatives, a precise value-for-money assessment is challenging. The Time and Materials (T&M) pricing structure, while flexible, can lead to higher costs compared to fixed-price contracts if not diligently managed and monitored for efficiency. Benchmarking against industry standards for IT support services of this scope would be necessary for a more definitive evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition' mechanism, indicating that all responsible sources were permitted to submit bids. The presence of 8 bidders (as indicated by 'no': 8) suggests a healthy level of competition for this IT support services requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down prices and encouraged innovative solutions from multiple vendors, ensuring the government received competitive value for its investment.

Public Impact

The Office of Community Oriented Policing Services (COPS) benefits from sustained IT support, enabling its mission. Essential IT infrastructure and services are maintained, ensuring operational continuity for the COPS office. The contract supports IT professionals, potentially including roles within the contractor's organization. The geographic impact is primarily within the District of Columbia, where the DOJ is headquartered.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) pricing structure carries inherent risks of cost escalation if not closely monitored and managed.
The long contract duration (nearly 8 years) could lead to vendor lock-in or reduced agility in adopting new technologies if not structured with appropriate review periods.
Lack of specific performance metrics or Service Level Agreements (SLAs) in the provided data makes it difficult to assess performance quality and contractor accountability.

Positive Signals

Awarded through full and open competition with 8 bidders, indicating a competitive marketplace and potentially good value.
The contract supports a critical function within the Department of Justice (COPS program), addressing a clear government need.
The long-term nature of the contract suggests a stable and reliable IT support solution has been established for the COPS office.

Sector Analysis

This contract falls within the Computer Systems Design Services sector (NAICS 541512), a significant segment of the IT services industry. The market for IT support and systems design is highly competitive, with numerous providers ranging from large integrators to specialized firms. Government spending in this area is substantial, driven by the need for modernizing IT infrastructure, cybersecurity, and specialized software development. This contract represents a portion of the broader federal IT spending, which aims to ensure efficient and effective digital operations across agencies.

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 or specific benefits for the small business ecosystem stemming from a set-aside provision. The prime contractor, Guidehouse Digital LLC, is likely a mid-to-large-sized business, and any subcontracting would be at their discretion based on project needs.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program managers within the Department of Justice's Offices, Boards and Divisions. The contract's performance would be monitored against the terms and conditions, including delivery schedules and any specified service levels. Transparency is generally maintained through contract databases like FPDS, though detailed performance reports are often internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

IT Support Services
Computer Systems Design Services
Department of Justice IT Contracts
COPS Program Support
Time and Materials Contracts

Risk Flags

Time and Materials Pricing
Long Contract Duration
Lack of Public Performance Data

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $34.2 million to GUIDEHOUSE DIGITAL LLC. IGF::OT::IGF OTHER FUNCTION - IT SUPPORT SERVICES FOR THE OFFICE OF COMMUNITY ORIENTED POLICING SERVICES (COPS)

Who is the contractor on this award?

The obligated recipient is GUIDEHOUSE DIGITAL LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $34.2 million.

What is the period of performance?

Start: 2012-07-18. End: 2020-03-31.

What is the track record of Guidehouse Digital LLC in performing similar IT support contracts for the federal government?

Assessing the track record of Guidehouse Digital LLC requires a deeper dive into their contract history beyond this single award. Information on past performance, including client satisfaction, adherence to schedules and budgets, and the complexity of previous projects, is crucial. Federal procurement data often includes past performance evaluations, though these are not always publicly detailed. A review of their portfolio, particularly for contracts with the Department of Justice or similar agencies, would reveal their experience in delivering IT support services, systems design, and potentially their ability to manage Time and Materials contracts effectively. Without specific past performance data for this contractor, it's difficult to definitively assess their reliability for this particular contract.

How does the average annual cost of this contract compare to similar IT support contracts within the Department of Justice?

The average annual cost for this contract is approximately $4.4 million ($34.2 million / ~7.7 years). To benchmark this effectively, we would need to compare it against other IT support contracts awarded by the Department of Justice (DOJ) for similar scope and complexity. Factors such as the number of users supported, the criticality of the systems, and the specific services rendered (e.g., help desk, network management, cybersecurity, software development) heavily influence pricing. Without access to a comparable set of DOJ IT contracts, it is challenging to determine if $4.4 million annually represents a competitive rate. A thorough analysis would involve identifying similar contracts and adjusting for differences in scope, duration, and contract type (e.g., T&M vs. Fixed Price).

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

The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns, as the government pays for the actual labor hours and materials used, plus a fixed fee or percentage. Unlike fixed-price contracts, there is less incentive for the contractor to control costs efficiently. This necessitates robust government oversight to ensure that hours are reasonable and necessary, and that material costs are fair. Without strong management and monitoring, T&M contracts can become significantly more expensive than initially anticipated. For this $34.2 million contract, diligent tracking of labor hours, skill levels charged, and material markups is essential to mitigate cost risks and ensure value for taxpayer dollars.

How effective has the COPS program been in achieving its objectives, and how critical is this IT support contract to its success?

The effectiveness of the COPS program is a broad question that extends beyond the scope of this IT contract analysis. However, IT support is fundamental to the operational success of any modern government program. For the COPS program, reliable IT systems are likely crucial for data management, communication, grant administration, research dissemination, and internal operations. This contract ensures that the necessary technological infrastructure and support are in place, thereby enabling the COPS office to function efficiently and pursue its mission objectives. The criticality of this IT support contract lies in its role as an enabler for the program's day-to-day activities and strategic initiatives.

What has been the historical spending trend for IT support services within the Department of Justice over the past five years?

Analyzing the historical spending trend for IT support services within the Department of Justice (DOJ) over the past five years would provide valuable context. This would involve aggregating spending data across various IT support categories and contracts awarded by different DOJ components. Such an analysis could reveal whether overall IT spending is increasing, decreasing, or remaining stable, and identify any shifts in the types of IT services being procured. Understanding these trends can help assess if the $34.2 million awarded to Guidehouse Digital LLC aligns with historical patterns or represents a significant deviation, potentially indicating changes in IT strategy or needs within the DOJ.

Given the 8 bidders, what was the range of proposed prices, and how did Guidehouse Digital LLC's final price compare?

The provided data indicates that 8 bidders participated in the competition, which is a positive sign for price discovery. However, the specific proposed prices from each bidder, including the range and the final negotiated price for Guidehouse Digital LLC, are not publicly available in this dataset. To understand the competitiveness of the final award price, one would need access to bid protest data or internal DOJ procurement records that detail the pricing proposals submitted. Without this information, it's impossible to definitively state how Guidehouse Digital LLC's price compared to its competitors, although the fact that they won suggests their offer was deemed the most advantageous to the government.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 8

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 11490 COMMERCE PARK DR STE 340, RESTON, VA, 20191

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $43,236,131

Exercised Options: $37,166,406

Current Obligation: $34,191,026

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DJJ11C2151

IDV Type: IDC

Timeline