Commerce Dept. Awards $259M IT Support Contract to Guidehouse Digital LLC
Contract Overview
Contract Amount: $258,894,912 ($258.9M)
Contractor: Guidehouse Digital LLC
Awarding Agency: Department of Commerce
Start Date: 2014-03-19
End Date: 2024-03-31
Contract Duration: 3,665 days
Daily Burn Rate: $70.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IT INFRASTRUCTURE SUPPORT SERVICES-DATA CENTER IGF::OT::IGF
Place of Performance
Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746
State: Maryland Government Spending
Plain-Language Summary
Department of Commerce obligated $258.9 million to GUIDEHOUSE DIGITAL LLC for work described as: IT INFRASTRUCTURE SUPPORT SERVICES-DATA CENTER IGF::OT::IGF Key points: 1. Significant contract value of $259M over 10 years. 2. Guidehouse Digital LLC is the sole awardee. 3. Contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. IT Infrastructure Support Services is a critical sector for government operations.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee structure warrants scrutiny. While it allows for flexibility, it can incentivize higher costs compared to fixed-price contracts. Benchmarking against similar IT support contracts is crucial to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a limited competition. This method may not have yielded the most competitive pricing.
Taxpayer Impact: The limited competition and cost-plus structure raise concerns about potential overspending of taxpayer funds.
Public Impact
Ensures continued operation of critical U.S. Census Bureau data centers. Supports essential government functions reliant on IT infrastructure. Potential for increased costs due to contract type and limited competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure
- Limited competition
- Long contract duration (10 years)
Positive Signals
- Ensures continuity of essential IT services
- Awarded to a single, presumably capable, vendor
Sector Analysis
This contract falls under IT Infrastructure Support Services, specifically data center operations. Spending in this area is substantial across federal agencies, with benchmarks varying based on service scope and complexity.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.
Oversight & Accountability
The 'Exclusion of Sources' clause suggests a specific justification was required, highlighting a need for oversight to ensure fair competition was not unduly restricted.
Related Government Programs
- Computer Systems Design Services
- Department of Commerce Contracting
- U.S. Census Bureau Programs
Risk Flags
- Potential for cost overruns due to CPFF structure
- Limited competition may result in suboptimal pricing
- Long contract duration could reduce flexibility
- Lack of small business awardee
Tags
computer-systems-design-services, department-of-commerce, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $258.9 million to GUIDEHOUSE DIGITAL LLC. IT INFRASTRUCTURE SUPPORT SERVICES-DATA CENTER IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is GUIDEHOUSE DIGITAL LLC.
Which agency awarded this contract?
Awarding agency: Department of Commerce (U.S. Census Bureau).
What is the total obligated amount?
The obligated amount is $258.9 million.
What is the period of performance?
Start: 2014-03-19. End: 2024-03-31.
What specific IT infrastructure support services are included in this contract, and how do they align with the U.S. Census Bureau's mission needs?
The contract covers IT infrastructure support services for data centers. This likely includes maintenance, operations, and potentially upgrades for the hardware and software supporting the Census Bureau's vast data collection and processing requirements. Ensuring these services directly support the agency's core mission is vital for justifying the expenditure and assessing overall value.
What were the specific reasons for excluding other sources, and was this exclusion justified to ensure the best value for taxpayers?
The justification for excluding other sources is critical. If the exclusion was based on unique capabilities or prior performance, it might be defensible. However, if it limited competition unnecessarily, it could lead to higher prices and reduced innovation, negatively impacting taxpayer value. A thorough review of the exclusion rationale is warranted.
How will the Cost Plus Fixed Fee structure be managed to prevent cost overruns and ensure efficient service delivery?
Effective management of a Cost Plus Fixed Fee contract requires robust oversight, detailed cost tracking, and clear performance metrics. The agency must actively monitor expenditures against the fixed fee and ensure the contractor operates efficiently. Regular audits and performance reviews are essential to mitigate the inherent risk of cost escalation.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
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: $262,820,991
Exercised Options: $261,331,271
Current Obligation: $258,894,912
Actual Outlays: $185,206,719
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HHSN316201200111W
IDV Type: GWAC
Timeline
Start Date: 2014-03-19
Current End Date: 2024-03-31
Potential End Date: 2024-03-31 00:00:00
Last Modified: 2024-06-25
More Contracts from Guidehouse Digital LLC
- Grants Program Solutions and Information Technology Support Services — $446.3M (Department of the Interior)
- EAS Strategic Management, Capital Planning and Portfolio Management, IT Program Management, IT Security Management, Enterprise Architecture Igf::ot::igf — $159.4M (Department of Agriculture)
- National Flood Insurance Program (nfip) Pivot Operations&maintenance (O&M) — $148.6M (Department of Homeland Security)
- Software Support for Molecular Biology and Genomics Information Resources — $131.2M (Department of Health and Human Services)
- Software Support for Molecular Biology and Genomics Information Resources — $126.9M (Department of Health and Human Services)
Other Department of Commerce Contracts
- THE Purpose of This Contract IS to Develop the Ground System That Will Support Noaa S Next Generation Geostationary Satellite Series, Goes-R. This NEW Series of Spacecraft, SET to Begin Launching in 2015, IS Expected to Double the Clarity of Today S Satellite Imagery and Provide AT Least 20 Times More Atmospheric Observations From Space. the Contractor IS to Design, Develop, Test and Implement the Goes-R Ground System. the Ground System Will Capture Data From the Goes-R Satellites, and Process and Distribute the Information to Operational Users — $1.8B (L3harris Technologies, Inc.)
- Engineering Services and Development Leading to the Delivery of the Jpss Common Ground System Instrument and Support — $1.6B (Raytheon Company)
- Enterprise Solutions Framework (ESF) for Multi-Tiered Acquisition Framework for Systems Engineering and Integration - Program Tier Work Order 003 - 2020 Census Technical Integrator — $1.5B (T-Rex Solutions LLC)
- THE Goal of the Decennial Response Integration System (dris) Contract IS to Obtain a Practical Solution to Providing Respondent Assistance and Data Capture for the 2010 Census — $930.7M (Lockheed Martin Services, LLC)
- 2020 Census Questionnaire Assistance (2020 CQA) — $918.3M (Maximus Federal Services, Inc.)