FEMA IT Labor Contract Awarded to Guidehouse Digital LLC for $13.5M

Contract Overview

Contract Amount: $13,457,888 ($13.5M)

Contractor: Guidehouse Digital LLC

Awarding Agency: Department of Agriculture

Start Date: 2025-09-30

End Date: 2026-03-31

Contract Duration: 182 days

Daily Burn Rate: $73.9K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SP2-FMA-PURCHASE IT LABOR FOR FEMA PIVOT OM

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20250

State: District of Columbia Government Spending

Plain-Language Summary

Department of Agriculture obligated $13.5 million to GUIDEHOUSE DIGITAL LLC for work described as: SP2-FMA-PURCHASE IT LABOR FOR FEMA PIVOT OM Key points: 1. Contract awarded to Guidehouse Digital LLC for IT labor services. 2. The contract is valued at $13.5 million and runs for 182 days. 3. Competition method was 'Competed under SAP', suggesting a competitive process within specific thresholds. 4. The sector is IT services, specifically Computer Systems Design Services. 5. The contract is a Firm Fixed Price type, providing cost certainty.

Value Assessment

Rating: fair

The contract's value of $13.5M for 182 days of IT labor needs comparison against similar government contracts for Computer Systems Design Services. Without specific benchmarks for this niche, assessing value is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was 'Competed under SAP' (Simplified Acquisition Procedures), indicating competition occurred but likely within a limited pool of vendors or dollar thresholds. This method can impact price discovery compared to full and open competition.

Taxpayer Impact: Taxpayer funds are being used for IT labor services. The efficiency of the procurement process and the final price will determine the ultimate taxpayer impact.

Public Impact

FEMA receives critical IT labor support for its operations. The contract supports a specific IT service category, potentially impacting agency modernization efforts. The use of SAP suggests a streamlined procurement process for this contract value.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to SAP.
Short contract duration may indicate a specific project need or potential for follow-on work.
Lack of detailed performance metrics makes assessing effectiveness challenging.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Awarded to a single vendor, potentially simplifying management.
Specific NAICS code (541512) indicates a focused service area.

Sector Analysis

This contract falls within the IT services sector, specifically Computer Systems Design Services (NAICS 541512). Government spending in this area is substantial, focusing on system integration, IT consulting, and custom software development.

Small Business Impact

The contract was competed under SAP and awarded to Guidehouse Digital LLC. It is unclear if small businesses were involved as subcontractors or if the prime contractor is an SMB.

Oversight & Accountability

Oversight will be managed by the Department of Agriculture's Office of the Chief Financial Officer. The firm fixed price contract and defined delivery order structure provide some level of accountability.

Related Government Programs

Computer Systems Design Services
Department of Agriculture Contracting
Office of the Chief Financial Officer Programs

Risk Flags

Potential for higher costs due to limited competition (SAP).
Short contract duration may indicate a tactical need rather than strategic investment.
Lack of detailed performance metrics.
Dependence on a single vendor for critical IT labor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $13.5 million to GUIDEHOUSE DIGITAL LLC. SP2-FMA-PURCHASE IT LABOR FOR FEMA PIVOT OM

Who is the contractor on this award?

The obligated recipient is GUIDEHOUSE DIGITAL LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $13.5 million.

What is the period of performance?

Start: 2025-09-30. End: 2026-03-31.

What is the expected impact of these IT labor services on FEMA's operational efficiency and modernization goals?

The IT labor services are intended to support FEMA's ongoing operations and potentially specific modernization initiatives like the FEMA Pivot OM. The effectiveness will depend on the skill sets provided by Guidehouse Digital LLC and how well they integrate with FEMA's existing teams and projects. Detailed performance metrics and project outcomes will be crucial for assessing the true impact.

How does the pricing of this contract compare to market rates for similar IT labor services, considering the limited competition?

Assessing the precise market rate comparison is challenging without more granular data on the specific IT labor roles and skill levels required. While 'Competed under SAP' implies some competition, it may not have yielded the most competitive pricing achievable through full and open competition. A benchmark analysis against similar government contracts or private sector rates would be needed for a definitive pricing assessment.

What mechanisms are in place to ensure the quality and effectiveness of the IT labor provided by Guidehouse Digital LLC?

The contract is a Firm Fixed Price Delivery Order, which implies a defined scope of work and deliverables. Oversight by the Department of Agriculture's Office of the Chief Financial Officer is expected. However, specific quality assurance surveillance plans or key performance indicators (KPIs) are not detailed in the provided data, making it difficult to gauge the robustness of quality control measures.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 12314425Q0148

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1676 INTERNATIONAL DRIVE, MCLEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $134,890,953

Exercised Options: $13,457,888

Current Obligation: $13,457,888

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 12314424G0031

IDV Type: BOA

Timeline