Guidehouse Digital LLC awarded $27.8M for USDA Forest Service IT support, highlighting custom programming needs

Contract Overview

Contract Amount: $27,800,567 ($27.8M)

Contractor: Guidehouse Digital LLC

Awarding Agency: Department of Agriculture

Start Date: 2021-02-24

End Date: 2025-06-30

Contract Duration: 1,587 days

Daily Burn Rate: $17.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: IT

Official Description: CALL FOR NRM INFORMATION SUPPORT SERVICES FOR OPERATIONS AND MAINTENANCE (O&M)

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $27.8 million to GUIDEHOUSE DIGITAL LLC for work described as: CALL FOR NRM INFORMATION SUPPORT SERVICES FOR OPERATIONS AND MAINTENANCE (O&M) Key points: 1. Contract focuses on essential IT operations and maintenance, indicating a need for specialized programming expertise. 2. The BPA Call award mechanism suggests a streamlined approach to acquiring ongoing IT support services. 3. A duration of over 1500 days points to a long-term requirement for stable IT infrastructure management. 4. The contract's value is significant within the custom computer programming services sector. 5. Performance is situated in Virginia, potentially impacting local IT workforce dynamics.

Value Assessment

Rating: good

The contract value of $27.8 million over its period of performance appears reasonable for comprehensive IT operations and maintenance support. Benchmarking against similar custom computer programming services contracts would provide a clearer picture of value for money. The BPA Call award suggests potential for competitive pricing if multiple vendors were solicited under the BPA, though the specific call details are not provided. The absence of a specific Product Service Code (PSC) beyond the general NAICS code makes direct comparison challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The fact that it is a BPA Call suggests that the underlying Blanket Purchase Agreement (BPA) was likely competed, and this call represents a specific task order. The number of bidders for this specific call is not detailed, but the full and open nature is a positive indicator for competitive pricing.

Taxpayer Impact: Full and open competition generally leads to better price discovery and potentially lower costs for taxpayers by encouraging a wider range of vendors to compete.

Public Impact

The primary beneficiaries are the USDA Forest Service, which receives critical IT operations and maintenance support. Services delivered include custom computer programming, essential for maintaining and improving IT systems. The geographic impact is concentrated in Virginia, where the contractor is located and services are likely performed. This contract supports IT professionals and potentially creates or sustains jobs within the IT services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the BPA is not actively re-competed or managed.
Reliance on a single contractor for critical IT infrastructure could pose risks if performance falters.
Scope creep could increase costs beyond the initial $27.8 million if not managed tightly.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
The BPA Call mechanism can offer flexibility and efficiency for ongoing needs.
The contract duration indicates a stable, long-term requirement, allowing for focused service delivery.

Sector Analysis

The IT services sector, particularly custom computer programming, is a significant area of federal spending. This contract falls within the broader category of IT support and maintenance, which is crucial for government operations. The value of $27.8 million is substantial for a single contract of this nature, reflecting the complexity and importance of the services provided to the Forest Service. Comparable spending benchmarks for IT O&M services vary widely based on scope and duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, large businesses like Guidehouse Digital LLC are the primary awardees. There is no explicit information on subcontracting plans for small businesses within this specific BPA Call, which could limit opportunities for smaller IT firms to participate in delivering these services.

Oversight & Accountability

Oversight for this contract would typically fall under the USDA Forest Service's contracting officer and program managers. The contract's performance is subject to standard federal acquisition regulations and oversight mechanisms. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

USDA IT Modernization Initiatives
Forest Service IT Infrastructure Support
Custom Software Development Services
IT Operations and Maintenance Contracts
Blanket Purchase Agreements (BPAs)

Risk Flags

Long-term reliance on a single vendor
Potential for scope creep
Dependence on specific IT systems for NRM

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $27.8 million to GUIDEHOUSE DIGITAL LLC. CALL FOR NRM INFORMATION SUPPORT SERVICES FOR OPERATIONS AND MAINTENANCE (O&M)

Who is the contractor on this award?

The obligated recipient is GUIDEHOUSE DIGITAL LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $27.8 million.

What is the period of performance?

Start: 2021-02-24. End: 2025-06-30.

What is the specific nature of the 'operations and maintenance' support required by the Forest Service under this BPA Call?

The BPA Call for 'NRM Information Support Services for Operations and Maintenance (O&M)' suggests a need for ongoing technical support, system administration, bug fixing, performance tuning, and potentially minor enhancements for information systems related to Natural Resource Management (NRM) within the Forest Service. This could encompass databases, applications, network infrastructure, and user support critical for managing forest resources. The 'Custom Computer Programming Services' NAICS code (541511) indicates that a significant portion of the work likely involves software development, maintenance, and integration activities rather than purely hardware support.

How does the $27.8 million contract value compare to historical Forest Service spending on similar IT support services?

Without specific historical data for comparable Forest Service IT O&M contracts, a direct comparison is difficult. However, $27.8 million over approximately 4.3 years (February 2021 to June 2025) represents an average annual spend of roughly $6.5 million. This figure is substantial and suggests a significant, ongoing requirement for specialized IT support. To assess value, one would need to compare this to the cost of similar services procured through other means or by different agencies, considering factors like scope, complexity, and service levels.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for IT O&M services, KPIs would focus on system uptime, response times for issue resolution, patch management timeliness, security compliance adherence, and user satisfaction. SLAs would define the expected performance standards and remedies for non-performance. These details are usually outlined in the Statement of Work (SOW) or Performance Work Statement (PWS) within the BPA Call documentation.

What is Guidehouse Digital LLC's track record with the USDA and specifically the Forest Service for IT support services?

Guidehouse Digital LLC's track record with the USDA and Forest Service for IT support services would need to be assessed through contract databases and performance reviews. As a known entity in the government contracting space, they likely have experience across various agencies. The award of this BPA Call suggests they met the requirements for full and open competition. A deeper dive into their past performance ratings, any past issues or commendations on similar contracts, and their overall experience in custom computer programming and NRM systems would provide a clearer picture of their capabilities and reliability for this specific task.

What are the potential risks associated with relying on a single contractor for critical NRM IT support over a multi-year period?

Relying on a single contractor for critical NRM IT support over several years presents several risks. Firstly, there's the risk of vendor lock-in, where the agency becomes heavily dependent on the contractor's proprietary knowledge or systems, making transitions difficult and costly. Secondly, performance degradation is a risk; if the contractor's quality of service declines, it could significantly impact the Forest Service's ability to manage natural resources. Thirdly, a lack of ongoing competitive pressure might reduce incentives for innovation or cost efficiency. Finally, unforeseen events affecting the contractor (e.g., financial instability, key personnel departure) could disrupt essential services.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 12760421Q0016

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

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

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: $27,800,567

Exercised Options: $27,800,567

Current Obligation: $27,800,567

Actual Outlays: $27,800,567

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $107,604

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 12760420A0004

IDV Type: BPA

Timeline