Guidehouse Digital LLC awarded $24.7M for IT support, with 2 bidders competing for custom programming services

Contract Overview

Contract Amount: $24,694,887 ($24.7M)

Contractor: Guidehouse Digital LLC

Awarding Agency: Department of Agriculture

Start Date: 2022-09-19

End Date: 2026-09-30

Contract Duration: 1,472 days

Daily Burn Rate: $16.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: IT

Official Description: AWARD - NRM INFORMATION TECHNOLOGY SUPPORT SERVICES FOR APPLICATION SUPPORT AND MAINTENANCE.

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $24.7 million to GUIDEHOUSE DIGITAL LLC for work described as: AWARD - NRM INFORMATION TECHNOLOGY SUPPORT SERVICES FOR APPLICATION SUPPORT AND MAINTENANCE. Key points: 1. Value for money appears fair given the competitive nature of the award. 2. Competition dynamics show a moderate level of interest with two bidders. 3. Risk indicators are low due to a well-defined scope and established contractor. 4. Performance context is within standard IT application support and maintenance. 5. Sector positioning is within the custom computer programming services sub-sector.

Value Assessment

Rating: fair

The award of $24.7 million for IT support services seems reasonable, especially considering it was a BPA Call under a broader agreement. Benchmarking against similar custom computer programming services contracts is challenging without more specific details on the scope of work. However, the presence of two bidders suggests a degree of market interest and potential for price negotiation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all eligible vendors had the opportunity to bid. The fact that two bids were received suggests a moderate level of competition for this specific task order. While two bidders is better than one, a higher number could potentially drive prices down further.

Taxpayer Impact: The full and open competition, even with two bidders, provides a baseline for fair pricing for taxpayers. It ensures that the government is not unduly limiting its options and is likely receiving a competitive offer.

Public Impact

The Department of Agriculture's Forest Service benefits from enhanced IT application support and maintenance. Services delivered include application support and maintenance, crucial for operational continuity. The geographic impact is primarily within the Department of Agriculture's operational areas. Workforce implications are likely focused on IT professionals supporting the Forest Service's digital infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in application maintenance if not tightly managed.
Dependence on a single contractor for critical IT support could pose a risk if performance degrades.

Positive Signals

Awarded under a competitive process, indicating potential for good value.
Contractor has experience in IT services, suggesting capability.
Clear contract duration provides predictability for budgeting and planning.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming services. This is a large and dynamic market driven by government and commercial demand for software development, maintenance, and support. The total federal spending on IT services is in the hundreds of billions annually, with custom programming being a significant sub-component.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the prime contractor, Guidehouse Digital LLC, is likely a large business. There is no explicit information on subcontracting plans for small businesses within this specific award, which could limit opportunities for smaller players in this segment.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Agriculture's contracting officers and program managers. Transparency is facilitated by public contract databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IT Application Development
IT Operations and Maintenance
Custom Computer Programming Services
IT Professional Services
Cloud Computing Services

Risk Flags

Moderate competition level
Potential for scope creep
Contractor performance risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $24.7 million to GUIDEHOUSE DIGITAL LLC. AWARD - NRM INFORMATION TECHNOLOGY SUPPORT SERVICES FOR APPLICATION SUPPORT AND MAINTENANCE.

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 $24.7 million.

What is the period of performance?

Start: 2022-09-19. End: 2026-09-30.

What is Guidehouse Digital LLC's track record with the Department of Agriculture and similar IT support contracts?

Assessing Guidehouse Digital LLC's track record requires a deeper dive into their past performance with the Department of Agriculture and other federal agencies for similar IT support and application maintenance services. While this specific award indicates they were selected, understanding their historical performance metrics, client satisfaction, and any past issues or commendations would provide a more robust picture of their reliability and capability. Federal procurement data and past performance evaluations, if publicly available, would be key sources for this analysis. Without this specific data, we rely on the competitive process and the agency's due diligence during award.

How does the per-unit cost of this contract compare to market rates for custom computer programming services?

Determining the precise per-unit cost benchmark for this contract is challenging without a detailed breakdown of the labor categories, hours, and specific services rendered. The award amount of $24.7 million covers a period of approximately four years. To compare with market rates, one would need to analyze the average hourly rates for comparable IT roles (e.g., software developers, system administrators, support analysts) within the Washington D.C. metropolitan area or relevant geographic regions, factoring in overhead, profit, and the specific skill sets required. Industry salary surveys and commercial IT service provider pricing would serve as benchmarks. Given the competitive nature, it's likely within a reasonable range, but a definitive comparison requires more granular data.

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

Primary risks for an IT support and maintenance contract include potential scope creep, contractor performance issues, security vulnerabilities, and over-reliance on a single vendor. Scope creep can occur if the requirements for application support and maintenance are not clearly defined or if new functionalities are continuously added without proper change control. Contractor performance issues could lead to service disruptions or degraded system functionality. Security vulnerabilities in maintained applications pose a risk to sensitive data. Mitigation strategies typically involve robust contract management, clear performance standards (SLAs), regular performance reviews, strong cybersecurity protocols, and contingency planning. The agency's oversight and the competitive award process are initial mitigation steps.

How effective has the Forest Service been in managing similar IT support contracts in the past?

Evaluating the Forest Service's effectiveness in managing similar IT support contracts requires analyzing their historical contract performance data, including on-time delivery, budget adherence, and user satisfaction with IT services. Information from agency Inspector General reports, GAO audits, or internal performance reviews could shed light on their management capabilities. A history of successful contract management suggests a lower risk for this current award, while past difficulties might indicate a need for heightened oversight. Without specific historical data on the Forest Service's IT contract management performance, this assessment remains general.

What is the historical spending trend for application support and maintenance within the Department of Agriculture?

Analyzing historical spending trends for application support and maintenance within the Department of Agriculture is crucial for contextualizing this $24.7 million award. This involves examining budget allocations and actual expenditures for IT maintenance services over the past several fiscal years. Trends might reveal increasing or decreasing reliance on external contractors, shifts in technology focus (e.g., cloud migration impacting maintenance needs), or changes in overall IT spending priorities. Understanding these patterns helps determine if this award represents a typical investment, an increase, or a decrease in this service area for the agency.

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: 12760422Q0142

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: $98,957,847

Exercised Options: $79,068,374

Current Obligation: $24,694,887

Actual Outlays: $20,244,152

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 12760420A0004

IDV Type: BPA

Timeline