Commerce Awards $85.4M WCCIS Contract to Guidehouse Digital for Computing Services
Contract Overview
Contract Amount: $85,361,541 ($85.4M)
Contractor: Guidehouse Digital LLC
Awarding Agency: Department of Commerce
Start Date: 2019-06-12
End Date: 2024-06-11
Contract Duration: 1,826 days
Daily Burn Rate: $46.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: WEATHER CLIMATE AND COMPUTING INFRASTRUCTURE SERVICES (WCCIS)
Place of Performance
Location: COLLEGE PARK, PRINCE GEORGES County, MARYLAND, 20740
State: Maryland Government Spending
Plain-Language Summary
Department of Commerce obligated $85.4 million to GUIDEHOUSE DIGITAL LLC for work described as: WEATHER CLIMATE AND COMPUTING INFRASTRUCTURE SERVICES (WCCIS) Key points: 1. The contract value of $85.4 million over five years represents a significant investment in weather and climate computing infrastructure. 2. Guidehouse Digital, the sole awardee, suggests potential limitations in the competitive landscape for these specialized services. 3. The Time and Materials pricing structure introduces cost uncertainty, posing a risk to budget adherence. 4. This award falls within the IT sector, specifically Computer Systems Design Services, a critical area for government operations.
Value Assessment
Rating: fair
The contract is a Time and Materials type, which can lead to cost overruns if not managed closely. Benchmarking against similar IT service contracts is difficult without more granular cost data.
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, as alternative vendors were excluded.
Taxpayer Impact: The limited competition and Time and Materials pricing structure raise concerns about potential overspending of taxpayer funds for these essential computing services.
Public Impact
Ensures continuity of critical weather and climate data processing and analysis for NOAA. Supports national security and public safety through reliable climate and weather forecasting. Potential for increased costs due to the contract's pricing model could impact other government programs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Time and Materials pricing
- Lack of small business participation
Positive Signals
- Essential service for NOAA
- Long-term contract duration
Sector Analysis
This contract is within the Information Technology sector, specifically focusing on computer systems design services. Government spending in this area is substantial, driven by the need for modern, efficient digital infrastructure to support agency missions.
Small Business Impact
The data indicates that small business participation was not a factor in this award (sb: false). There is no indication of subcontracting opportunities for small businesses within this contract.
Oversight & Accountability
The contract's limited competition and Time and Materials structure warrant close oversight to ensure cost control and effective service delivery. Regular performance reviews and audits are crucial.
Related Government Programs
- Computer Systems Design Services
- Department of Commerce Contracting
- National Oceanic and Atmospheric Administration Programs
Risk Flags
- Potential for cost overruns due to T&M pricing.
- Limited competition may result in suboptimal pricing.
- Lack of small business involvement.
- Dependency on a single vendor for critical services.
Tags
computer-systems-design-services, department-of-commerce, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $85.4 million to GUIDEHOUSE DIGITAL LLC. WEATHER CLIMATE AND COMPUTING INFRASTRUCTURE SERVICES (WCCIS)
Who is the contractor on this award?
The obligated recipient is GUIDEHOUSE DIGITAL LLC.
Which agency awarded this contract?
Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).
What is the total obligated amount?
The obligated amount is $85.4 million.
What is the period of performance?
Start: 2019-06-12. End: 2024-06-11.
What specific factors led to the exclusion of other sources, and were these justifications robust?
The exclusion of sources suggests that only Guidehouse Digital met specific, potentially narrow, requirements for the WCCIS services. A thorough review of the justification for exclusion is necessary to determine if it was truly warranted or if it inadvertently limited competition, potentially impacting price discovery and overall value for the government.
How will the Time and Materials pricing model be managed to prevent cost overruns and ensure value for money?
Effective management of the Time and Materials (T&M) contract requires stringent oversight, including detailed tracking of labor hours and material costs, clear task definitions, and established ceiling prices. Regular performance reviews and audits are essential to ensure that costs remain reasonable and directly tied to the services delivered, mitigating the inherent risk of T&M contracts.
What is the long-term strategy for ensuring competitive sourcing of these critical computing services beyond the current contract?
Given the specialized nature of WCCIS, a long-term strategy should involve market research to identify potential new entrants or capabilities. This could include fostering innovation, breaking down requirements into smaller, more competitive lots, or developing internal capabilities to reduce reliance on sole-source or limited-competition awards in the future.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
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: $102,053,882
Exercised Options: $99,156,073
Current Obligation: $85,361,541
Actual Outlays: $20,324,730
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSN316201200073W
IDV Type: GWAC
Timeline
Start Date: 2019-06-12
Current End Date: 2024-06-11
Potential End Date: 2024-06-11 00:00:00
Last Modified: 2024-07-29
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