Commerce Department's Census Bureau awards $49.6M for IT infrastructure support to Guidehouse Digital LLC

Contract Overview

Contract Amount: $49,637,395 ($49.6M)

Contractor: Guidehouse Digital LLC

Awarding Agency: Department of Commerce

Start Date: 2024-04-01

End Date: 2025-11-30

Contract Duration: 608 days

Daily Burn Rate: $81.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: INFRASTRUCTURE SUPPORT SERVICES ACQUISITION LOGICAL FOLLOW ON BASE PERIOD 04/01/2024 - 06/30/2024

Place of Performance

Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $49.6 million to GUIDEHOUSE DIGITAL LLC for work described as: INFRASTRUCTURE SUPPORT SERVICES ACQUISITION LOGICAL FOLLOW ON BASE PERIOD 04/01/2024 - 06/30/2024 Key points: 1. Contract value appears reasonable for a follow-on IT infrastructure support service. 2. Full and open competition suggests a competitive pricing environment. 3. Potential for cost overruns exists with Time and Materials contract type. 4. Contract duration extends beyond the base period, indicating ongoing need. 5. Service category aligns with standard IT support requirements for federal agencies. 6. The award is a delivery order under a larger IDIQ contract, suggesting a phased approach to IT modernization.

Value Assessment

Rating: good

The contract value of $49.6 million for a 20-month period (April 2024 - November 2025) for IT infrastructure support services appears to be within a reasonable range for a federal agency of the Census Bureau's size and complexity. Benchmarking against similar IT support contracts for large federal agencies suggests that this pricing is competitive, especially given the full and open competition. The Time and Materials (T&M) pricing structure, while offering flexibility, warrants close monitoring to ensure efficient resource utilization and prevent scope creep.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors were likely solicited and allowed to bid. The specific number of bidders is not provided, but the 'full and open' designation generally implies a robust competitive process. This level of competition is expected to drive favorable pricing and ensure that the government receives the best value for its investment in IT infrastructure support services.

Taxpayer Impact: The full and open competition is beneficial for taxpayers as it fosters a market where multiple qualified vendors vie for the contract, leading to potentially lower prices and higher quality services. This process helps prevent inflated costs that might arise from less competitive or sole-source awards.

Public Impact

The U.S. Census Bureau benefits from enhanced IT infrastructure, crucial for its data collection and dissemination operations. Services delivered include computer systems design and related support, ensuring the stability and functionality of critical IT systems. The geographic impact is primarily national, supporting the Census Bureau's nationwide operations. Workforce implications may include the need for specialized IT personnel within Guidehouse Digital LLC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely managed and monitored for efficiency.
Potential for scope creep exists with T&M contracts, requiring stringent oversight to ensure work remains within defined objectives.
The follow-on nature of the contract suggests a reliance on a single vendor for extended periods, potentially limiting future competition.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's efficiency and effectiveness.
The contract's duration and value could indicate a significant dependency on this specific IT support, posing a risk if the contractor underperforms.

Positive Signals

Awarded under full and open competition, indicating a competitive process that should yield good value.
The contract is a delivery order under a larger IDIQ, suggesting a structured and pre-vetted procurement process.
The contractor, Guidehouse Digital LLC, is likely experienced in providing IT services to federal agencies.
The contract supports critical IT infrastructure for the U.S. Census Bureau, a vital government function.
The follow-on nature implies a successful prior relationship and a stable IT support environment.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design and related services. The federal IT services market is substantial, with agencies consistently investing in maintaining and modernizing their digital infrastructure. This contract represents a portion of the broader federal spending on IT support, which includes everything from network management to cybersecurity and software development. Comparable spending benchmarks for similar IT infrastructure support contracts often range from tens to hundreds of millions of dollars annually, depending on the agency's size and scope of operations.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) is false for this specific award. This suggests that the contract was not set aside for small businesses, nor does it appear to have explicit subcontracting requirements for small businesses mandated within this delivery order. Consequently, the direct impact on the small business ecosystem from this particular award is likely minimal, although the prime contractor may engage small businesses as subcontractors at their discretion.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Census Bureau's contracting officers and program managers. Accountability measures are usually embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS, where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected within the contract's execution.

Related Government Programs

IT Infrastructure Modernization Programs
Federal Civilian Agency IT Support Services
Computer Systems Design Services Contracts
Census Bureau IT Operations
General Services Administration (GSA) IT Schedules

Risk Flags

Potential for cost overruns due to T&M contract type.
Risk of scope creep without stringent oversight.
Dependency on a single contractor for critical IT infrastructure.
Limited visibility into specific performance metrics.
Potential for vendor lock-in if not managed proactively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $49.6 million to GUIDEHOUSE DIGITAL LLC. INFRASTRUCTURE SUPPORT SERVICES ACQUISITION LOGICAL FOLLOW ON BASE PERIOD 04/01/2024 - 06/30/2024

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 $49.6 million.

What is the period of performance?

Start: 2024-04-01. End: 2025-11-30.

What is the track record of Guidehouse Digital LLC in performing similar IT infrastructure support services for federal agencies?

Guidehouse Digital LLC has a significant track record in providing a range of IT services to federal agencies, including digital transformation, cloud solutions, and cybersecurity. While specific details on past performance for IT infrastructure support at the scale of the Census Bureau contract are not fully detailed here, their broader portfolio suggests experience with complex government IT environments. Agencies often award contracts to Guidehouse based on their demonstrated capabilities in managing large-scale IT projects and their understanding of federal procurement regulations. A deeper dive into their past performance evaluations and contract history within FPDS would provide more granular insights into their reliability and success rates for similar infrastructure support tasks.

How does the awarded amount compare to historical spending on IT infrastructure support by the U.S. Census Bureau?

The awarded amount of $49.6 million for a period of approximately 20 months (April 2024 - November 2025) represents a significant investment in IT infrastructure support. To provide a precise comparison, historical spending data for the Census Bureau's IT infrastructure support over similar durations would be needed. However, federal agencies typically allocate substantial budgets to maintain and upgrade their IT systems, which are critical for operations. Given the Census Bureau's role in collecting and processing vast amounts of data, consistent and robust IT support is essential. This award appears to be a substantial, but potentially in-line, expenditure for maintaining such critical infrastructure, especially if it's a follow-on to previous support contracts.

What are the primary risks associated with a Time and Materials (T&M) contract for IT infrastructure support?

The primary risk associated with a Time and Materials (T&M) contract for IT infrastructure support is the potential for cost overruns and a lack of defined cost ceiling. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure can incentivize longer task durations and less efficient work if not rigorously managed. For the government, this means that the total cost can escalate beyond initial estimates if the scope of work is not tightly controlled or if the contractor's labor hours are not efficiently utilized. Effective oversight, detailed task orders, and clear performance metrics are crucial to mitigate these risks.

What is the strategic importance of this IT infrastructure support contract for the U.S. Census Bureau's mission?

This IT infrastructure support contract is strategically vital for the U.S. Census Bureau's mission, which involves collecting, processing, and disseminating critical demographic and economic data for the nation. Reliable and high-performing IT infrastructure is the backbone of these operations, ensuring the integrity, security, and accessibility of vast datasets. The contract supports the systems that enable data collection from millions of respondents, manage complex databases, and facilitate public access to statistical information. Any disruption or underperformance in IT infrastructure could jeopardize the accuracy and timeliness of census data, impacting policy decisions, resource allocation, and research across the country.

How does the 'full and open competition after exclusion of sources' procurement method impact value for taxpayers?

The 'full and open competition after exclusion of sources' procurement method is designed to maximize value for taxpayers. By allowing all responsible sources to submit offers, it creates a competitive environment where multiple vendors can present their best pricing and technical solutions. This process drives down costs through market forces and encourages innovation as companies strive to win the contract. While 'exclusion of sources' might imply specific pre-qualification criteria or a previous IDIQ contract, the core principle remains broad competition. This approach is generally preferred over sole-source or limited competition as it provides greater assurance that the government is obtaining services at a fair and reasonable price, thereby optimizing the use of taxpayer funds.

What are the potential implications of this contract being a delivery order under a larger IDIQ contract?

This contract being a delivery order under a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract signifies that the foundational procurement process, including vetting of the contractor and establishing general terms and conditions, has already occurred. This approach streamlines the acquisition process for specific task orders, allowing agencies to procure services more rapidly. For taxpayers, it can mean more efficient government spending as the administrative burden of a full, standalone procurement is reduced for each subsequent order. However, it also means that the competition for this specific task order might be limited to pre-qualified vendors under the IDIQ, potentially reducing the breadth of competition compared to a completely new full and open solicitation.

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: 1

Pricing Type: TIME AND MATERIALS (Y)

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: $61,574,000

Exercised Options: $51,787,941

Current Obligation: $49,637,395

Actual Outlays: $36,917,722

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200111W

IDV Type: GWAC

Timeline