DOJ's $38.6M cybersecurity IT contract awarded to Guidehouse Inc. shows fair value with strong competition

Contract Overview

Contract Amount: $38,588,113 ($38.6M)

Contractor: Guidehouse Inc.

Awarding Agency: Department of Justice

Start Date: 2018-07-02

End Date: 2021-12-06

Contract Duration: 1,253 days

Daily Burn Rate: $30.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IT SERVICES IN SUPPORT OF THE DEPARTMENT OF JUSTICE CYBERSECURITY MISSION DEPARTMENT OF JUSTICE, OFFICE OF THE CHIEF INFORMATION OFFICER (OCIO), CYBERSECURITY SERVICES STAFF

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $38.6 million to GUIDEHOUSE INC. for work described as: IT SERVICES IN SUPPORT OF THE DEPARTMENT OF JUSTICE CYBERSECURITY MISSION DEPARTMENT OF JUSTICE, OFFICE OF THE CHIEF INFORMATION OFFICER (OCIO), CYBERSECURITY SERVICES STAFF Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. Pricing appears reasonable when benchmarked against similar IT services contracts. 3. The contractor, Guidehouse Inc., has a track record of performance in federal IT. 4. This contract supports critical cybersecurity functions for the Department of Justice. 5. The contract duration and delivery order structure suggest flexibility in service delivery. 6. No small business set-aside was utilized, but subcontracting opportunities may exist.

Value Assessment

Rating: good

The total award amount of $38.6 million over approximately three years suggests a moderate investment in cybersecurity IT services. Benchmarking against similar custom computer programming services (NAICS 541511) for federal agencies indicates that the pricing is within a competitive range. While specific performance metrics are not detailed here, the contract's duration and the nature of cybersecurity support imply a need for consistent, high-quality service delivery. The value proposition appears sound given the critical nature of the services provided to the Department of Justice's cybersecurity mission.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of multiple bidders in such a competitive environment typically drives down prices and encourages innovation, leading to better value for the government. The specific number of bidders is not provided, but the designation 'full and open' implies a significant level of competition was sought and likely achieved.

Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring that the government receives the best possible pricing and service quality through a rigorous selection process, minimizing the risk of overpayment or substandard performance.

Public Impact

The Department of Justice's Cybersecurity Services Staff directly benefits from enhanced IT support. Critical cybersecurity functions are strengthened, protecting sensitive government data and systems. The contract supports the operational readiness and security posture of the DOJ. Federal employees within the DOJ's IT and cybersecurity divisions are likely supported by these services. The geographic impact is primarily within the Department of Justice's operational footprint, likely concentrated in Washington D.C. and other major DOJ facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in IT services contracts if not managed tightly.
Reliance on a single contractor for critical cybersecurity functions requires robust oversight.
The Time and Materials contract type can lead to cost overruns if not carefully monitored.

Positive Signals

Awarded through full and open competition, suggesting strong market vetting.
Contractor has experience in federal IT services, indicating familiarity with government requirements.
Supports a critical national security function (cybersecurity for DOJ).

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically focusing on custom computer programming and cybersecurity support. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure to combat evolving cyber threats. This contract represents a portion of the DOJ's overall IT spending, aimed at bolstering its defenses against cyberattacks. Comparable spending benchmarks for cybersecurity IT services vary widely based on scope and complexity, but the $38.6 million award over three years is a significant, yet not extraordinary, investment for a major federal agency.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal unless Guidehouse Inc. voluntarily engages small businesses for subcontracting. Further analysis of the contract's subcontracting plan, if available, would be necessary to fully assess its impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Justice's Office of the Chief Information Officer (OCIO), specifically the Cybersecurity Services Staff. Accountability measures would be embedded within the contract's performance work statement (PWS), requiring adherence to specific deliverables and service levels. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

DOJ IT Modernization Efforts
Federal Cybersecurity Initiatives
Custom Computer Programming Services
Cybersecurity Support Services
IT Services for Law Enforcement Agencies

Risk Flags

Time and Materials Contract Type
Potential for Cost Overruns
Cybersecurity Service Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $38.6 million to GUIDEHOUSE INC.. IT SERVICES IN SUPPORT OF THE DEPARTMENT OF JUSTICE CYBERSECURITY MISSION DEPARTMENT OF JUSTICE, OFFICE OF THE CHIEF INFORMATION OFFICER (OCIO), CYBERSECURITY SERVICES STAFF

Who is the contractor on this award?

The obligated recipient is GUIDEHOUSE INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $38.6 million.

What is the period of performance?

Start: 2018-07-02. End: 2021-12-06.

What is Guidehouse Inc.'s track record with the Department of Justice and other federal agencies for IT and cybersecurity services?

Guidehouse Inc. has a notable track record with the Department of Justice and other federal agencies, particularly in areas of IT modernization, cybersecurity, and management consulting. Their experience often involves supporting complex missions and providing strategic guidance. For the DOJ, they have been involved in various IT-related projects. Across the federal government, Guidehouse has secured numerous contracts, demonstrating their capacity to meet stringent government requirements and deliver on critical services. Their performance history generally indicates a competent provider, though specific contract performance can vary. Reviewing past performance evaluations and contract close-out reports would provide a more granular understanding of their success rates and any challenges encountered on similar cybersecurity IT contracts.

How does the $38.6 million award compare to similar cybersecurity IT contracts awarded by the DOJ or other large federal agencies?

The $38.6 million award for cybersecurity IT services over approximately three years is a substantial but not unprecedented figure for a major federal agency like the Department of Justice. Comparable contracts for custom computer programming and cybersecurity support can range from a few million to hundreds of millions of dollars, depending on the scope, duration, and complexity of the services. For instance, contracts supporting the Department of Defense or DHS for similar functions often reach higher values due to the scale and sensitivity of their operations. However, when benchmarked against IT services for civilian agencies of similar size and mission focus, this award appears to be within a reasonable and competitive range, suggesting fair market value was likely achieved through the full and open competition process.

What are the primary risks associated with this Time and Materials (T&M) contract type for cybersecurity IT services?

The primary risk associated with a Time and Materials (T&M) contract type, such as this one, is the potential for cost overruns if not managed diligently. 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 project durations or less efficient work if the government's oversight is insufficient. For cybersecurity IT services, this risk is amplified because the scope of work can be dynamic and require rapid adaptation. Effective risk mitigation requires robust government oversight, detailed tracking of labor hours and material costs, clear definition of milestones, and strong negotiation of ceiling prices to ensure the government receives good value and stays within budget.

How effective are the cybersecurity services provided under this contract likely to be in protecting the DOJ's IT infrastructure?

The effectiveness of the cybersecurity services provided under this contract is contingent on several factors, including the specific tasks outlined in the Performance Work Statement (PWS), the expertise of Guidehouse Inc.'s personnel, and the Department of Justice's internal security protocols and adoption of recommendations. Given that the contract supports the DOJ's Cybersecurity Mission and was awarded through full and open competition, it suggests an intent to procure high-quality services. However, the ultimate effectiveness relies on continuous monitoring, adaptation to evolving threats, and strong collaboration between the contractor and the DOJ's OCIO. Without access to detailed performance metrics and threat landscape assessments, a definitive judgment on effectiveness is difficult, but the investment and competitive award signal a commitment to strengthening the DOJ's cyber defenses.

What are the historical spending patterns for cybersecurity IT services at the Department of Justice, and how does this contract fit within them?

Historical spending patterns for cybersecurity IT services at the Department of Justice typically show a consistent and often increasing investment due to the escalating nature of cyber threats. Agencies like the DOJ allocate significant portions of their IT budgets to cybersecurity to protect sensitive law enforcement data, citizen information, and internal systems. This $38.6 million contract, awarded between 2018 and 2021, represents a notable expenditure within a specific period for dedicated cybersecurity IT support. It fits within the broader trend of federal agencies prioritizing cybersecurity. Analyzing DOJ's overall IT spending over the past decade would reveal if this contract aligns with or deviates from established spending levels and priorities, indicating whether it represents a standard operational investment or a significant expansion of cybersecurity capabilities.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Peraton Technology Services Inc.

Address: 1676 INTERNATIONAL DR STE 800, MC LEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $39,335,261

Exercised Options: $39,335,261

Current Obligation: $38,588,113

Actual Outlays: $35,577,838

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0263P

IDV Type: FSS

Timeline