FEMA awards $148.6M contract to Guidehouse Digital for NFIP O&M services

Contract Overview

Contract Amount: $148,624,034 ($148.6M)

Contractor: Guidehouse Digital LLC

Awarding Agency: Department of Homeland Security

Start Date: 2020-09-24

End Date: 2025-12-15

Contract Duration: 1,908 days

Daily Burn Rate: $77.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: NATIONAL FLOOD INSURANCE PROGRAM (NFIP) PIVOT OPERATIONS&MAINTENANCE (O&M)

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $148.6 million to GUIDEHOUSE DIGITAL LLC for work described as: NATIONAL FLOOD INSURANCE PROGRAM (NFIP) PIVOT OPERATIONS&MAINTENANCE (O&M) Key points: 1. Significant investment in critical disaster response infrastructure. 2. Guidehouse Digital, a new entrant to this specific contract vehicle, faces competition from established players. 3. Potential risk in vendor lock-in and ensuring long-term cost-effectiveness. 4. IT services sector, focusing on system design and maintenance.

Value Assessment

Rating: fair

The contract's Time and Materials (T&M) pricing structure can lead to cost overruns if not closely managed. Benchmarking against similar IT O&M contracts is difficult without detailed labor rates and scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the Delivery Order (DO) nature implies it's part of a larger IDIQ, potentially limiting the initial pool of bidders.

Taxpayer Impact: Taxpayer funds are allocated for essential government operations, with the potential for cost efficiencies if the T&M contract is managed effectively.

Public Impact

Ensures continuity of operations for the National Flood Insurance Program. Supports disaster preparedness and response capabilities. Impacts homeowners and communities relying on flood insurance. Modernizes critical IT infrastructure for FEMA.

Waste & Efficiency Indicators

Waste Risk Score: 70 / 10

Warning Flags

T&M pricing risk
Potential for scope creep
Vendor performance monitoring

Positive Signals

Full and open competition
Critical mission support
Long-term contract duration

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design and related services. Spending benchmarks for similar O&M contracts vary widely based on system complexity and criticality.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). There is an opportunity to ensure future procurements within this IDIQ or similar vehicles include provisions for small business participation.

Oversight & Accountability

The Federal Emergency Management Agency (FEMA) is responsible for oversight. Robust contract management and performance monitoring are crucial to ensure value for money and adherence to the T&M contract terms.

Related Government Programs

Computer Systems Design Services
Department of Homeland Security Contracting
Federal Emergency Management Agency Programs

Risk Flags

Time and Materials pricing
Potential for vendor lock-in
Lack of small business participation
Reliance on a single vendor for critical systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $148.6 million to GUIDEHOUSE DIGITAL LLC. NATIONAL FLOOD INSURANCE PROGRAM (NFIP) PIVOT OPERATIONS&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 Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $148.6 million.

What is the period of performance?

Start: 2020-09-24. End: 2025-12-15.

How will FEMA ensure the Time and Materials pricing model does not lead to excessive costs for NFIP O&M services over the contract's duration?

FEMA must implement stringent oversight mechanisms, including detailed review of timesheets, labor categories, and material costs. Regular performance reviews and cost analysis will be essential to identify and mitigate potential cost overruns. Establishing clear milestones and deliverables tied to payment will also help control expenditures and ensure value.

What are the primary risks associated with relying on a single vendor for critical NFIP IT operations and maintenance?

The primary risks include vendor lock-in, where switching providers becomes difficult and costly. There's also a risk of reduced innovation if the vendor becomes complacent. Furthermore, a single point of failure could arise if the vendor experiences significant operational issues, potentially disrupting essential NFIP services during critical periods.

How effectively will this contract contribute to the modernization and resilience of the NFIP's IT infrastructure?

The effectiveness hinges on the specific tasks outlined in the delivery order and the vendor's technical capabilities. If the contract focuses on upgrading outdated systems, enhancing cybersecurity, and improving data management, it can significantly boost modernization and resilience. Regular performance evaluations against modernization goals are necessary to ensure the desired outcomes are achieved.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70FA3020Q00000011

Offers Received: 3

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: $158,622,133

Exercised Options: $148,624,034

Current Obligation: $148,624,034

Actual Outlays: $65,235,046

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0024

IDV Type: GWAC

Timeline