DHS awards $29.1M for IT support, with Guidehouse Digital LLC securing a significant portion

Contract Overview

Contract Amount: $29,109,254 ($29.1M)

Contractor: Guidehouse Digital LLC

Awarding Agency: Department of Homeland Security

Start Date: 2020-05-08

End Date: 2024-11-07

Contract Duration: 1,644 days

Daily Burn Rate: $17.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FLEXIBLE AGILE SCALABLE TEAM-OPERATIONS SUPPORT PORTFOLIO

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $29.1 million to GUIDEHOUSE DIGITAL LLC for work described as: FLEXIBLE AGILE SCALABLE TEAM-OPERATIONS SUPPORT PORTFOLIO Key points: 1. Contract value represents a substantial investment in IT operations support. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Performance period extends over several years, indicating a long-term need. 4. The contract falls within the IT services sector, a critical area for government operations. 5. Pricing will be assessed against benchmarks for similar IT support contracts. 6. Risk indicators will be monitored throughout the contract's duration.

Value Assessment

Rating: good

The contract's value of $29.1 million over its period of performance appears reasonable for comprehensive IT operations support. Benchmarking against similar contracts for computer systems design services within federal agencies will provide a clearer picture of value for money. The firm-fixed-price structure can offer cost predictability, but vigilance is needed to ensure efficient service delivery and prevent cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 10 bids suggests a healthy level of competition, which typically drives more competitive pricing and encourages contractors to offer innovative solutions. This broad competition is a positive sign for price discovery and achieving value for the government.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it increases the likelihood of securing services at the most favorable prices and fosters a more dynamic marketplace for government IT support.

Public Impact

The Transportation Security Administration (TSA) is the primary beneficiary, receiving essential IT operations support. Services delivered are crucial for maintaining the functionality and security of TSA's IT infrastructure. The contract's impact is primarily within the federal government's IT operations, supporting agency-wide functions. Workforce implications may include the direct employment of IT professionals by the contractor and potential indirect impacts on government IT staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependence on a single contractor for critical IT operations could pose a risk if performance falters.
Ensuring continued alignment with evolving technological needs throughout the contract term.

Positive Signals

Awarded under full and open competition, indicating a robust selection process.
Firm-fixed-price contract type provides cost certainty.
Long performance period allows for stable support and potential for building contractor expertise.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a vital component of the broader IT services industry. The federal government is a significant consumer of these services, investing heavily in maintaining and modernizing its technological infrastructure. Comparable spending benchmarks for IT operations support contracts within agencies like DHS are essential for evaluating the value and pricing of this award.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary focus was on securing the best overall solution from the competitive field, rather than specifically promoting small business participation. Further review of the contract details would be needed to ascertain any indirect impacts or opportunities for small businesses within the supply chain.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program officials within the TSA. Accountability measures are embedded in the firm-fixed-price structure and performance expectations. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

IT Operations Support Services
Computer Systems Design Services
Department of Homeland Security IT Contracts
Transportation Security Administration IT Modernization

Risk Flags

Potential for vendor lock-in
Risk of performance degradation
Need for continuous technological adaptation
Data security and privacy concerns

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $29.1 million to GUIDEHOUSE DIGITAL LLC. FLEXIBLE AGILE SCALABLE TEAM-OPERATIONS SUPPORT PORTFOLIO

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 (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $29.1 million.

What is the period of performance?

Start: 2020-05-08. End: 2024-11-07.

What is Guidehouse Digital LLC's track record with federal IT support contracts?

Guidehouse Digital LLC has a history of performing IT and digital transformation services for various federal agencies. Their experience often includes areas such as cloud migration, cybersecurity, data analytics, and IT modernization. Analyzing their past performance on similar-sized contracts, particularly those involving complex IT operations support, would reveal their ability to meet demanding requirements, manage budgets effectively, and deliver on schedule. A review of past performance evaluations and any reported contract disputes or successes would provide further insight into their reliability and capability as a federal contractor in this domain.

How does the $29.1 million contract value compare to similar IT support contracts awarded by DHS or TSA?

The $29.1 million contract value for IT operations support over its duration is a significant investment. To assess its comparability, one would examine other contracts awarded by DHS and TSA for similar services, such as computer systems design, network management, and IT infrastructure support. Factors like the scope of services, contract duration, and specific deliverables would need to be considered. If this contract represents a higher or lower cost per year or per service unit compared to benchmarks, it would indicate whether the pricing is competitive. For instance, if similar contracts for comparable services are in the $5-10 million range annually, this $29.1 million award over its term might be considered within the expected range for comprehensive, multi-year support.

What are the primary risk indicators associated with this type of IT operations support contract?

Key risk indicators for this IT operations support contract include potential vendor lock-in, where the agency becomes overly reliant on a single provider, making transitions difficult and costly. Performance risks are also significant; failure to maintain system uptime, security, or responsiveness can severely impact TSA operations. Technical obsolescence is another concern, as IT environments evolve rapidly, and the contractor must keep pace. Furthermore, the risk of scope creep, where the project's requirements expand beyond the initial agreement without corresponding adjustments in cost or timeline, needs careful management. Finally, data security and privacy risks are paramount, given the sensitive nature of information handled by TSA.

How effective is the firm-fixed-price contract type in ensuring value for money for IT support services?

The firm-fixed-price (FFP) contract type is generally favored for IT support services when the scope of work is well-defined and unlikely to change significantly. It offers the government cost certainty, as the contractor assumes most of the risk for cost overruns. This can drive efficiency, as the contractor is incentivized to manage costs effectively to maximize profit. However, for complex or evolving IT environments, an FFP contract might stifle innovation or lead to the contractor cutting corners on quality if not carefully monitored. Value for money is best achieved with FFP when coupled with clear performance standards and robust oversight to ensure the contractor delivers the required services at the agreed-upon price without compromising quality or adaptability.

What are the historical spending patterns for IT operations support at the TSA?

Analyzing historical spending patterns for IT operations support at the TSA would involve reviewing past contract awards for similar services over several fiscal years. This would reveal trends in contract values, the number of competitors, and the types of services procured. For example, one might observe an increasing trend in spending due to modernization efforts or a shift towards cloud-based solutions. Understanding these patterns helps contextualize the current $29.1 million award, indicating whether it aligns with historical investments or represents a significant increase or decrease. It also informs future budget planning and procurement strategies for the TSA's IT needs.

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

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

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: $57,834,569

Exercised Options: $29,109,254

Current Obligation: $29,109,254

Actual Outlays: $10,746,722

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0024

IDV Type: GWAC

Timeline