Guidehouse Digital LLC awarded $17.7M for USCG C5ISC core technology support

Contract Overview

Contract Amount: $17,701,599 ($17.7M)

Contractor: Guidehouse Digital LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-04-15

End Date: 2022-12-31

Contract Duration: 260 days

Daily Burn Rate: $68.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CORE TECHNOLOGY SUPPORT SERVICES TO SUPPORT THE USCG COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS, CYBER, AND INTELLIGENCE SERVICE CENTER (C5ISC).

Place of Performance

Location: KEARNEYSVILLE, BERKELEY County, WEST VIRGINIA, 25430

State: West Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $17.7 million to GUIDEHOUSE DIGITAL LLC for work described as: CORE TECHNOLOGY SUPPORT SERVICES TO SUPPORT THE USCG COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS, CYBER, AND INTELLIGENCE SERVICE CENTER (C5ISC). Key points: 1. Contract focuses on essential command, control, communications, computers, cyber, and intelligence services for the Coast Guard. 2. The award was not competitively procured, raising questions about potential price discovery. 3. The firm fixed-price contract type suggests a defined scope and cost control. 4. Performance is concentrated in West Virginia, indicating a specific geographic focus. 5. The contract duration of 260 days suggests a short-term or project-specific need.

Value Assessment

Rating: fair

The contract value of $17.7 million for core technology support services appears to be within a reasonable range for specialized IT services. However, without a competitive bidding process, it is difficult to benchmark the pricing against market rates or identify potential cost savings. The lack of competition limits the ability to assess if the government received the best possible value. Further analysis would require comparing the specific services rendered to similar contracts awarded through open competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source or 'not available for competition' designation. This means that only one vendor, Guidehouse Digital LLC, was solicited for this requirement. The lack of a competitive process limits the opportunity for multiple vendors to bid, which can lead to higher prices and reduced innovation. The rationale for this sole-source award is not provided, but it typically implies a unique capability or urgent need that only one contractor can fulfill.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government does not benefit from the price competition that typically drives down costs in open procurements.

Public Impact

The U.S. Coast Guard's C5ISC operations are directly supported, ensuring the continuity of critical communication and cyber infrastructure. Personnel in West Virginia may be directly involved in the delivery or oversight of these technology support services. The services provided are essential for maintaining the operational readiness and security of Coast Guard missions. The contract supports the technological backbone necessary for national maritime security and safety operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Limited transparency into the justification for sole-source award.
Potential for vendor lock-in if services are highly specialized.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Focus on core technology support addresses critical operational needs.
Specific contract value indicates a significant investment in C5ISC capabilities.

Sector Analysis

The IT services sector, particularly within government contracting, is highly competitive. This contract falls under the 'Other Computer Related Services' NAICS code, which encompasses a broad range of IT support, integration, and consulting. The market for these services is substantial, with agencies like the Department of Homeland Security consistently investing in maintaining and upgrading their technology infrastructure. Benchmarking this contract's value would typically involve comparing it to other IT support contracts awarded to similar-sized firms for comparable services, ideally through competitive processes.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have a small business set-aside component. There is no information available regarding subcontracting plans for small businesses. The absence of small business participation in this specific award means that opportunities for small businesses within this particular contract are not being leveraged.

Oversight & Accountability

Oversight for this contract would fall under the Department of Homeland Security and the U.S. Coast Guard. As a sole-source award, the justification and terms would be subject to internal review and potentially oversight from relevant congressional committees. Transparency regarding the specific services delivered and performance metrics would be crucial for accountability. The Inspector General's office for DHS may have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Department of Homeland Security IT Modernization Programs
U.S. Coast Guard Command, Control, Communications, Computers, and Information Technology (C4IT) Services
Federal IT Support Services Contracts
Cybersecurity Support for Federal Agencies

Risk Flags

Sole-source award lacks competitive justification.
Limited public information on specific services and performance metrics.
Potential for unbenchmarked pricing due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $17.7 million to GUIDEHOUSE DIGITAL LLC. CORE TECHNOLOGY SUPPORT SERVICES TO SUPPORT THE USCG COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS, CYBER, AND INTELLIGENCE SERVICE CENTER (C5ISC).

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 (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $17.7 million.

What is the period of performance?

Start: 2022-04-15. End: 2022-12-31.

What specific services are included under 'CORE TECHNOLOGY SUPPORT SERVICES' for the USCG C5ISC?

The term 'CORE TECHNOLOGY SUPPORT SERVICES' is broad and typically encompasses a range of activities critical to maintaining and operating complex IT systems. For the USCG C5ISC, this likely includes technical support for hardware and software, network management, cybersecurity monitoring and response, system administration, database management, and potentially help desk support. It may also involve the maintenance of communication systems, command and control platforms, and intelligence data processing capabilities. The exact scope would be detailed in the contract's Statement of Work (SOW), which is not provided here but would specify deliverables, performance standards, and reporting requirements.

What is the justification for this contract being awarded on a sole-source basis?

The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' signifying a sole-source award. Government agencies typically award contracts on a sole-source basis when only one responsible source is available or capable of meeting the requirement. Common justifications include unique capabilities, specialized expertise, urgent and compelling needs where competition is not feasible, or when a previous contract was awarded under specific circumstances that preclude full and open competition. Without the specific justification document (e.g., a Justification and Approval - J&A), the precise reason for this sole-source award remains unknown. This lack of transparency is a key area for further inquiry.

How does the $17.7 million contract value compare to similar IT support contracts for federal agencies?

Comparing the $17.7 million value requires context regarding the contract's duration and scope. This contract has a duration of 260 days (approximately 8.5 months). Annualizing this value would place it at roughly $24.8 million per year. This figure is moderate for large-scale federal IT support contracts, which can range from a few million to hundreds of millions of dollars annually. However, without knowing the specific services, labor categories, and geographic locations involved, a precise benchmark is difficult. Contracts for similar core technology support, especially those involving cybersecurity and command systems, can vary significantly based on complexity and the level of service required.

What are the potential risks associated with a sole-source award for critical IT support?

Sole-source awards for critical IT support, such as this contract for the USCG C5ISC, carry several potential risks. Firstly, the absence of competition can lead to higher costs for the government, as the contractor may not be incentivized to offer the most competitive pricing. Secondly, there's a risk of reduced innovation, as the government doesn't benefit from the diverse solutions that multiple bidders might propose. Thirdly, it can create vendor lock-in, making it difficult and costly to switch providers in the future if performance issues arise or better alternatives become available. Finally, the lack of a competitive process can sometimes mask inefficiencies or a lack of robust performance management if not closely monitored by the agency.

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

Guidehouse Digital LLC is a known entity in the federal contracting space, often providing consulting and technology services. While specific details of their track record for 'CORE TECHNOLOGY SUPPORT SERVICES' for the USCG C5ISC are not detailed in this data snippet, their broader portfolio likely includes IT modernization, digital transformation, and cybersecurity solutions for various government agencies. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), other contract awards, and any publicly available information on their project successes and challenges within the federal sector. Their experience in similar complex IT environments would be a key factor in evaluating their capability for this role.

What are the historical spending patterns for USCG C5ISC core technology support?

To analyze historical spending patterns for USCG C5ISC core technology support, one would need to examine contract data over several fiscal years. This would involve identifying all contracts awarded for similar services, including those awarded to Guidehouse Digital LLC and other potential contractors. Key metrics to track would include the total annual spending on C5ISC support, the number of contracts awarded, the types of contract vehicles used (e.g., sole-source vs. competitive), the average contract value, and the primary contractors receiving awards. Understanding these patterns can reveal trends in technology investment, identify potential increases or decreases in spending, and highlight any shifts in contracting strategies, such as a reliance on sole-source awards.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70Z0G322RCTS13600

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 11490 COMMERCE PARK DR STE 340, RESTON, VA, 20191

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business

Financial Breakdown

Contract Ceiling: $17,701,599

Exercised Options: $17,701,599

Current Obligation: $17,701,599

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0305N

IDV Type: FSS

Timeline