HHS awards $24.1M for organizational programmatic support to Guidehouse Digital LLC

Contract Overview

Contract Amount: $24,112,534 ($24.1M)

Contractor: Guidehouse Digital LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2022-09-20

End Date: 2026-09-19

Contract Duration: 1,460 days

Daily Burn Rate: $16.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: Other

Official Description: ORGANIZATIONAL PROGRAMMATIC SUPPORT (TO#3)

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $24.1 million to GUIDEHOUSE DIGITAL LLC for work described as: ORGANIZATIONAL PROGRAMMATIC SUPPORT (TO#3) Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1460 days (4 years) indicates a long-term need for these services. 3. The contract is a delivery order under a larger contract, suggesting it's part of an existing framework. 4. The primary service is Engineering Services (NAICS 541330), with a Labor Hours pricing structure. 5. The awardee, Guidehouse Digital LLC, is a known entity in government contracting. 6. The contract is managed by the Centers for Disease Control and Prevention (CDC).

Value Assessment

Rating: good

The total award amount of $24.1 million over four years for organizational programmatic support appears reasonable given the scope and duration. Benchmarking against similar engineering services contracts for programmatic support within HHS or other agencies would provide a more precise value assessment. The use of labor hours pricing allows for flexibility but requires diligent oversight to ensure efficiency and prevent cost overruns. Without specific deliverables or performance metrics, a definitive value-for-money assessment is challenging, but the competitive award process is a positive indicator.

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 3 bids suggests a moderate level of competition for this specific delivery order. A higher number of bidders typically leads to more competitive pricing and a wider range of innovative solutions. However, the fact that it was competed openly is a positive sign for price discovery and taxpayer value.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through a competitive bidding process. It ensures that the government is not limited to a single provider, increasing the likelihood of obtaining services at a fair market price.

Public Impact

The Centers for Disease Control and Prevention (CDC) benefits from this contract by receiving essential organizational programmatic support. The services provided are crucial for the effective functioning and execution of CDC's public health initiatives. The contract supports the CDC's mission to protect public health and safety. The geographic impact is primarily within the United States, supporting federal agency operations. The contract likely supports a workforce involved in engineering and programmatic support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep due to labor hours pricing structure if not closely monitored.
Dependence on a single contractor for a significant duration could pose a risk if performance degrades.
The specific nature of 'organizational programmatic support' could be broad, requiring clear performance metrics to ensure accountability.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
The contractor, Guidehouse Digital LLC, is an established firm with experience in government contracting.
The contract duration suggests a stable and predictable need for these services, allowing for focused execution.
The delivery order mechanism implies it fits within an existing, potentially pre-vetted, contract vehicle.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting organizational and programmatic functions within a federal health agency. The market for such services is substantial, encompassing a wide range of consulting, technical, and management support. Comparable spending benchmarks would typically be found within IT, professional services, and management consulting categories for federal agencies. The $24.1 million award is a significant, but not extraordinary, amount for a multi-year support contract of this nature within the federal landscape.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). Therefore, there are no direct subcontracting implications mandated by a set-aside. However, the prime contractor, Guidehouse Digital LLC, may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the program office within the Centers for Disease Control and Prevention (CDC). Performance monitoring, invoice review, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Organizational Support Services
Program Management Support
Engineering Consulting Services
Federal IT and Professional Services
HHS Agency Support Contracts

Risk Flags

Long-term contract duration may increase risk of performance degradation or obsolescence.
Labor hours pricing requires diligent oversight to ensure cost control.
Lack of specific performance metrics in summary data makes value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $24.1 million to GUIDEHOUSE DIGITAL LLC. ORGANIZATIONAL PROGRAMMATIC SUPPORT (TO#3)

Who is the contractor on this award?

The obligated recipient is GUIDEHOUSE DIGITAL LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $24.1 million.

What is the period of performance?

Start: 2022-09-20. End: 2026-09-19.

What is Guidehouse Digital LLC's track record with the federal government, particularly with HHS and the CDC?

Guidehouse Digital LLC has a significant track record of federal contracting. As a large government contractor, they have secured numerous awards across various agencies, including the Department of Health and Human Services (HHS). Their portfolio often includes professional services, IT support, and management consulting. Specific to the CDC, their past performance would be detailed in contract databases, showing their history of delivering services. Analyzing their past performance on similar contracts, including any performance issues or commendations, is crucial for assessing their reliability and capability in fulfilling this current $24.1 million award.

How does the $24.1 million award compare to similar organizational programmatic support contracts awarded by the CDC or other federal health agencies?

The $24.1 million award for organizational programmatic support over four years represents an average annual value of approximately $6 million. This figure needs to be benchmarked against comparable contracts for engineering services and programmatic support within the federal health sector. For instance, contracts for IT modernization, public health data analysis, or research program management within agencies like the CDC, NIH, or FDA could serve as benchmarks. If similar contracts for comparable scope and duration are awarded at significantly lower or higher total values, it would indicate whether this award is competitive. The labor hours pricing structure also means the actual value realized can fluctuate based on effort expended.

What are the key performance indicators (KPIs) and deliverables associated with this contract, and how are they measured?

The provided data does not specify the key performance indicators (KPIs) or detailed deliverables for this 'ORGANIZATIONAL PROGRAMMATIC SUPPORT (TO#3)' contract. Typically, for engineering services and programmatic support, KPIs might include project completion rates, adherence to timelines, quality of reports or analyses produced, efficiency metrics, and stakeholder satisfaction. Deliverables could range from strategic plans, process improvement recommendations, technical documentation, to project management reports. The effectiveness of this contract hinges on clearly defined and measurable KPIs and deliverables outlined in the Statement of Work (SOW), which are essential for assessing performance and ensuring value for taxpayer money.

What is the historical spending pattern for organizational programmatic support at the CDC, and how does this award fit within that trend?

Analyzing historical spending patterns for organizational programmatic support at the CDC is essential to contextualize this $24.1 million award. Federal contract databases would reveal the total amount spent by the CDC on similar services over previous fiscal years. This includes examining the number of contracts awarded, the average contract value, and the primary contractors. If this award represents a significant increase or decrease compared to historical trends, it warrants further investigation. It could indicate a shift in agency priorities, a response to new challenges, or a change in procurement strategy. Understanding this pattern helps assess if the current award is an anomaly or part of a consistent investment in programmatic support.

What are the potential risks associated with a 4-year contract for engineering and programmatic support, and what mitigation strategies are in place?

A 4-year contract for engineering and programmatic support carries several potential risks. These include the risk of contractor performance degradation over time, the potential for scope creep if requirements are not well-defined, and the risk of the contractor becoming entrenched, potentially reducing future competition. Furthermore, changes in technology or agency needs over four years could render the contracted services less relevant. Mitigation strategies typically involve robust contract management, including regular performance reviews, clear change control processes, and performance-based incentives or penalties. The contracting officer's vigilance and proactive engagement are key to managing these long-term risks effectively.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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

Solicitation ID: 75D301-22-R-72165

Offers Received: 3

Pricing Type: LABOR HOURS (Z)

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: $32,342,702

Exercised Options: $24,112,534

Current Obligation: $24,112,534

Actual Outlays: $21,518,012

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU136

IDV Type: IDC

Timeline