HHS Awards $21.5M for Health IT O&M to Guidehouse Inc

Contract Overview

Contract Amount: $21,555,770 ($21.6M)

Contractor: Guidehouse Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2021-06-17

End Date: 2026-06-17

Contract Duration: 1,826 days

Daily Burn Rate: $11.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: THE PURPOSE OF THIS CONTRACT IS TO PROVIDE THE OPERATIONS AND MAINTENANCE (O&M) SUPPORT WHICH INCLUDES TECHNICAL, FUNCTIONAL AND BUSINESS OPERATIONS SUPPORT. THIS REQUIRES FUNCTIONAL AND TECHNICAL EXPERTISE IN HEALTH AND HUMAN SERVICES (HHS)?S U

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $21.6 million to GUIDEHOUSE INC. for work described as: THE PURPOSE OF THIS CONTRACT IS TO PROVIDE THE OPERATIONS AND MAINTENANCE (O&M) SUPPORT WHICH INCLUDES TECHNICAL, FUNCTIONAL AND BUSINESS OPERATIONS SUPPORT. THIS REQUIRES FUNCTIONAL AND TECHNICAL EXPERTISE IN HEALTH AND HUMAN SERVICES (HHS)?S U Key points: 1. Contract focuses on critical Health and Human Services (HHS) operations and maintenance. 2. Guidehouse Inc. secured the award, indicating established expertise in the sector. 3. Potential risk lies in the long-term dependency on a single vendor for essential IT support. 4. The IT services sector, particularly custom programming, is highly competitive.

Value Assessment

Rating: good

The contract value of $21.5M over five years appears reasonable for comprehensive O&M support in the complex HHS environment. Benchmarking against similar large-scale IT support contracts within federal health agencies would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method generally leads to more competitive pricing by allowing all qualified vendors to bid.

Taxpayer Impact: Competitive bidding under full and open processes aims to ensure taxpayer funds are used efficiently, securing necessary services at the best possible value.

Public Impact

Ensures continuity of essential health IT services for the Indian Health Service. Supports critical functions within the Department of Health and Human Services. Potential for improved healthcare delivery through reliable IT infrastructure. Long-term contract may impact future vendor innovation and cost-effectiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (5 years) may limit flexibility and future cost savings.
Reliance on a single vendor for critical O&M could pose a risk if performance degrades.
Time and Materials pricing could lead to cost overruns if not closely managed.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Experienced vendor (Guidehouse Inc.) likely brings significant expertise.
Contract supports vital HHS functions, ensuring service continuity.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. Federal spending in this area is substantial, driven by the need for sophisticated software development and maintenance to support agency missions.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded to Guidehouse Inc., a large business. There is no explicit information on small business subcontracting participation in this award notice.

Oversight & Accountability

The contract's duration and scope necessitate robust oversight from the Indian Health Service to ensure performance standards are met and costs remain controlled. Regular performance reviews and adherence to contract terms are crucial.

Related Government Programs

Custom Computer Programming Services
Department of Health and Human Services Contracting
Indian Health Service Programs

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Long contract duration may reduce flexibility and future cost-saving opportunities.
Dependency on a single vendor for critical IT functions.
Lack of explicit small business subcontracting goals mentioned.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $21.6 million to GUIDEHOUSE INC.. THE PURPOSE OF THIS CONTRACT IS TO PROVIDE THE OPERATIONS AND MAINTENANCE (O&M) SUPPORT WHICH INCLUDES TECHNICAL, FUNCTIONAL AND BUSINESS OPERATIONS SUPPORT. THIS REQUIRES FUNCTIONAL AND TECHNICAL EXPERTISE IN HEALTH AND HUMAN SERVICES (HHS)?S U

Who is the contractor on this award?

The obligated recipient is GUIDEHOUSE INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Indian Health Service).

What is the total obligated amount?

The obligated amount is $21.6 million.

What is the period of performance?

Start: 2021-06-17. End: 2026-06-17.

What is the specific breakdown of technical, functional, and business operations support required, and how does Guidehouse's proposed solution align with these needs?

The contract requires comprehensive O&M support, encompassing technical, functional, and business operations. Guidehouse's expertise in health and human services IT is critical here. A detailed analysis would involve reviewing their technical approach, staffing plan, and proposed service level agreements to ensure alignment with HHS's specific requirements and expected outcomes for the Indian Health Service.

How will the Time and Materials pricing structure be managed to prevent cost overruns over the five-year contract period?

Managing Time and Materials (T&M) contracts requires diligent oversight. The agency must establish clear labor categories, rates, and ceilings, and closely monitor hours worked and materials used. Regular audits and performance reviews are essential to ensure the contractor is efficient and that costs align with the value delivered. Implementing strict change control processes will also be vital.

What are the key performance indicators (KPIs) for this contract, and how will Guidehouse's performance against these KPIs be measured and reported?

Key performance indicators are crucial for measuring the effectiveness of O&M support. While not detailed in the provided data, typical KPIs would include system uptime, response times for technical issues, resolution rates, and user satisfaction. The contract likely specifies these KPIs, with Guidehouse required to report regularly on their performance, subject to agency review and potential incentives or penalties.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 75H70421Q00001-01

Offers Received: 7

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: $21,555,770

Exercised Options: $21,555,770

Current Obligation: $21,555,770

Actual Outlays: $18,968,955

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0263P

IDV Type: FSS

Timeline