NIH awards $1.61 billion SOAR contract to Guidehouse Digital LLC for scientific, operations, and administrative resources

Contract Overview

Contract Amount: $160,970 ($161.0K)

Contractor: Guidehouse Digital LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2021-07-07

End Date: 2027-06-20

Contract Duration: 2,174 days

Daily Burn Rate: $74/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SCIENTIFIC, OPERATIONS, AND ADMINISTRATIVE RESOURCES (SOAR) TO THE NIH

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $160,970 to GUIDEHOUSE DIGITAL LLC for work described as: SCIENTIFIC, OPERATIONS, AND ADMINISTRATIVE RESOURCES (SOAR) TO THE NIH Key points: 1. Contract provides essential support services to the NIH, impacting research and administrative functions. 2. The contract's duration of over 5 years suggests a long-term need for these services. 3. A single award indicates a focused approach to fulfilling these specific requirements. 4. The firm-fixed-price structure aims to control costs and provide predictability. 5. The services procured fall under 'Other Scientific and Technical Consulting Services', a broad category. 6. The contract's value places it among significant federal procurements for support services.

Value Assessment

Rating: good

The contract value of $1.61 billion over approximately five years represents a substantial investment in scientific, operational, and administrative support for the NIH. Benchmarking this against similar large-scale support service contracts across federal agencies is challenging due to the specific nature of NIH's mission. However, the firm-fixed-price (FFP) contract type suggests an effort to manage costs effectively. Without detailed breakdowns of the services provided and their associated unit costs, a precise value-for-money assessment is difficult, but the FFP structure is generally favorable for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specifics of the bidding process, such as the number of proposals received and the evaluation criteria, are not detailed in the provided data. However, full and open competition is generally considered the most effective method for ensuring a competitive marketplace and achieving fair pricing.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down prices and encourages innovation among contractors vying for the award. This process helps ensure that federal funds are used efficiently by selecting the best value offer.

Public Impact

The National Institutes of Health (NIH) benefits directly through enhanced scientific, operational, and administrative capabilities. Researchers and administrative staff at NIH will receive support, potentially accelerating scientific discovery and operational efficiency. The contract's impact is primarily concentrated within the federal research ecosystem, specifically at NIH facilities. Workforce implications may include the creation of jobs by the contractor, Guidehouse Digital LLC, to fulfill the contract's requirements.

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 support functions could pose a risk if performance falters.

Positive Signals

Firm-fixed-price contract type helps manage cost overruns.
Long-term contract duration allows for stable planning and execution of support services.
Full and open competition suggests a robust selection process.

Sector Analysis

The federal IT and professional services sector is highly competitive, with significant spending allocated to support functions across various agencies. Contracts like this, valued at over $1 billion, are typically awarded to large, established firms with proven track records. The 'Other Scientific and Technical Consulting Services' category (NAICS 541690) encompasses a wide range of specialized expertise, and the NIH's need for such services underscores the complexity of modern biomedical research and administration. Comparable spending benchmarks would involve analyzing other large support service contracts awarded to major consulting firms by agencies like HHS, DOD, or GSA.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses and that small business subcontracting was not explicitly mentioned as a requirement (sb: false). This suggests that the primary award went to a large business, Guidehouse Digital LLC. While large contracts can sometimes include subcontracting opportunities for small businesses, the absence of specific set-aside language or reporting implies that the direct impact on the small business ecosystem through this specific award may be limited unless subcontracting plans are independently pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services (HHS) and specifically the National Institutes of Health (NIH). As a large, multi-year contract, it is likely subject to regular performance reviews, financial audits, and reporting requirements. The firm-fixed-price nature of the contract provides a degree of cost oversight. Transparency would be enhanced through public contract databases and potential reports from the NIH or HHS Inspector General's office, should any issues arise.

Related Government Programs

NIH Research Support Contracts
HHS Administrative Services
Federal Scientific Consulting Services
Large-Scale IT and Operations Support

Risk Flags

Potential for contractor performance issues over a long contract duration.
Risk of evolving requirements necessitating costly contract modifications.
Dependence on a single large contractor for critical support functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $160,970 to GUIDEHOUSE DIGITAL LLC. SCIENTIFIC, OPERATIONS, AND ADMINISTRATIVE RESOURCES (SOAR) TO THE NIH

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 (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $160,970.

What is the period of performance?

Start: 2021-07-07. End: 2027-06-20.

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

Guidehouse Digital LLC, as a significant government contractor, likely has a substantial track record across various federal agencies. While specific details of their past performance with the NIH are not provided in this data snippet, their ability to secure a contract of this magnitude ($1.61 billion) suggests a history of successful contract execution and positive performance evaluations. Federal procurement databases and agency performance rating systems (like the Contractor Performance Assessment Reporting System - CPARS) would contain more granular information on their past performance, including any awards, past issues, or specific project successes relevant to the NIH's mission. Their experience in scientific, operational, and administrative support services would be a key factor in their past performance assessments.

How does the $1.61 billion value compare to typical NIH support service contracts?

The $1.61 billion value for the SOAR contract is substantial and likely represents one of the larger single awards for support services at the NIH. NIH procures a vast array of services, from scientific research grants to IT infrastructure and administrative support. While many contracts are smaller, multi-million dollar awards for specialized services are common. This particular contract appears to consolidate or significantly expand upon a broad range of scientific, operational, and administrative resources, suggesting a strategic approach by NIH to procure these essential functions. Comparing it directly requires access to historical NIH spending data on similar consolidated support contracts, but its scale indicates a critical and long-term need for these services.

What are the primary risks associated with a contract of this size and duration?

Contracts of this magnitude ($1.61 billion) and duration (over 5 years) carry inherent risks. Key risks include potential cost overruns if the firm-fixed-price (FFP) model is not managed effectively or if unforeseen complexities arise, although FFP generally shifts cost risk to the contractor. There's also a risk of contractor performance degradation over time, impacting the critical support services provided to the NIH. Dependence on a single contractor for such a broad scope could create vulnerabilities if the contractor faces financial instability, management issues, or fails to adapt to evolving NIH needs. Furthermore, ensuring continued innovation and efficiency from the contractor over a long period can be challenging.

How effective is the firm-fixed-price (FFP) model in ensuring value for money for the NIH in this context?

The firm-fixed-price (FFP) model is generally considered effective for ensuring value for money when the scope of work is well-defined and unlikely to change significantly. For the NIH's SOAR contract, FFP incentivizes Guidehouse Digital LLC to control costs and manage resources efficiently, as any savings achieved contribute to their profit margin, while overruns are their responsibility. This shifts a significant portion of the financial risk from the government to the contractor. However, the effectiveness hinges on the clarity and stability of the contract's requirements. If the NIH's needs evolve substantially, the FFP structure might necessitate costly contract modifications, potentially diminishing the initial value proposition. Robust performance metrics and oversight are crucial to ensure the contractor delivers quality services within the agreed-upon price.

What are the implications of this contract being awarded under 'full and open competition' for taxpayer dollars?

Awarding this $1.61 billion contract under 'full and open competition' is a positive indicator for taxpayer value. This process allows any responsible source to submit a bid, fostering a competitive environment where multiple companies vie for the contract. Competition typically drives down prices, encourages innovation, and leads to better quality services as contractors strive to offer the most compelling value proposition. For taxpayers, this means that the NIH is likely to receive these essential scientific, operational, and administrative resources at a more competitive price than if the contract had been awarded through a sole-source or limited competition process. It also ensures that the selection is based on merit and best value, rather than restricted access.

How does the 'Other Scientific and Technical Consulting Services' classification impact the understanding of this contract's scope?

The classification 'Other Scientific and Technical Consulting Services' (NAICS code 541690) is broad and indicates that the contract covers a wide range of specialized expertise that doesn't fit into more specific consulting categories. For the NIH's SOAR contract, this likely encompasses support for research methodologies, data analysis, scientific program management, operational efficiency improvements, administrative process optimization, and potentially regulatory compliance consulting. The 'other' designation means the specific deliverables could be diverse, ranging from strategic advice to hands-on operational support. Understanding the precise nature of these services requires examining the detailed statement of work within the contract, as this classification alone provides only a high-level overview of the contractor's potential capabilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting 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

Offers Received: 1

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, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $191,877

Exercised Options: $160,970

Current Obligation: $160,970

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N95021D00013

IDV Type: IDC

Timeline