NIH Awards $131M for Molecular Biology Software Support to Guidehouse Digital LLC

Contract Overview

Contract Amount: $131,170,230 ($131.2M)

Contractor: Guidehouse Digital LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2019-09-20

End Date: 2022-09-19

Contract Duration: 1,095 days

Daily Burn Rate: $119.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: SOFTWARE SUPPORT FOR MOLECULAR BIOLOGY AND GENOMICS INFORMATION RESOURCES

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $131.2 million to GUIDEHOUSE DIGITAL LLC for work described as: SOFTWARE SUPPORT FOR MOLECULAR BIOLOGY AND GENOMICS INFORMATION RESOURCES Key points: 1. Significant contract value of $131.17M over three years. 2. Competition method was 'Full and Open Competition After Exclusion of Sources', suggesting a potentially complex procurement. 3. The contract is for Computer Systems Design Services, a broad category. 4. No indication of small business participation.

Value Assessment

Rating: fair

The contract value of $131.17M over three years averages approximately $43.7M annually. Benchmarking this against similar contracts for specialized software support in scientific research is difficult without more granular data on service scope and complexity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. This method implies that while competition was sought, certain sources were excluded, potentially limiting the competitive landscape and impacting price discovery.

Taxpayer Impact: The $131.17M award represents a substantial taxpayer investment. The effectiveness of the competition method in securing the best value for taxpayer funds warrants scrutiny.

Public Impact

Supports critical research in molecular biology and genomics, potentially accelerating scientific discovery. The duration of the contract (3 years) ensures continuity of essential IT services for NIH researchers. The specific vendor, Guidehouse Digital LLC, will be a key partner in maintaining and developing these vital information resources.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The IT services sector, particularly supporting scientific research, is highly specialized. Benchmarking spending requires comparing contracts for similar complex data management and software development within federal research agencies.

Small Business Impact

The data indicates that small businesses were not involved in this contract, as the 'sb' field is false. This represents a missed opportunity for small business engagement in a significant federal IT award.

Oversight & Accountability

The 'Full and Open Competition After Exclusion of Sources' method suggests a need for robust oversight to ensure the exclusion criteria were justified and that the competition, though limited, yielded fair pricing and optimal value.

Related Government Programs

Risk Flags

Tags

computer-systems-design-services, department-of-health-and-human-services, md, delivery-order, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $131.2 million to GUIDEHOUSE DIGITAL LLC. SOFTWARE SUPPORT FOR MOLECULAR BIOLOGY AND GENOMICS INFORMATION RESOURCES

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 $131.2 million.

What is the period of performance?

Start: 2019-09-20. End: 2022-09-19.

What was the justification for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' award?

The justification for excluding sources in this type of procurement typically relates to specific technical requirements, existing infrastructure compatibility, or unique capabilities that only a limited number of vendors possess. Without the specific documentation, it's impossible to determine the precise reasons, but it suggests a highly specialized need that narrowed the field of potential bidders.

How does the pricing structure (Labor Hours) compare to fixed-price contracts for similar services, and what are the associated risks?

Labor hour contracts offer flexibility but can pose a risk of cost overruns if not managed tightly, as payment is based on actual hours worked. Compared to fixed-price contracts, which offer cost certainty, labor hour contracts require diligent oversight to ensure efficiency and prevent scope creep. The benchmark for 'fair' pricing in this context depends heavily on the complexity and skill level of the labor required.

What is the long-term impact of this contract on the NIH's ability to advance molecular biology and genomics research?

This contract is crucial for ensuring the continued operation and development of essential information resources for molecular biology and genomics research. By providing dedicated software support, it enables researchers to access, analyze, and share complex data, thereby accelerating the pace of scientific discovery and innovation within these critical fields.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: NIHJT2010002

Offers Received: 1

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

Financial Breakdown

Contract Ceiling: $143,068,121

Exercised Options: $131,170,230

Current Obligation: $131,170,230

Actual Outlays: $52,959,820

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201300006W

IDV Type: GWAC

Timeline

Start Date: 2019-09-20

Current End Date: 2022-09-19

Potential End Date: 2022-10-08 00:00:00

Last Modified: 2025-04-22

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