Guidehouse Digital LLC awarded $64.4M contract for NIH's National Library of Medicine IT services

Contract Overview

Contract Amount: $64,418,029 ($64.4M)

Contractor: Guidehouse Digital LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2020-09-24

End Date: 2025-09-23

Contract Duration: 1,825 days

Daily Burn Rate: $35.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: INFORMATION TECHNOLOGY SERVICES FOR CONSUMER/PUBLIC HEALTH AND TERMINOLOGY APPLICATIONS FOR THE NLM'S OCCS

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20894

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $64.4 million to GUIDEHOUSE DIGITAL LLC for work described as: INFORMATION TECHNOLOGY SERVICES FOR CONSUMER/PUBLIC HEALTH AND TERMINOLOGY APPLICATIONS FOR THE NLM'S OCCS Key points: 1. Contract value represents a significant investment in critical health information technology infrastructure. 2. Competition dynamics suggest a robust market for specialized IT services within the federal health sector. 3. Performance period of five years indicates a long-term need for these services. 4. The contract type, Time and Materials, allows for flexibility but requires careful monitoring of labor hours and rates. 5. This award contributes to the broader federal strategy of modernizing health information systems. 6. The National Library of Medicine's Office of Computer and Communications Services (OCCS) is the primary beneficiary.

Value Assessment

Rating: good

The contract value of $64.4 million over five years for IT services for the National Library of Medicine's consumer/public health and terminology applications appears reasonable given the scope. Benchmarking against similar IT service contracts for large federal health agencies suggests that this pricing is within expected ranges. The Time and Materials (T&M) pricing structure, while common for evolving IT needs, necessitates diligent oversight to ensure cost-effectiveness and prevent scope creep. Without specific performance metrics or detailed cost breakdowns, a definitive value-for-money assessment is challenging, but the competitive award process provides some assurance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' While this indicates an initial intent for broad competition, the 'exclusion of sources' clause suggests specific criteria or circumstances led to a narrowed pool of bidders. The presence of two bidders indicates some level of competition, but it is less than what would be expected in a truly unrestricted full and open competition. This limited competition could potentially impact price discovery, possibly leading to higher prices than if more vendors had participated.

Taxpayer Impact: The limited competition may mean taxpayers did not benefit from the lowest possible price achievable through a wider bidding process. However, the selection of a qualified vendor still ensures essential services are delivered.

Public Impact

The National Library of Medicine (NLM) benefits through the modernization and maintenance of its consumer/public health and terminology applications. Public health researchers, healthcare professionals, and the general public will have access to improved and reliable health information resources. The contract supports the development and maintenance of critical health terminology standards, impacting data interoperability across the healthcare ecosystem. Workforce implications include the potential for specialized IT professionals to be engaged in supporting vital public health initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the Time and Materials pricing model if not closely managed.
Risk of vendor lock-in if specific proprietary technologies are developed or heavily relied upon.
Dependence on a single contractor for critical IT infrastructure could pose a risk if performance falters.
The 'exclusion of sources' in the competition method warrants further scrutiny to ensure fairness and optimal pricing.

Positive Signals

Award to an established firm, Guidehouse Digital LLC, suggests a level of confidence in their capabilities.
The competitive award process, even if limited, indicates a selection based on merit and proposed value.
The contract duration of five years provides stability for essential IT services supporting public health.
The focus on consumer/public health and terminology applications aligns with key public health information goals.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on health information technology. The federal government is a major consumer of IT services, with significant spending allocated to health-related IT due to the critical nature of public health data and services. Comparable spending benchmarks for IT modernization and application development within federal health agencies often run into tens or hundreds of millions of dollars, making this $64.4 million award a substantial, but not outlier, investment in this domain.

Small Business Impact

This contract does not appear to have a specific small business set-aside. The award to Guidehouse Digital LLC, a large business, suggests that subcontracting opportunities may arise for small businesses within the IT services ecosystem. However, without explicit subcontracting plans or goals mandated in the contract, the extent of small business participation is uncertain. The focus on specialized IT services might limit the types of small businesses that could effectively participate as subcontractors.

Oversight & Accountability

Oversight for this contract is likely managed by the National Institutes of Health (NIH) contracting office and the specific program office within the National Library of Medicine (NLM). The Time and Materials (T&M) nature of the contract necessitates robust monitoring of labor hours, rates, and deliverables to ensure cost control and performance. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

National Library of Medicine IT Modernization Efforts
Federal Health Information Technology Services
Public Health Data Management Systems
Health Terminology Standards Development
NIH Information Technology Acquisition Portfolio

Risk Flags

Potential for cost overruns due to T&M pricing.
Limited competition may impact price optimization.
Dependence on contractor for critical health IT infrastructure.
Need for robust government oversight of T&M hours and rates.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $64.4 million to GUIDEHOUSE DIGITAL LLC. INFORMATION TECHNOLOGY SERVICES FOR CONSUMER/PUBLIC HEALTH AND TERMINOLOGY APPLICATIONS FOR THE NLM'S OCCS

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 $64.4 million.

What is the period of performance?

Start: 2020-09-24. End: 2025-09-23.

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

Guidehouse Digital LLC has a notable track record in providing IT and digital transformation services across various federal agencies, including those in the health sector. They have been involved in projects related to modernizing legacy systems, enhancing user experience, and implementing data analytics solutions. Their experience often spans areas like cloud migration, cybersecurity, and application development. For contracts similar to this one, their performance history would be reviewed by the awarding agency to assess their capability to deliver complex IT solutions within the demanding federal health environment. Past performance evaluations and contract awards provide insights into their ability to meet deadlines, manage budgets, and deliver quality services.

How does the $64.4 million contract value compare to similar NLM or NIH IT contracts?

The $64.4 million contract value for five years of IT services for the NLM's consumer/public health and terminology applications is substantial and aligns with the typical scale of major IT modernization and support contracts within large federal health organizations like the NIH. For context, NIH and its various institutes often award IT contracts ranging from tens to hundreds of millions of dollars for system development, maintenance, and integration. Contracts supporting critical infrastructure, data management, and user-facing applications, especially those with a public health impact, frequently fall into this spending category. The value reflects the complexity, duration, and strategic importance of the services required.

What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude?

The primary risks associated with a Time and Materials (T&M) contract of this magnitude ($64.4 million) revolve around cost control and potential for scope creep. Unlike fixed-price contracts, T&M agreements pay the contractor for the actual time and materials used. This necessitates rigorous oversight from the government to ensure that labor hours are reasonable, labor categories are appropriate, and indirect rates are fair. Without strong government project management and surveillance, there's a risk that costs could escalate beyond initial estimates if tasks take longer than expected or if the scope of work expands without formal modification. Ensuring efficient resource utilization and preventing unnecessary work are key challenges.

How effective are the competition methods used ('Full and Open Competition After Exclusion of Sources') in ensuring value for taxpayers?

The 'Full and Open Competition After Exclusion of Sources' method aims to balance broad competition with specific requirements. While it starts with the principle of open competition, the exclusion of certain sources implies that only a pre-selected group of vendors meeting specific criteria were eligible. This can be effective if the exclusions are justified by technical requirements, past performance, or specific socioeconomic goals. However, it inherently limits the number of potential bidders compared to unrestricted full and open competition. If the exclusion narrows the field too much, it can reduce competitive pressure, potentially leading to less favorable pricing for taxpayers. The effectiveness hinges on whether the exclusion was necessary and if the remaining bidders provided sufficient competition.

What is the historical spending trend for similar IT services at the National Library of Medicine?

Historical spending trends for IT services at the National Library of Medicine (NLM) generally show a consistent and significant investment in maintaining and modernizing its vast digital resources and infrastructure. Over the years, NLM has required substantial funding for areas such as database management, web portal development, data curation, terminology services, and user support systems. Spending patterns often reflect evolving technological landscapes and increasing demands for accessible health information. Contracts for these services typically range from several million to tens of millions of dollars annually, with larger, multi-year awards like this one indicating strategic, long-term investments in core IT capabilities.

What are the potential performance challenges for Guidehouse Digital LLC on this contract?

Potential performance challenges for Guidehouse Digital LLC on this contract include managing the complexity of integrating and maintaining diverse consumer/public health and terminology applications for the NLM. Ensuring seamless data flow, adherence to evolving health data standards, and maintaining high availability for critical public-facing resources are paramount. The Time and Materials (T&M) nature requires diligent project management to control costs and timelines. Furthermore, adapting to potential shifts in NLM's strategic priorities or technological requirements over the five-year period will demand agility. Maintaining strong communication and collaboration with NLM stakeholders will be crucial for successful execution.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: C-82849-SB

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

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: $64,418,029

Exercised Options: $64,418,029

Current Obligation: $64,418,029

Actual Outlays: $44,784,441

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HHSN316201300006W

IDV Type: GWAC

Timeline