Agriculture Department awards $159M IT services contract to Guidehouse Digital LLC over 5 years

Contract Overview

Contract Amount: $159,430,982 ($159.4M)

Contractor: Guidehouse Digital LLC

Awarding Agency: Department of Agriculture

Start Date: 2016-06-22

End Date: 2021-05-16

Contract Duration: 1,789 days

Daily Burn Rate: $89.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 16

Pricing Type: LABOR HOURS

Sector: IT

Official Description: EAS STRATEGIC MANAGEMENT, CAPITAL PLANNING AND PORTFOLIO MANAGEMENT, IT PROGRAM MANAGEMENT, IT SECURITY MANAGEMENT, ENTERPRISE ARCHITECTURE IGF::OT::IGF

Place of Performance

Location: FORT COLLINS, LARIMER County, COLORADO, 80526

State: Colorado Government Spending

Plain-Language Summary

Department of Agriculture obligated $159.4 million to GUIDEHOUSE DIGITAL LLC for work described as: EAS STRATEGIC MANAGEMENT, CAPITAL PLANNING AND PORTFOLIO MANAGEMENT, IT PROGRAM MANAGEMENT, IT SECURITY MANAGEMENT, ENTERPRISE ARCHITECTURE IGF::OT::IGF Key points: 1. Contract focuses on critical IT program and capital planning management. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. Duration of nearly 5 years indicates a significant, long-term need. 4. Task order type suggests it's part of a larger contract vehicle. 5. IT services are essential for modern government operations and efficiency. 6. The contractor has a track record in strategic management and IT services.

Value Assessment

Rating: good

The total award value of $159.4 million over approximately five years suggests a substantial investment in IT management services. Benchmarking this against similar large-scale IT support contracts within federal agencies is crucial for a precise value-for-money assessment. The contract type (Delivery Order) implies it was issued under an existing indefinite-delivery/indefinite-quantity (IDIQ) contract, which can offer some pre-negotiated pricing advantages. However, without access to the base IDIQ's pricing structure or other competing bids, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was open, specific sources may have been excluded prior to the final bidding. This suggests a structured procurement process that aimed for broad participation but with defined parameters. The number of bidders is not specified, but the 'full and open' nature implies multiple entities had the opportunity to submit proposals, which generally fosters competitive pricing.

Taxpayer Impact: A competitive bidding process, even with exclusions, is generally favorable for taxpayers as it encourages multiple vendors to offer their best pricing and services to secure the contract.

Public Impact

Benefits the Department of Agriculture by enhancing IT program management and strategic planning. Services delivered include IT program management, capital planning, and enterprise architecture support. Geographic impact is likely nationwide, supporting the Department's distributed operations. Workforce implications include potential support roles for IT professionals and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements are not clearly defined.
Reliance on a single contractor for critical IT functions could pose a risk if performance falters.
The 'exclusion of sources' clause warrants further investigation into the rationale and fairness of the exclusion process.

Positive Signals

Award to a single, established vendor can ensure continuity of service.
Focus on strategic IT management suggests alignment with agency modernization goals.
The contract's duration indicates a stable, predictable IT support environment.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and related services (NAICS 541512). This is a large and competitive market within the federal government, with agencies consistently investing in IT modernization, cybersecurity, and program management. Spending in this category is driven by the increasing complexity of government IT infrastructure and the need for specialized expertise to manage and optimize these systems effectively.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Guidehouse Digital LLC, is likely a large business. While there's no explicit mention of subcontracting requirements for small businesses, large federal IT contracts often include provisions for small business participation to meet federal goals. The absence of a set-aside suggests that the competition was geared towards larger, more established firms capable of handling the scope and complexity of the services required.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Agriculture's Office of the Chief Financial Officer, which awarded the contract. Mechanisms likely include regular performance reviews, milestone tracking, and adherence to the terms and conditions of the base IDIQ contract and this specific delivery order. Transparency is facilitated through contract databases like FPDS.gov, where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IT Program Management Support
Capital Planning and Investment Control
Enterprise Architecture Services
IT Strategic Planning
Computer Systems Design Services

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Contract duration may lead to challenges adapting to future technological shifts.
Performance monitoring is critical to ensure value delivery over the contract term.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $159.4 million to GUIDEHOUSE DIGITAL LLC. EAS STRATEGIC MANAGEMENT, CAPITAL PLANNING AND PORTFOLIO MANAGEMENT, IT PROGRAM MANAGEMENT, IT SECURITY MANAGEMENT, ENTERPRISE ARCHITECTURE IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is GUIDEHOUSE DIGITAL LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $159.4 million.

What is the period of performance?

Start: 2016-06-22. End: 2021-05-16.

What is Guidehouse Digital LLC's track record with federal IT contracts, particularly those involving strategic management and capital planning?

Guidehouse Digital LLC, and its predecessor entities, have a significant history of performing IT services for the federal government. Their portfolio often includes strategic planning, digital transformation, cybersecurity, and program management. For contracts similar to this Agriculture Department award, they have demonstrated capabilities in managing complex IT portfolios and advising on capital investments. Analyzing their past performance ratings, any past performance issues, and the scale of previous similar contracts would provide a clearer picture of their suitability and reliability for this specific engagement. Their experience suggests they are well-positioned to handle the requirements of this $159 million contract.

How does the $159.4 million award value compare to similar IT management contracts awarded by the Department of Agriculture or other large federal agencies?

The $159.4 million award over approximately five years translates to an average annual value of roughly $31.9 million. This figure is substantial and falls within the range of large-scale IT support and management contracts common across federal agencies. For instance, similar contracts for IT program management, enterprise architecture, and strategic IT planning awarded to large system integrators or consulting firms by agencies like the Department of Defense, HHS, or GSA can range from tens to hundreds of millions of dollars over their performance periods. The value appears commensurate with the scope of services described (IT program management, capital planning, enterprise architecture) for a department as large as Agriculture.

What are the primary risks associated with this contract, considering its duration and focus on IT management?

Key risks include potential vendor lock-in, where the agency becomes overly reliant on Guidehouse Digital LLC, making future transitions difficult or costly. Performance risk is also present; if the contractor fails to deliver on critical IT modernization or management goals, it could impede the Department of Agriculture's operational efficiency and strategic objectives. Furthermore, changes in technology or agency priorities over the five-year period could render the contracted services less effective, requiring costly adjustments. The 'exclusion of sources' in the procurement process also introduces a potential risk if it limited the pool of innovative solutions or led to a less competitive price.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' approach in ensuring value for taxpayers on large IT contracts?

This procurement approach aims to balance broad competition with specific agency needs. By excluding certain sources, the agency might be targeting vendors with specific, pre-qualified expertise or ensuring compliance with certain security or capability standards. While 'full and open' competition is generally preferred for maximizing price discovery, the exclusion clause means the pool of bidders is smaller than in a truly unrestricted competition. The effectiveness for taxpayers hinges on whether the excluded sources would have offered significantly better value or innovation, and whether the remaining competition was robust enough to drive down prices. Transparency regarding the reasons for exclusion is key to assessing fairness and value.

What are the historical spending patterns for IT program management and capital planning services within the Department of Agriculture?

Historical spending data for the Department of Agriculture on IT program management and capital planning services would likely show a consistent and significant investment in these areas over the years. Agencies of Agriculture's size and scope require substantial resources dedicated to IT governance, modernization initiatives, and ensuring IT investments align with strategic goals. Spending trends often reflect broader government initiatives like IT modernization drives, cybersecurity enhancements, and cloud adoption. Analyzing past spending would reveal if this $159 million award represents an increase, decrease, or stable level of investment compared to previous periods and similar contracts.

What specific IT program management and capital planning capabilities does Guidehouse Digital LLC bring to the Department of Agriculture under this contract?

Guidehouse Digital LLC is expected to provide expertise in areas such as IT portfolio management, IT investment justification and tracking (capital planning), IT program execution oversight, enterprise architecture development and maintenance, and IT strategic planning. This includes helping the agency prioritize IT projects, manage budgets effectively, ensure IT systems are aligned with business needs, and implement best practices in IT governance. Their role likely involves advising agency leadership, developing roadmaps, and potentially overseeing the implementation of IT initiatives to improve efficiency and effectiveness across the Department.

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: AG-3144-S-15-0018

Offers Received: 16

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Rnsolutions LLC

Address: 11490 COMMERCE PARK DR STE 340, RESTON, VA, 20191

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: $159,430,982

Exercised Options: $159,430,982

Current Obligation: $159,430,982

Actual Outlays: $78,533,047

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS06F0667Z

IDV Type: GWAC

Timeline