HHS awards $23M for IHS UFMS Operations Support Services to Guidehouse Inc

Contract Overview

Contract Amount: $22,951,691 ($23.0M)

Contractor: Guidehouse Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2014-09-26

End Date: 2020-06-17

Contract Duration: 2,091 days

Daily Burn Rate: $11.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IGF::CL,CT::IGF IHS UFMS OPERATIONS SUPPORT SERVICES

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $23.0 million to GUIDEHOUSE INC. for work described as: IGF::CL,CT::IGF IHS UFMS OPERATIONS SUPPORT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of approximately 5.7 years indicates a long-term need for these services. 3. The primary service category is Custom Computer Programming Services, aligning with IT support needs. 4. The contract was awarded as a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The contract value of $22.95 million represents a significant investment in IT operations support. 6. The contract was not set aside for small businesses, indicating larger firms were likely the primary bidders.

Value Assessment

Rating: good

The contract value of $22.95 million over nearly six years averages to approximately $4 million annually. Benchmarking this against similar IT operations support contracts within federal agencies is crucial. Without specific comparable contract data, it's difficult to definitively assess value for money. However, the competitive award process suggests a reasonable price was likely negotiated. The use of labor hours indicates costs are tied to personnel time, which can be efficient if managed well.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 3 bidders indicates a moderate level of competition for this specific award. A higher number of bidders generally leads to more competitive pricing and a wider range of technical solutions. The fact that it was competed suggests the agency sought the best value through a structured procurement process.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes a competitive environment that can drive down costs and improve service quality.

Public Impact

The Indian Health Service (IHS) benefits from enhanced IT operations support, crucial for its mission. Services delivered likely include custom programming, system maintenance, and IT infrastructure support. The geographic impact is primarily within the scope of IHS operations, which serves Native American communities. Workforce implications may include support for federal IT staff and potential reliance on contractor expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if labor hours are not closely monitored.
Dependence on a single contractor for critical IT operations support could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Long contract duration suggests stability and a proven track record of the contractor.
Clear service category (Custom Computer Programming Services) indicates a defined scope of work.

Sector Analysis

The IT services sector is a significant area of federal spending. This contract falls under custom computer programming services, a sub-sector focused on developing and maintaining specialized software and IT systems. Federal agencies increasingly rely on such services to manage complex operations, modernize infrastructure, and improve data management. The market for these services is competitive, with numerous firms offering expertise. The value of this contract, approximately $4 million annually, is moderate within the broader context of federal IT spending.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific small business subcontracting requirements indicated in the provided data. This suggests that the primary awardee, Guidehouse Inc., is a large business, and the competition was likely geared towards firms capable of handling the scope and complexity of the requirement. The absence of small business participation targets means direct benefits to the small business ecosystem from this specific contract are unlikely, though the prime contractor may engage small businesses in other capacities.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Health and Human Services, specifically the Indian Health Service contracting and program offices. Performance monitoring, quality assurance, and invoice review are standard oversight mechanisms. The contract's duration and value suggest regular reporting requirements. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

HHS IT Modernization Initiatives
Indian Health Service IT Infrastructure
Custom Software Development Services
Federal IT Operations Support Contracts

Risk Flags

Potential for scope creep
Contractor performance risk
Cybersecurity vulnerabilities
Dependence on single vendor

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $23.0 million to GUIDEHOUSE INC.. IGF::CL,CT::IGF IHS UFMS OPERATIONS SUPPORT SERVICES

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 $23.0 million.

What is the period of performance?

Start: 2014-09-26. End: 2020-06-17.

What is the specific nature of the 'UFMS Operations Support Services' provided by Guidehouse Inc.?

The 'UFMS Operations Support Services' likely refers to support for the Unified Financial Management System (UFMS) used by the Indian Health Service (IHS). This system is critical for managing the agency's financial operations, including budgeting, accounting, procurement, and payroll. Guidehouse Inc.'s role would involve ensuring the smooth operation, maintenance, and potentially enhancement of this financial management system. Services could encompass help desk support, system administration, data analysis, troubleshooting, user training, and custom programming to adapt the system to evolving IHS requirements. The contract's classification under 'Custom Computer Programming Services' suggests a significant focus on software development and modification aspects of the UFMS.

How does the $22.95 million contract value compare to other similar IT support contracts within HHS or other federal agencies?

The $22.95 million contract value over approximately 5.7 years translates to an average annual value of roughly $4 million. This is a moderate-sized contract within the federal IT services landscape. Larger agencies like the Department of Defense or the General Services Administration often award IT support contracts in the tens or hundreds of millions of dollars annually. However, for a specific system like the IHS UFMS, $4 million per year could represent substantial funding, reflecting the complexity and criticality of the system. Benchmarking requires comparing it to contracts for similar financial management systems or IT operations support for agencies of comparable size and mission focus.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

While the provided data does not detail specific KPIs or SLAs, contracts for IT operations support typically include metrics focused on system availability, response times for issue resolution, user satisfaction, and successful completion of maintenance or development tasks. For a financial management system like UFMS, uptime guarantees and the speed at which critical financial transactions can be processed or issues resolved would be paramount. The contract likely specifies acceptable downtime, maximum resolution times for different severity levels of issues, and potentially metrics related to the successful deployment of new features or patches. Adherence to these KPIs would be crucial for Guidehouse Inc. to meet its contractual obligations and receive full payment.

What is Guidehouse Inc.'s track record with the IHS or similar federal financial management systems?

Guidehouse Inc. is a well-established consulting firm with significant experience in government contracting, including IT services and financial management. While specific details of their past performance on the IHS UFMS are not provided here, their general profile suggests they possess the capabilities to manage such a contract. Federal procurement databases would typically contain past performance evaluations for this contractor on similar contracts. Their ability to win a full and open competition award from IHS indicates they likely met or exceeded the agency's requirements in previous engagements or demonstrated strong capabilities for this specific procurement. A deeper dive into FPDS or agency-specific performance records would reveal more granular details.

What are the potential risks associated with relying on Guidehouse Inc. for critical IT operations support?

Potential risks include over-reliance on a single contractor, which could lead to a loss of institutional knowledge within the IHS if key personnel depart. Performance issues, such as system outages or delays in critical updates, could disrupt financial operations. There's also a risk of cost creep if the scope of work expands beyond the initial agreement without proper change control. Furthermore, cybersecurity vulnerabilities, if not adequately addressed by the contractor, could expose sensitive financial data. Ensuring robust oversight and clear communication channels are vital to mitigating these risks.

How has spending on IHS UFMS operations support evolved over time, and does this contract represent an increase or decrease?

The provided data reflects a single contract award from 2014 to 2020. To understand the evolution of spending, one would need to examine historical contract data for IHS UFMS support prior to 2014 and potentially subsequent contracts awarded after 2020. This specific contract, valued at $22.95 million over its period of performance, represents the agency's investment during that timeframe. Without prior data, it's impossible to definitively state if this represents an increase or decrease in overall spending trends for UFMS support. It could reflect a consolidation of previous efforts, a new requirement, or a standard renewal of services.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pricewaterhousecoopers Public Sector LLP

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: $22,951,691

Exercised Options: $22,951,691

Current Obligation: $22,951,691

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0263P

IDV Type: FSS

Timeline