DoD's $72M IGF System Support Services contract awarded to Guidehouse Digital LLC shows fair value despite limited competition

Contract Overview

Contract Amount: $72,347,362 ($72.3M)

Contractor: Guidehouse Digital LLC

Awarding Agency: Department of Defense

Start Date: 2012-09-29

End Date: 2017-09-28

Contract Duration: 1,825 days

Daily Burn Rate: $39.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 16

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF SYSTEM SUPPORT SERVICES

Place of Performance

Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $72.3 million to GUIDEHOUSE DIGITAL LLC for work described as: IGF::OT::IGF SYSTEM SUPPORT SERVICES Key points: 1. The contract's value appears reasonable when benchmarked against similar IT support services. 2. Competition was limited, raising questions about optimal price discovery for taxpayers. 3. The fixed-price contract type mitigates some cost overrun risks. 4. Performance duration of five years suggests a stable, long-term need for these services. 5. This contract falls within the broader IT services sector, supporting critical defense operations. 6. The award was a delivery order under a larger indefinite delivery/indefinite quantity (IDIQ) contract.

Value Assessment

Rating: good

The total award of $72.3 million over five years for IT system support services appears to be within a reasonable range when compared to similar contracts for IT services within the federal government. The fixed-price nature of the contract helps control costs, as the contractor is incentivized to manage expenses effectively. Benchmarking against industry standards for system design and support services suggests that the pricing is competitive, especially considering the specialized nature of defense counterintelligence support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, certain sources were excluded. The solicitation resulted in 16 bids, suggesting a moderate level of interest. However, the exclusion of sources may have limited the overall competitive landscape, potentially impacting the final price achieved. The number of bidders indicates that multiple firms were capable of performing the work, but the exclusion criteria warrant further examination.

Taxpayer Impact: While 16 bids were received, the exclusion of certain sources could have led to a less competitive environment than a truly open competition. This might mean taxpayers did not benefit from the lowest possible price achievable through maximum market participation.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Defense Counterintelligence and Security Agency (DCSA), which receives essential IT system support. Services delivered include computer systems design and related services, crucial for maintaining secure and operational defense intelligence systems. The geographic impact is primarily within Maryland, where the contract is managed and likely where services are performed or supported. The contract supports a workforce involved in IT services and potentially cybersecurity and counterintelligence analysis.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to exclusion of sources could lead to higher prices.
The five-year duration might lock the government into a specific vendor, potentially missing out on newer technologies or better pricing from competitors.
Reliance on a single delivery order under an IDIQ could concentrate risk if the primary contractor faces performance issues.

Positive Signals

The fixed-price contract type provides cost certainty and incentivizes contractor efficiency.
Receiving 16 bids indicates a healthy interest and capability within the market for these services.
The contract supports critical national security functions within the DCSA.

Sector Analysis

The IT services sector is a significant component of federal spending, encompassing a wide range of support, development, and maintenance activities. Contracts like this, for system design and support, are fundamental to maintaining the operational readiness of government agencies, particularly in sensitive areas like defense counterintelligence. The market for these services is competitive, with numerous large and small businesses vying for federal contracts. Benchmarks for similar IT support contracts often range widely based on complexity and security requirements, but this award appears aligned with typical spending for specialized IT services.

Small Business Impact

This contract was not specifically set aside for small businesses, and the prime contractor, Guidehouse Digital LLC, is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Guidehouse actively engages small businesses for subcontracting opportunities, which is not detailed in the award data.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Counterintelligence and Security Agency's contracting officers and program managers. The contract's fixed-price nature provides a degree of accountability by limiting cost increases. Transparency is facilitated through federal contract databases where award information is published. The Inspector General for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Defense Information Systems Agency (DISA) IT Support Contracts
Intelligence Community IT Infrastructure Support
Federal Civilian Agency IT Modernization Programs
Cybersecurity Services Contracts
IT Professional Services (GSA Schedule)

Risk Flags

Limited competition
Potential for higher pricing due to restricted bidder pool
Contract duration may limit flexibility for future technology adoption

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $72.3 million to GUIDEHOUSE DIGITAL LLC. IGF::OT::IGF SYSTEM SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is GUIDEHOUSE DIGITAL LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Counterintelligence and Security Agency).

What is the total obligated amount?

The obligated amount is $72.3 million.

What is the period of performance?

Start: 2012-09-29. End: 2017-09-28.

What is the track record of Guidehouse Digital LLC in performing similar IT system support services for the federal government?

Guidehouse Digital LLC has a history of performing IT and digital transformation services for various federal agencies. While specific details on past performance for 'IGF System Support Services' are not fully elaborated in this data, the company's broader portfolio includes IT modernization, cloud services, data analytics, and cybersecurity solutions. Their experience often involves complex system integration and support, aligning with the nature of this contract. Federal procurement data typically tracks past performance evaluations, which would provide a more granular view of their success on previous, similar contracts. Agencies often consider past performance as a key factor in award decisions, suggesting that Guidehouse likely met or exceeded expectations on prior relevant engagements to secure this significant award.

How does the total contract value compare to other IT system support contracts awarded by the DoD or DCSA in recent years?

The total award of approximately $72.3 million over five years for IGF System Support Services places this contract within a moderate spending range for specialized IT support within the Department of Defense. Comparable contracts for enterprise IT support, system design, and cybersecurity services awarded by agencies like the Defense Information Systems Agency (DISA) or other intelligence components can range from tens of millions to hundreds of millions of dollars annually, depending on scope and duration. Given the specific nature of counterintelligence support, which often requires high levels of security and specialized expertise, this contract's value appears reasonable. It is not an exceptionally large award compared to major IT infrastructure overhauls but represents a substantial commitment for ongoing system support and development.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential cost overruns (mitigated by the Firm Fixed Price contract type), contractor performance issues (mitigated by oversight and performance metrics), and technological obsolescence (mitigated by contract flexibility and potential for future modernization efforts). The limited competition aspect also poses a risk of suboptimal pricing. Mitigation strategies likely involve robust contract management, regular performance reviews, and potentially incorporating clauses that allow for adaptation to evolving technological needs. The fixed-price structure incentivizes the contractor to manage costs efficiently, reducing the risk of unexpected budget increases for the government. Strong oversight from the DCSA contracting office is crucial for monitoring performance and addressing any emerging issues promptly.

What is the historical spending trend for IGF System Support Services or similar IT support functions within the DCSA?

Historical spending data for 'IGF System Support Services' specifically, prior to this award, is not detailed here. However, the Defense Counterintelligence and Security Agency (DCSA) consistently requires significant IT support to manage its vast databases, analytical tools, and communication networks. Spending on IT services within defense and intelligence agencies has generally trended upwards due to increasing cyber threats, data volumes, and the need for advanced analytical capabilities. Contracts for system design, integration, and ongoing support are recurring necessities. Analyzing DCSA's overall IT budget and procurement history would reveal trends in investment in areas like system maintenance, upgrades, and new technology implementation, providing context for the scale of this particular award.

How does the 'Full and Open Competition After Exclusion of Sources' procurement method impact the government's ability to secure the best value?

This procurement method, while allowing for competition, introduces a layer of restriction by excluding certain potential bidders. The 'best value' is typically achieved through the widest possible competition, allowing the government to leverage the most competitive offers. By excluding sources, the government might inadvertently limit the pool of highly capable vendors or those who could offer more competitive pricing. While the exclusion might be based on specific requirements, security needs, or past performance issues with certain entities, it inherently reduces the pressure on the remaining bidders to offer the absolute lowest price. The government must ensure that the exclusions are justified and do not unduly restrict competition to the detriment of taxpayer interests.

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

Offers Received: 16

Pricing Type: FIRM FIXED PRICE (J)

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: $72,347,362

Exercised Options: $72,347,362

Current Obligation: $72,347,362

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS06F0667Z

IDV Type: GWAC

Timeline