DHS Coast Guard's $106M IT support contract awarded to Guidehouse Digital LLC shows strong competition

Contract Overview

Contract Amount: $106,464,352 ($106.5M)

Contractor: Guidehouse Digital LLC

Awarding Agency: Department of Homeland Security

Start Date: 2016-08-22

End Date: 2021-08-14

Contract Duration: 1,818 days

Daily Burn Rate: $58.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF. CORE TECHNOLOGY SERVICES (CTS) II SUPPORT SERVICES.

Place of Performance

Location: KEARNEYSVILLE, BERKELEY County, WEST VIRGINIA, 25430

State: West Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $106.5 million to GUIDEHOUSE DIGITAL LLC for work described as: IGF::OT::IGF. CORE TECHNOLOGY SERVICES (CTS) II SUPPORT SERVICES. Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. The contract value of over $100 million positions it as a significant IT services award. 3. Fixed-price contract type suggests a degree of cost certainty for the government. 4. The duration of the contract (over 1800 days) implies a long-term need for these services. 5. The North American Industry Classification System (NAICS) code 518210 points to a focus on data processing and hosting services. 6. The award was a delivery order, suggesting it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

Benchmarking the value of this $106 million contract requires comparison to similar large-scale IT support services for federal agencies. Given the duration and scope, the pricing appears to be within a reasonable range for comprehensive computing infrastructure and data processing services. The firm fixed-price structure provides cost predictability, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 10 bids received. This high level of competition is a strong positive signal, suggesting that multiple capable vendors vied for the work. It implies that the government likely received competitive pricing and a wide range of technical solutions, maximizing the potential for value.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely drove down prices and ensured the government secured high-quality services at a competitive rate.

Public Impact

The U.S. Coast Guard benefits from enhanced computing infrastructure and data processing capabilities. Essential IT support services are delivered to facilitate the Coast Guard's operational missions. The contract's impact is primarily within the federal government sector, supporting a key agency. Workforce implications may include specialized IT roles within Guidehouse Digital LLC and potentially within the Coast Guard for oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the services are highly specialized and difficult to transition.
Reliance on a single contractor for critical IT infrastructure could pose risks if performance falters.
Scope creep could occur if the contract's requirements are not tightly managed over its long duration.

Positive Signals

Awarded through full and open competition, indicating a competitive market for these services.
Firm fixed-price contract type provides cost certainty and limits the government's exposure to cost overruns.
The contractor, Guidehouse Digital LLC, likely possesses relevant expertise in IT support services.
The delivery order structure suggests it was part of a pre-competed IDIQ, potentially streamlining the acquisition process.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computing infrastructure, data processing, and web hosting. The market for these services is large and highly competitive, with numerous federal and commercial providers. The $106 million value places it as a significant award within the federal IT landscape, comparable to other large-scale support contracts for major agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless Guidehouse Digital LLC actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Coast Guard's contracting officers and program managers. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office for the Department of Homeland Security would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Department of Homeland Security IT Modernization Initiatives
U.S. Coast Guard IT Infrastructure Modernization
Federal Cloud Computing Strategy
General Services Administration (GSA) IT Schedule Contracts

Risk Flags

Long contract duration may increase risk of technological obsolescence.
Reliance on a single vendor for critical IT services.
Potential for scope creep without stringent management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $106.5 million to GUIDEHOUSE DIGITAL LLC. IGF::OT::IGF. CORE TECHNOLOGY SERVICES (CTS) II 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 Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $106.5 million.

What is the period of performance?

Start: 2016-08-22. End: 2021-08-14.

What is Guidehouse Digital LLC's track record with similar large-scale federal IT support contracts?

Guidehouse Digital LLC, and its predecessor entities, have a history of performing IT services for the federal government. While specific details on past performance for contracts of this exact scale and scope would require deeper analysis of contract databases and performance reviews, their involvement in a $106 million contract with the U.S. Coast Guard suggests a demonstrated capability to handle complex IT infrastructure and data processing requirements. Further investigation into their portfolio, including any past issues or commendations on similar projects, would provide a more complete picture of their reliability and expertise in delivering these critical services.

How does the per-unit cost or pricing structure of this contract compare to market rates for similar IT support services?

Determining a precise per-unit cost benchmark for this contract is challenging without detailed service level agreements and specific deliverables. However, the contract's firm fixed-price nature, combined with full and open competition, suggests that the pricing was vetted against market alternatives. The fact that 10 bids were received indicates a competitive environment that likely pressured pricing towards market norms. A comprehensive comparison would involve analyzing the specific services rendered (e.g., data processing, hosting, infrastructure management) against industry benchmarks and rates paid by other federal agencies for comparable services over the contract's duration.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential vendor lock-in due to the specialized nature of IT support, performance degradation over the contract's long duration, and the possibility of scope creep if requirements are not tightly managed. Mitigation strategies likely involve robust performance monitoring by the U.S. Coast Guard, clearly defined service level agreements (SLAs), and contingency planning for service continuity. The firm fixed-price structure also mitigates financial risk for the government. Regular contract reviews and open communication channels with the contractor are essential for proactive risk management.

How effective has the U.S. Coast Guard been in managing similar large IT support contracts in the past?

Assessing the effectiveness of the U.S. Coast Guard's management of past large IT support contracts would require a review of their contracting performance metrics, audit reports from the DHS Inspector General, and user satisfaction surveys. Generally, federal agencies face challenges in managing long-term, complex IT contracts due to evolving technology, changing mission needs, and the need for specialized program management expertise. The success of this particular contract hinges on the Coast Guard's ability to provide strong oversight, adapt to technological shifts, and ensure the contractor consistently meets performance expectations.

What are the historical spending patterns for IT support services within the U.S. Coast Guard or DHS?

Historical spending on IT support services within the U.S. Coast Guard and the broader Department of Homeland Security (DHS) has been substantial, reflecting the critical role of technology in modern security and operational missions. Agencies like the Coast Guard rely heavily on robust IT infrastructure for everything from maritime domain awareness to personnel management. Spending often fluctuates based on modernization initiatives, cybersecurity upgrades, and the consolidation of IT services. This $106 million contract represents a significant investment, likely part of a strategic effort to ensure the Coast Guard's technological capabilities remain current and effective.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $106,525,112

Exercised Options: $106,525,112

Current Obligation: $106,464,352

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSHQDC13DE2083

IDV Type: IDC

Timeline