DoD's $6.86M Data Modernization Contract Awarded to Guidehouse Inc. for Custom Computer Programming

Contract Overview

Contract Amount: $6,861,796 ($6.9M)

Contractor: Guidehouse Inc.

Awarding Agency: Department of Defense

Start Date: 2025-09-30

End Date: 2026-11-11

Contract Duration: 407 days

Daily Burn Rate: $16.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: HQAMC RAPID DATA MODERNIZATION

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $6.9 million to GUIDEHOUSE INC. for work described as: HQAMC RAPID DATA MODERNIZATION Key points: 1. Contract value appears reasonable given the scope of custom programming services. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Performance period extends over a year, indicating a substantial project. 5. Contractor has experience in IT services, aligning with the requirement. 6. Focus on data modernization is critical for improving defense operations.

Value Assessment

Rating: good

The contract value of approximately $6.86 million for custom computer programming services seems aligned with industry standards for similar large-scale modernization projects. Benchmarking against other federal contracts for IT modernization and custom software development indicates that this price point is within a reasonable range, especially considering the specialized nature of defense data systems. The firm fixed-price structure further enhances value by capping the government's financial exposure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which is expected to drive better pricing and service quality. The agency's decision to use full and open competition suggests confidence in the market's ability to provide qualified vendors for this critical data modernization effort.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential offerors, leading to a more competitive bidding process and potentially lower prices. This approach ensures that the government is not limited to a single provider, thereby promoting efficiency and cost-effectiveness in the use of public funds.

Public Impact

The Department of the Army will benefit from modernized data systems, leading to improved operational efficiency and decision-making. Custom computer programming services will be delivered to enhance the agency's data management capabilities. The geographic impact is primarily within the Department of Defense, with potential benefits extending to national security operations. Workforce implications may include the need for skilled IT professionals to manage and utilize the modernized data systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependence on contractor expertise could pose a risk if knowledge transfer is insufficient.
Integration challenges with existing legacy systems may arise.
Cybersecurity risks associated with modernizing sensitive defense data.

Positive Signals

Firm fixed-price contract limits financial risk for the government.
Full and open competition suggests a robust selection process.
Contractor's specialization in custom programming aligns with project needs.
Clear end date provides a defined project timeline.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically focusing on custom computer programming and data modernization services. The federal IT market is substantial, with significant spending allocated annually to software development, system integration, and data management solutions. This contract represents a targeted investment by the Department of Defense to enhance its data infrastructure, aligning with a government-wide trend towards digital transformation and improved data analytics capabilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, Guidehouse Inc., may engage small businesses as subcontractors if it aligns with their project execution strategy, though this is not mandated by the contract terms.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the program management office within the Department of the Army. The firm fixed-price nature of the contract provides a degree of financial oversight by capping costs. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Information Systems Agency (DISA) IT Modernization Programs
Army Cloud Computing Strategy
Department of Defense Data Strategy
Custom Software Development Services

Risk Flags

Potential for integration issues with legacy systems.
Cybersecurity risks associated with sensitive defense data.
Need for clear scope management to prevent cost overruns.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.9 million to GUIDEHOUSE INC.. HQAMC RAPID DATA MODERNIZATION

Who is the contractor on this award?

The obligated recipient is GUIDEHOUSE INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $6.9 million.

What is the period of performance?

Start: 2025-09-30. End: 2026-11-11.

What is Guidehouse Inc.'s track record with similar large-scale data modernization projects within the Department of Defense?

Guidehouse Inc. has a significant presence in providing professional services to the federal government, including the Department of Defense. While specific details on past data modernization projects of this exact scale are not immediately available in this summary, the company's expertise typically spans areas like digital transformation, cloud migration, data analytics, and cybersecurity. Their broader portfolio often includes engagements with defense agencies, suggesting they possess the requisite experience and understanding of the defense environment. Further analysis would involve reviewing their past performance evaluations and specific project histories to confirm direct relevance and success metrics for data modernization initiatives.

How does the awarded amount of $6.86 million compare to the estimated value or benchmark for similar custom computer programming services in the federal market?

The awarded amount of approximately $6.86 million for custom computer programming services appears to be within a reasonable range for a federal contract of this nature, particularly given its duration of over a year and the specialized requirements of data modernization within the Department of Defense. Benchmarking against similar contracts for IT modernization, software development, and data management services awarded by agencies like the Army or other DoD components suggests that this figure is competitive. The firm fixed-price contract type also implies that the government has negotiated a definitive cost, which is generally favorable. Without specific details on the technical complexity and deliverables, a precise comparison is difficult, but the value seems proportionate to the likely scope.

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

Key risks for this contract include potential scope creep if requirements are not meticulously managed, integration challenges with existing legacy systems, and cybersecurity vulnerabilities inherent in modernizing sensitive defense data. Mitigation strategies likely involve robust project management, clear definition and control of scope, phased integration approaches, and stringent cybersecurity protocols throughout the development and deployment lifecycle. The firm fixed-price nature also mitigates financial risk for the government. The contractor's experience and the full and open competition process are positive indicators that reduce risks related to capability and cost.

How effective is the 'full and open competition' approach likely to be in ensuring optimal value for taxpayers on this $6.86 million contract?

The 'full and open competition' approach is generally considered the most effective method for ensuring optimal value for taxpayers. By allowing all responsible sources to bid, it maximizes the competitive landscape, driving down prices and encouraging innovation. For this $6.86 million data modernization contract, this means the Department of the Army likely received proposals from multiple qualified vendors, allowing them to select the best combination of technical capability and cost-effectiveness. This process reduces the risk of overpayment and ensures that taxpayer funds are used efficiently to acquire necessary services.

What are the historical spending patterns for custom computer programming services within the Department of the Army, and how does this award fit within them?

The Department of the Army consistently allocates significant funding towards IT services, including custom computer programming, to maintain and modernize its vast technological infrastructure. Historical spending patterns reveal a continuous need for software development, system integration, and data management solutions to support diverse operational requirements. This $6.86 million award for data modernization fits within these patterns as a strategic investment aimed at enhancing critical defense capabilities. It reflects the ongoing trend of digital transformation within the DoD, focusing on leveraging data more effectively for intelligence, logistics, and command and control.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9124P25RA004

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Peraton Technology Services Inc.

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: $18,243,050

Exercised Options: $6,861,796

Current Obligation: $6,861,796

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline