Department of Labor awards $32.4M contract for HR management support to combat unemployment fraud

Contract Overview

Contract Amount: $32,410,956 ($32.4M)

Contractor: Guidehouse Inc.

Awarding Agency: Department of Labor

Start Date: 2021-06-03

End Date: 2024-09-30

Contract Duration: 1,215 days

Daily Burn Rate: $26.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: Other

Official Description: HUMAN RESOURCES & MANAGEMENT SUPPORT SERVICES TO COMBAT UNEMPLOYMENT INSURANCE FRAUD (ETA)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20210

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $32.4 million to GUIDEHOUSE INC. for work described as: HUMAN RESOURCES & MANAGEMENT SUPPORT SERVICES TO COMBAT UNEMPLOYMENT INSURANCE FRAUD (ETA) Key points: 1. Contract focuses on critical administrative management and consulting services. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract duration extends over three years, indicating a sustained need for these services. 4. Performance is benchmarked against similar administrative support contracts. 5. The award is situated within the broader context of federal efforts to combat fraud. 6. The contractor, GUIDEHOUSE INC., has a track record in management consulting. 7. The contract type is a delivery order, implying it's part of a larger indefinite-delivery contract.

Value Assessment

Rating: good

The total award amount of $32.4 million over approximately three years suggests a moderate investment in administrative support. Benchmarking against similar contracts for HR and management consulting services would be necessary for a precise value-for-money assessment. However, the per-unit cost, if calculable based on labor hours, could provide further insight into pricing efficiency compared to market rates for specialized consulting.

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 offers. The presence of three bidders suggests a reasonable level of competition, which typically aids in price discovery and can lead to more favorable pricing for the government. The specific details of the bidding process and the number of proposals received would offer a clearer picture of the competitive intensity.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market where multiple firms vie for the contract, potentially driving down costs and improving service quality through competitive pressures.

Public Impact

The primary beneficiaries are federal agencies seeking to enhance their capabilities in combating unemployment insurance fraud. Services delivered include administrative management and general management consulting. The geographic impact is primarily within the District of Columbia, where the contract is managed. Workforce implications include the potential for specialized consulting roles and support staff within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the definition of 'combating unemployment insurance fraud' is not tightly defined.
Reliance on a single contractor for critical support services could pose a risk if performance falters.
The effectiveness of the consulting services is dependent on the contractor's expertise and the agency's ability to implement recommendations.

Positive Signals

Awarded under full and open competition, indicating a potentially robust selection process.
The contract duration suggests a stable, long-term need that the contractor is expected to fulfill.
Focus on a critical area like fraud prevention demonstrates a commitment to fiscal responsibility.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is vital for government operations, providing expertise that agencies may lack internally. The market for such services is competitive, with numerous firms offering specialized consulting. Federal spending in this area often supports program management, efficiency improvements, and policy implementation.

Small Business Impact

The data indicates 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 requirement. However, the prime contractor, GUIDEHOUSE INC., may engage small businesses as subcontractors if it aligns with their project needs and procurement strategy, though this is not mandated by the contract terms.

Oversight & Accountability

Oversight for this contract would typically reside with the Department of Labor's Office of the Assistant Secretary for Administration and Management. Accountability measures are usually embedded in the contract's performance standards and delivery requirements. Transparency is facilitated through contract award databases and reporting requirements. The Inspector General for the Department of Labor may have jurisdiction to investigate any potential fraud or mismanagement related to this contract.

Related Government Programs

Unemployment Insurance Program Integrity
Federal Fraud Prevention Initiatives
Administrative Management Consulting Services
Department of Labor IT and Management Support

Risk Flags

Performance Risk
Data Security Risk
Over-reliance on Contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $32.4 million to GUIDEHOUSE INC.. HUMAN RESOURCES & MANAGEMENT SUPPORT SERVICES TO COMBAT UNEMPLOYMENT INSURANCE FRAUD (ETA)

Who is the contractor on this award?

The obligated recipient is GUIDEHOUSE INC..

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $32.4 million.

What is the period of performance?

Start: 2021-06-03. End: 2024-09-30.

What is the track record of GUIDEHOUSE INC. in providing similar HR and management consulting services to federal agencies, particularly in fraud prevention?

GUIDEHOUSE INC. has a significant presence in the federal contracting space, offering a wide array of management consulting services. Their expertise often spans areas such as financial management, technology modernization, and program management. While specific details on their past performance in combating unemployment insurance fraud are not provided in this data, their general capabilities in administrative and management consulting suggest they are well-positioned to undertake such a contract. A deeper dive into their contract history, past performance evaluations, and client testimonials would offer a more comprehensive understanding of their specific experience and success rates in fraud prevention initiatives for federal agencies.

How does the awarded amount of $32.4 million compare to similar federal contracts for HR and management consulting services aimed at fraud prevention?

The $32.4 million award over approximately three years represents a substantial investment, but its comparability to similar contracts requires careful benchmarking. Contracts for specialized consulting services, especially those targeting complex issues like fraud prevention within large government programs, can vary significantly in scope, duration, and complexity. To assess value, one would need to compare this contract's total value, duration, and the specific services rendered against other contracts awarded by the Department of Labor or other agencies for similar objectives. Factors such as the number of bidders, the specific deliverables, and the contractor's proposed labor rates would also be crucial for a thorough value-for-money analysis.

What are the key performance indicators (KPIs) or metrics used to measure the success of this contract in combating unemployment insurance fraud?

The provided data does not explicitly detail the Key Performance Indicators (KPIs) or specific metrics for this contract. However, in contracts focused on fraud prevention, success is typically measured by a reduction in fraudulent claims, an increase in the detection rate of fraudulent activities, the recovery of improperly disbursed funds, and improvements in the efficiency of fraud detection and prevention processes. Performance standards would likely be defined in the contract's Statement of Work (SOW), outlining measurable outcomes that GUIDEHOUSE INC. must achieve. Regular performance reviews and reporting would track progress against these defined metrics.

What is the historical spending pattern of the Department of Labor on administrative management and general management consulting services, and how does this award fit within that trend?

Historical spending data for the Department of Labor on administrative management and general management consulting services would reveal trends in their reliance on external expertise. This $32.4 million award, spread over three years, suggests a consistent and significant need for such services, particularly in the critical area of unemployment insurance fraud. If historical spending shows a pattern of increasing investment in fraud prevention technologies and services, this award would align with that trend. Conversely, if it represents a notable increase, it might indicate a new strategic focus or a response to escalating fraud challenges. Analyzing past budgets and contract awards would provide context for this specific procurement.

What are the potential risks associated with relying on GUIDEHOUSE INC. for critical HR and management support in combating unemployment insurance fraud?

Potential risks associated with this contract include over-reliance on a single contractor, which could lead to a loss of institutional knowledge within the agency or create vulnerabilities if the contractor's performance declines. There's also a risk that the consulting services may not yield the expected results in fraud reduction if the underlying issues are more complex than anticipated or if agency implementation of recommendations is lacking. Furthermore, data security and privacy risks are inherent when handling sensitive information related to unemployment claims. Ensuring robust oversight and clear performance expectations is crucial to mitigate these risks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1605C2-21-Q-00034

Offers Received: 3

Pricing Type: LABOR HOURS (Z)

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: $32,410,956

Exercised Options: $32,410,956

Current Obligation: $32,410,956

Actual Outlays: $32,410,956

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QRAA19D0085

IDV Type: FSS

Timeline