Ginnie Mae's $12.3M advisory contract awarded to Guidehouse Inc. for financial advisory services

Contract Overview

Contract Amount: $12,292,013 ($12.3M)

Contractor: Guidehouse Inc.

Awarding Agency: General Services Administration

Start Date: 2021-07-21

End Date: 2024-05-17

Contract Duration: 1,031 days

Daily Burn Rate: $11.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: GINNIE MAE SECURITIZED TRANSACTION FINANCIAL ADVISOR SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $12.3 million to GUIDEHOUSE INC. for work described as: GINNIE MAE SECURITIZED TRANSACTION FINANCIAL ADVISOR SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose cost control risks if not managed effectively. 3. The duration of over 1000 days indicates a significant, long-term need for these services. 4. The awarding agency is GSA, which often manages contracts for other federal entities. 5. The North American Industry Classification System (NAICS) code 541611 points to management consulting services. 6. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

The contract's value of $12.3 million over approximately 3 years (1031 days) for financial advisory services appears reasonable given the scope. However, without specific deliverables or performance metrics, a precise value-for-money assessment is challenging. Time and Materials contracts can sometimes lead to higher costs than fixed-price contracts if not closely monitored for efficiency and necessity of hours billed. Benchmarking against similar Ginnie Mae or GSA financial advisory contracts would provide a clearer picture of pricing competitiveness.

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 a bid. The number of bidders is not specified, but this method generally fosters price discovery and encourages competitive pricing. The use of full and open competition suggests that the agency sought the best value available in the market for these specialized financial advisory services.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most cost-effective solution for essential financial advisory services, potentially leading to savings compared to a sole-source or limited competition award.

Public Impact

The primary beneficiary is Ginnie Mae, which receives critical financial advisory support for its securitization transactions. The services provided are essential for the smooth operation and financial integrity of Ginnie Mae's mortgage-backed securities programs. The contract's impact is primarily national, supporting the broader housing finance market. The contract likely supports a team of financial consultants, contributing to specialized employment in the management consulting sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing structure if not rigorously managed.
Lack of specific performance metrics makes it difficult to assess the effectiveness and efficiency of the advisory services.
The long duration could lead to vendor lock-in or a decrease in urgency if not actively overseen.

Positive Signals

Awarded through full and open competition, indicating a robust and fair bidding process.
The contract supports a critical function for Ginnie Mae, ensuring financial stability in the mortgage market.
The contractor, Guidehouse Inc., is a known entity in government consulting, suggesting a level of established capability.

Sector Analysis

This contract falls within the management and financial consulting services sector, a significant segment of the professional services market supporting government operations. The market for such services is competitive, with numerous firms offering expertise in financial analysis, risk management, and operational efficiency. Ginnie Mae's need for specialized financial advisory services is driven by the complexity of its mortgage-backed securities programs, which require deep expertise to navigate market dynamics and regulatory requirements. Comparable spending benchmarks would typically involve analyzing other large federal agencies' expenditures on similar advisory roles.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Therefore, the primary contractor, Guidehouse Inc., is likely a large business. There is no explicit information regarding subcontracting plans for small businesses within this data. The absence of a set-aside suggests that opportunities for small businesses may be limited unless they are part of a larger subcontracting effort managed by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the Ginnie Mae program office within the Department of Housing and Urban Development (HUD), in coordination with the General Services Administration (GSA) which awarded the contract. Accountability measures would be tied to the terms of the Time and Materials contract, requiring detailed reporting of hours and expenses. Transparency is generally facilitated through contract award databases like FPDS, though detailed performance reports are often internal. Inspector General jurisdiction would fall under HUD's OIG.

Related Government Programs

Ginnie Mae Mortgage-Backed Securities Programs
Federal Financial Advisory Services
GSA Schedule Contracts
Management and Consulting Services

Risk Flags

Potential for cost overruns due to T&M contract type.
Need for strong oversight to ensure value for money.
Scope creep risk in long-duration advisory contracts.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $12.3 million to GUIDEHOUSE INC.. GINNIE MAE SECURITIZED TRANSACTION FINANCIAL ADVISOR SERVICES

Who is the contractor on this award?

The obligated recipient is GUIDEHOUSE INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $12.3 million.

What is the period of performance?

Start: 2021-07-21. End: 2024-05-17.

What specific financial advisory services are being provided under this contract, and how do they align with Ginnie Mae's core mission?

The contract data indicates 'GINNIE MAE SECURITIZED TRANSACTION FINANCIAL ADVISOR SERVICES' and is classified under NAICS code 541611 (Administrative Management and General Management Consulting Services). This suggests the services are focused on providing expert advice related to Ginnie Mae's securitization activities. These activities involve pooling mortgages and issuing securities backed by these pools. The advisory services likely encompass areas such as financial modeling, risk assessment of securitization structures, market analysis for optimal issuance strategies, compliance with financial regulations, and potentially advice on improving the efficiency and effectiveness of the securitization process. These services directly support Ginnie Mae's mission of facilitating the flow of capital to the mortgage market, thereby promoting housing affordability.

How does the Time and Materials (T&M) contract type potentially impact cost control and value for money compared to other contract types?

Time and Materials (T&M) contracts pay the contractor for the actual cost of direct labor (at specified hourly rates) and indirect costs, plus a fee representing profit. While T&M contracts offer flexibility, especially when the scope of work is not clearly defined at the outset, they carry inherent risks for cost control. Unlike fixed-price contracts, the total cost is not predetermined, making it harder to budget precisely. For value for money, effective oversight is crucial. The government must diligently monitor the hours billed, ensure the rates are reasonable, and verify that the work performed is necessary and efficient. Without strong oversight, T&M contracts can lead to cost overruns and potentially less value for money if the contractor is not incentivized to complete tasks efficiently. In this case, Ginnie Mae and GSA would need robust mechanisms to track and validate all billable hours and expenses.

What is Guidehouse Inc.'s track record with federal contracts, particularly in financial advisory roles?

Guidehouse Inc. is a well-established government contractor with a significant portfolio of federal contracts across various agencies and service areas, including management consulting, financial advisory, and IT services. They have a history of supporting complex government missions. While specific details on their past performance for Ginnie Mae or similar financial advisory roles would require deeper analysis of contract databases and performance reviews, Guidehouse's general presence in the federal market suggests they possess the necessary clearances, expertise, and infrastructure to handle such engagements. Their track record often includes work with agencies like the Department of Defense, Health and Human Services, and Treasury, indicating broad experience in managing large-scale, sensitive projects.

Given the contract's duration of over 1000 days, what are the implications for Ginnie Mae's long-term financial strategy and risk management?

A contract duration exceeding 1000 days (approximately 2.7 years) for financial advisory services suggests that Ginnie Mae requires sustained, expert support for its ongoing securitization operations. This implies that the complexities and market dynamics of mortgage securitization are not short-term issues but require continuous strategic guidance and risk assessment. The long duration allows for the development of deeper institutional knowledge by the contractor, potentially leading to more tailored and effective advice. However, it also necessitates robust contract management to ensure the services remain relevant and cost-effective throughout the period. It signals a commitment by Ginnie Mae to proactively manage financial risks and optimize its securitization strategies over an extended horizon, rather than addressing issues on an ad-hoc basis.

How does the $12.3 million award amount compare to historical spending on similar financial advisory services by Ginnie Mae or other federal entities?

Comparing the $12.3 million award requires context regarding the specific services, duration, and complexity. Ginnie Mae's securitization activities are substantial, involving billions of dollars in mortgage pools. Financial advisory services for such large-scale operations can command significant fees. For instance, major financial institutions and consulting firms often charge substantial amounts for expertise in capital markets, risk management, and regulatory compliance. Without access to Ginnie Mae's specific historical spending data for comparable contracts or benchmarks from agencies like the Federal Housing Finance Agency (FHFA) or the Department of the Treasury for similar advisory roles, a precise comparison is difficult. However, for a multi-year engagement supporting complex financial transactions of national importance, $12.3 million appears to be within a plausible range, assuming the scope and deliverables justify the cost.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFDA21Q0110

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

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: $36,464,019

Exercised Options: $18,733,116

Current Obligation: $12,292,013

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F045DA

IDV Type: FSS

Timeline