GSA awards $6.8M contract for internal control support to Guidehouse Inc

Contract Overview

Contract Amount: $6,815,605 ($6.8M)

Contractor: Guidehouse Inc.

Awarding Agency: General Services Administration

Start Date: 2022-01-18

End Date: 2027-01-17

Contract Duration: 1,825 days

Daily Burn Rate: $3.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY2022 A 123 INTERNAL CONTROL PROGRAM SUPPORT

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $6.8 million to GUIDEHOUSE INC. for work described as: FY2022 A 123 INTERNAL CONTROL PROGRAM SUPPORT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for accounting services, a common need across federal agencies. 3. The duration of the contract is 5 years, indicating a long-term need for these services. 4. The contract type is Firm Fixed Price, which provides cost certainty for the government. 5. The award was made by the General Services Administration, a key procurement agency. 6. The North American Industry Classification System (NAICS) code is 541219, indicating 'Other Accounting Services'.

Value Assessment

Rating: good

The contract value of $6.8 million over five years averages to approximately $1.36 million annually. Without specific benchmarks for 'Internal Control Program Support' services from GSA's Federal Acquisition Service, a direct value-for-money assessment is challenging. However, the firm fixed-price structure helps manage costs. Further analysis would require comparing this rate to similar contracts for accounting and internal control support services awarded by other agencies or within GSA.

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 presence of 3 bidders suggests a moderate level of competition for this specific requirement. While more than one bidder is positive, a higher number of bidders typically leads to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: The full and open competition, with multiple bidders, is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and ensures that the government is not overpaying for the services.

Public Impact

Federal agencies benefit from improved internal control programs, leading to better financial management and compliance. The services delivered will support the General Services Administration's efforts to maintain robust internal controls. The geographic impact is primarily federal, supporting agency operations nationwide. The contract supports the accounting and auditing workforce, potentially through specialized expertise provided by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor lock-in due to the 5-year duration if performance is not closely monitored.
Reliance on a single contractor for critical internal control support could pose a risk if the contractor underperforms.

Positive Signals

Firm Fixed Price contract type provides cost predictability.
Awarded through full and open competition, indicating a competitive process.
The General Services Administration's involvement suggests adherence to established procurement standards.

Sector Analysis

The accounting services sector is a significant part of the professional services industry supporting government operations. This contract falls under the 'Other Accounting Services' NAICS code (541219), which encompasses a broad range of financial and accounting support. Federal spending in this area is consistent, as agencies require ongoing support for financial management, auditing, and compliance. Comparable spending benchmarks would involve looking at other contracts for similar accounting and internal control support services across various federal agencies.

Small Business Impact

This contract does not appear to have a small business set-aside (sb: false). There is no explicit information regarding subcontracting plans for small businesses. Without specific subcontracting requirements or goals, the direct impact on the small business ecosystem for this particular contract is likely minimal, unless Guidehouse Inc. voluntarily engages small businesses.

Oversight & Accountability

The General Services Administration (GSA) typically has robust oversight mechanisms for its contracts, including performance monitoring and contract management. The firm fixed-price nature of the contract provides a degree of financial oversight. Transparency is generally maintained through contract award databases like FPDS. Inspector General oversight would fall under the GSA's Office of Inspector General, which investigates fraud, waste, and abuse in GSA programs and contracts.

Related Government Programs

Federal Internal Control Programs
Government Accounting Services
GSA Federal Acquisition Service Contracts
Professional Services Contracts

Risk Flags

Contract Duration
Contractor Performance Risk
Cost Overrun Potential (mitigated by FFP)

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $6.8 million to GUIDEHOUSE INC.. FY2022 A 123 INTERNAL CONTROL PROGRAM SUPPORT

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 $6.8 million.

What is the period of performance?

Start: 2022-01-18. End: 2027-01-17.

What is Guidehouse Inc.'s track record with federal contracts, particularly for accounting and internal control services?

Guidehouse Inc. has a significant history of performing federal contracts across various agencies and service areas. While specific details for this 'Internal Control Program Support' contract are limited to the award data, their broader portfolio often includes financial management, consulting, and IT services for government clients. A deeper dive into their contract history, including past performance reviews and any reported issues on similar engagements, would be necessary to fully assess their track record. Examining their performance on prior GSA contracts or contracts with similar objectives (e.g., financial auditing, risk management, compliance support) would provide more context on their capabilities and reliability in delivering these types of services.

How does the $6.8 million contract value compare to similar federal contracts for internal control support?

Benchmarking the $6.8 million contract value requires comparing it against similar 'Internal Control Program Support' contracts awarded by federal agencies, particularly those with similar scope and duration. Given the 5-year term, the average annual value is approximately $1.36 million. Without access to a comprehensive database of comparable contracts specifically for 'internal control program support' under NAICS 541219, a precise comparison is difficult. However, this value appears moderate for a multi-year federal support contract. Factors like the specific deliverables, the complexity of the agency's internal control environment, and the level of expertise required would influence the price. A thorough benchmark would involve analyzing contract awards for accounting, auditing, and financial advisory services to federal entities over the past few years.

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

Key risks include potential underperformance by the contractor, leading to inadequate internal control support and compliance issues for the agency. Another risk is the potential for cost overruns if the firm fixed-price contract doesn't adequately account for unforeseen complexities, though this is mitigated by the fixed-price nature. Contractor lock-in over the 5-year period is also a concern if performance is not continuously monitored. Mitigation strategies typically involve robust contract oversight by the GSA, including regular performance reviews, clear deliverable tracking, and defined metrics for success. The firm fixed-price structure itself acts as a primary cost mitigation tool. Furthermore, the competitive award process helps ensure that a capable contractor was selected initially.

How effective is the General Services Administration (GSA) in managing contracts of this nature?

The GSA, through its Federal Acquisition Service (FAS), has extensive experience managing a wide array of federal contracts, including professional services like accounting and consulting. GSA's established procurement processes and contract management frameworks are designed to ensure effective oversight, compliance, and value for taxpayer dollars. They employ contract officers and specialists who monitor contractor performance, manage modifications, and ensure adherence to contract terms. While specific effectiveness metrics for this particular contract are not publicly available, GSA's overall mission is to provide efficient and effective procurement solutions for the government, suggesting a generally high level of competence in managing such engagements.

What are the historical spending patterns for 'Other Accounting Services' (NAICS 541219) within the federal government?

Federal spending on 'Other Accounting Services' (NAICS 541219) is substantial and consistent, reflecting the ongoing need for financial management, auditing, tax preparation, and internal control support across government agencies. Historical data indicates a steady demand for these services, often driven by regulatory compliance requirements, financial reporting mandates, and the need for specialized expertise. Spending can fluctuate based on agency-specific initiatives, budget cycles, and the complexity of financial operations. Analyzing trends over several fiscal years would reveal which agencies are the largest consumers of these services and the typical contract values and durations, providing context for the $6.8 million award to Guidehouse Inc.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Other Accounting 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: 47QFDA21Q0096

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Veritas Capital Fund Management, L.L.C.

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: $6,815,605

Exercised Options: $6,815,605

Current Obligation: $6,815,605

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU216

IDV Type: IDC

Timeline