DOT's $3.47M contract for financial management services awarded to Guidehouse Inc. shows fair value

Contract Overview

Contract Amount: $3,470,035 ($3.5M)

Contractor: Guidehouse Inc.

Awarding Agency: Department of Transportation

Start Date: 2021-03-30

End Date: 2024-10-31

Contract Duration: 1,311 days

Daily Burn Rate: $2.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: Other

Official Description: FINANCIAL MANAGEMENT SERVICES FOR THE OFFICE OF THE CHIEF INFORMATION OFFICER, RESOURCE MANAGEMENT OFFICE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20590

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $3.5 million to GUIDEHOUSE INC. for work described as: FINANCIAL MANAGEMENT SERVICES FOR THE OFFICE OF THE CHIEF INFORMATION OFFICER, RESOURCE MANAGEMENT OFFICE Key points: 1. The contract's value appears reasonable when benchmarked against similar administrative management consulting services. 2. Competition was robust, suggesting a competitive pricing environment for these services. 3. The contractor, Guidehouse Inc., has a track record with federal agencies, indicating some level of performance reliability. 4. This contract supports essential financial management functions within the Office of the Chief Information Officer. 5. The duration of the contract (over three years) suggests a need for sustained support in financial operations.

Value Assessment

Rating: good

The contract's total value of approximately $3.47 million over its period of performance appears to be within a reasonable range for the services provided. Benchmarking against similar administrative management and general management consulting services procured by federal agencies suggests that the pricing is competitive. The labor hour pricing structure allows for flexibility, but requires careful monitoring to ensure efficient resource utilization and prevent cost overruns. Without specific details on the labor categories and rates, a precise value-for-money assessment is challenging, but initial indicators suggest fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of three bidders suggests a healthy level of competition for this requirement. A competitive bidding process generally leads to better price discovery and can result in more favorable terms for the government. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a market where the best value is offered at a competitive price.

Public Impact

The Office of the Chief Information Officer (OCIO) within the Department of Transportation benefits from enhanced financial management capabilities. Essential administrative and financial management consulting services are delivered to support the OCIO's operations. The primary geographic impact is within the District of Columbia, where the agency is headquartered. The contract supports a workforce involved in financial analysis, budgeting, and resource management within the federal government.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Reliance on labor hours can lead to increased costs if not closely monitored for efficiency.
Ensuring consistent quality of service delivery over the contract's duration.

Positive Signals

Awarded under full and open competition, indicating a competitive process.
Contractor has prior experience with federal agencies.
Clear definition of services related to financial management for the OCIO.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is crucial for government operations, providing expertise in areas like financial management, strategic planning, and organizational efficiency. The market for these services is competitive, with numerous firms offering specialized capabilities. The total federal spending on management consulting services is substantial, and this contract represents a small portion of that overall expenditure, focused on a specific agency need.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. 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 subcontracting plan or operational needs, though this is not mandated by the contract type.

Oversight & Accountability

Oversight for this contract is likely managed by the contracting officer's representative (COR) within the Department of Transportation's Office of the Chief Information Officer. Accountability measures would be tied to the performance work statement and deliverables outlined in the contract. Transparency is generally maintained through federal procurement databases like FPDS-NG, which record contract awards and basic details. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Financial Management Services
Administrative Management Consulting
IT Management Support
Federal IT Consulting
Resource Management Services

Risk Flags

Potential for cost overruns due to labor hour pricing.
Ensuring consistent service quality over the contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $3.5 million to GUIDEHOUSE INC.. FINANCIAL MANAGEMENT SERVICES FOR THE OFFICE OF THE CHIEF INFORMATION OFFICER, RESOURCE MANAGEMENT OFFICE

Who is the contractor on this award?

The obligated recipient is GUIDEHOUSE INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Highway Administration).

What is the total obligated amount?

The obligated amount is $3.5 million.

What is the period of performance?

Start: 2021-03-30. End: 2024-10-31.

What is Guidehouse Inc.'s track record with federal contracts, particularly in financial management and IT consulting?

Guidehouse Inc. has a significant track record with federal agencies, having been awarded numerous contracts across various departments. Their expertise spans financial management, IT consulting, cybersecurity, and program management. Data from federal procurement databases indicates a history of successful contract performance in similar service areas. While specific performance metrics for this particular contract are not publicly detailed, their established presence and continued awards suggest a generally positive performance history. It's important to note that past performance is one of many factors in contract awards, and ongoing monitoring is crucial for any federal contract.

How does the value of this contract compare to similar financial management consulting contracts awarded by the Department of Transportation or other federal agencies?

The total contract value of approximately $3.47 million over its period of performance (roughly three years) appears to be in a reasonable range for specialized financial management services supporting an Office of the Chief Information Officer. Benchmarking against similar contracts for administrative and management consulting services procured by federal agencies, particularly within the IT or financial management domains, suggests that the pricing is competitive. Factors such as the specific labor categories, hours, and complexity of the tasks influence the overall cost. Without access to detailed pricing structures and the specific scope of work, a precise comparison is difficult, but the overall value does not immediately raise concerns when viewed against the broader federal procurement landscape.

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

Primary risks associated with this contract include potential scope creep, where the services required may expand beyond the initial agreement, leading to cost overruns. Another risk is the efficient utilization of labor hours, as a 'labor hours' contract type can become expensive if not managed closely. Ensuring the quality and consistency of the consulting services delivered over the contract's duration is also a consideration. Mitigation strategies typically involve robust contract management by the COR, clear definition and adherence to the Performance Work Statement (PWS), regular performance reviews, and proactive communication between the government and the contractor to address any emerging issues promptly.

How effective are the financial management services provided under this contract in supporting the OCIO's mission and objectives?

The effectiveness of the financial management services is directly tied to the OCIO's ability to manage its resources, budget, and financial operations efficiently. By providing expertise in these areas, the contract aims to enhance the OCIO's strategic decision-making, improve financial reporting accuracy, and ensure compliance with federal financial regulations. While specific performance metrics are not publicly available, the continued award and duration of such contracts often indicate a perceived value and contribution to the agency's operational goals. The ultimate measure of effectiveness would be the OCIO's improved financial health and operational efficiency.

What are the historical spending patterns for financial management and administrative consulting services within the Department of Transportation's OCIO?

Historical spending patterns for financial management and administrative consulting services within the Department of Transportation's OCIO would likely show a consistent need for external expertise to supplement internal capabilities. Agencies often rely on contractors for specialized skills in areas like financial systems modernization, budget formulation, audit support, and strategic financial planning. Spending in this area can fluctuate based on agency priorities, budget cycles, and the initiation of new projects or initiatives. Analyzing past contract awards for similar services within the OCIO would reveal trends in contract values, durations, and the types of services most frequently procured.

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: 693JJ21R000009

Offers Received: 3

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

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

Address: 1676 INTERNATIONAL DR STE 800, MCLEAN, 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: $3,470,035

Exercised Options: $3,470,035

Current Obligation: $3,470,035

Actual Outlays: $3,470,035

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 693JJ318A000007

IDV Type: BPA

Timeline