Transportation's $20.9M contract for aviation manufacturing support awarded to Guidehouse Inc

Contract Overview

Contract Amount: $20,867,342 ($20.9M)

Contractor: Guidehouse Inc.

Awarding Agency: Department of Transportation

Start Date: 2021-04-14

End Date: 2023-09-29

Contract Duration: 898 days

Daily Burn Rate: $23.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: OST TO ACQUIRE CONTRACTOR FINANCIAL SUPPORT IN SUPPORT OF THE AVIATION MANUFACTURING JOBS PROTECTION (AMJP) PROGRAM.

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 $20.9 million to GUIDEHOUSE INC. for work described as: OST TO ACQUIRE CONTRACTOR FINANCIAL SUPPORT IN SUPPORT OF THE AVIATION MANUFACTURING JOBS PROTECTION (AMJP) PROGRAM. Key points: 1. Contract provides administrative and management consulting services for the Aviation Manufacturing Jobs Protection Program. 2. The contract was awarded using full and open competition, suggesting a competitive bidding process. 3. The duration of the contract is approximately 30 months, indicating a medium-term engagement. 4. The contract type is Time and Materials, which can pose cost control challenges if not managed closely. 5. The award value of over $20 million signifies a substantial investment in program support. 6. The services fall under Administrative Management and General Management Consulting Services, a common professional service category.

Value Assessment

Rating: fair

The contract value of $20.9 million for administrative and management consulting services is substantial. Benchmarking this against similar contracts for program support within the Department of Transportation or other federal agencies would be necessary for a precise value-for-money assessment. The Time and Materials (T&M) contract type, while flexible, carries inherent risks of cost overruns if not meticulously managed and monitored. Without specific performance metrics or deliverables tied to fixed pricing, it's challenging to definitively assess if the government is receiving optimal value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This suggests a robust bidding process where multiple firms likely had the opportunity to compete. The number of bidders is not specified, but the 'full and open' designation generally implies a competitive environment that should drive pricing towards market rates and encourage the selection of the most qualified offeror.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and ensures that the government selects the best value offer, potentially saving taxpayer dollars through efficient service delivery.

Public Impact

The primary beneficiaries are entities within the aviation manufacturing sector that rely on the Aviation Manufacturing Jobs Protection Program for support. The contract delivers essential administrative and general management consulting services to ensure the effective operation and oversight of the AMJP program. The geographic impact is likely focused on areas with significant aviation manufacturing presence, though the program's reach could be national. Workforce implications may include the retention or creation of jobs within the aviation manufacturing sector, supported by the program's objectives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can lead to cost escalation if not closely monitored, potentially exceeding initial budget expectations.
Lack of specific performance metrics in the T&M structure could make it difficult to hold the contractor accountable for specific outcomes.
The broad nature of 'Administrative Management and General Management Consulting Services' requires clear definition of scope to prevent scope creep and ensure focused delivery.

Positive Signals

Awarded through 'full and open competition,' suggesting a competitive process that likely yielded a qualified contractor at a reasonable price.
The contract supports a specific, potentially critical, government program (Aviation Manufacturing Jobs Protection Program), indicating alignment with strategic objectives.
The contractor, Guidehouse Inc., is a known entity in the consulting space, suggesting a level of established capability and experience.

Sector Analysis

The contract falls within the professional, scientific, and technical services sector, specifically management consulting. This sector is a significant component of federal contracting, supporting a wide array of government functions. The market for management consulting services is large and competitive, with numerous firms offering specialized expertise. This contract represents a portion of the federal government's spending on advisory and support services, aiming to enhance program efficiency and effectiveness.

Small Business Impact

The provided data indicates that small business participation (sb) was false and that this was not a small business set-aside (ss). Therefore, this contract does not appear to have specific provisions for small business set-asides. There is no information regarding subcontracting plans for small businesses. The focus on a large prime contractor suggests that opportunities for small businesses would likely be through subcontracts, if any are utilized by Guidehouse Inc.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Transportation's Immediate Office of the Secretary of Transportation, which awarded the contract. Accountability measures would be defined within the contract's terms and conditions, including performance expectations and reporting requirements. Transparency is facilitated by the public nature of federal contract awards, though specific performance details may be proprietary. The Inspector General for the Department of Transportation would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Aviation Manufacturing Jobs Protection Program
Department of Transportation Professional Services Contracts
Federal Management Consulting Services
Economic Stimulus and Support Programs

Risk Flags

Time and Materials Contract Type Risk
Potential for Cost Overruns
Need for Robust Oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $20.9 million to GUIDEHOUSE INC.. OST TO ACQUIRE CONTRACTOR FINANCIAL SUPPORT IN SUPPORT OF THE AVIATION MANUFACTURING JOBS PROTECTION (AMJP) PROGRAM.

Who is the contractor on this award?

The obligated recipient is GUIDEHOUSE INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Immediate Office of the Secretary of Transportation).

What is the total obligated amount?

The obligated amount is $20.9 million.

What is the period of performance?

Start: 2021-04-14. End: 2023-09-29.

What is the specific scope of work and key deliverables expected under this contract for the Aviation Manufacturing Jobs Protection Program?

The contract specifies 'OST TO ACQUIRE CONTRACTOR FINANCIAL SUPPORT IN SUPPORT OF THE AVIATION MANUFACTURING JOBS PROTECTION (AMJP) PROGRAM.' While the description is broad, it implies that Guidehouse Inc. will provide administrative and general management consulting services. These services likely encompass tasks such as program planning, financial analysis, stakeholder coordination, reporting, and potentially advising on the allocation and management of financial support to eligible entities within the aviation manufacturing sector. Key deliverables would typically include regular progress reports, financial status updates, strategic recommendations, and potentially documentation related to program compliance and effectiveness. The exact scope and deliverables would be detailed in the Statement of Work (SOW) attached to the contract, which is not fully provided here.

How does the $20.9 million award value compare to typical spending for similar administrative support contracts within the Department of Transportation?

The $20.9 million award value is substantial for administrative and management consulting services. To benchmark this effectively, one would need to compare it against contracts of similar duration (approximately 30 months) and scope (program support) awarded by the Department of Transportation or other agencies involved in economic development or industry support programs. Federal procurement data (like FPDS or USASpending) can be queried for comparable contracts. Factors such as the complexity of the program being supported, the level of expertise required, and the number of personnel involved would influence the cost. Without specific comparable data, it's difficult to definitively state if this represents high or low spending, but the amount suggests a significant level of support is being procured.

What are the potential risks associated with the Time and Materials (T&M) contract type for this program?

The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual labor hours and material costs incurred. If the scope of work is not tightly defined, or if project management is weak, the contractor may incur more hours or use more expensive materials than anticipated, leading to a higher final cost. For the government, this necessitates robust oversight to ensure that hours are reasonable, labor categories are appropriate, and materials are necessary and cost-effective. Without strong government monitoring and control, T&M contracts can become significantly more expensive than initially projected, potentially impacting the overall value for money.

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

Guidehouse Inc. is a well-established consulting firm with a significant presence in the federal contracting space. They have a history of providing a wide range of services, including management consulting, technology solutions, and financial advisory services, to various federal agencies. Their experience often includes supporting complex government programs, navigating regulatory environments, and assisting with strategic planning and operational improvements. A review of their contract history would likely reveal numerous awards across different agencies, demonstrating their capacity and experience. Specific to program management and consulting, Guidehouse has been involved in areas such as healthcare, defense, energy, and financial services, suggesting they possess the requisite expertise for a program like the AMJP.

How does the 'full and open competition' award mechanism impact the cost-effectiveness and quality of services received?

Awarding a contract through 'full and open competition' is generally considered a best practice for maximizing cost-effectiveness and quality. This mechanism ensures that all eligible and responsible sources are allowed to compete, fostering a competitive environment. Competition typically drives down prices as contractors strive to offer the most attractive bid to win the contract. Furthermore, it allows the government to select from a wider pool of potential offerors, increasing the likelihood of finding a contractor with the best combination of technical expertise, past performance, and price. This process is designed to ensure that taxpayer dollars are used efficiently and that the government receives high-quality services.

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

The Department of Transportation (DOT) consistently spends significant amounts on administrative and management consulting services to support its diverse operations and programs. Historical spending data reveals a pattern of awarding contracts for strategic planning, program management, financial analysis, IT consulting, and policy development. The annual spending in this category can fluctuate based on the initiation of new programs, the need for specialized expertise, or shifts in agency priorities. While specific figures vary year to year, DOT's reliance on external consultants for these types of services is a long-standing trend, reflecting the complexity and scale of its mission.

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) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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, 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: $21,387,897

Exercised Options: $21,387,897

Current Obligation: $20,867,342

Actual Outlays: $20,867,342

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 693JJ318A000007

IDV Type: BPA

Timeline