DHS awards $5.1M contract for audit readiness and liaison support to Guidehouse Inc

Contract Overview

Contract Amount: $5,105,265 ($5.1M)

Contractor: Guidehouse Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2021-02-15

End Date: 2026-03-14

Contract Duration: 1,853 days

Daily Burn Rate: $2.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: LABOR HOURS

Sector: Other

Official Description: AUDIT READINESS AND AUDIT LIAISON SUPPORT SERVICES

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $5.1 million to GUIDEHOUSE INC. for work described as: AUDIT READINESS AND AUDIT LIAISON SUPPORT SERVICES Key points: 1. Contract provides essential support for audit readiness and liaison services. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The duration of the contract is over 1800 days, indicating a long-term need for these services. 4. The contract type is labor hours, which can offer flexibility but requires careful monitoring of effort. 5. The agency is the Department of Homeland Security, a large federal entity with complex financial operations. 6. The specific service falls under 'Other Accounting Services', a broad category within professional services.

Value Assessment

Rating: good

The contract value of $5.1 million over approximately five years appears reasonable for specialized audit support services within a large federal agency like DHS. Benchmarking against similar contracts for audit liaison and readiness support is crucial for a definitive value assessment. The labor hours contract type allows for flexibility in service delivery, but requires diligent oversight to ensure efficient use of resources and prevent cost overruns. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive award suggests a baseline level of fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of four bids suggests a healthy level of interest and competition for this type of service. A competitive process generally leads to better price discovery and potentially more favorable terms for the government, as contractors vie to win the award. The specific number of bidders (4) provides a moderate level of competition.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the government's investment in audit support services.

Public Impact

The primary beneficiaries are the Department of Homeland Security and its component agencies, particularly U.S. Immigration and Customs Enforcement, which will receive enhanced audit readiness and liaison support. The services delivered will contribute to improved financial reporting accuracy and compliance with federal audit requirements. The geographic impact is primarily within the United States, supporting federal financial management operations. The contract supports specialized accounting and financial management professionals, potentially impacting the workforce in these fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the labor-hours contract type and long duration.
Ensuring consistent quality of service across the contract duration and potential changes in personnel.
Accurate forecasting of labor needs to avoid over or under-utilization of contractor resources.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Long-term contract duration suggests a sustained and critical need for these services.
The contractor, Guidehouse Inc., is a known entity in government contracting for financial services.

Sector Analysis

The federal accounting and financial consulting services sector is a significant market, driven by the government's continuous need for expertise in areas like audit readiness, financial management, and compliance. This contract fits within the broader professional services category, specifically focusing on accounting and auditing support. Comparable spending benchmarks for similar audit liaison and readiness contracts within large federal agencies can range widely based on scope and duration, but a $5.1 million award over five years for specialized support is within a typical range for such services.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The primary contractor is Guidehouse Inc., a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless the prime contractor voluntarily engages small businesses for specialized support.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Immigration and Customs Enforcement (ICE) contracting officer's representative (COR) and the contracting officer (CO) within the Department of Homeland Security. Accountability measures are typically embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise concerning the contract's execution.

Related Government Programs

Federal Audit Support Services
Financial Management Services
Accounting Services
Audit Readiness Support
DHS Financial Operations

Risk Flags

Potential for cost overruns due to labor-hours contract type.
Ensuring consistent quality of service over a long contract duration.
Dependence on contractor expertise for critical financial functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $5.1 million to GUIDEHOUSE INC.. AUDIT READINESS AND AUDIT LIAISON SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is GUIDEHOUSE INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $5.1 million.

What is the period of performance?

Start: 2021-02-15. End: 2026-03-14.

What is Guidehouse Inc.'s track record with similar federal contracts, particularly within DHS?

Guidehouse Inc. has a significant track record of performing federal contracts, including those related to financial management, audit support, and consulting services across various agencies, including the Department of Homeland Security. Their experience often involves complex financial systems and regulatory compliance. Analyzing their past performance on similar contracts, especially those involving audit readiness and liaison support, would provide insight into their capability to meet the requirements of this specific award. Past performance evaluations and contract close-out reports, where available, can offer data on their ability to deliver on time, within budget, and to the required quality standards. Their history suggests they are a capable provider in this niche.

How does the $5.1 million contract value compare to similar audit support contracts awarded by DHS or other large federal agencies?

The $5.1 million contract value for approximately five years of audit readiness and liaison support is within a reasonable range for specialized professional services provided to a large federal agency like DHS. Benchmarking requires comparing it to contracts with similar scopes of work, duration, and complexity. For instance, contracts for audit support, financial system modernization, or internal control assessments within agencies like the Department of Defense or HHS can range from a few million to tens of millions of dollars. The labor-hours nature of this contract allows for flexibility, meaning the final cost can vary based on actual hours worked. However, the initial award value provides a ceiling and an indication of the anticipated effort. Without access to specific comparable contract data, it's difficult to definitively state if it's high or low, but it does not appear to be an outlier for the services described.

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

Key risks for this contract include potential scope creep due to the labor-hours contract type and the long duration, which could lead to cost overruns if not managed effectively. Another risk is ensuring consistent service quality and knowledge transfer, especially if contractor personnel change over the contract period. Mitigation strategies likely involve robust contract management by the COR, including detailed monitoring of labor hours, regular performance reviews, and clear communication channels with the contractor. Defining specific deliverables and performance metrics within the contract can also help manage scope and quality. The competitive award process itself can mitigate some risks by selecting a contractor with a proven track record.

How effective is the 'full and open competition' approach in ensuring value for money for this specific service?

The 'full and open competition' approach is generally considered the most effective method for ensuring value for money in federal contracting, as it allows the widest possible pool of qualified vendors to compete. For audit readiness and liaison support services, which require specialized expertise, this approach maximizes the chances of receiving competitive bids from capable firms. The fact that four bids were received suggests sufficient market interest. This competition drives down prices and encourages innovation as contractors strive to offer the best value proposition. While effective, the government must still diligently evaluate proposals based on technical merit and price to ensure the selected contractor truly offers the best overall value.

What is the historical spending pattern for audit readiness and liaison support services within DHS?

Historical spending patterns for audit readiness and liaison support services within DHS are likely substantial, given the agency's size and the complexity of its financial operations. DHS, like many large federal agencies, faces ongoing mandates for financial accountability and audit compliance. Spending in this area typically fluctuates based on audit cycles, system upgrades, and evolving regulatory requirements. Analyzing past DHS contracts for similar services, including those awarded to different contractors and through various procurement methods, would reveal trends in contract values, durations, and the types of services procured. This historical data is crucial for understanding the agency's sustained investment in financial integrity and for setting realistic expectations for future spending.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70CMSW21R00000002

Offers Received: 4

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, 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: $5,105,265

Exercised Options: $5,105,265

Current Obligation: $5,105,265

Actual Outlays: $2,927,250

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