DHS awards $14.8M BPA Call to Guidehouse Inc. for FEMA Financial System Modernization PMO support

Contract Overview

Contract Amount: $14,881,704 ($14.9M)

Contractor: Guidehouse Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2022-07-15

End Date: 2026-04-30

Contract Duration: 1,385 days

Daily Burn Rate: $10.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE OF THIS CALL ORDER IS TO PROVIDE THE FEMA FINANCIAL SYSTEM MODERNIZATION (FSM) PROGRAM MANAGEMENT OFFICE (PMO) WITH PROGRAM AND PROJECT MANAGEMENT SUPPORT SERVICES.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20472

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $14.9 million to GUIDEHOUSE INC. for work described as: THE PURPOSE OF THIS CALL ORDER IS TO PROVIDE THE FEMA FINANCIAL SYSTEM MODERNIZATION (FSM) PROGRAM MANAGEMENT OFFICE (PMO) WITH PROGRAM AND PROJECT MANAGEMENT SUPPORT SERVICES. Key points: 1. Contract provides essential program and project management support for FEMA's financial system modernization. 2. The firm fixed-price contract structure aims to control costs and ensure predictable spending. 3. Competition was full and open, suggesting a robust marketplace for these services. 4. The contract duration extends over three years, indicating a significant, ongoing need. 5. The North American Industry Classification System (NAICS) code 541611 points to general management consulting services. 6. The award is a BPA Call, implying it's part of a larger pre-competed agreement. 7. The contract is not set aside for small businesses, nor does it explicitly mention subcontracting goals.

Value Assessment

Rating: good

The contract value of $14.8 million over approximately 3.75 years (1385 days) for program and project management support services for FEMA's Financial System Modernization PMO appears reasonable. Benchmarking against similar large-scale IT program management contracts, this value falls within expected ranges for specialized consulting services. The firm fixed-price (FFP) contract type is generally favorable for the government as it shifts cost risk to the contractor, promoting cost efficiency. Without specific details on the scope of services or comparable contract data, a precise value-for-money assessment is challenging, but the FFP structure and competitive award suggest a good faith effort to secure 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 all responsible sources were permitted to submit offers. The specific mechanism used was a BPA Call, which suggests that a broader Basic Ordering Agreement (BOA) or Blanket Purchase Agreement (BPA) was previously established through a competitive process, and this call order was then issued against that agreement. The number of bidders for this specific call order is not provided, but the 'full and open' designation implies a competitive environment that should facilitate price discovery and potentially lead to more favorable pricing for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. It ensures that the government is not limited to a single provider, increasing the likelihood of obtaining services at a fair market price and maximizing the value of taxpayer dollars.

Public Impact

Taxpayers benefit from the efficient modernization of FEMA's financial systems, which is crucial for disaster response and financial accountability. The contract delivers program and project management support services, ensuring the FSM PMO operates effectively. The primary geographic impact is within the District of Columbia, where the agency is headquartered, but the modernization efforts will have nationwide implications for FEMA's operations. The contract supports a critical government function, indirectly impacting the workforce by enabling better resource allocation and operational efficiency within FEMA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly, given the nature of program management support.
Reliance on a single contractor for critical PMO support could pose a risk if performance falters.
The long duration of the contract requires ongoing monitoring to ensure continued value and alignment with evolving needs.

Positive Signals

Firm fixed-price contract type helps control costs and provides budget certainty.
Awarded under full and open competition, suggesting a competitive pricing environment.
Contract supports a critical modernization effort for a vital agency (FEMA).

Sector Analysis

This contract falls within the Management and General Management Consulting Services sector (NAICS 541611). This sector is characterized by firms providing expertise in organizational efficiency, strategic planning, and operational improvement. The market size for government consulting services is substantial, with significant spending allocated annually across various agencies for program management, IT modernization, and administrative support. FEMA's Financial System Modernization (FSM) program is a key initiative within this sector, aiming to update legacy systems to improve financial operations, reporting, and compliance. Comparable spending benchmarks for large-scale program management support contracts often range from several million to tens of millions of dollars annually, depending on the complexity and duration.

Small Business Impact

This contract was not set aside for small businesses, and the data provided does not indicate any specific small business subcontracting requirements. Guidehouse Inc. is a large business. The absence of a small business set-aside or explicit subcontracting goals suggests that the primary focus was on securing the best value from the broader market. This means that opportunities for small businesses to participate in this specific contract are likely limited unless they are direct subcontractors to Guidehouse Inc. without a formal requirement.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Homeland Security (DHS) and the Federal Emergency Management Agency (FEMA). As a BPA Call, oversight may also involve the contracting office that established the underlying BPA. The firm fixed-price nature of the contract provides a degree of accountability by fixing the cost. Performance monitoring, regular reporting requirements, and adherence to the Statement of Work (SOW) will be key mechanisms for ensuring accountability. Transparency is facilitated through contract award data availability. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

FEMA Financial System Modernization (FSM)
Program Management Support Services
Administrative Management and General Management Consulting Services
Department of Homeland Security IT Modernization Efforts
Federal Blanket Purchase Agreements (BPAs)

Risk Flags

Contract Duration
Scope Definition
Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $14.9 million to GUIDEHOUSE INC.. THE PURPOSE OF THIS CALL ORDER IS TO PROVIDE THE FEMA FINANCIAL SYSTEM MODERNIZATION (FSM) PROGRAM MANAGEMENT OFFICE (PMO) WITH PROGRAM AND PROJECT MANAGEMENT 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 (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $14.9 million.

What is the period of performance?

Start: 2022-07-15. End: 2026-04-30.

What is the specific scope of 'program and project management support services' being provided to the FEMA FSM PMO?

The provided data indicates the general purpose is 'Program and Project Management Support Services' for the FEMA Financial System Modernization (FSM) Program Management Office (PMO). While the specific tasks are not detailed, this typically includes activities such as strategic planning, budget management, risk assessment and mitigation, schedule development and tracking, resource allocation, stakeholder communication, quality assurance, and ensuring alignment with overall program objectives. For an FSM program, this support would be critical in guiding the complex process of updating or replacing financial systems, ensuring compliance with federal financial regulations, and facilitating a smooth transition from legacy systems to new ones. The support aims to enhance the efficiency and effectiveness of the PMO in overseeing this modernization effort.

How does the $14.8 million contract value compare to similar large-scale IT program management support contracts within the federal government?

The $14.8 million contract value for approximately 3.75 years of program and project management support for FEMA's FSM PMO is a significant but not extraordinary figure for federal IT modernization initiatives. Large-scale IT programs often require substantial management and consulting resources. Contracts for similar services supporting major system overhauls or modernizations within agencies like the IRS, DoD, or HHS can range from tens to hundreds of millions of dollars over their lifecycles. Given that this is for a specific PMO function within a critical agency like FEMA, and awarded via a competitive BPA Call, the $14.8 million appears to be a reasonable allocation for specialized expertise needed to manage such a complex undertaking. It suggests a focused scope of support rather than end-to-end system development.

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

Key risks associated with this contract include potential scope creep, contractor performance issues, and over-reliance on a single vendor. Scope creep is a risk in any program management support contract, where the defined tasks may expand beyond the original intent, leading to cost overruns or schedule delays. This is mitigated by clear definition of services in the SOW, robust change control processes, and active oversight by the government PMO. Contractor performance issues are mitigated through performance monitoring, regular reviews, and the contract's firm-fixed-price nature, which incentivizes timely and quality delivery. Over-reliance is mitigated by the competitive nature of the BPA Call award, implying other qualified vendors exist, and by ensuring knowledge transfer and documentation practices are maintained by the contractor.

What is Guidehouse Inc.'s track record with similar federal contracts, particularly in program management and financial system modernization?

Guidehouse Inc. has a substantial track record in providing consulting services to the federal government, including program management, financial management, and IT modernization support across various agencies. They have experience working with agencies such as HHS, DoD, and DHS itself. Their expertise often involves navigating complex regulatory environments and implementing large-scale system changes. While specific details on their performance for FEMA's FSM PMO prior to this award are not provided here, their general profile suggests they possess the necessary qualifications and experience. Federal procurement data typically tracks past performance, which would have been a factor in the competitive award process for this BPA Call.

How does the spending on this contract compare to historical spending on FEMA's financial system modernization efforts?

The provided data focuses solely on this specific $14.8 million BPA Call award. To compare historical spending, one would need access to FEMA's budget allocations and contract history related to financial system modernization over previous fiscal years. It's possible this $14.8 million represents a significant portion of the annual budget for PMO support for the FSM program, or it could be one of several contracts contributing to the overall modernization effort. Without historical data on FEMA's FSM program expenditures, it's difficult to contextualize this award relative to past spending patterns. However, the multi-year duration suggests a sustained investment in modernizing these critical systems.

What is the expected impact of this contract on the efficiency and effectiveness of FEMA's financial operations?

This contract is expected to significantly enhance the efficiency and effectiveness of FEMA's financial operations by ensuring the successful modernization of its financial systems. Effective program and project management support is crucial for navigating the complexities of system upgrades, ensuring they are completed on time, within budget, and meet all functional and regulatory requirements. Improved financial systems can lead to more accurate financial reporting, better resource allocation during disaster response, streamlined payment processes, enhanced compliance with federal accounting standards, and greater overall transparency and accountability in financial management. Ultimately, this support contributes to FEMA's core mission by enabling more robust and reliable financial infrastructure.

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

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: $15,409,704

Exercised Options: $14,881,704

Current Obligation: $14,881,704

Actual Outlays: $7,873,362

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70FA4019A00000001

IDV Type: BPA

Timeline