DHS awards $8.7M accounting services contract to Guidehouse Inc. for USCIS financial support

Contract Overview

Contract Amount: $8,732,543 ($8.7M)

Contractor: Guidehouse Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-08-22

End Date: 2026-08-21

Contract Duration: 729 days

Daily Burn Rate: $12.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: USCIS OFFICE OF THE CHIEF FINANCIAL OFFICER INTEGRATED FINANCIAL SUPPORT SERVICES

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $8.7 million to GUIDEHOUSE INC. for work described as: USCIS OFFICE OF THE CHIEF FINANCIAL OFFICER INTEGRATED FINANCIAL SUPPORT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 729 days (2 years) provides a stable period for service delivery. 3. The Time and Materials pricing structure may lead to cost variability based on actual effort. 4. The award is for 'Other Accounting Services,' a broad category indicating diverse financial support needs. 5. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or a similar framework. 6. The contractor, Guidehouse Inc., has a significant presence in government contracting, suggesting experience with federal agencies.

Value Assessment

Rating: fair

The contract value of $8.7 million over two years averages to $4.35 million annually. Benchmarking this against similar 'Other Accounting Services' contracts is challenging without more specific service details. However, the pricing structure is Time and Materials, which can be less predictable than fixed-price contracts. Without detailed labor rates and estimated hours, a precise value-for-money assessment is difficult, but the competitive award process may have helped secure reasonable rates.

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 data shows 4 bids were received, suggesting a moderate level of competition for this specific award. A higher number of bidders generally correlates with better price discovery and potentially lower costs for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to vie for the contract, driving down prices and improving service quality through competitive pressure.

Public Impact

The primary beneficiary is the U.S. Citizenship and Immigration Services (USCIS) within the Department of Homeland Security. The contract will provide essential accounting and financial support services to USCIS. These services are crucial for the efficient operation and financial management of USCIS's mission. The impact is primarily internal to USCIS operations, supporting its administrative and programmatic functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost overruns if not closely monitored and managed.
The broad nature of 'Other Accounting Services' could lead to scope creep if not clearly defined.
Reliance on a single delivery order under a potentially larger IDIQ could concentrate risk if the underlying IDIQ has issues.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
The contractor, Guidehouse Inc., is a well-established firm with experience in government services.
The contract duration provides stability for USCIS's financial operations.

Sector Analysis

The accounting services sector within the federal government is a critical support function across all agencies. This contract falls under the 'Other Accounting Services' NAICS code (541219), which encompasses a wide range of financial advisory, bookkeeping, and accounting services not elsewhere classified. Federal spending in this area is consistent, supporting agency operations, compliance, and financial reporting. Comparable spending benchmarks would depend heavily on the specific services rendered, but the $8.7 million over two years suggests a significant engagement.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the primary awardee is Guidehouse Inc., a large firm, there is no explicit information on subcontracting plans for small businesses. The absence of set-aside requirements means that opportunities for small businesses would likely depend on Guidehouse's subcontracting strategy, which is not detailed here.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Citizenship and Immigration Services (USCIS) contracting officers and program managers within the Department of Homeland Security. The contract's performance will be monitored against the terms and conditions outlined in the delivery order. Transparency is facilitated by the public nature of contract awards, but detailed performance metrics and oversight reports are typically internal unless flagged by an Inspector General or specific reporting requirements.

Related Government Programs

USCIS Financial Management Services
DHS Office of the Chief Financial Officer
Federal Accounting Standards Advisory Board (FASAB) Guidance
Government Accountability Office (GAO) Audits

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Scope definition clarity for 'Other Accounting Services' is critical.
Dependence on contractor efficiency and effective government oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $8.7 million to GUIDEHOUSE INC.. USCIS OFFICE OF THE CHIEF FINANCIAL OFFICER INTEGRATED FINANCIAL 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. Citizenship and Immigration Services).

What is the total obligated amount?

The obligated amount is $8.7 million.

What is the period of performance?

Start: 2024-08-22. End: 2026-08-21.

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

Guidehouse Inc. is a prominent government contractor with a substantial portfolio of federal awards across various agencies, including the Department of Homeland Security (DHS). They frequently secure contracts related to financial management, consulting, and IT services. While specific details for this USCIS contract are nascent, Guidehouse's history suggests they possess the experience and capacity to handle complex financial support services. Their past performance on similar contracts would be a key factor in their selection, and agencies often review this history during the procurement process. Further analysis would involve examining their performance ratings on previous DHS/USCIS contracts, if publicly available.

How does the $8.7 million value compare to similar 'Other Accounting Services' contracts awarded by USCIS or DHS?

Assessing the $8.7 million value requires context on the specific services provided under 'Other Accounting Services.' This category is broad and can include anything from basic bookkeeping to complex financial analysis and advisory. If this contract involves comprehensive financial system support or extensive audit preparation for USCIS, the value might be considered reasonable for a two-year duration. However, if it's for more routine accounting tasks, it could be on the higher end. Benchmarking against similar contracts is difficult without knowing the precise scope of work, labor categories, and estimated hours. Generally, larger agencies like DHS/USCIS often award substantial contracts due to their complex operational needs and budget sizes.

What are the primary risks associated with a Time and Materials (T&M) contract for accounting services?

The primary risk with a Time and Materials (T&M) contract for accounting services is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials. If the scope of work is not well-defined, or if the contractor's efficiency is lower than anticipated, the total cost can escalate beyond initial estimates. For accounting services, this could mean unexpected increases in hours spent on tasks, or higher-than-expected rates for specialized personnel. Effective oversight, clear task definitions, and robust monitoring of labor hours are crucial to mitigate these risks and ensure the government receives good value.

How effective is 'full and open competition' in ensuring value for money for this type of service?

Full and open competition is generally considered the most effective method for ensuring value for money, as it allows the widest possible pool of qualified contractors to bid. This competitive pressure typically drives down prices and encourages innovation and efficiency. For accounting services, having multiple firms compete allows USCIS to compare proposals not only on price but also on technical approach, past performance, and understanding of government financial requirements. The fact that four bids were received suggests a reasonable level of competition, which should have contributed to a more favorable outcome for the government compared to a sole-source or limited competition award. However, the ultimate value depends on the quality of the proposals received and the effectiveness of the evaluation process.

What are the implications of this contract being a 'delivery order'?

This contract being a 'delivery order' implies it was issued under a broader Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar multiple-award framework. This means that USCIS likely has access to a pre-competed list of vendors and can issue multiple delivery orders for specific needs over the IDIQ's period of performance. The advantage is faster procurement for specific tasks. The implications are that the terms and conditions, including pricing structures and overall contract ceilings, were likely established during the initial competition for the IDIQ. This specific delivery order represents a task assignment within that larger framework. The $8.7 million is the ceiling or estimated value for this particular order, not necessarily the total value of the underlying IDIQ.

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: 70SBUR24R00000005

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Peraton Technology Services Inc.

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: $24,137,173

Exercised Options: $8,732,543

Current Obligation: $8,732,543

Actual Outlays: $3,892,165

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