HHS awards $2.68M for management consulting, with 5 bidders competing for this delivery order

Contract Overview

Contract Amount: $2,681,427 ($2.7M)

Contractor: Guidehouse Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2022-05-02

End Date: 2026-05-01

Contract Duration: 1,460 days

Daily Burn Rate: $1.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WCF FINANCIAL MANAGEMENT & OP SUPPORT

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.7 million to GUIDEHOUSE INC. for work described as: WCF FINANCIAL MANAGEMENT & OP SUPPORT Key points: 1. The contract value represents a small portion of overall federal spending on management consulting. 2. Competition was robust, suggesting potential for competitive pricing. 3. The fixed-price contract type shifts performance risk to the contractor. 4. The contract duration is substantial, indicating a long-term need for these services. 5. The services fall under administrative management and general management consulting. 6. The agency is the CDC, a key public health entity.

Value Assessment

Rating: good

The contract value of $2.68 million for management consulting services appears reasonable given the scope and duration. Benchmarking against similar contracts for administrative management and general management consulting services by agencies like HHS would provide a more precise value assessment. The firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government. However, without specific deliverables and performance metrics, a definitive value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with five bidders vying for the work. The presence of multiple bidders indicates a healthy level of market interest and suggests that the government had a good selection of qualified contractors. This competitive environment is expected to drive more favorable pricing and service offerings compared to sole-source or limited competition awards.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely resulted in a more competitive price and a wider range of qualified service providers, ensuring better value for the government's investment.

Public Impact

The Centers for Disease Control and Prevention (CDC) will benefit from enhanced administrative and management support. Services delivered are expected to improve operational efficiency and management practices within the agency. The geographic impact is primarily within the agency's operational locations, likely in Virginia. Workforce implications may include support for existing CDC staff and potential integration with contractor personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly due to the long duration.
Ensuring contractor expertise remains current with evolving management best practices.
Measuring the tangible impact of consulting services on agency performance.

Positive Signals

Firm fixed-price contract aligns incentives for contractor efficiency.
Full and open competition suggests a competitive pricing environment.
The contractor has a track record, implying some level of established capability.

Sector Analysis

The federal sector for administrative management and general management consulting services (NAICS 541611) is a significant market. Agencies frequently procure these services to improve efficiency, implement new strategies, and manage complex operations. This contract fits within the broader trend of federal agencies seeking external expertise to augment internal capabilities, particularly in specialized areas like public health management support.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside. Therefore, the direct impact on small businesses through this specific award is likely minimal unless they are part of a subcontracting team. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program managers within the CDC. Performance monitoring, invoice review, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Management Consulting Services
HHS Administrative Support Contracts
CDC Operational Support
Government Management and Technical Consulting Services

Risk Flags

Contract Duration
Performance Measurement
Scope Creep Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.7 million to GUIDEHOUSE INC.. WCF FINANCIAL MANAGEMENT & OP SUPPORT

Who is the contractor on this award?

The obligated recipient is GUIDEHOUSE INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $2.7 million.

What is the period of performance?

Start: 2022-05-02. End: 2026-05-01.

What is Guidehouse Inc.'s track record with federal contracts, particularly with HHS and the CDC?

Guidehouse Inc. has a substantial history of performing federal contracts across various agencies, including significant work with the Department of Health and Human Services (HHS). Their portfolio often includes management consulting, IT services, and program support. For the CDC specifically, Guidehouse has likely provided similar administrative and management support services. A detailed review of their contract history in FPDS would reveal the number of awards, their value, performance ratings, and the specific types of services rendered. This historical data is crucial for assessing their past performance and suitability for this current contract, indicating their experience in navigating federal procurement processes and delivering on government requirements.

How does the $2.68 million contract value compare to similar management consulting contracts awarded by the CDC or other HHS agencies?

The $2.68 million contract value for administrative management and general management consulting services needs to be benchmarked against comparable awards to assess its value. Similar contracts for management consulting within HHS or other large federal health agencies can range significantly based on scope, duration, and specific expertise required. For instance, contracts focused on strategic planning, organizational restructuring, or large-scale program management could exceed this amount, while smaller, more focused engagements might be less. The fact that this is a delivery order under a larger vehicle suggests it's part of a pre-competed framework, and its value should be considered relative to the ceiling of that vehicle and the specific tasks outlined. A thorough comparison would involve analyzing contract databases for similar NAICS codes (541611) awarded by comparable agencies over the past few years.

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

Key risks for this contract include potential scope creep, contractor performance issues, and ensuring the consulting services translate into tangible improvements for the CDC. Scope creep is a risk given the contract's duration (nearly 4 years), which could lead to cost overruns if not managed diligently through clear task orders and change control processes. Contractor performance risk is mitigated by the firm fixed-price (FFP) contract type, which places the financial burden of cost overruns on Guidehouse Inc. However, FFP does not guarantee quality. Mitigation strategies likely involve robust performance monitoring by the CDC, regular progress reviews, and clearly defined deliverables and acceptance criteria. Ensuring the consulting recommendations are actionable and lead to measurable improvements requires strong program management and stakeholder engagement from the CDC side.

What is the expected impact of these management consulting services on the CDC's operational effectiveness?

The expected impact of these management consulting services on the CDC's operational effectiveness is to enhance administrative processes, improve management practices, and potentially streamline operations. As a provider of Administrative Management and General Management Consulting Services (NAICS 541611), Guidehouse Inc. is likely tasked with analyzing existing workflows, identifying inefficiencies, and recommending solutions. This could involve areas such as organizational structure, resource allocation, policy development, or strategic planning support. The ultimate goal is to enable the CDC to better achieve its public health mission by operating more efficiently and effectively. The success of this impact hinges on the quality of the consulting advice, the CDC's willingness and ability to implement the recommendations, and the establishment of clear metrics to measure improvements.

How has federal spending on management and administrative consulting services evolved over the past five years, and where does this contract fit?

Federal spending on management and administrative consulting services has generally seen a steady increase over the past five years, driven by agencies' needs to modernize operations, implement new technologies, manage complex programs, and respond to evolving policy landscapes. Agencies like HHS consistently represent a significant portion of this spending due to the scale and complexity of their missions. This $2.68 million contract for the CDC fits within this broader trend, representing a specific investment by a major health agency to procure external expertise. While this individual contract is modest in the grand scheme of federal consulting expenditures, it reflects the ongoing reliance of federal entities on specialized external support to achieve strategic objectives and maintain operational efficiency in critical areas like public health.

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: 75D301-22-Q-74387

Offers Received: 5

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: $3,411,460

Exercised Options: $2,681,427

Current Obligation: $2,681,427

Actual Outlays: $2,307,374

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F045DA

IDV Type: FSS

Timeline