HHS awards $13.2M for CDC process improvement, with Guidehouse Inc. leading the effort

Contract Overview

Contract Amount: $13,189,845 ($13.2M)

Contractor: Guidehouse Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2022-09-02

End Date: 2026-09-04

Contract Duration: 1,463 days

Daily Burn Rate: $9.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: Other

Official Description: CSELS OD PROCESS IMPROVEMENT AND SUPPORT SERVICES

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $13.2 million to GUIDEHOUSE INC. for work described as: CSELS OD PROCESS IMPROVEMENT AND SUPPORT SERVICES Key points: 1. The contract focuses on enhancing operational efficiency within the CDC. 2. Competition was robust, indicating potential for competitive pricing. 3. Performance is tied to labor hours, requiring careful monitoring of productivity. 4. The duration suggests a long-term need for these specialized consulting services. 5. This award falls within the broader category of management and human resources consulting. 6. The value appears moderate for a multi-year federal consulting engagement.

Value Assessment

Rating: good

The contract value of $13.2 million over approximately four years is within a reasonable range for large-scale process improvement consulting services. Benchmarking against similar contracts for federal agencies of the CDC's size and complexity suggests this award is competitive. The pricing structure, based on labor hours, necessitates diligent oversight to ensure value for money and prevent cost overruns. Without specific details on the labor categories and rates, a precise per-unit cost comparison is difficult, but the overall award value appears aligned with market expectations for such specialized support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. The presence of two bidders, as indicated by the 'no' field, implies a degree of competition, though a higher number of bidders would typically lead to more aggressive pricing. The full and open nature of the competition is a positive indicator for price discovery and ensures that the government has access to a wide range of potential solutions and expertise.

Taxpayer Impact: Taxpayers benefit from the assurance that the contract was awarded through a competitive process, which generally leads to more favorable pricing and better service quality compared to non-competitive awards.

Public Impact

The primary beneficiary is the Centers for Disease Control and Prevention (CDC), which will receive enhanced operational support. Services delivered include process improvement and support, aiming to increase efficiency and effectiveness. The geographic impact is primarily within the CDC's operational centers, likely concentrated in Virginia where the awardee is based. Workforce implications include the potential for internal CDC staff to focus on core public health missions while consultants handle process optimization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if project objectives are not clearly defined and managed.
Reliance on labor hours necessitates robust performance metrics to ensure productivity.
Ensuring knowledge transfer to internal CDC staff to sustain improvements post-contract.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
The contractor, Guidehouse Inc., has experience in federal consulting and IT services.
The contract duration allows for sustained focus on process improvement initiatives.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically human resources consulting services (NAICS 541612). This sector is characterized by a high degree of specialization and expertise. Federal spending in this area supports various agencies in optimizing their operations, human capital management, and strategic planning. Comparable spending benchmarks for large federal consulting contracts of this nature often range from several million to tens of millions of dollars annually, depending on the scope and duration.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business. The impact on the small business ecosystem is neutral to potentially negative if significant subcontracting opportunities were not mandated, as larger contracts often go to prime contractors who may not prioritize small business partners unless required.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program managers within the CDC. Accountability measures are typically embedded in the contract's performance work statement, with deliverables and milestones subject to review. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

CDC Management and Program Support Services
HHS IT and Management Consulting Contracts
Federal Human Capital Consulting Services
Government Process Improvement Initiatives

Risk Flags

Potential for cost overruns due to labor-hour pricing model.
Risk of insufficient knowledge transfer to internal staff.
Dependency on contractor expertise may limit internal capacity building.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $13.2 million to GUIDEHOUSE INC.. CSELS OD PROCESS IMPROVEMENT AND SUPPORT SERVICES

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 $13.2 million.

What is the period of performance?

Start: 2022-09-02. End: 2026-09-04.

What is Guidehouse Inc.'s track record with the Department of Health and Human Services and the CDC specifically?

Guidehouse Inc. has a significant track record of performing work for the Department of Health and Human Services (HHS) and its various agencies, including the Centers for Disease Control and Prevention (CDC). Their engagements often span areas such as IT modernization, financial management, program support, and strategic consulting. For the CDC, Guidehouse has previously been awarded contracts related to data management, public health informatics, and operational efficiency. This history suggests familiarity with the agency's mission, challenges, and operating environment, which can be advantageous for contract performance. However, a detailed review of past performance evaluations and any past issues would be necessary for a comprehensive assessment.

How does the $13.2 million award compare to similar process improvement contracts at the CDC or other large federal health agencies?

The $13.2 million award for process improvement and support services over approximately four years is a moderate-sized federal contract. For large agencies like the CDC, which manage complex public health programs, multi-million dollar consulting contracts are common. Similar contracts for strategic planning, organizational redesign, and IT process optimization at agencies like the National Institutes of Health (NIH) or the Food and Drug Administration (FDA) can range from $5 million to over $50 million, depending on the scope, duration, and criticality of the services. This award appears to be within the typical range for specialized, long-term consulting support aimed at enhancing operational effectiveness within a major federal health entity.

What are the primary risks associated with a labor-hour contract for process improvement?

The primary risk associated with a labor-hour contract for process improvement is the potential for cost overruns if not managed diligently. Unlike fixed-price contracts, labor-hour contracts pay for the actual time and materials expended. This can lead to increased costs if the project takes longer than anticipated, if inefficient labor practices are employed, or if the scope expands without proper change control. For the government, ensuring productivity and value for money requires robust oversight, clear performance metrics, and regular progress reviews to monitor the efficient use of contractor labor hours. There's also a risk of the contractor prioritizing billable hours over efficient problem-solving if incentives are not aligned.

How effective are process improvement initiatives typically in federal agencies, and what factors contribute to their success or failure?

The effectiveness of process improvement initiatives in federal agencies can vary significantly. Success is often driven by strong executive sponsorship, clear articulation of goals and expected outcomes, and active engagement from agency personnel. Factors contributing to success include a data-driven approach to identifying bottlenecks, a culture that embraces change, and effective project management. Conversely, initiatives can fail due to lack of leadership buy-in, resistance to change from staff, poorly defined scope, inadequate resources, or a failure to sustain improvements after the consulting engagement ends. When well-executed, these initiatives can lead to significant gains in efficiency, cost savings, and improved service delivery.

What has been the historical spending trend for management and human resources consulting services at the CDC over the past five years?

Analyzing historical spending trends for management and human resources consulting services at the CDC requires access to detailed federal procurement data. Generally, federal agencies like the CDC utilize consulting services to address evolving challenges, implement new technologies, and improve operational efficiency. Spending in this category can fluctuate based on specific agency priorities, budget allocations, and the initiation of new strategic projects. It's common to see periods of increased spending when major organizational changes or system modernizations are undertaken, and potentially lower spending during budget constraints or when internal capabilities are strengthened. A detailed analysis would involve querying databases like FPDS or USAspending for NAICS codes 541611 (Administrative Management and General Management Consulting Services) and 541612 (Human Resources Consulting Services) specifically for the CDC.

What are the implications of this contract being awarded as a 'Delivery Order' under a larger contract vehicle?

The data indicates this award is a 'Delivery Order' (aw). This means that the $13.2 million contract is likely a task order issued against a pre-existing indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar type of multiple-award contract vehicle. Delivery orders allow agencies to procure specific services or supplies under pre-negotiated terms and conditions established at the IDIQ level. The implications include that the competition for this specific delivery order might have been limited to awardees of the parent IDIQ contract, rather than being a full and open competition from scratch. However, the provided data states 'FULL AND OPEN COMPETITION' (ct), which suggests that the parent contract vehicle itself was awarded through full and open competition, and this delivery order was then competed among eligible awardees, or the parent contract allows for individual delivery orders to be competed fully and openly.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Human Resources 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-75064

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

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: $16,143,501

Exercised Options: $13,189,845

Current Obligation: $13,189,845

Actual Outlays: $10,425,606

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $155,380

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS02Q16DCR0064

IDV Type: IDC

Timeline