HHS Modifies $3.2M Consulting Contract, Descoping Non-Essential Services for HCBS and PACE Programs
Contract Overview
Contract Amount: $3,217,159 ($3.2M)
Contractor: Guidehouse Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2025-09-16
End Date: 2026-09-15
Contract Duration: 364 days
Daily Burn Rate: $8.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: Healthcare
Official Description: EOI::DEFEND THE SPEND (FEBRUARY 6, 2025)::EOI MODIFICATION TO DESCOPE NON-ESSENTIAL CONSULTING SERVICES RATE REVIEW OF THE HOME AND COMMUNITY-BASED SERVICES (HCBS) AND PROGRAM OF ALL-INCLUSIVE CARE FOR THE ELDERLY (PACE) PROGRAMS
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $3.2 million to GUIDEHOUSE INC. for work described as: EOI::DEFEND THE SPEND (FEBRUARY 6, 2025)::EOI MODIFICATION TO DESCOPE NON-ESSENTIAL CONSULTING SERVICES RATE REVIEW OF THE HOME AND COMMUNITY-BASED SERVICES (HCBS) AND PROGRAM OF ALL-INCLUSIVE CARE FOR THE ELDERLY (PACE) PROGRAMS Key points: 1. Contract modification aims to reduce spending by descoping non-essential consulting services. 2. Focus on HCBS and PACE programs suggests a strategic shift in resource allocation. 3. The modification indicates a review of consulting needs and potential cost savings. 4. The contract's Time and Materials (T&M) pricing structure warrants scrutiny for efficiency.
Value Assessment
Rating: fair
The contract's Time and Materials (T&M) pricing model can lead to cost overruns if not closely managed. Benchmarking against similar T&M contracts for administrative consulting services is crucial to ensure fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the modification to descoping services may impact the original price discovery and value realization.
Taxpayer Impact: By descoping non-essential services, taxpayers are likely to see reduced expenditure on consulting, potentially saving funds that can be reallocated to core program needs.
Public Impact
Potential savings for taxpayers through service descoping. Focus on essential services for vulnerable populations (elderly and community-based care). Increased scrutiny on consulting expenditures within federal health programs. Ensuring efficient use of funds for HCBS and PACE programs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- T&M pricing structure
- Potential for scope creep if descoping is not strictly enforced
- Reliance on external consultants for program analysis
Positive Signals
- Proactive modification to reduce costs
- Focus on essential program services
- Competitive award process
Sector Analysis
This contract falls under administrative management and general management consulting services. Spending in this sector can vary widely, but federal agencies often use consultants for program analysis, efficiency improvements, and strategic planning, with costs dependent on scope and duration.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if small business participation was considered or if opportunities were missed.
Oversight & Accountability
The modification to descoping services suggests active oversight of the contract's scope and necessity. Continued monitoring by CMS is essential to ensure the descoped services are indeed non-essential and that the remaining work provides value.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Time and Materials (T&M) pricing structure
- Potential for scope creep if descoping is not strictly enforced
- Reliance on external consultants for program analysis
- Lack of small business participation indicated
Tags
administrative-management-and-general-ma, department-of-health-and-human-services, va, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $3.2 million to GUIDEHOUSE INC.. EOI::DEFEND THE SPEND (FEBRUARY 6, 2025)::EOI MODIFICATION TO DESCOPE NON-ESSENTIAL CONSULTING SERVICES RATE REVIEW OF THE HOME AND COMMUNITY-BASED SERVICES (HCBS) AND PROGRAM OF ALL-INCLUSIVE CARE FOR THE ELDERLY (PACE) PROGRAMS
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 Medicare and Medicaid Services).
What is the total obligated amount?
The obligated amount is $3.2 million.
What is the period of performance?
Start: 2025-09-16. End: 2026-09-15.
What specific criteria were used to define 'non-essential' consulting services, and how will adherence to these criteria be monitored post-modification?
The criteria for defining 'non-essential' services would typically be based on alignment with core program objectives, direct impact on patient care, and necessity for regulatory compliance or operational continuity. Monitoring would likely involve regular progress reports from the contractor, performance reviews by the Contracting Officer's Representative (COR), and potentially independent government assessments to ensure the descoped services are not being performed and that the remaining work remains focused and valuable.
Given the T&M structure, what mechanisms are in place to prevent cost overruns on the remaining services, and how does the descoping impact the overall value proposition?
Mechanisms to prevent cost overruns on T&M contracts include strict labor hour tracking, defined ceilings for labor categories, and regular budget reviews. The descoping of services, if executed effectively, should enhance the value proposition by focusing funds on critical needs and eliminating expenditures on less impactful activities, thereby improving the return on investment for the government.
How will the effectiveness of the remaining consulting services be measured to ensure they contribute meaningfully to the HCBS and PACE programs?
Effectiveness will be measured through defined performance metrics and deliverables outlined in the modified contract. This could include the quality of analysis provided, the actionable insights generated, and the extent to which these insights lead to improvements in program efficiency, beneficiary outcomes, or cost-effectiveness. Regular performance evaluations against these metrics will be crucial.
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
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
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: $18,098,655
Exercised Options: $3,217,159
Current Obligation: $3,217,159
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS00F045DA
IDV Type: FSS
Timeline
Start Date: 2025-09-16
Current End Date: 2026-09-15
Potential End Date: 2030-09-15 00:00:00
Last Modified: 2026-01-27
More Contracts from Guidehouse Inc.
- THE Purpose of This Requirement for Grants Program Solutions and IT Support Services IS to Provide Efficient and Effective Grant, Financial, and Contract Management Services, IT Solutions, and Support to the Grantsolutions and ITS Partners — $403.1M (Department of the Interior)
- Icam to From 09/08/2022 - 09/07/2023 — $119.1M (Department of Justice)
- Appliance Standards Analysis and Regulatory Support Services — $114.6M (Department of Energy)
- Appliance Standards Analysis and Regulatory Support Service (asarss) — $103.5M (Department of Energy)
- Audit Infrastructure Support Services — $89.8M (Department of Defense)
Other Department of Health and Human Services Contracts
- Contact Center Operations (CCO) — $5.5B (Maximus Federal Services, Inc.)
- TAS::75 0849::TAS Oper of Govt R&D Goco Facilities — $4.8B (Leidos Biomedical Research Inc)
- THE Purpose of This Contract IS to Provide the Full Complement of Services Necessary to Care for UC in ORR Custody Including Facilities Set-Up, Maintenance, and Support Internal and Perimeter (IF Applicable) Security, Direct Care and Supervision Inc — $3.5B (Rapid Deployment Inc)
- Contact Center Operations — $2.6B (Maximus Federal Services, Inc.)
- Federal Contract — $2.4B (Leidos Biomedical Research Inc)
View all Department of Health and Human Services contracts →