HHS awards $5.1M administrative consulting BPA call to Guidehouse Inc. for policy and reporting services

Contract Overview

Contract Amount: $5,110,957 ($5.1M)

Contractor: Guidehouse Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2021-08-16

End Date: 2026-08-15

Contract Duration: 1,825 days

Daily Burn Rate: $2.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: OFFICE OF FINANCE FINANCIAL ACCOUNTING, POLICY AND REPORTING SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20201

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $5.1 million to GUIDEHOUSE INC. for work described as: OFFICE OF FINANCE FINANCIAL ACCOUNTING, POLICY AND REPORTING SERVICES Key points: 1. Contract provides essential financial accounting, policy, and reporting support to the Office of Finance. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. A Time and Materials contract type may pose cost escalation risks if not closely managed. 4. The duration of 1825 days (5 years) indicates a long-term need for these services. 5. The North American Industry Classification System (NAICS) code 541611 points to management consulting services. 6. The contract is managed by the Office of the Assistant Secretary for Administration within HHS.

Value Assessment

Rating: good

The contract value of $5.1 million over five years averages to approximately $1.02 million annually. Benchmarking this against similar administrative management consulting contracts within HHS and other federal agencies requires detailed analysis of scope and deliverables. However, the award under full and open competition suggests that pricing was likely evaluated against market rates. The Time and Materials (T&M) pricing structure, while flexible, necessitates careful monitoring to ensure value for money and prevent cost overruns compared to fixed-price contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded using full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but the designation implies a robust competitive environment. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Taxpayers benefit from a competitive process as it typically drives down costs and ensures the government receives services at a fair market price. This approach minimizes the risk of overpayment and encourages efficiency from the awarded contractor.

Public Impact

The Office of Finance within HHS benefits directly from enhanced financial accounting, policy, and reporting capabilities. Improved financial management supports the overall operational efficiency and accountability of the Department of Health and Human Services. The services delivered are critical for maintaining accurate financial records and compliance with federal regulations. The contract's impact is primarily internal to HHS operations, supporting its administrative functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not diligently managed and monitored for scope creep.
Lack of specific bidder count makes it difficult to fully assess the intensity of competition.
The contract's long duration (5 years) could lead to vendor lock-in if not periodically re-evaluated for market competitiveness.

Positive Signals

Awarded under full and open competition, suggesting a fair and competitive process.
The contract supports critical financial functions within a major federal agency (HHS).
The contractor, Guidehouse Inc., is a known entity in government contracting, potentially bringing established expertise.

Sector Analysis

Administrative Management and General Management Consulting Services (NAICS 541611) represent a significant segment of the federal contracting market. This sector encompasses a wide range of advisory and assistance services aimed at improving organizational efficiency, financial management, and policy implementation. Federal spending in this category is often driven by the need for specialized expertise to manage complex government operations, comply with regulations, and implement new initiatives. Comparable spending benchmarks would typically involve analyzing the average contract values and durations for similar consulting services across various federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a result, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, Guidehouse Inc., is a large business, and its subcontracting opportunities would depend on its own business practices and the specific needs of the BPA call, rather than a mandated set-aside requirement.

Oversight & Accountability

Oversight for this contract would primarily reside within the Department of Health and Human Services, specifically the Office of the Assistant Secretary for Administration, which awarded the contract. The contracting officer and program managers are responsible for monitoring performance, ensuring compliance with contract terms, and managing the Time and Materials aspects to control costs. Transparency is facilitated through federal procurement databases like FPDS-NG, where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

HHS Financial Management Support Services
Federal Administrative Consulting Contracts
Office of Finance Operations Support
Management and Consulting Services for Federal Agencies

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Lack of specific bidder count limits assessment of competitive intensity.
Long contract duration may reduce future flexibility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $5.1 million to GUIDEHOUSE INC.. OFFICE OF FINANCE FINANCIAL ACCOUNTING, POLICY AND REPORTING 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 (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $5.1 million.

What is the period of performance?

Start: 2021-08-16. End: 2026-08-15.

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

Guidehouse Inc. has a substantial track record of performing federal contracts across various agencies, including significant work with the Department of Health and Human Services (HHS). Their expertise often spans financial management, IT modernization, program management, and consulting services. Reviewing their past performance on similar contracts within HHS would provide insight into their ability to deliver on complex financial accounting, policy, and reporting requirements. Data from federal procurement databases would detail their award history, contract values, and performance ratings, if available. A history of successful contract completion and positive performance reviews would indicate a lower risk for this current BPA call.

How does the $5.1 million contract value compare to similar administrative consulting services procured by HHS?

The $5.1 million contract value over five years, averaging approximately $1.02 million annually, needs to be benchmarked against similar administrative management and general management consulting services procured by HHS. This comparison should consider the scope of work, deliverables, and the specific office being supported. Without detailed comparative data on other HHS contracts for financial accounting, policy, and reporting, it's challenging to definitively state if this represents high or low value. However, the fact that it was awarded under full and open competition suggests that the pricing was deemed competitive within the market for such services. Further analysis would involve examining the average cost per hour or per deliverable for comparable services across the federal government.

What are the primary risks associated with a Time and Materials (T&M) contract of this duration?

The primary risks associated with a Time and Materials (T&M) contract, especially one spanning five years, revolve around cost control and scope creep. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual time and materials used. This structure can lead to cost overruns if the scope of work is not clearly defined or if the contractor's efficiency is not closely monitored. For this contract supporting financial accounting, policy, and reporting, risks include potential inefficiencies in service delivery, unexpected increases in labor hours required, or the contractor expanding the scope of work beyond the original intent without adequate justification or price adjustments. Robust oversight, detailed task orders, and regular performance reviews are crucial to mitigate these risks.

How effective are the current oversight mechanisms for this contract?

The effectiveness of oversight for this contract depends heavily on the diligence of the Department of Health and Human Services (HHS) contracting officers and program managers. As a Time and Materials (T&M) contract awarded under full and open competition, oversight should focus on monitoring labor hours, ensuring personnel are performing tasks within the defined scope, and verifying that the costs incurred are reasonable and allocable. The Office of the Assistant Secretary for Administration, which awarded the contract, is responsible for establishing these mechanisms. Transparency is generally provided through contract reporting systems. The effectiveness is ultimately measured by the contractor's ability to deliver the required financial accounting, policy, and reporting services within budget and to the satisfaction of HHS.

What is the historical spending pattern for administrative management consulting services at HHS?

Historical spending patterns for administrative management consulting services at HHS are typically substantial, reflecting the agency's vast operational scope and complex regulatory environment. HHS frequently procures services related to financial management, policy development, program evaluation, and operational efficiency. Analyzing past spending data for NAICS code 541611 and related codes within HHS would reveal trends in contract values, durations, and the types of services most commonly outsourced. This contract for Guidehouse Inc. appears to align with a consistent need for specialized financial and administrative support within the agency. Understanding these patterns helps contextualize the current award and assess its alignment with ongoing federal needs.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N/A

Offers Received: 1

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: $5,110,957

Exercised Options: $5,110,957

Current Obligation: $5,110,957

Actual Outlays: $4,794,393

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 75P00119A00030

IDV Type: BPA

Timeline