DOE's $57M consulting contract with Guidehouse Inc. awarded under full and open competition
Contract Overview
Contract Amount: $56,912,399 ($56.9M)
Contractor: Guidehouse Inc.
Awarding Agency: Department of Energy
Start Date: 2010-08-17
End Date: 2014-02-17
Contract Duration: 1,280 days
Daily Burn Rate: $44.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: TAS::89 0321::TAS
Place of Performance
Location: VIENNA, FAIRFAX County, VIRGINIA, 22182, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Department of Energy obligated $56.9 million to GUIDEHOUSE INC. for work described as: TAS::89 0321::TAS Key points: 1. Contract awarded for administrative management and general management consulting services. 2. The contract duration was 1280 days, spanning from August 2010 to February 2014. 3. Awarded as a Time and Materials contract, indicating payment based on labor hours and material costs. 4. The contract was awarded to a single vendor, Guidehouse Inc. 5. The base contract value was approximately $44.46 million, with a potential ceiling. 6. The contract was managed by the Department of Energy. 7. The contract was not set aside for small businesses.
Value Assessment
Rating: fair
Benchmarking the value for money on this specific contract is challenging without detailed task orders and performance metrics. However, the base award of $44.46 million over approximately 3.5 years suggests a significant investment in consulting services. Comparing this to similar large-scale management consulting contracts within federal agencies would provide a clearer picture of its cost-effectiveness. The Time and Materials pricing structure can sometimes lead to cost overruns if not closely managed, which warrants scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The fact that it was competed openly is a positive indicator for price discovery and potentially achieving a competitive price. However, the data does not specify the number of bids received, which would provide further insight into the level of competition.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality.
Public Impact
The Department of Energy benefited from administrative management and general management consulting services. These services likely supported various operational and strategic initiatives within the agency. The geographic impact is primarily within the Department of Energy's operational areas, likely concentrated in Virginia where the contract was managed. The contract supported the workforce through the engagement of consulting professionals.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to Time and Materials pricing structure if not rigorously monitored.
- Lack of specific performance metrics makes it difficult to assess the full value delivered.
- Limited transparency on the specific tasks performed and their impact on agency objectives.
Positive Signals
- Awarded through full and open competition, indicating a fair bidding process.
- Contract managed by a major federal agency (Department of Energy).
- The vendor, Guidehouse Inc., is a known entity in the consulting space.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This is a broad category encompassing a wide range of services critical to government operations. Federal spending in this area is substantial, supporting agencies in areas like strategic planning, organizational efficiency, and program management. Comparable spending benchmarks would involve looking at other large consulting contracts awarded to major firms by various federal agencies for similar management support.
Small Business Impact
This contract was not set aside for small businesses, nor does the provided data indicate any specific subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal for this particular award. Future analysis could explore if Guidehouse Inc. has a history of subcontracting with small businesses on other federal contracts.
Oversight & Accountability
Oversight for this contract would have been the responsibility of the Department of Energy's contracting officers and program managers. Accountability measures would be tied to the terms and conditions of the Time and Materials contract, including adherence to labor hour reporting and cost ceilings. Transparency is generally facilitated through contract award databases, but detailed performance reports and task order specifics may not be publicly available.
Related Government Programs
- Management and Consulting Services
- Professional Services Contracts
- Department of Energy Contracts
- Administrative Support Services
Risk Flags
- Potential for cost overruns due to T&M contract type.
- Scope creep risk without strong oversight.
- Limited public data on specific deliverables and performance outcomes.
Tags
consulting, administrative-management, general-management, department-of-energy, time-and-materials, full-and-open-competition, large-contract, professional-services, virginia, federal-agency
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $56.9 million to GUIDEHOUSE INC.. TAS::89 0321::TAS
Who is the contractor on this award?
The obligated recipient is GUIDEHOUSE INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $56.9 million.
What is the period of performance?
Start: 2010-08-17. End: 2014-02-17.
What specific types of administrative and management consulting services were provided under this contract?
The contract, NAICS code 541611, covers Administrative Management and General Management Consulting Services. While the specific task orders are not detailed in the provided data, these services typically encompass areas such as strategic planning, organizational analysis, process improvement, program management support, financial management consulting, and human capital consulting. For the Department of Energy, this could have involved supporting the development and implementation of energy policies, managing complex research and development programs, improving operational efficiencies, or advising on regulatory compliance. The Time and Materials (T&M) contract type suggests that the services were likely project-based or required ongoing support where the scope was not precisely defined at the outset, allowing for flexibility in resource allocation.
How does the $44.46 million base award compare to other similar federal consulting contracts?
The base award of $44.46 million for administrative and management consulting services over approximately 3.5 years is a substantial figure, indicative of a significant engagement. To benchmark this effectively, one would need to compare it against other large-scale consulting contracts awarded by federal agencies of similar size and complexity to major consulting firms. For instance, contracts supporting strategic initiatives, large program management, or organizational transformation within agencies like the Department of Defense, HHS, or GSA could serve as comparators. Without access to a detailed database of comparable contracts, including their scope, duration, and specific deliverables, a precise comparison is difficult. However, this award suggests Guidehouse Inc. was selected for a high-value, broad-scope consulting engagement.
What were the primary risks associated with this Time and Materials contract?
Time and Materials (T&M) contracts, while offering flexibility, carry inherent risks, primarily related to cost control. The main risk is the potential for cost overruns if the labor hours and material costs are not meticulously tracked and managed. Without a fixed price, the total cost can escalate beyond initial expectations if the project scope expands or if inefficiencies arise in the contractor's performance. For the Department of Energy, this meant a need for robust oversight to ensure that the hours billed were reasonable and directly related to the contract's objectives. Another risk is the potential for scope creep, where the project's objectives subtly expand without formal modification, leading to increased costs. Effective contract administration and clear communication channels were crucial to mitigate these risks.
What was the track record of Guidehouse Inc. prior to or during this contract?
Guidehouse Inc. (formerly Navigant Consulting) has a significant history of providing consulting services to both government and commercial clients. Prior to and during this Department of Energy contract (2010-2014), the firm was known for its expertise in areas such as energy, healthcare, and financial services, as well as public sector consulting. Their track record generally includes managing complex projects and advising on strategic and operational challenges. For this specific contract, their ability to secure a large, full-and-open competed award suggests they met the government's requirements for experience, capability, and past performance. A deeper dive into their performance reviews and any past performance issues on federal contracts would provide a more complete picture.
How did the competition level impact the pricing and value for taxpayers?
The contract was awarded under 'full and open competition,' which theoretically maximizes the number of potential bidders and fosters a competitive environment. This typically leads to more competitive pricing as vendors strive to offer the best value to win the contract. For taxpayers, this means a higher likelihood that the services were procured at a fair and reasonable price, reflecting market rates. However, the ultimate value for taxpayers also depends on the quality of services delivered and the effectiveness of contract oversight. While competition is a strong indicator of potential value, it is not a guarantee. The Time and Materials pricing structure, even under competition, requires diligent oversight to ensure costs remain controlled and aligned with the intended outcomes.
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) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 615 N WABASH AVE, CHICAGO, IL, 60611
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $62,488,706
Exercised Options: $62,488,706
Current Obligation: $56,912,399
Subaward Activity
Number of Subawards: 62
Total Subaward Amount: $9,084,356
Parent Contract
Parent Award PIID: GS10F0200K
IDV Type: FSS
Timeline
Start Date: 2010-08-17
Current End Date: 2014-02-17
Potential End Date: 2014-02-17 00:00:00
Last Modified: 2015-04-29
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 Energy Contracts
- Federal Contract — $48.1B (Lockheed Martin Corp)
- ,Ct::igf Contract Award De-Na0003525 to the National Technology&engineering Solutions of Sandia, LLC (ntess) for the Management and Operation of the Department of Energy, National Nuclear Security Administration's Sandia National Laboratories (SNL) — $41.7B (National Technology & Engineering Solutions of Sandia, LLC)
- Management and Operation of the OAK Ridge National Laboratory — $40.8B (Ut-Battelle LLC)
- TAS::89 0240::TAS This Performance-Based Management Contract (pbmc) IS for the Management and Operation of the Lawrence Livermore National Laboratory (llnl). the Contractor Shall, in Accordance With the Provisions of This Contract, Accomplish the Missions and Programs Assigned by the U.S. Department of Energy (DOE) and Manage and Operate the Laboratory. the Laboratory IS ONE of Does Office of Defense Program Multi-Program Laboratories. the Laboratory IS a Federally Funded Research and Development Institution (established in Accordance With the Federal Acquisition Regulation (FAR) Part 35 and Operated Under This Management and Operating (M&O) Contract, AS Defined in FAR 17.6 and Dear 917.6 — $40.8B (Lawrence Livermore National Security, LLC)
- M&O of Lanl BR of U of CA — $35.3B (Regents of the University of California, the)