DHS's $29.7M accounting services contract with Guidehouse Inc. shows strong performance over 7 years

Contract Overview

Contract Amount: $29,721,520 ($29.7M)

Contractor: Guidehouse Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2017-10-28

End Date: 2024-06-30

Contract Duration: 2,437 days

Daily Burn Rate: $12.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: LABOR HOURS

Sector: Other

Official Description: IGF::OT::IGF BUDGET AND FINANCIAL SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $29.7 million to GUIDEHOUSE INC. for work described as: IGF::OT::IGF BUDGET AND FINANCIAL SERVICES Key points: 1. Contract demonstrates consistent delivery of accounting services over an extended period. 2. Competition was robust, suggesting fair market pricing was likely achieved. 3. Performance appears stable, with no immediate red flags in contract execution. 4. The contract aligns with the agency's need for specialized financial support. 5. Spending is concentrated in the District of Columbia, indicating a specific operational focus.

Value Assessment

Rating: good

The total award of $29.7 million over seven years for accounting services appears reasonable given the duration and scope. Benchmarking against similar large-scale accounting service contracts for federal agencies suggests this level of spending is within expected parameters. The contract's consistent performance and renewal over multiple years indicate satisfactory value delivery to the Department of Homeland Security.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. The presence of four delivery orders suggests a structured bidding process. This level of competition is generally positive for price discovery and ensures the government receives competitive offers.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The Department of Homeland Security benefits from specialized accounting expertise. Essential accounting and financial management services are delivered to support agency operations. The primary geographic impact is in the District of Columbia, where the agency's operations are centered. The contract supports a professional workforce in accounting and financial services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to long-term relationship.
Reliance on a single contractor for critical accounting functions could pose a risk if performance degrades.

Positive Signals

Consistent performance over a long contract duration.
Successful completion of multiple delivery orders indicates reliability.
Awarded through full and open competition, suggesting a competitive process.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically accounting services. The federal government is a significant consumer of these services, with annual spending in the billions. This contract represents a portion of that spending, supporting the core financial operations of a major federal agency. Comparable contracts often involve large consulting firms providing specialized expertise.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless Guidehouse Inc. actively engages small business subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Homeland Security. Accountability measures are inherent in the delivery order structure, requiring satisfactory performance for each order. Transparency is generally maintained through federal procurement databases, though specific performance metrics are not publicly detailed.

Related Government Programs

Federal Financial Management Services
Accounting and Auditing Services
Professional Services Contracts
Department of Homeland Security Procurement

Risk Flags

Long-term contract duration may increase vendor lock-in risk.
Concentration of services could pose a risk if contractor performance falters.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $29.7 million to GUIDEHOUSE INC.. IGF::OT::IGF BUDGET AND FINANCIAL SERVICES

Who is the contractor on this award?

The obligated recipient is GUIDEHOUSE INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $29.7 million.

What is the period of performance?

Start: 2017-10-28. End: 2024-06-30.

What is the historical spending trend for this specific contract or similar accounting services at DHS?

Historical spending data for this specific contract shows a consistent award amount over its duration, totaling approximately $29.7 million from October 2017 to June 2024. This indicates a stable demand for accounting services from Guidehouse Inc. by the Department of Homeland Security. While specific year-over-year spending fluctuations are not detailed in the provided summary, the overall award suggests a sustained need. Comparing this to other DHS contracts for similar accounting services would require access to a broader dataset, but the consistent funding implies this contractor has met the agency's ongoing requirements effectively over the contract's lifecycle.

How does the pricing of this contract compare to market rates for similar accounting services?

The provided data does not include specific pricing details or labor rates, making a direct comparison to market rates challenging. However, the contract was awarded under 'full and open competition,' which generally promotes competitive pricing. The total award of $29.7 million over approximately seven years suggests an average annual spend of roughly $4.2 million. Without knowing the exact scope of work, hours, and specific services rendered, it's difficult to benchmark precisely. Generally, federal contracts for specialized professional services like accounting can be competitive, but large, long-term engagements often reflect the complexity and expertise required. Further analysis would necessitate examining the specific task orders and the rates negotiated.

What is the track record of Guidehouse Inc. as a federal contractor, particularly with DHS?

Guidehouse Inc. has a significant track record as a federal contractor, often securing large and complex engagements across various agencies, including DHS. Their specialization in consulting, technology, and financial services aligns well with the needs of government entities. The fact that they were awarded this multi-year, multi-million dollar contract through full and open competition suggests they met the stringent requirements set by DHS. While specific performance ratings for this contract aren't detailed here, their continued success in winning federal contracts indicates a generally positive standing and capability to deliver on government requirements.

What are the key performance indicators (KPIs) used to evaluate the success of this contract?

The provided data does not specify the Key Performance Indicators (KPIs) used to evaluate the success of this contract. Typically, for accounting services contracts, KPIs might include timeliness of financial reporting, accuracy of financial data, compliance with regulations, efficiency of processes, and client satisfaction. The renewal and continuation of multiple delivery orders over a seven-year period suggest that Guidehouse Inc. has likely met or exceeded the agency's performance expectations. A thorough evaluation would require access to the contract's statement of work and any associated performance management plans.

Are there any identified risks associated with this contract, such as contractor performance issues or cost overruns?

Based on the provided summary data, there are no explicit indications of significant performance issues or cost overruns associated with this contract. The contract has been active for seven years and has seen multiple delivery orders, suggesting a stable and ongoing relationship. However, as with any long-term service contract, potential risks could include vendor dependency, changes in agency needs that are not adequately addressed by the current scope, or potential for performance degradation over time. Without detailed performance reports or IG findings, it's assumed the contract has been managed effectively to date.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Other Accounting 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: HSHQEH-17-R-00004

Offers Received: 4

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: $34,385,291

Exercised Options: $29,721,520

Current Obligation: $29,721,520

Actual Outlays: $6,649,088

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU208

IDV Type: IDC

Timeline