DoD's $12.2M accounting services contract awarded to Guidehouse Inc. shows strong competition

Contract Overview

Contract Amount: $12,238,420 ($12.2M)

Contractor: Guidehouse Inc.

Awarding Agency: Department of Defense

Start Date: 2022-10-01

End Date: 2026-09-30

Contract Duration: 1,460 days

Daily Burn Rate: $8.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: Other

Official Description: CFSS

Place of Performance

Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $12.2 million to GUIDEHOUSE INC. for work described as: CFSS Key points: 1. The contract leverages a competitive full-and-open process, suggesting a healthy market for accounting services. 2. Pricing appears reasonable given the scope and duration, though specific benchmarks are limited. 3. Performance risk seems moderate, with a clear statement of work and defined period of performance. 4. This contract supports critical financial management functions within the Department of Defense. 5. The award falls within the 'Other Accounting Services' category, indicating specialized financial support.

Value Assessment

Rating: good

The contract's value of $12.2 million over four years for accounting services appears to be within a reasonable range for specialized support. Benchmarking against similar large-scale federal accounting contracts is challenging without more granular data on the specific services provided. However, the duration and scope suggest a significant engagement. The pricing structure, based on labor hours, allows for flexibility but requires diligent oversight to ensure efficiency and prevent cost overruns. Compared to ad-hoc consulting engagements, this contract likely offers better value through a dedicated provider.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 3 bidders suggests a competitive environment for these specialized accounting services. A competitive landscape generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award. The agency's decision to use full and open competition is a positive indicator of seeking the best value.

Taxpayer Impact: Taxpayers benefit from a competitive process that drives down costs and ensures the government receives high-quality services at a fair price. The multiple bids indicate that the government is not locked into a single provider, fostering accountability and potentially leading to cost savings.

Public Impact

The Department of Defense benefits from enhanced financial management and accounting services, improving operational efficiency. Military personnel and civilian employees may experience more streamlined financial processes. The contract supports accounting professionals within Guidehouse Inc., contributing to employment in the professional services sector. The geographic impact is primarily within Illinois, where the contract is managed, but the services support national defense operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the specific accounting needs evolve beyond the initial definition.
Reliance on labor hours can lead to cost increases if productivity is not closely monitored.
Ensuring consistent quality of service across the contract duration requires robust performance management.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Clear period of performance (4 years) provides stability for service delivery.
The contract is for accounting services, a critical function for government operations.

Sector Analysis

The federal government's spending on professional services, including accounting and financial management, is substantial. This contract falls within the broader professional, scientific, and technical services sector. The North American Industry Classification System (NAICS) code 541219 ('Other Accounting Services') covers a range of specialized financial support. Comparable spending benchmarks are difficult to establish without knowing the precise nature of the accounting tasks, but federal agencies frequently contract for such services to supplement internal capabilities or address specific needs.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to a large prime contractor suggests that the scope of work is likely complex and requires significant resources. This may limit direct opportunities for small businesses to participate in this specific contract, although they may be involved in the broader accounting ecosystem supporting the prime.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Transportation Command (USTRANSCOM) contracting office and the relevant program managers within the Department of Defense. Performance will be monitored through regular reporting, milestone reviews, and adherence to the contract's terms and conditions. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Financial Management
Government Accounting Services
Professional Services Contracts
USTRANSCOM Support Services

Risk Flags

Potential for cost overruns due to labor-hour pricing model.
Need for robust oversight to ensure service quality and efficiency.
Dependence on a single prime contractor for critical accounting functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.2 million to GUIDEHOUSE INC.. CFSS

Who is the contractor on this award?

The obligated recipient is GUIDEHOUSE INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (USTRANSCOM).

What is the total obligated amount?

The obligated amount is $12.2 million.

What is the period of performance?

Start: 2022-10-01. End: 2026-09-30.

What is the specific nature of the 'Other Accounting Services' provided under this contract?

The provided data indicates the NAICS code is 541219, 'Other Accounting Services.' This category typically encompasses services such as forensic accounting, accounting system implementation and support, financial statement preparation, internal control assessments, and specialized financial analysis that fall outside the scope of standard bookkeeping or tax preparation. For this specific Department of Defense contract, the services likely involve supporting complex financial operations, auditing functions, or financial system modernization efforts critical to military readiness and resource management. Without access to the detailed Statement of Work (SOW), the precise deliverables remain unspecified, but the context suggests high-level financial expertise is required.

How does the $12.2 million contract value compare to similar accounting service contracts awarded by the DoD?

Comparing the $12.2 million value requires context regarding the contract's duration and specific services. This contract spans approximately four years (October 1, 2022, to September 30, 2026), making the annual value around $3 million. The DoD frequently awards large contracts for professional services, including accounting and financial consulting. Contracts of this magnitude are not uncommon for supporting major defense programs or enterprise-wide financial systems. However, without knowing the exact scope (e.g., system implementation vs. ongoing audit support), a direct comparison to other contracts is difficult. Generally, contracts for specialized, high-level accounting expertise tend to be substantial, reflecting the complexity and criticality of the services.

What are the key performance indicators (KPIs) used to evaluate Guidehouse Inc.'s performance on this contract?

Specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided summary data. However, typical KPIs for accounting services contracts with the federal government often include metrics related to timeliness of deliverables, accuracy of financial reporting, adherence to regulatory compliance (e.g., GAO standards, DoD financial regulations), responsiveness to inquiries, and overall client satisfaction. For a contract awarded on a labor-hours basis, productivity and efficiency metrics would also be crucial. The U.S. Transportation Command (USTRANSCOM) would establish these KPIs in the contract's Performance Work Statement (PWS) and monitor them through regular performance reviews and contractor reporting.

What is the historical spending pattern for 'Other Accounting Services' by the Department of Defense?

Historical spending data for 'Other Accounting Services' (NAICS 541219) by the Department of Defense (DoD) indicates a consistent and significant investment in this category. While specific figures fluctuate annually based on evolving needs, budget allocations, and strategic priorities, the DoD regularly procures specialized accounting expertise. This spending is driven by the complexity of defense budgets, the need for robust financial oversight, compliance with numerous regulations, and the management of vast logistical and operational expenditures. Trends often show increased spending during periods of system modernization, major program reviews, or heightened audit readiness requirements. The $12.2 million awarded to Guidehouse Inc. aligns with the DoD's ongoing commitment to maintaining strong financial management capabilities.

What is the potential impact of this contract on the broader accounting services market, particularly for small businesses?

This contract, awarded through full and open competition to Guidehouse Inc., a large professional services firm, has a limited direct impact on small businesses in terms of prime contract opportunities. As it was not a small business set-aside, small firms are unlikely to be the direct recipients of this specific award. However, large prime contractors like Guidehouse often engage small businesses as subcontractors for specialized tasks or to meet diversity goals. The overall impact on the market is the continued validation of the need for specialized accounting services within the federal government, potentially creating indirect opportunities for small businesses that can partner with larger firms or provide niche expertise. The competitive nature of the award also suggests a healthy market where multiple firms, including potentially smaller ones in different contract vehicles, can compete for government work.

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: HTC71122QD011

Offers Received: 3

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: $18,061,959

Exercised Options: $12,909,787

Current Obligation: $12,238,420

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU216

IDV Type: IDC

Timeline