DoD's $2.8M accounting services contract with Guidehouse Inc. awarded via full and open competition

Contract Overview

Contract Amount: $28,200,989 ($28.2M)

Contractor: Guidehouse Inc.

Awarding Agency: Department of Defense

Start Date: 2023-08-16

End Date: 2026-03-31

Contract Duration: 958 days

Daily Burn Rate: $29.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LABOR

Place of Performance

Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20374

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $28.2 million to GUIDEHOUSE INC. for work described as: LABOR Key points: 1. Contract awarded to Guidehouse Inc. for accounting services, indicating a need for specialized financial expertise within the Department of the Navy. 2. The contract's duration of 958 days suggests a significant, ongoing requirement for these services. 3. Awarded under a Firm Fixed Price (FFP) contract type, which shifts cost risk to the contractor. 4. The contract was competed using 'Full and Open Competition', suggesting a robust bidding process. 5. The North American Industry Classification System (NAICS) code 541219 points to a specific niche within accounting services. 6. The contract's value of approximately $2.8 million over its term requires careful monitoring for efficiency.

Value Assessment

Rating: good

The contract value of $2.8 million over nearly three years for accounting services appears reasonable, especially considering the specialized nature of government financial operations. Benchmarking against similar contracts for accounting and financial advisory services within the Department of Defense (DoD) would provide a clearer picture of value for money. The firm fixed-price structure is generally favorable for the government as it caps costs, provided the scope is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through 'Full and Open Competition', indicating that all responsible sources were permitted to submit a bid. The presence of 3 bids suggests a moderate level of competition for this specific requirement. While not a large number, it implies that the market was aware of the opportunity and that some level of price discovery occurred.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging contractors to offer their best value.

Public Impact

The Department of the Navy benefits from specialized accounting services to manage its complex financial operations. This contract supports the accurate and efficient management of federal funds within the defense sector. The services delivered are crucial for maintaining financial integrity and compliance for a major government agency. The contract's impact is primarily administrative and financial, supporting the operational readiness of naval forces.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the defined accounting tasks are not meticulously managed.
Reliance on a single contractor for critical accounting functions could pose a risk if performance falters.
Ensuring the contractor's personnel possess the necessary security clearances for handling sensitive financial data.

Positive Signals

The use of 'Full and Open Competition' suggests a proactive effort to solicit the best possible offers.
The Firm Fixed Price contract type provides cost certainty for the government.
The contract's duration indicates a stable, long-term need that the contractor is expected to fulfill reliably.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically accounting services. The federal government is a significant consumer of such services, often requiring specialized expertise for complex financial management, auditing, and compliance. Spending in this category is driven by the need for accurate financial reporting, budget execution, and accountability across numerous agencies. Comparable spending benchmarks would typically be found within broader government-wide contract spending reports for professional services.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. However, the prime contractor, Guidehouse Inc., may engage small businesses as subcontractors if it aligns with their business strategy and the contract's requirements, though this is not mandated by the contract's award terms.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer's representative (COR) within the Department of the Navy, responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. The Department of Defense also has an Inspector General (IG) office that conducts audits and investigations into contract performance and financial management to ensure accountability and prevent fraud, waste, and abuse.

Related Government Programs

Department of Defense Financial Management
Federal Accounting Services
Navy Financial Operations
Professional Services Contracts
Government Accounting Standards

Risk Flags

Potential for performance issues if contractor resources are overstretched.
Risk of inadequate competition if market conditions limit bidder participation.
Need for vigilant oversight to prevent scope creep and ensure adherence to FFP terms.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.2 million to GUIDEHOUSE INC.. LABOR

Who is the contractor on this award?

The obligated recipient is GUIDEHOUSE INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $28.2 million.

What is the period of performance?

Start: 2023-08-16. End: 2026-03-31.

What is Guidehouse Inc.'s track record with the federal government, particularly the Department of Defense?

Guidehouse Inc. has a substantial history of contracting with the federal government, including significant work with the Department of Defense. Their portfolio often includes financial management, consulting, and IT services. Analyzing their past performance ratings, any past performance issues or commendations, and the types of contracts they have previously held with the DoD would provide context for their suitability for this current accounting services award. A review of their contract history would reveal if they have successfully managed similar-sized and scoped contracts, and if they have a pattern of meeting deadlines and budget requirements.

How does the $2.8 million contract value compare to similar accounting services contracts awarded by the DoD?

The $2.8 million contract value for approximately 958 days (roughly 2.6 years) of accounting services needs to be benchmarked against similar awards. The average annual value is approximately $1.08 million. Contracts for 'Other Accounting Services' (NAICS 541219) within the DoD can vary widely based on scope, duration, and specific requirements. A comparative analysis would involve looking at the number of bids received, the contract type (e.g., Firm Fixed Price), and the specific services rendered in comparable contracts. Without direct comparative data, it's difficult to definitively state if this represents excellent or fair value, but the competitive award suggests it was deemed reasonable at the time of procurement.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential scope creep, where the defined accounting tasks expand beyond the original agreement, leading to cost overruns or delays. Another risk is contractor performance failure, where Guidehouse Inc. may not meet the required service levels. Reliance on a single contractor for critical functions also presents a risk. Mitigation strategies likely involve robust contract management by the COR, clear definition of deliverables and performance standards, regular performance reviews, and potentially contingency planning. The Firm Fixed Price structure also mitigates cost overrun risk for the government, provided the scope is well-defined.

How effective is the 'Full and Open Competition' process in ensuring optimal value for this specific accounting services contract?

The 'Full and Open Competition' process is generally considered the most effective method for ensuring optimal value as it allows the widest possible pool of potential contractors to bid. In this case, with 3 bids received, it indicates a moderate level of competition. While more bids could potentially drive prices lower, the fact that the contract was competed openly suggests that the government sought the best available offer. The effectiveness is further enhanced by the Firm Fixed Price award type, which locks in costs. The ultimate measure of effectiveness will be the contractor's performance against the contract requirements.

What is the historical spending trend for 'Other Accounting Services' by the Department of the Navy?

Historical spending on 'Other Accounting Services' (NAICS 541219) by the Department of the Navy, and the broader Department of Defense, tends to be substantial and relatively consistent, reflecting the ongoing need for financial management and support. Trends are often influenced by budget allocations, changes in accounting regulations, and specific program requirements. Analyzing past years' spending data for this NAICS code within the Navy would reveal if this $2.8 million award is in line with historical patterns, or if it represents an increase or decrease in demand for such services. Fluctuations can also be tied to major financial system upgrades or audits.

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: N0018921RZ050

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Peraton Technology Services Inc.

Address: 1676 INTERNATIONAL DR STE 800, MCLEAN, 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: $28,254,137

Exercised Options: $28,254,137

Current Obligation: $28,200,989

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0018922DZ018

IDV Type: IDC

Timeline