DoD's $28.7M accounting services contract awarded to Guidehouse Inc. for 2 years

Contract Overview

Contract Amount: $28,686,151 ($28.7M)

Contractor: Guidehouse Inc.

Awarding Agency: Department of Defense

Start Date: 2024-09-24

End Date: 2026-09-23

Contract Duration: 729 days

Daily Burn Rate: $39.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BASE FM&C AUDITABILITY A-123 LABOR

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $28.7 million to GUIDEHOUSE INC. for work described as: BASE FM&C AUDITABILITY A-123 LABOR Key points: 1. Contract awarded via full and open competition, suggesting a competitive pricing environment. 2. The fixed-price contract type helps mitigate cost overrun risks for the government. 3. The contract duration of 729 days provides stability for service delivery. 4. The award amount is substantial, indicating a significant need for accounting services. 5. The contractor, Guidehouse Inc., is a known entity in the professional services sector. 6. The specific accounting code (541219) points to specialized financial management support.

Value Assessment

Rating: good

The contract's base value of $28.7 million over two years for accounting services appears reasonable given the scope and the contractor's expertise. Benchmarking against similar large-scale accounting support contracts for federal agencies suggests this pricing is within expected ranges. The firm fixed-price structure provides cost certainty, which is a positive indicator of value for money. Further analysis would involve comparing specific labor rates and deliverables against market standards.

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 a bid. The presence of three bidders suggests a healthy level of competition for this service. This competitive process is expected to drive more favorable pricing and service offerings for the Department of the Navy.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that typically leads to better pricing and ensures the government receives high-quality services at a fair market value.

Public Impact

The Department of the Navy benefits from enhanced financial management and auditability. Services delivered include specialized accounting and financial consulting. The geographic impact is primarily within the operational areas of the Department of the Navy, likely supporting its headquarters and major commands. The contract supports a professional workforce skilled in accounting and financial services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly due to the nature of consulting services.
Reliance on a single contractor for critical accounting functions could pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm fixed-price contract type provides cost predictability.
Contractor has a track record in providing professional services to government agencies.
Contract duration allows for sustained support and knowledge transfer.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically 'Other Accounting Services' (NAICS 541219). This sector is crucial for government operations, providing essential financial management, audit, and consulting support. The market for these services is competitive, with numerous firms capable of supporting federal agencies. The total federal spending in this category is significant, reflecting the ongoing need for specialized financial expertise across various departments.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded through full and open competition, it is unlikely to have significant direct subcontracting opportunities for small businesses unless specified in the contract's statement of work. The primary focus appears to be on large, established service providers.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The firm fixed-price nature provides a degree of financial oversight. Accountability will be managed through contract performance monitoring by the Department of the Navy. Transparency is generally maintained through contract award databases, though specific performance details may be internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Financial Management Services
Audit Support Services
Accounting and Bookkeeping Services
Professional Services Contracts

Risk Flags

Contract duration exceeds one year.
Contract value is significant.
Contractor is a large business.
Contract is not set-aside for small business.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.7 million to GUIDEHOUSE INC.. BASE FM&C AUDITABILITY A-123 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 $28.7 million.

What is the period of performance?

Start: 2024-09-24. End: 2026-09-23.

What is Guidehouse Inc.'s track record with federal contracts, particularly in accounting services?

Guidehouse Inc. has a significant history of securing federal contracts across various agencies, including the Department of Defense, Department of Health and Human Services, and others. Their portfolio often includes financial management, consulting, and IT services. For accounting services specifically, they have been awarded numerous contracts, demonstrating experience in areas such as audit support, financial reporting, and process improvement. Their performance history on these contracts, as reflected in federal procurement data, generally indicates successful delivery, though like any large contractor, specific contract performance can vary. This contract with the Department of the Navy aligns with their established capabilities and past performance in the federal accounting domain.

How does the $28.7 million contract value compare to similar accounting services contracts awarded by the Department of Defense?

The $28.7 million contract value for accounting services over two years is a substantial award, placing it in the mid-to-large tier for this type of service within the Department of Defense. Similar contracts for comprehensive accounting support, audit readiness, or financial system modernization can range from a few million to tens of millions of dollars annually, depending on the scope, duration, and complexity. Given that this is a firm fixed-price contract for specialized accounting services, the value appears commensurate with the expected deliverables and the contractor's expertise. It is not exceptionally high or low when benchmarked against other large-scale, multi-year accounting support contracts awarded to major professional services firms by DoD components.

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

The primary risks associated with this contract include potential performance issues from the contractor, such as delays or quality deficiencies in delivering accounting services. Another risk is the potential for cost growth if the firm fixed-price contract has poorly defined scope or if unforeseen complexities arise, although this is less likely with FFP. Mitigation strategies include the government's robust oversight mechanisms, clear performance metrics within the contract, and the contractor's own quality assurance processes. The selection through full and open competition also implies the government chose a contractor with a demonstrated ability to perform. The fixed-price nature inherently limits financial risk for the government compared to cost-reimbursement contracts.

How effective is the 'full and open competition' approach for ensuring value in accounting services contracts?

The 'full and open competition' approach is generally considered highly effective for ensuring value in accounting services contracts. By allowing all responsible sources to compete, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive bids. This competition drives down prices and encourages offerors to propose innovative solutions and high-quality services to win the contract. For accounting services, where expertise and efficiency are key, this competitive pressure helps ensure that the Department of the Navy selects a contractor that offers the best combination of price and performance, leading to better value for taxpayer dollars. The presence of three bidders in this specific case indicates that the market is sufficiently robust to support competitive awards.

What are the historical spending patterns for 'Other Accounting Services' (NAICS 541219) within the Department of Defense?

Historical spending patterns for 'Other Accounting Services' (NAICS 541219) within the Department of Defense show a consistent and significant investment over the years. The DoD relies heavily on external expertise for financial management, audit support, accounting system implementation, and compliance services due to the sheer scale and complexity of its operations. Spending in this category typically fluctuates based on specific initiatives, such as audit readiness efforts, system upgrades, or major organizational changes. While precise year-over-year figures require detailed analysis of historical procurement data, it is evident that the DoD consistently allocates substantial budgets to these services, often awarding large, multi-year contracts to major professional services firms. This contract represents a continuation of that established spending trend.

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: $28,912,734

Exercised Options: $28,886,234

Current Obligation: $28,686,151

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