Guidehouse LLP awarded $30.6M contract for financial audit liaison support to the Air Force

Contract Overview

Contract Amount: $30,574,825 ($30.6M)

Contractor: Guidehouse LLP

Awarding Agency: Department of Defense

Start Date: 2013-09-26

End Date: 2018-08-26

Contract Duration: 1,795 days

Daily Burn Rate: $17.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF AFMC AF FIAR LIAISON SUPPORT

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $30.6 million to GUIDEHOUSE LLP for work described as: IGF::CT::IGF AFMC AF FIAR LIAISON SUPPORT Key points: 1. Contract provides essential financial improvement and audit readiness support. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (nearly 5 years) indicates a long-term need for these services. 4. The firm fixed-price contract type helps manage cost certainty for the government. 5. The services align with the Department of Defense's ongoing efforts to achieve auditability. 6. The contractor, Guidehouse LLP, has experience in government contracting and financial services.

Value Assessment

Rating: good

The contract value of $30.6 million over approximately five years suggests a reasonable annual spend for specialized financial audit liaison support. Benchmarking against similar contracts for financial improvement and audit readiness services within the Department of Defense indicates that this pricing is within expected ranges. The firm fixed-price structure provides cost predictability, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. While the specific number of bidders is not provided, this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open competition suggests that the Air Force sought the best value proposition from the market.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining services at competitive prices, preventing potential overspending and ensuring a wider pool of qualified contractors are considered.

Public Impact

The Department of the Air Force benefits from improved financial management and auditability. Services delivered include liaison support crucial for financial improvement and audit readiness. The geographic impact is primarily within the Department of the Air Force's operational areas. Workforce implications include the need for skilled financial and accounting professionals within the contractor's team.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or outcome data makes it difficult to fully assess effectiveness.
The long duration of the contract could lead to potential complacency if not actively managed.
Reliance on a single contractor for critical liaison support might pose a risk if contractor performance degrades.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm fixed-price contract type provides cost certainty.
Contractor has demonstrated experience in government financial services.
Supports critical audit readiness initiatives within the Department of Defense.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on accounting and auditing services. The market for these services within the federal government is substantial, driven by mandates for financial accountability and auditability, particularly within large agencies like the Department of Defense. Comparable spending benchmarks for financial improvement and audit liaison support often range in the tens to hundreds of millions of dollars annually across various agencies.

Small Business Impact

The contract was awarded to Guidehouse LLP and there is no indication of a small business set-aside. This suggests that the primary award was not specifically targeted towards small businesses. However, it is possible that Guidehouse LLP may engage small businesses as subcontractors to fulfill certain aspects of the contract, though this information is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Air Force. Performance reviews, regular reporting, and adherence to the contract terms would be key accountability measures. Transparency is generally maintained through contract databases like FPDS, though detailed performance reports are often internal.

Related Government Programs

Financial Improvement and Audit Readiness (FIAR) initiatives
Department of Defense Financial Management
Government Auditing Services
Contract Audit Support

Risk Flags

Potential for scope creep
Reliance on contractor expertise
Long-term contract management challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.6 million to GUIDEHOUSE LLP. IGF::CT::IGF AFMC AF FIAR LIAISON SUPPORT

Who is the contractor on this award?

The obligated recipient is GUIDEHOUSE LLP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $30.6 million.

What is the period of performance?

Start: 2013-09-26. End: 2018-08-26.

What is Guidehouse LLP's track record with similar federal contracts, particularly in financial audit liaison support?

Guidehouse LLP has a significant track record in providing professional services to the federal government, including extensive experience in financial management, audit, and advisory services. They have been awarded numerous contracts across various agencies, often related to financial improvement and audit readiness (FIAR) initiatives, which directly aligns with the services provided under this contract. Their past performance often includes supporting complex financial statement audits, implementing financial system improvements, and providing liaison support between agencies and auditors. This experience suggests a strong capability to meet the requirements of the Air Force contract.

How does the $30.6 million contract value compare to other federal spending on similar financial audit liaison services?

The $30.6 million contract value over approximately five years translates to an average annual spend of roughly $6.1 million. This figure is generally considered moderate for specialized financial audit liaison support within a large organization like the Department of the Air Force. Larger agencies often award contracts in the tens or even hundreds of millions for comprehensive financial improvement programs. When compared to similar contracts for FIAR support, this award appears to be within a reasonable range, reflecting the scope and duration of the services required. The firm fixed-price nature also helps in comparing value against defined deliverables.

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

Key risks include potential contractor underperformance, scope creep, and the long-term reliance on a single entity for critical support. Contractor underperformance could delay audit readiness progress. Scope creep might increase costs beyond the initial $30.6 million if not managed tightly. Long-term reliance poses a risk if the contractor's expertise or focus shifts. Mitigation strategies likely involve robust contract oversight by the COR, clearly defined performance metrics and deliverables, regular progress reviews, and strict change control processes. The firm fixed-price structure also incentivizes the contractor to manage costs and scope effectively.

How effective has the Air Force been in achieving its audit readiness goals, and how does this contract contribute?

The Department of Defense, including the Air Force, has made significant strides towards audit readiness over the past decade, though achieving full auditability remains an ongoing challenge. Contracts like this one, providing dedicated liaison support, are crucial. They facilitate communication between financial management personnel and external auditors, help identify and resolve discrepancies, and support the implementation of necessary financial system and process improvements. The success of this contract is directly tied to its contribution to closing audit findings and improving the overall financial transparency and accountability of the Air Force.

What are the historical spending patterns for financial audit liaison support within the Department of the Air Force?

Historical spending patterns for financial audit liaison support within the Department of the Air Force reflect the increasing emphasis on auditability mandated by Congress. Prior to the major FIAR push, spending on such specialized liaison roles might have been less formalized or integrated into broader financial management contracts. However, in the last 10-15 years, dedicated contracts for audit liaison and FIAR support have become more common and have seen significant investment. Annual spending can fluctuate based on audit cycles, system implementations, and specific agency priorities, but it generally represents a consistent and substantial commitment to achieving audit objectives.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Offices of Certified Public Accountants

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA489012R0006

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pricewaterhousecoopers Public Sector LLP (UEI: 791716954)

Address: 1800 TYSONS BLVD 6TH FL, MCLEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $33,435,906

Exercised Options: $30,600,664

Current Obligation: $30,574,825

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA489012D0031

IDV Type: IDC

Timeline