Interior Department awards $6.17M consulting contract to Guidehouse Inc. for administrative management services

Contract Overview

Contract Amount: $6,168,197 ($6.2M)

Contractor: Guidehouse Inc.

Awarding Agency: Department of the Interior

Start Date: 2022-09-23

End Date: 2025-09-22

Contract Duration: 1,095 days

Daily Burn Rate: $5.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: DOS CT/IT

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $6.2 million to GUIDEHOUSE INC. for work described as: DOS CT/IT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1095 days (3 years) indicates a medium-term need for services. 3. Services fall under Administrative Management and General Management Consulting, a common area for federal support. 4. The award amount of $6.17 million represents a significant investment in external expertise. 5. The contract type is Time and Materials, which can pose cost control challenges if not managed closely. 6. The contractor, Guidehouse Inc., has a track record in federal contracting, requiring further vetting for performance. 7. The specific task order (VA) and location (Virginia) provide geographic context for service delivery.

Value Assessment

Rating: fair

The contract's value of $6.17 million over three years for administrative management consulting needs careful benchmarking. Without specific deliverables or performance metrics, it's difficult to definitively assess value for money. However, the Time and Materials pricing structure warrants scrutiny to ensure costs remain aligned with actual effort and market rates for similar consulting services. Comparing this to other federal contracts for administrative management consulting would provide a clearer picture of whether the pricing is competitive and efficient.

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 fact that it was competed suggests that the agency sought to leverage market forces to obtain the best value. The number of bidders is not specified, but a competitive process generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition awards.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it aims to ensure that the government receives competitive pricing and high-quality services by allowing a wide range of potential contractors to bid.

Public Impact

The Department of the Interior benefits from external expertise in administrative management and general management consulting. Services are expected to support the agency's operational efficiency and administrative functions. The contract's impact is primarily internal to the Department of the Interior's administrative operations. Workforce implications are likely to involve collaboration between federal employees and contractor personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
Lack of specific performance metrics makes it difficult to assess contractor efficiency and effectiveness.
The broad nature of 'Administrative Management and General Management Consulting Services' may lead to scope creep if not well-defined.
Reliance on external consultants may reduce internal capacity development over the long term.

Positive Signals

Awarded through full and open competition, indicating a potentially competitive pricing environment.
The contractor, Guidehouse Inc., is a known entity in the federal contracting space.
The contract duration suggests a sustained need and potential for building a productive working relationship.
The contract supports essential administrative functions within a major federal agency.

Sector Analysis

Administrative Management and General Management Consulting Services (NAICS 541611) is a significant sector within the federal contracting landscape, encompassing a wide range of advisory and assistance services. Federal agencies frequently procure these services to enhance efficiency, implement new policies, and manage complex operations. The market size for these services is substantial, with numerous firms, from large consultancies to smaller specialized providers, competing for federal dollars. This contract fits within the broader category of professional services, where agencies seek specialized expertise to supplement their internal capabilities.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. Therefore, the direct impact on small businesses is likely limited unless Guidehouse Inc. plans to subcontract a portion of the work to small businesses. Further analysis would be needed to determine if subcontracting opportunities exist and are utilized, which could provide some benefit to the small business ecosystem.

Oversight & Accountability

Oversight for this contract will primarily reside with the contracting officer and the designated contract administration team within the Department of the Interior. The Time and Materials nature of the contract necessitates rigorous oversight of labor hours and direct costs to ensure compliance with the contract terms and prevent potential overspending. Transparency is dependent on the agency's reporting practices and the public availability of contract performance data. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Management and Financial Consulting, Acquisition and Technology Services
Professional, Scientific, and Technical Services
Government-wide Acquisition Contracts (GWACs) for consulting services
Other Direct Costs (ODCs) in consulting contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Lack of defined performance metrics may hinder value assessment.
Broad service description could lead to scope creep.
Need for robust oversight to ensure efficient use of funds.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $6.2 million to GUIDEHOUSE INC.. DOS CT/IT

Who is the contractor on this award?

The obligated recipient is GUIDEHOUSE INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $6.2 million.

What is the period of performance?

Start: 2022-09-23. End: 2025-09-22.

What is Guidehouse Inc.'s track record with the Department of the Interior and other federal agencies for similar consulting services?

Guidehouse Inc. has a significant presence in federal contracting, often securing awards for management consulting, IT services, and financial advisory across various agencies. Their track record with the Department of the Interior, specifically for administrative management services, would need to be reviewed through contract databases like FPDS-NG to identify past performance, any reported issues, and the value of previous awards. A review of their performance on similar contracts with agencies like HHS, GSA, or DOD would also provide context on their ability to deliver effectively within the federal environment. This includes examining past performance evaluations and any debriefings from competitors on prior awards to assess their competitive standing and client satisfaction.

How does the awarded amount of $6.17 million compare to the typical cost of similar administrative management consulting contracts within the federal government?

Benchmarking the $6.17 million award requires comparing it against contracts with similar scope, duration, and complexity. Federal databases often show a wide range for management consulting services, influenced by factors like the specific agency, the criticality of the service, and the level of expertise required. For a three-year contract, this amount averages approximately $2.06 million per year. To assess value, one would look at contracts for 'Administrative Management and General Management Consulting Services' (NAICS 541611) awarded over the past few years. If similar contracts for comparable agencies are in the $1.5M-$2.5M annual range, this award appears within a reasonable market band. However, the Time and Materials (T&M) pricing structure means the final cost could deviate, making direct comparison challenging without detailed labor rates and estimated hours.

What are the primary risks associated with a Time and Materials (T&M) contract for administrative management consulting, and how are they mitigated?

The primary risk with T&M contracts is the potential for cost overruns, as the government pays for the actual labor hours and materials used, rather than a fixed price. This can lead to unpredictable spending if the contractor's efficiency is low or if the scope of work expands without adequate controls. For administrative management consulting, risks include scope creep, inefficient use of consultant time, and difficulty in precisely defining deliverables upfront. Mitigation strategies employed by agencies typically involve establishing strong oversight, setting ceiling prices, requiring detailed timesheets and justifications for hours worked, and conducting regular reviews of invoices and progress. Clear communication channels and a well-defined statement of work are crucial to managing these risks effectively.

What specific administrative management or general management functions is this contract intended to support within the Department of the Interior?

The contract's description as 'Administrative Management and General Management Consulting Services' is broad. To understand the specific functions, one would need to examine the Performance Work Statement (PWS) or Statement of Work (SOW) associated with this delivery order. These documents typically detail the objectives, tasks, deliverables, and performance standards. Potential areas could include improving internal processes, developing strategic plans, enhancing organizational efficiency, providing program management support, advising on policy implementation, or assisting with change management initiatives. Without access to the detailed SOW, the precise functions remain speculative, but they are centered around enhancing the operational and managerial effectiveness of the Department of the Interior's various offices.

How has federal spending on administrative management and general management consulting services trended over the past five years, and what does this contract represent within that trend?

Federal spending on administrative management and general management consulting services has generally seen a steady increase over the past five years, driven by agencies' needs to modernize operations, adapt to new policy requirements, and supplement internal expertise. This trend reflects a broader reliance on external consultants for specialized knowledge and project execution. The $6.17 million award to Guidehouse Inc. by the Department of the Interior is consistent with this trend, representing a typical investment for a multi-year engagement in this service category. Analyzing historical spending data for NAICS code 541611 across all federal agencies would reveal the overall market size and growth rate, placing this specific contract within a larger context of federal procurement in this sector.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140D0422R0085

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Veritas Capital Fund Management, L.L.C.

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: $6,168,197

Exercised Options: $6,168,197

Current Obligation: $6,168,197

Actual Outlays: $6,168,197

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: IND17PC00488

IDV Type: IDC

Timeline