State Department awards $15.8M for program management support, with 3 bidders competing

Contract Overview

Contract Amount: $15,749,271 ($15.7M)

Contractor: Guidehouse LLP

Awarding Agency: Department of State

Start Date: 2021-01-16

End Date: 2026-07-15

Contract Duration: 2,006 days

Daily Burn Rate: $7.9K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: PROGRAM MANAGEMENT SUPPORT SERVICES

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $15.7 million to GUIDEHOUSE LLP for work described as: PROGRAM MANAGEMENT SUPPORT SERVICES Key points: 1. Value for money appears fair given the competitive nature of the award. 2. Competition dynamics indicate a healthy market for these services. 3. Risk indicators are moderate, typical for a services contract of this duration. 4. Performance context is within administrative management and general management consulting. 5. Sector positioning is within government administrative support services.

Value Assessment

Rating: fair

The contract's value of approximately $15.8 million over its period of performance is within a reasonable range for program management support services. Benchmarking against similar contracts for administrative management and general management consulting services suggests that the pricing is competitive, especially considering the time and materials pricing structure which allows for flexibility. The number of bidders also suggests a reasonable price discovery process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under SAP (Simplified Acquisition Procedures), indicating a competitive process. Three bidders participated, which suggests a reasonable level of competition for this type of service. The presence of multiple bidders generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The competitive bidding process for this contract likely resulted in a more cost-effective outcome for taxpayers compared to a sole-source award. Three bidders indicate that the government received multiple proposals, allowing for comparison and negotiation.

Public Impact

The Department of State benefits from enhanced program management capabilities. Services delivered include administrative and general management consulting. The geographic impact is primarily within the agency's operational locations. Workforce implications include support for government program managers and potentially contractor personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with Time and Materials contract type if not closely monitored.
Dependence on contractor expertise could create knowledge transfer challenges.
Scope creep is a risk if not managed through clear task orders.

Positive Signals

Competitive award process suggests potential for good value.
Contractor's experience in administrative management is a positive signal.
Longer contract duration allows for sustained support and relationship building.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is crucial for government operations, providing expertise that agencies may not possess internally. Comparable spending benchmarks for similar consulting services vary widely based on scope and duration, but the $15.8 million award over approximately six years is consistent with medium-sized support contracts.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, GUIDEHOUSE LLP, is likely a large business. There is no explicit information on subcontracting plans, but large prime contractors are often encouraged or required to subcontract with small businesses, which could provide opportunities for the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of State's contracting officers and program managers. Accountability measures are embedded in the contract terms, including performance standards and payment milestones. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Program Management Support
Administrative Management Consulting
General Management Consulting
Department of State Contracts
Time and Materials Contracts

Risk Flags

Time and Materials contract type requires close monitoring to control costs.
Potential for contractor performance issues if not managed effectively.
Lack of small business set-aside may limit opportunities for smaller firms.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $15.7 million to GUIDEHOUSE LLP. PROGRAM MANAGEMENT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is GUIDEHOUSE LLP.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $15.7 million.

What is the period of performance?

Start: 2021-01-16. End: 2026-07-15.

What is GUIDEHOUSE LLP's track record with the Department of State and similar federal agencies?

GUIDEHOUSE LLP has a significant track record with federal agencies, including the Department of State. Analyzing their past performance on similar contracts is crucial. This involves reviewing past performance evaluations, any documented issues or successes, and the types of services they have provided. A history of successful contract completion, on-time delivery, and within-budget performance would be positive indicators. Conversely, a history of disputes, performance failures, or significant cost overruns would raise concerns. Their experience with program management support and administrative consulting specifically within the State Department or comparable agencies provides context for their ability to meet the current contract's requirements.

How does the awarded price compare to market rates for similar program management support services?

The awarded value of approximately $15.8 million over roughly six years (January 2021 to July 2026) translates to an average annual value of about $2.6 million. Given that this is a Time and Materials (T&M) contract, direct price comparison is complex as it depends on actual hours worked and labor categories utilized. However, benchmarking against publicly available data for similar administrative and management consulting services procured by federal agencies suggests this rate is competitive. The presence of three bidders in a full-and-open competition further supports the likelihood that the pricing reflects market conditions and offers reasonable value for the services rendered.

What are the primary risks associated with this Time and Materials contract type?

The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns if not managed diligently. Unlike fixed-price contracts, T&M contracts obligate the government to pay for all direct labor hours at specified hourly rates and for the actual cost of materials. This structure can incentivize contractors to extend timelines or increase labor hours if oversight is insufficient. To mitigate this, the Department of State must implement robust monitoring of labor hours, task order scope, and material costs. Clear definition of work requirements and regular performance reviews are essential to ensure the contractor remains focused on efficient service delivery and to prevent scope creep, which is a common issue in T&M agreements.

How effective is the competition level (3 bidders) in ensuring optimal value for taxpayers?

A competition level of three bidders for this contract is generally considered adequate to ensure reasonable value for taxpayers. It signifies that the opportunity was visible and attractive enough for multiple firms to invest resources in preparing proposals. This level of competition typically fosters price discovery and encourages bidders to offer competitive rates and terms to win the contract. While more bidders could potentially drive prices lower, three offers often represent a healthy balance between robust competition and the administrative burden of evaluating numerous proposals. The key is that these three bidders were qualified and submitted substantial proposals, allowing the agency to make an informed selection based on both price and technical merit.

What is the historical spending trend for program management support services at the Department of State?

Analyzing historical spending trends for program management support services at the Department of State provides crucial context for the current $15.8 million award. While specific historical data for this exact service category isn't provided, the Department of State, like other large federal agencies, consistently procures significant amounts of support services. Trends often show an increasing reliance on contractors for specialized functions, including program management, due to fluctuating workloads, specialized skill requirements, and budget flexibility. Understanding if spending in this area has been increasing, decreasing, or remaining stable over the past several years can indicate agency priorities, potential budget pressures, and the overall market demand for such services.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 3

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: $20,432,660

Exercised Options: $20,432,660

Current Obligation: $15,749,271

Actual Outlays: $6,755,003

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 19AQMM19A0281

IDV Type: BPA

Timeline