State Dept. Awards $55.3M Consulting Contract to GUIDEHOUSE LLP for Administrative Management
Contract Overview
Contract Amount: $55,356,662 ($55.4M)
Contractor: Guidehouse LLP
Awarding Agency: Department of State
Start Date: 2021-09-22
End Date: 2026-09-29
Contract Duration: 1,833 days
Daily Burn Rate: $30.2K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: Other
Official Description: FACTS INFO PM SUPPORT CALL ORDER
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20226
Plain-Language Summary
Department of State obligated $55.4 million to GUIDEHOUSE LLP for work described as: FACTS INFO PM SUPPORT CALL ORDER Key points: 1. Contract awarded to GUIDEHOUSE LLP for administrative management consulting. 2. Significant value of $55.3 million over its period of performance. 3. Competition method was 'COMPETED UNDER SAP', indicating a potentially limited but structured process. 4. The sector is professional services, specifically management consulting.
Value Assessment
Rating: fair
The contract value is substantial. Benchmarking against similar administrative management consulting contracts is difficult without more specific service details. The pricing structure based on labor hours requires careful monitoring to ensure efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP (Simplified Acquisition Procedures), suggesting a limited competition pool. While this can expedite the process, it may not always yield the lowest price or the most innovative solutions compared to full and open competition.
Taxpayer Impact: Taxpayer funds are being used for management consulting services. The effectiveness of these services in improving administrative efficiency will determine the ultimate value for taxpayers.
Public Impact
Supports administrative functions within the Department of State. Potential impact on operational efficiency and management practices. Consulting services could influence policy implementation and strategic planning.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to SAP.
- Labor hour pricing can lead to cost overruns if not managed.
- Contract duration is long (over 4 years).
Positive Signals
- Awarded to a known entity (GUIDEHOUSE LLP).
- Contract has a defined period of performance.
- Specific NAICS code (541611) indicates a focused service area.
Sector Analysis
This contract falls within the professional services sector, specifically management and administrative consulting. Spending in this area is common across government agencies for specialized expertise, but benchmarks vary widely based on the scope and duration of services.
Small Business Impact
The data does not indicate any specific set-aside for small businesses. The award to GUIDEHOUSE LLP, a large firm, suggests that small businesses were likely not primary awardees on this specific contract, though they might be subcontractors.
Oversight & Accountability
Oversight will be crucial to ensure the consulting services deliver tangible improvements and represent good value for money. The Department of State's contracting office and program managers are responsible for monitoring performance and expenditures.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Potential for cost overruns due to labor hour pricing.
- Limited competition may restrict optimal pricing and solution diversity.
- Long contract duration increases risk of scope creep or changing needs.
- Lack of transparency on specific performance metrics and deliverables.
Tags
administrative-management-and-general-ma, department-of-state, dc, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $55.4 million to GUIDEHOUSE LLP. FACTS INFO PM SUPPORT CALL ORDER
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 $55.4 million.
What is the period of performance?
Start: 2021-09-22. End: 2026-09-29.
What specific administrative management challenges is the Department of State aiming to address with this significant consulting engagement?
The contract aims to provide expertise in administrative management and general management consulting. Without further details, it's presumed the Department seeks to improve internal processes, enhance operational efficiency, optimize resource allocation, or implement strategic initiatives. The specific challenges could range from streamlining bureaucratic procedures to modernizing management structures.
How will the effectiveness of GUIDEHOUSE LLP's services be measured to ensure a positive return on the $55.3 million investment?
Effectiveness will likely be measured through performance metrics defined in the contract's statement of work. These could include achieving specific efficiency targets, successful implementation of recommended process improvements, timely delivery of reports and analyses, and positive feedback from stakeholders. Regular performance reviews and milestone assessments are standard practices.
Given the limited competition under SAP, what steps are in place to mitigate the risk of inflated pricing or suboptimal service delivery?
Mitigation strategies typically involve robust negotiation during the procurement phase, clear performance standards, and ongoing contract surveillance. The agency should have established price reasonableness checks and may require detailed cost breakdowns. Regular communication and performance monitoring help address potential issues proactively.
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
Solicitation ID: 19AQMM21Q0135
Offers Received: 1
Pricing Type: LABOR HOURS (Z)
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: $68,822,227
Exercised Options: $65,938,619
Current Obligation: $55,356,662
Actual Outlays: $24,449,790
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 19AQMM19A0281
IDV Type: BPA
Timeline
Start Date: 2021-09-22
Current End Date: 2026-09-29
Potential End Date: 2026-09-29 00:00:00
Last Modified: 2026-03-23
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