State Department awards $8.3M management consulting BPA call to Guidehouse, LLP, citing sole-source justification

Contract Overview

Contract Amount: $8,300,916 ($8.3M)

Contractor: Guidehouse LLP

Awarding Agency: Department of State

Start Date: 2024-08-26

End Date: 2026-08-25

Contract Duration: 729 days

Daily Burn Rate: $11.4K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: AWARD THE PROGRAM MANAGEMENT SUPPORT SERVICE BODY SHOP CALL ORDER TO GUIDEHOUSE, LLP.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $8.3 million to GUIDEHOUSE LLP for work described as: AWARD THE PROGRAM MANAGEMENT SUPPORT SERVICE BODY SHOP CALL ORDER TO GUIDEHOUSE, LLP. Key points: 1. The contract was awarded on a sole-source basis, limiting competitive opportunities and potentially impacting price discovery. 2. The administrative management and general management consulting services are crucial for program support within the State Department. 3. The contract duration of 729 days suggests a significant, ongoing need for these services. 4. The award was made under a Blanket Purchase Agreement (BPA) Call, indicating a pre-negotiated framework. 5. The use of Time and Materials pricing introduces potential cost escalation risks if not closely managed. 6. The contractor, Guidehouse, LLP, is a known entity in the federal contracting space.

Value Assessment

Rating: fair

Benchmarking the value of this specific BPA Call is challenging without access to the underlying BPA terms and pricing. However, the Time and Materials (T&M) contract type can sometimes lead to higher costs compared to fixed-price awards if not meticulously managed. The award amount of $8.3 million for approximately two years of program management support suggests a moderate level of investment for specialized consulting services. Further analysis would require comparing the labor rates and estimated hours against similar T&M contracts for administrative management consulting within the federal government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under Simplified Acquisition Procedures (SAP) and was awarded on a sole-source basis. The justification for a sole-source award typically involves specific circumstances, such as the unique capabilities of the contractor or the urgency of the requirement. Without further details on the justification, it is difficult to assess the extent of competition. A sole-source award means that only one contractor was solicited, which limits the government's ability to explore a wider range of pricing and service offerings.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government does not benefit from the competitive pressure that drives down prices. It also bypasses opportunities to engage with a broader base of potential service providers.

Public Impact

The primary beneficiary of this contract is the Department of State, which will receive program management support services. These services are essential for the effective execution and oversight of various State Department programs. The contract's impact is primarily administrative, supporting the internal operations and management functions of the agency. The geographic impact is concentrated in the District of Columbia, where the Department of State is headquartered. The contract does not appear to have direct workforce implications beyond the personnel employed by Guidehouse, LLP.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potential cost savings for taxpayers.
Time and Materials pricing structure carries inherent risk of cost overruns if not tightly controlled.
Lack of detailed justification for sole-source award raises questions about procurement process transparency.
Limited public information on the specific services to be rendered under this BPA Call.

Positive Signals

Award to an established contractor, Guidehouse, LLP, suggests a degree of confidence in their capabilities.
Utilizing a BPA Call streamlines the procurement process for recurring needs.
The contract supports critical administrative functions within the Department of State.

Sector Analysis

The contract falls within the administrative management and general management consulting services sector (NAICS 541611). This sector is characterized by a wide range of firms, from large consultancies to smaller specialized providers, offering expertise in organizational efficiency, strategic planning, and operational improvement. Federal spending in this area is substantial, supporting various agency functions. Comparable spending benchmarks would involve analyzing the average contract values and labor rates for similar consulting services across different federal agencies, considering factors like contract type and duration.

Small Business Impact

This contract was awarded to Guidehouse, LLP, and there is no indication of a small business set-aside. Furthermore, the data provided does not specify any subcontracting requirements for small businesses. Therefore, this award does not appear to directly benefit the small business ecosystem through set-asides or mandated subcontracting goals. The focus is on a large, established prime contractor.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. As a BPA Call, the underlying BPA likely has its own oversight mechanisms. Transparency is limited due to the sole-source nature and the lack of detailed public justification. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected related to the contract's performance or award.

Related Government Programs

Department of State Administrative Support Contracts
Federal Management Consulting Services
Blanket Purchase Agreements (BPAs)
Sole-Source Procurements

Risk Flags

Sole-source award
Time and Materials pricing
Lack of competition justification

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $8.3 million to GUIDEHOUSE LLP. AWARD THE PROGRAM MANAGEMENT SUPPORT SERVICE BODY SHOP CALL ORDER TO GUIDEHOUSE, LLP.

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 $8.3 million.

What is the period of performance?

Start: 2024-08-26. End: 2026-08-25.

What specific program management support services will Guidehouse, LLP provide under this BPA Call?

The provided data indicates the contract is for 'Administrative Management and General Management Consulting Services' (NAICS 541611) and is a 'Program Management Support Service Body Shop Call Order'. While the specific tasks are not detailed, this suggests Guidehouse will provide personnel (a 'body shop') to support program management functions. This could encompass a range of activities such as strategic planning, operational analysis, process improvement, project coordination, data analysis, and reporting to aid the Department of State in managing its programs effectively. The exact scope would be defined in the task order details not provided here.

How does the $8.3 million award compare to typical spending on similar management consulting services by the Department of State?

Comparing this $8.3 million award requires context on the duration and scope. The contract spans 729 days (approximately two years). For program management support services, this amount is moderate. The Department of State, like other large federal agencies, often engages in multi-million dollar contracts for consulting services to support its complex global operations. Without access to historical spending data for similar 'body shop' call orders or specific program support contracts within the State Department, a precise benchmark is difficult. However, it aligns with typical investments for specialized support over a two-year period for a major federal agency.

What are the risks associated with the Time and Materials (T&M) contract type for this BPA Call?

The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If the scope of work is not well-defined, or if project timelines extend beyond initial estimates, the total cost can escalate significantly. Effective oversight, including detailed monitoring of labor hours, rigorous review of material costs, and clear definition of the 'level of effort' required, is crucial to mitigate these risks and ensure the government receives good value for its investment.

What is the justification for awarding this contract on a sole-source basis?

The provided data states the contract was 'NOT COMPETED UNDER SAP' and implies a sole-source award. Federal regulations permit sole-source awards under specific circumstances, such as when only one responsible source can satisfy the agency's needs, or in cases of urgent and compelling need. For a BPA Call, it might also be that the underlying BPA itself was established through competition, and this specific call order is placed under terms that limit further competition, perhaps due to unique requirements or existing relationships. Without the official justification document (e.g., a Justification and Approval - J&A), the precise reason remains unknown, but it signifies that the agency determined competitive procedures were not feasible or appropriate in this instance.

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

Guidehouse, LLP is a well-established federal contractor with a significant presence across various government agencies, including the Department of State. They provide a wide range of consulting services, often in areas such as financial management, technology modernization, and program support. Their track record typically includes numerous contract awards, some of which may have been sole-source or competed. While specific performance details for past contracts are not provided here, their continued engagement with agencies like the State Department suggests a generally satisfactory performance history, though like any large contractor, they may have faced scrutiny or challenges on specific engagements.

How does this contract fit into the broader landscape of federal spending on management consulting services?

This $8.3 million BPA Call fits within the substantial federal spending on management and professional services, which often exceeds tens of billions of dollars annually. Agencies like the Department of State rely heavily on external expertise for program management, strategic planning, and operational efficiency, especially given the complexity and global reach of their missions. This contract represents a specific instance of that broader trend, focusing on providing skilled personnel to support ongoing program management. It is one of many such awards that collectively enable federal agencies to execute their mandates effectively, though the efficiency and value derived can vary significantly based on procurement practices and contract oversight.

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: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

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: $8,601,385

Exercised Options: $8,601,385

Current Obligation: $8,300,916

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 19AQMM19A0281

IDV Type: BPA

Timeline