VA awards $33.4M BPA Call Order for health system optimization to Guidehouse LLP

Contract Overview

Contract Amount: $33,406,716 ($33.4M)

Contractor: Guidehouse LLP

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-11-09

End Date: 2024-09-30

Contract Duration: 1,056 days

Daily Burn Rate: $31.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BLANKET PURCHASE AGREEMENT - MARKET AREA HEALTH SYSTEM OPTIMIZATION CALL ORDER 6

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $33.4 million to GUIDEHOUSE LLP for work described as: BLANKET PURCHASE AGREEMENT - MARKET AREA HEALTH SYSTEM OPTIMIZATION CALL ORDER 6 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract's duration of over 3 years indicates a significant, ongoing need for services. 3. Focus on administrative management and general management consulting services points to strategic support. 4. The firm-fixed-price contract type shifts performance risk to the contractor. 5. Awarded by the Department of Veterans Affairs, highlighting a focus on healthcare system improvement. 6. The contract value of $33.4M represents a substantial investment in consulting services.

Value Assessment

Rating: good

The contract value of $33.4 million for administrative management and general management consulting services appears reasonable given the multi-year duration and the nature of optimization services for a large agency like the VA. Benchmarking against similar large-scale consulting contracts for federal health systems would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for the government when scope is well-defined, as it caps costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the competitive nature of the award suggests that the VA sought to leverage market forces to obtain the best value. This approach typically leads to more competitive pricing and a wider range of potential solutions.

Taxpayer Impact: A full and open competition generally benefits taxpayers by promoting a fair marketplace, encouraging multiple vendors to offer their best pricing and innovative solutions, which can lead to cost savings and higher quality services.

Public Impact

Veterans will benefit from optimized health system operations, potentially leading to improved access to care and service delivery. The Department of Veterans Affairs gains strategic support for managing and improving its complex healthcare infrastructure. The contract's impact is primarily national, given the VA's scope, with potential localized benefits in areas where optimization efforts are focused. The contract supports the professional services sector, likely involving management consultants and subject matter experts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or KPIs makes it difficult to assess the effectiveness of the optimization efforts.
The broad scope of 'health system optimization' could lead to scope creep if not tightly managed.
Reliance on a single BPA call order for a significant portion of optimization services may limit flexibility if needs change rapidly.

Positive Signals

Awarded through full and open competition, suggesting a robust vetting of potential contractors.
Firm-fixed-price contract type aligns incentives for the contractor to deliver within budget.
Long contract duration allows for sustained focus on complex optimization challenges.
The contractor, Guidehouse LLP, has experience in government consulting, potentially bringing valuable expertise.

Sector Analysis

This contract falls within the professional services sector, specifically management and administrative consulting. The federal government is a significant consumer of these services, particularly within large agencies like the Department of Veterans Affairs, to improve efficiency, manage complex operations, and implement strategic initiatives. The market for such services is competitive, with numerous firms vying for federal contracts. Comparable spending benchmarks would involve looking at other large-scale consulting engagements for federal agencies focused on operational efficiency and system modernization.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. However, the prime contractor, Guidehouse LLP, may choose to subcontract portions of this work to small businesses as part of their overall business strategy, which could provide opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officer and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

VA Healthcare System Modernization Programs
Federal Management Consulting Services
Healthcare Operations Improvement Contracts
Strategic Planning and Advisory Services for Federal Agencies

Risk Flags

Potential for scope creep due to broad optimization mandate.
Risk of quality compromise under firm-fixed-price if not closely monitored.
Dependence on a single BPA call order for critical optimization functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $33.4 million to GUIDEHOUSE LLP. BLANKET PURCHASE AGREEMENT - MARKET AREA HEALTH SYSTEM OPTIMIZATION CALL ORDER 6

Who is the contractor on this award?

The obligated recipient is GUIDEHOUSE LLP.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $33.4 million.

What is the period of performance?

Start: 2021-11-09. End: 2024-09-30.

What specific health system optimization initiatives are being undertaken under this contract?

The contract details, 'BLANKET PURCHASE AGREEMENT - MARKET AREA HEALTH SYSTEM OPTIMIZATION CALL ORDER 6,' suggest a broad mandate for improving the VA's health system operations. Specific initiatives are not detailed in the provided data but likely encompass areas such as patient flow, resource allocation, administrative process streamlining, technology integration, and overall operational efficiency within designated market areas of the VA healthcare system. Further details would typically be found in the Statement of Work (SOW) or Performance Work Statement (PWS) associated with the BPA call order, outlining the precise objectives, deliverables, and performance metrics.

How does the $33.4 million contract value compare to similar health system optimization contracts within the federal government?

Without specific details on the scope and duration of comparable contracts, a precise comparison is challenging. However, $33.4 million over approximately three years (November 2021 to September 2024) for a large federal agency like the VA suggests a significant engagement. Large-scale consulting projects for federal health systems can range from tens to hundreds of millions of dollars, depending on the complexity, number of facilities involved, and the depth of analysis and implementation required. The value appears within a reasonable range for a multi-year, comprehensive optimization effort for a major agency, assuming the scope is appropriately defined and managed.

What are the key performance indicators (KPIs) used to measure the success of this health system optimization contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for health system optimization, KPIs would focus on measurable improvements in areas such as patient wait times, appointment availability, operational costs per patient, staff efficiency, patient satisfaction scores, and the successful implementation of new processes or technologies. The effectiveness of the contract would be assessed against these metrics, which should be clearly defined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS) and monitored by the VA's contracting officer's representative (COR).

What is Guidehouse LLP's track record with the Department of Veterans Affairs and similar federal health contracts?

Guidehouse LLP is a known entity in the federal contracting space, with a history of providing consulting services to various government agencies, including the Department of Veterans Affairs. They have experience in areas such as financial management, technology modernization, and program management. Their work with the VA likely includes supporting various initiatives aimed at improving healthcare delivery and administrative processes. A deeper dive into their contract history with the VA and other health-focused agencies would reveal the specific types and scale of projects they have undertaken, providing further insight into their capabilities and performance in this domain.

What is the potential risk associated with the firm-fixed-price contract type for this optimization effort?

The firm-fixed-price (FFP) contract type places the primary risk of cost overruns on the contractor, Guidehouse LLP. This is generally advantageous for the government as it provides cost certainty. However, for complex optimization efforts where the scope might evolve or unforeseen challenges arise, there's a risk that the contractor might cut corners to maintain profitability, potentially impacting the quality or comprehensiveness of the services delivered. Effective oversight by the VA is crucial to ensure that the contractor meets all performance requirements despite the FFP structure.

How has spending on administrative management and general management consulting services by the VA trended over the past five years?

Analyzing the VA's spending trends on administrative management and general management consulting services (NAICS code 541611) over the past five years would provide valuable context. While specific historical data for the VA is not provided here, federal agencies often increase spending on consulting services during periods of transformation, efficiency drives, or when facing complex challenges like modernizing large systems. A trend analysis would reveal if this $33.4 million award represents a significant increase or a continuation of established spending patterns for such services within the VA.

Industry Classification

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

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Peraton Technology Services Inc.

Address: 1800 TYSONS BLVD FL 7, 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: $57,725,520

Exercised Options: $33,406,716

Current Obligation: $33,406,716

Actual Outlays: $1,950,266

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C10F19A0001

IDV Type: BPA

Timeline