VA awards $189M consulting BPA call to Guidehouse LLP for administrative management services

Contract Overview

Contract Amount: $189,337,644 ($189.3M)

Contractor: Guidehouse LLP

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-01-26

End Date: 2026-01-25

Contract Duration: 1,825 days

Daily Burn Rate: $103.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE IS TO FUND AND PLACE CALL 0010.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $189.3 million to GUIDEHOUSE LLP for work described as: THE PURPOSE IS TO FUND AND PLACE CALL 0010. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract's fixed-price nature provides cost certainty for the government. 3. A duration of five years indicates a long-term need for these consulting services. 4. The North American Industry Classification System (NAICS) code 541611 points to general management consulting. 5. The awardee, Guidehouse LLP, is a known entity in the consulting space. 6. The contract is a Blanket Purchase Agreement (BPA) Call, suggesting it's part of a larger framework.

Value Assessment

Rating: good

The contract value of $189.3 million over five years for administrative management consulting services appears reasonable given the scope and duration. Benchmarking against similar large-scale consulting contracts awarded by the VA or other federal agencies for management support would provide a more precise value-for-money assessment. The firm-fixed-price contract type helps manage cost risks for the government, ensuring predictable expenditures.

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 offers. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings. The agency's decision to use full and open competition suggests confidence in the market's ability to provide qualified contractors for these services.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for cost savings through robust price discovery and a wider pool of potential offerors.

Public Impact

The Department of Veterans Affairs (VA) is the primary beneficiary, receiving administrative management and general management consulting services. These services are expected to support the VA's operational efficiency and management functions. The contract's impact is likely concentrated within the VA's administrative infrastructure, potentially affecting various departments and programs. Workforce implications are indirect, primarily supporting existing VA personnel through improved management processes rather than direct hiring.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the BPA call's objectives are not clearly defined and managed.
Reliance on a single contractor for a significant duration could lead to vendor lock-in.
Ensuring consistent quality of consulting services over the five-year period requires diligent oversight.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm-fixed-price contract type provides budget certainty.
Long-term duration allows for sustained support and relationship building.
Contractor has experience in the consulting domain.

Sector Analysis

The administrative management and general management consulting services sector is a significant part of the federal procurement landscape, supporting a wide array of government functions. This contract falls within the professional services category, which is characterized by a large number of firms competing for government work. The VA's spending in this area is consistent with its need for expertise in optimizing complex organizational structures and operations.

Small Business Impact

The provided data indicates that small business participation (sb) is false and there is no small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses, and opportunities for small business subcontracting may be limited unless voluntarily pursued by the prime contractor. Further investigation into Guidehouse LLP's subcontracting plans would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Veterans Affairs. Accountability measures are inherent in the firm-fixed-price structure, tying payment to deliverables. Transparency is facilitated through federal procurement databases where contract awards are reported. The Inspector General's office for the VA may conduct audits or investigations if performance issues or concerns arise.

Related Government Programs

Management and Financial Consulting, Acquisition and Grants Training
Professional, Scientific, and Technical Services
Management Consulting Services
Government-wide Acquisition Contracts (GWACs)

Risk Flags

Long contract duration may increase risk of vendor lock-in.
Lack of specific performance metrics in summary data.
No indication of small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $189.3 million to GUIDEHOUSE LLP. THE PURPOSE IS TO FUND AND PLACE CALL 0010.

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 $189.3 million.

What is the period of performance?

Start: 2021-01-26. End: 2026-01-25.

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

Guidehouse LLP has a notable track record with the Department of Veterans Affairs and other federal agencies, often securing contracts related to management consulting, financial services, and IT modernization. Their experience spans various agencies, including Health and Human Services (HHS), Department of Defense (DoD), and the General Services Administration (GSA). This history suggests familiarity with federal procurement processes and a capacity to deliver complex services. Specific performance metrics and past performance evaluations from previous VA contracts would offer a more granular understanding of their reliability and effectiveness in delivering similar administrative management solutions.

How does the per-hour billing rate for this contract compare to market rates for similar consulting services?

The provided data does not include specific per-hour billing rates, making a direct comparison to market rates impossible. However, the contract is a firm-fixed-price BPA call, meaning the total price is fixed regardless of the hours worked. While this offers cost certainty, it obscures the underlying labor rates. To assess value for money, one would need to analyze the contractor's proposed labor categories, estimated hours, and rates against industry benchmarks for management consulting services, considering factors like experience level, geographic location, and the complexity of the tasks.

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

The specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data. Typically, for administrative management and general management consulting services, KPIs would focus on areas such as efficiency improvements, cost savings achieved, successful implementation of new processes or systems, stakeholder satisfaction, and adherence to project timelines and budgets. The contract's Statement of Work (SOW) would outline these specific metrics and the acceptable performance standards that Guidehouse LLP must meet to fulfill its contractual obligations.

What is the historical spending pattern for administrative management consulting services at the VA?

The Department of Veterans Affairs (VA) consistently spends significant amounts on administrative management and general management consulting services to support its vast operations. Historical data indicates a trend of substantial investment in professional services to enhance efficiency, modernize systems, and improve program delivery. The VA's annual spending on these types of services can fluctuate based on strategic priorities, budget allocations, and specific project needs. This $189 million BPA call represents a notable, but not necessarily unprecedented, investment within this broader spending category.

What is the potential risk associated with the five-year duration of this contract?

The five-year duration of this contract presents several potential risks. Firstly, there's the risk of vendor lock-in, where the VA becomes overly reliant on Guidehouse LLP, potentially diminishing future competition or flexibility. Secondly, the long timeframe increases the possibility of evolving needs or technological advancements that the current contract may not adequately address, requiring costly modifications or new procurements. Lastly, maintaining consistent service quality and contractor performance over an extended period requires robust ongoing oversight and performance management to mitigate risks of complacency or declining effectiveness.

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: 36C10G21Q0013

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: $196,253,206

Exercised Options: $189,378,723

Current Obligation: $189,337,644

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: VA119A16A0014

IDV Type: BPA

Timeline