VA awards $48.3M for community care program support, with Guidehouse LLP as prime

Contract Overview

Contract Amount: $48,269,061 ($48.3M)

Contractor: Guidehouse LLP

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-09-26

End Date: 2021-01-25

Contract Duration: 487 days

Daily Burn Rate: $99.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VHA COMMUNITY CARE BPA CHOICE PROGRAM IMPLEMENTATION SUPPORT CALL 9

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20420

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $48.3 million to GUIDEHOUSE LLP for work described as: VHA COMMUNITY CARE BPA CHOICE PROGRAM IMPLEMENTATION SUPPORT CALL 9 Key points: 1. Contract value represents a significant investment in supporting the VHA Community Care Program. 2. The award was made under a full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type aims to control costs and provide predictable spending. 4. The duration of the contract (487 days) indicates a medium-term engagement for implementation support. 5. The services procured fall under management consulting, a common area for federal contracting. 6. The prime contractor, Guidehouse LLP, has experience in government contracting.

Value Assessment

Rating: good

The contract value of $48.3 million for approximately 1.5 years of support appears reasonable for a program of this scale. Benchmarking against similar large-scale IT or administrative support contracts within the VA or other large federal agencies would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests an expectation of cost control by the agency. Without specific performance metrics or detailed cost breakdowns, a definitive value assessment is challenging, but the award under full competition implies a degree of market validation.

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 bids. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The agency likely sought proposals that demonstrated the best value, considering both technical approach and cost.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it maximizes the potential for competitive pricing and encourages a wider range of contractors to participate, potentially leading to cost savings.

Public Impact

Veterans will benefit from improved implementation and support of the VHA Community Care Program, potentially leading to more efficient access to healthcare services. The contract supports administrative management and general management consulting services critical for program operations. The primary geographic impact is likely nationwide, given the scope of the VHA Community Care Program. The contract may have implications for the workforce involved in program implementation and support, both within the VA and at the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if program requirements evolve significantly during the contract period.
Dependence on contractor expertise could create knowledge transfer challenges if not managed proactively.
Ensuring consistent quality of consulting services across the contract duration requires robust oversight.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely yielded fair market pricing.
Firm-fixed-price contract type provides cost certainty for the government.
Contractor, Guidehouse LLP, has a track record in government contracting, implying familiarity with federal requirements.

Sector Analysis

The healthcare sector, particularly within the federal government, relies heavily on consulting services for program management, IT implementation, and administrative support. The VHA Community Care Program is a critical initiative aimed at expanding healthcare access for veterans. This contract fits within the broader trend of federal agencies outsourcing specialized management and administrative functions to private sector firms to enhance program efficiency and effectiveness. Comparable spending in this area can vary widely based on program complexity and duration, but multi-million dollar awards for large-scale program support are common.

Small Business Impact

The provided data does not indicate any specific small business set-asides or subcontracting requirements for this BPA Call. As it was awarded under full and open competition, it is possible that small businesses could have bid directly or participated as subcontractors. Further analysis would be needed to determine the extent of small business participation and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is generally facilitated through contract award databases like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

VHA Community Care Program
Veterans Health Administration
Healthcare IT Services
Management and Consulting Services
Federal Acquisition Regulation (FAR)

Risk Flags

Potential for performance issues if contractor expertise does not fully align with program needs.
Risk of cost overruns if contract scope is not tightly managed.
Dependency on contractor for critical implementation tasks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $48.3 million to GUIDEHOUSE LLP. VHA COMMUNITY CARE BPA CHOICE PROGRAM IMPLEMENTATION SUPPORT CALL 9

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 $48.3 million.

What is the period of performance?

Start: 2019-09-26. End: 2021-01-25.

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

Guidehouse LLP, formerly Navigant Consulting, has a significant history of contracting with federal agencies, including the Department of Veterans Affairs (VA). They have been awarded numerous contracts across various domains, including healthcare consulting, IT modernization, and program management support. For the VA specifically, Guidehouse has been involved in projects related to electronic health records, patient access initiatives, and administrative process improvements. Their experience often involves large-scale transformations and support for complex healthcare delivery systems. Benchmarking their performance on similar VA contracts, particularly those involving community care or program implementation, would provide insight into their reliability and effectiveness in delivering services within the specified budget and timeline. A review of past performance evaluations and any contract disputes or terminations would further illuminate their track record.

How does the $48.3 million contract value compare to similar VHA community care implementation support contracts?

The $48.3 million award for Guidehouse LLP's support of the VHA Community Care Program Implementation Support Call 9, spanning approximately 1.5 years, represents a substantial investment. To benchmark this value, one would ideally compare it to other large-scale consulting or implementation support contracts awarded by the VHA or other federal healthcare agencies for similar programs. Factors such as the scope of services (e.g., IT integration, process redesign, change management), the duration of the contract, and the complexity of the program being supported are crucial for a fair comparison. Without access to a comprehensive database of comparable contracts with detailed service descriptions and pricing, a precise benchmark is difficult. However, contracts of this magnitude often indicate a significant undertaking requiring specialized expertise and extensive resources over a considerable period.

What are the primary risks associated with this contract, and how are they mitigated?

Primary risks associated with this contract could include scope creep, where program requirements expand beyond the initial agreement, leading to cost overruns or schedule delays. Another risk is the potential for inadequate performance or failure to meet key deliverables, impacting the effectiveness of the VHA Community Care Program. Dependence on contractor expertise could also pose a risk if knowledge transfer to VA staff is insufficient. Mitigation strategies typically involve robust contract management, including clear definition of scope, regular performance reviews, defined key performance indicators (KPIs), and change control processes. The firm-fixed-price nature of the contract inherently shifts some financial risk to the contractor. The VA's oversight mechanisms, including regular reporting requirements and potential for contract modifications or termination for default, also serve as risk mitigation tools.

What is the expected impact of this contract on the effectiveness and efficiency of the VHA Community Care Program?

This contract is intended to enhance the effectiveness and efficiency of the VHA Community Care Program by providing specialized implementation support. The consulting services procured likely focus on optimizing program operations, improving data management, facilitating integration with existing VA systems, and ensuring compliance with regulatory requirements. By leveraging Guidehouse LLP's expertise, the VA aims to streamline the rollout and ongoing management of community care services, potentially leading to improved veteran access to care, reduced administrative burdens, and better coordination between VA facilities and external providers. The success of the program's implementation directly influences its ability to meet veterans' healthcare needs effectively and efficiently.

How has federal spending on administrative management and general management consulting services evolved, and where does this contract fit?

Federal spending on administrative management and general management consulting services has historically been substantial, reflecting the government's reliance on external expertise to manage complex programs, improve efficiency, and implement new technologies or policies. This sector often sees significant investment during periods of government reform, technological advancement, or when agencies undertake large-scale modernization efforts. This $48.3 million contract for the VHA Community Care Program fits within this trend, representing a significant allocation towards ensuring the successful implementation and operation of a critical healthcare initiative. It underscores the ongoing need for specialized consulting support within large federal agencies to navigate intricate operational challenges and achieve strategic objectives.

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: 36C10X19Q0233

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pricewaterhousecoopers Public Sector LLP (UEI: 791716954)

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: $48,269,061

Exercised Options: $48,269,061

Current Obligation: $48,269,061

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: VA119A16A0014

IDV Type: BPA

Timeline