SBA's $42.5M Task Order to Guidehouse LLP for COVID-19 Eligibility Support Raises Concerns Over Competition and Value

Contract Overview

Contract Amount: $42,465,372 ($42.5M)

Contractor: Guidehouse LLP

Awarding Agency: Small Business Administration

Start Date: 2020-07-01

End Date: 2021-06-30

Contract Duration: 364 days

Daily Burn Rate: $116.7K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TASK 2, 73351020D0002 IDIQ, COVID 19 EMERGENCY, PPP LOAN AND FORGIVENESS ELIGIBILITY RISKS/EXCEPTIONS SUPPORT SERVICES

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Small Business Administration obligated $42.5 million to GUIDEHOUSE LLP for work described as: TASK 2, 73351020D0002 IDIQ, COVID 19 EMERGENCY, PPP LOAN AND FORGIVENESS ELIGIBILITY RISKS/EXCEPTIONS SUPPORT SERVICES Key points: 1. The contract awarded to Guidehouse LLP for $42.5 million focuses on critical COVID-19 emergency support, specifically PPP loan and forgiveness eligibility. 2. Competition was limited, as the contract was 'NOT COMPETED', raising questions about price discovery and potential value for taxpayer dollars. 3. The service category, 'All Other Professional, Scientific, and Technical Services', is broad, making direct cost comparisons challenging. 4. The contract was awarded as a delivery order under an IDIQ, but the specific IDIQ vehicle's competition status is not detailed here.

Value Assessment

Rating: questionable

The total award of $42.5 million for 364 days of service is substantial. Without a competitive bidding process, it's difficult to assess if this price represents fair market value compared to similar support services contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was 'NOT COMPETED', indicating a sole-source or limited competition award. This lack of competition limits the government's ability to secure the best possible pricing and may lead to higher costs for taxpayers.

Taxpayer Impact: The absence of competition suggests that taxpayers may not have received the most cost-effective solution for these essential COVID-19 support services.

Public Impact

Essential support for the Paycheck Protection Program (PPP) during a national emergency. Services provided by Guidehouse LLP aimed to ensure proper eligibility for loan and forgiveness. Potential for increased taxpayer burden due to non-competitive award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High dollar value for a single task order
Broad service category

Positive Signals

Addresses critical COVID-19 emergency needs
Provided by a known entity (Guidehouse LLP)

Sector Analysis

The 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) sector is diverse. Spending benchmarks are difficult to establish without more specific service details, but large contracts in this area often involve complex analysis and advisory roles.

Small Business Impact

The contract was not awarded to a small business (ss=false, sb=false). This means that opportunities for small business participation in providing these critical COVID-19 support services were not prioritized in this specific award.

Oversight & Accountability

The award was made by the Small Business Administration (SBA) to Guidehouse LLP. Oversight would typically involve monitoring the performance of the contract against its stated objectives and ensuring adherence to the firm-fixed-price terms.

Related Government Programs

All Other Professional, Scientific, and Technical Services
Small Business Administration Contracting
Small Business Administration Programs

Risk Flags

Lack of competitive bidding
Potential for overpayment due to non-competition
No small business participation
Broad service category lacks specificity
Unclear taxpayer value proposition

Frequently Asked Questions

What is this federal contract paying for?

Small Business Administration awarded $42.5 million to GUIDEHOUSE LLP. TASK 2, 73351020D0002 IDIQ, COVID 19 EMERGENCY, PPP LOAN AND FORGIVENESS ELIGIBILITY RISKS/EXCEPTIONS SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is GUIDEHOUSE LLP.

Which agency awarded this contract?

Awarding agency: Small Business Administration (Small Business Administration).

What is the total obligated amount?

The obligated amount is $42.5 million.

What is the period of performance?

Start: 2020-07-01. End: 2021-06-30.

What was the justification for not competing this significant task order, especially given the urgency of COVID-19 relief efforts?

The justification for not competing this task order is not provided in the data. Typically, non-competitive awards require a documented justification, such as a sole-source justification or an urgent and compelling need that precludes full and open competition. Without this information, it's impossible to assess the validity of the non-competitive approach.

How does the $42.5 million cost compare to the value and impact of the PPP loans and forgiveness processed under this support contract?

The provided data does not include metrics on the value or impact of the PPP loans and forgiveness processed. Therefore, a direct comparison between the contract cost and the financial outcomes it supported cannot be made. Assessing the true value requires understanding the volume of applications handled and the accuracy of eligibility determinations.

What specific risks or exceptions related to PPP loan and forgiveness eligibility did Guidehouse LLP address, and what was the outcome?

The data specifies 'RISKS/EXCEPTIONS SUPPORT SERVICES' but does not detail the specific nature of these risks or exceptions. It also does not provide information on the outcomes of Guidehouse's support. Understanding the complexity of the issues addressed and the success rate of their interventions would be crucial for evaluating the contract's effectiveness.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1800 TYSONS BLVD FL 7, 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: $42,465,372

Exercised Options: $42,465,372

Current Obligation: $42,465,372

Actual Outlays: $42,465,372

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 73351020D0002

IDV Type: IDC

Timeline