SBA's $33.6M COVID EIDL Call Center Contract Awarded to Guidehouse LLP

Contract Overview

Contract Amount: $33,633,886 ($33.6M)

Contractor: Guidehouse LLP

Awarding Agency: Small Business Administration

Start Date: 2021-12-31

End Date: 2022-08-26

Contract Duration: 238 days

Daily Burn Rate: $141.3K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COVID EIDL CALL CENTER CUSTOMER SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20416

State: District of Columbia Government Spending

Plain-Language Summary

Small Business Administration obligated $33.6 million to GUIDEHOUSE LLP for work described as: COVID EIDL CALL CENTER CUSTOMER SUPPORT Key points: 1. Contract awarded for essential COVID EIDL customer support. 2. Guidehouse LLP secured the contract. 3. The contract was not competed, raising potential value concerns. 4. Spending is within the 'Other Professional, Scientific, and Technical Services' sector.

Value Assessment

Rating: questionable

The contract value of $33.6M for 238 days of support is substantial. Without competitive bidding, it's difficult to benchmark pricing against similar services, suggesting potential overpayment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for a significant contract value means taxpayers may not have received the best possible price for these critical support services.

Public Impact

Essential support for small businesses impacted by COVID-19. Ensures continued access to critical EIDL program information and assistance. Potential for taxpayer funds to be used inefficiently due to non-competitive award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High contract value
Potential for cost overruns

Positive Signals

Provides critical support during a national crisis
Timely award to meet urgent needs

Sector Analysis

The 'All Other Professional, Scientific, and Technical Services' sector is broad. Benchmarking is difficult without specific service comparisons, but $33.6M for customer support is a significant investment.

Small Business Impact

This contract was awarded to Guidehouse LLP, a large business. There is no indication of small business participation or subcontracting in the provided data.

Oversight & Accountability

The non-competitive nature of this award warrants close oversight to ensure the SBA is receiving fair value and that funds are being used effectively for the intended purpose.

Related Government Programs

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

Risk Flags

Sole-source award lacks transparency and competitive pricing.
High dollar value raises concerns about potential overspending.
Absence of small business participation noted.
Performance metrics and oversight details are not provided.

Frequently Asked Questions

What is this federal contract paying for?

Small Business Administration awarded $33.6 million to GUIDEHOUSE LLP. COVID EIDL CALL CENTER CUSTOMER SUPPORT

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 $33.6 million.

What is the period of performance?

Start: 2021-12-31. End: 2022-08-26.

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

The justification for a sole-source award typically involves a critical need, lack of available sources, or urgency that precludes a competitive process. For the COVID EIDL program, the unprecedented demand and rapid response required may have led the SBA to select a known entity to ensure immediate service delivery, though this should be thoroughly documented and justified.

What are the specific performance metrics and service level agreements for this contract?

Detailed performance metrics and service level agreements are crucial for assessing the effectiveness of this call center contract. Without them, it's challenging to determine if Guidehouse LLP is meeting the SBA's needs efficiently and providing high-quality customer support to EIDL applicants. These metrics should cover response times, resolution rates, and customer satisfaction.

How does the cost per contact compare to industry benchmarks for similar government support services?

Benchmarking the cost per contact is essential for evaluating the value for money. Given the $33.6M contract value and 238-day duration, calculating this metric and comparing it to industry standards for government call centers or customer support services would reveal potential inefficiencies or cost savings opportunities.

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: $37,348,174

Exercised Options: $33,633,886

Current Obligation: $33,633,886

Actual Outlays: $33,633,886

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 73351020D0002

IDV Type: IDC

Timeline