SBA's $81.5M EIDL Call Center Contract Awarded to Guidehouse Inc. for Pandemic Response

Contract Overview

Contract Amount: $81,523,776 ($81.5M)

Contractor: Guidehouse Inc.

Awarding Agency: Small Business Administration

Start Date: 2022-08-27

End Date: 2023-12-04

Contract Duration: 464 days

Daily Burn Rate: $175.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PANDEMIC RESPONSE CONTINUATION - EIDL CALL CENTER - ATTN L. SADDISON

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 $81.5 million to GUIDEHOUSE INC. for work described as: PANDEMIC RESPONSE CONTINUATION - EIDL CALL CENTER - ATTN L. SADDISON Key points: 1. Contract awarded for essential pandemic response services, focusing on EIDL call center operations. 2. Guidehouse Inc. secured the contract, indicating a need for specialized administrative and management consulting. 3. The contract duration of 464 days suggests a significant, ongoing operational requirement. 4. Fixed-price contract type aims to control costs and provide predictable spending. 5. Awarded by the Small Business Administration, highlighting internal agency support functions. 6. The contract is a delivery order, likely part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The contract value of $81.5 million for a 464-day period represents a substantial investment in call center operations. Benchmarking this against similar large-scale call center support contracts for government agencies would provide a clearer picture of value for money. The firm fixed-price nature suggests cost control is a priority. Without specific performance metrics or comparisons to industry standards for call center operations, a definitive value assessment is challenging, but the scale implies a significant operational need.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers. The fact that Guidehouse Inc. was selected indicates they met the technical and cost requirements better than other potential bidders. Further details on the number of bids received would offer more insight into the intensity of the competition.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment among potential contractors.

Public Impact

Small business owners and individuals seeking Economic Injury Disaster Loans (EIDL) benefit from continued support services. The contract ensures the operational continuity of essential call center functions for pandemic relief programs. Services are delivered primarily within the District of Columbia, the agency's operational hub. The contract supports administrative and management consulting roles, potentially impacting the workforce in these specialized fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs despite fixed-price structure.
Reliance on a single contractor for critical pandemic response support.
Ensuring consistent service quality and agent performance over the contract duration.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Firm fixed-price contract type helps manage budget predictability.
Contract supports vital pandemic relief efforts, aligning with national priorities.

Sector Analysis

This contract falls within the administrative management and general management consulting services sector, specifically supporting government operations. The market for such services is robust, driven by agencies requiring expertise in program management, operational support, and crisis response. The scale of this contract, over $81 million, places it among significant government support service awards. Comparable spending benchmarks would involve looking at other large call center or administrative support contracts awarded by federal agencies during periods of high demand.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'ss': false and 'sb': false. The prime contractor, Guidehouse Inc., is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem through this specific award is likely minimal unless Guidehouse Inc. voluntarily includes small businesses in its subcontracting efforts.

Oversight & Accountability

The Small Business Administration (SBA) is responsible for overseeing this contract. As the awarding agency, they would have established performance standards and monitoring mechanisms. The firm fixed-price nature of the contract provides a degree of financial oversight. Transparency would be enhanced by public reporting of performance metrics and any modifications to the contract. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Economic Injury Disaster Loans (EIDL)
Small Business Administration (SBA) Operations
Pandemic Response Programs
Federal Call Center Services
Administrative Management Consulting

Risk Flags

Contract Duration
Contract Value
Pandemic-Related Spending

Frequently Asked Questions

What is this federal contract paying for?

Small Business Administration awarded $81.5 million to GUIDEHOUSE INC.. PANDEMIC RESPONSE CONTINUATION - EIDL CALL CENTER - ATTN L. SADDISON

Who is the contractor on this award?

The obligated recipient is GUIDEHOUSE INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $81.5 million.

What is the period of performance?

Start: 2022-08-27. End: 2023-12-04.

What is Guidehouse Inc.'s track record with the Small Business Administration and similar federal contracts?

Guidehouse Inc. has a significant track record of performing federal contracts across various agencies, including the Small Business Administration. They specialize in management consulting, technology, and financial services. Their experience often involves large-scale program support, financial management, and operational efficiency improvements. For the SBA, Guidehouse has previously been involved in supporting loan programs and disaster relief efforts. Their ability to secure substantial contracts like this EIDL call center award suggests a strong performance history and established relationship with federal clients, demonstrating capability in managing complex, high-volume operations critical during national emergencies.

How does the cost of this contract compare to similar pandemic response call center operations?

Benchmarking the $81.5 million cost for this 464-day EIDL call center contract against similar pandemic response operations is challenging without access to detailed cost breakdowns and specific service level agreements. However, the scale of the award suggests a significant operational requirement, likely involving a large number of personnel and extensive infrastructure to handle high volumes of inquiries related to disaster loans. Government contracts for call center services can vary widely based on complexity, required expertise, and geographic scope. Given the critical nature of EIDL during the pandemic, the investment reflects the urgency and scale of the need. A more precise comparison would require analyzing the per-call cost, agent utilization rates, and average handling times against industry standards and other government contracts for similar services.

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

Primary risks for this contract include potential cost overruns if the scope expands beyond initial projections, despite the firm fixed-price structure. Ensuring consistent service quality and performance from call center agents over the contract's duration is another key risk, especially given the high-stress environment of pandemic relief. Reliance on a single large contractor for critical support functions also presents a risk if performance falters. Management of these risks is likely addressed through robust oversight by the SBA, clear performance metrics defined in the contract, and regular performance reviews. The firm fixed-price contract itself is a risk mitigation tool for the government, capping the financial exposure. However, contractor performance monitoring remains crucial.

How effective has the EIDL call center been in supporting pandemic relief efforts?

The effectiveness of the EIDL call center, supported by this contract, is crucial for the timely and efficient distribution of pandemic relief funds. Its primary role is to assist applicants with inquiries, application status, and technical issues related to the Economic Injury Disaster Loans. During periods of high demand, such as the height of the pandemic, effective call center operations are vital for ensuring that small businesses and individuals receive the financial assistance they need to survive. While specific performance metrics are not detailed here, the continuation and scale of this contract suggest that the SBA deems these services essential and likely effective in managing the influx of EIDL applications and inquiries.

What are the historical spending patterns for similar SBA call center or administrative support contracts?

Historical spending patterns for similar SBA call center or administrative support contracts would likely show fluctuations tied to economic conditions and federal priorities. During major events like the COVID-19 pandemic, spending on disaster relief programs and associated support services, such as call centers, would surge significantly. Prior to and following such events, spending might be at a lower, more consistent level for routine administrative functions. Analyzing past SBA budgets and contract awards for operational support would reveal trends in investment in these areas. The $81.5 million awarded here represents a substantial increase compared to non-pandemic periods, reflecting the extraordinary demands placed on the SBA.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1676 INTERNATIONAL DR STE 800, MC LEAN, 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: $98,606,101

Exercised Options: $81,523,776

Current Obligation: $81,523,776

Actual Outlays: $81,523,776

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F045DA

IDV Type: FSS

Timeline