HHS awards $2.6M contract for administrative management consulting services to Guidehouse LLP

Contract Overview

Contract Amount: $2,644,540 ($2.6M)

Contractor: Guidehouse LLP

Awarding Agency: Department of Health and Human Services

Start Date: 2022-12-28

End Date: 2026-12-27

Contract Duration: 1,460 days

Daily Burn Rate: $1.8K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: OFR HYPERION BUDGET PLANNING

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.6 million to GUIDEHOUSE LLP for work described as: OFR HYPERION BUDGET PLANNING Key points: 1. Contract awarded for administrative management and general management consulting services. 2. The contract has a duration of 1460 days, spanning from late 2022 to late 2026. 3. The award was made under the GSA Federal Supply Schedule (FSS) for IT Professional Services. 4. The contractor, Guidehouse LLP, is a well-established firm in the consulting space. 5. The contract type is labor hours, indicating payment based on hours worked. 6. The agency is the Department of Health and Human Services (HHS), specifically the Centers for Disease Control and Prevention (CDC).

Value Assessment

Rating: good

The contract value of $2.6 million for a four-year period for administrative management consulting services appears reasonable given the scope and duration. Benchmarking against similar contracts for management consulting at the federal level suggests that pricing for labor hour contracts can vary significantly based on skill sets and experience. Without specific details on the labor categories and rates, a precise value-for-money assessment is challenging, but the overall award amount does not immediately raise concerns for a contract of this nature and duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under SAP (Simplified Acquisition Procedures), which typically implies a full and open competition for awards below certain thresholds, or it could indicate a limited competition if specific criteria were met. The number of bidders is not specified, but the use of SAP suggests an effort to streamline the acquisition process. The level of competition, while not explicitly detailed, is presumed to be adequate for this contract size, aiming to achieve fair and reasonable pricing.

Taxpayer Impact: The use of competitive procedures, even under SAP, is intended to ensure that taxpayer funds are used efficiently and that the government obtains services at the best possible price.

Public Impact

The Centers for Disease Control and Prevention (CDC) will benefit from enhanced administrative management and general management consulting services. These services are expected to support the operational efficiency and effectiveness of the CDC's programs. The geographic impact is primarily within the United States, supporting federal agency operations. The contract may indirectly impact the federal workforce by providing support for management functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the deliverables and performance metrics makes it difficult to fully assess the contractor's performance potential.
The labor hour contract type can sometimes lead to cost overruns if not managed diligently, requiring strong oversight.

Positive Signals

Award to Guidehouse LLP, a reputable consulting firm with a track record in government contracting.
The contract is competed, suggesting a degree of market vetting and potential for competitive pricing.
The contract duration of four years provides stability for the agency to implement consulting recommendations.

Sector Analysis

The administrative management and general management consulting services sector is a significant part of the federal procurement landscape, supporting various agencies in optimizing their operations. This contract falls within the professional services category, which is characterized by a wide range of specialized expertise. Comparable spending benchmarks for consulting services vary greatly depending on the specific services required, the duration of the engagement, and the level of expertise involved. The federal government consistently procures these types of services to improve efficiency and effectiveness across its various departments and agencies.

Small Business Impact

There is no indication that this contract included a small business set-aside. As such, the primary contractor is Guidehouse LLP, a large business. There is no specific information provided regarding subcontracting plans or implications for the small business ecosystem. Future analysis could explore whether subcontracting opportunities are anticipated or required.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the CDC. Performance monitoring, invoice review, and adherence to contract terms are standard accountability measures. Transparency is generally maintained through contract databases like FPDS, which provide basic award information. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Management and Financial Consulting, Acquisition and Grants, and Strategic Planning Services
Professional, Scientific, and Technical Services
Government-wide Acquisition Contracts (GWACs)
Federal Supply Schedule (FSS) Contracts

Risk Flags

Potential for cost overruns due to labor-hour contract type if not closely managed.
Scope creep risk without clear definition of deliverables and milestones.
Dependence on contractor expertise requires strong government oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.6 million to GUIDEHOUSE LLP. OFR HYPERION BUDGET PLANNING

Who is the contractor on this award?

The obligated recipient is GUIDEHOUSE LLP.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $2.6 million.

What is the period of performance?

Start: 2022-12-28. End: 2026-12-27.

What is Guidehouse LLP's track record with the federal government, particularly with HHS and CDC?

Guidehouse LLP has a significant track record of contracting with the federal government across various agencies, including the Department of Health and Human Services (HHS) and its sub-agencies like the Centers for Disease Control and Prevention (CDC). Their experience spans a wide range of professional services, including management consulting, IT support, and financial advisory. Reviewing past performance evaluations and contract histories within the Federal Procurement Data System (FPDS) would provide a more detailed understanding of their performance on similar engagements. Their established presence suggests familiarity with federal acquisition regulations and operational requirements, which is generally a positive indicator for contract execution.

How does the $2.6 million award compare to similar administrative management consulting contracts awarded by HHS or CDC?

Comparing the $2.6 million award for administrative management consulting services to similar contracts requires access to detailed data on contract scope, duration, and labor rates. However, for a four-year contract (2022-2026) supporting a major agency like the CDC, this value appears within a reasonable range for professional services. Federal consulting contracts can vary widely in price based on the complexity of the issues addressed, the level of expertise required, and the specific deliverables. Without more granular information on the specific tasks and personnel involved, a precise benchmark is difficult, but the overall value does not immediately suggest overpricing when considering the duration and agency.

What are the primary risks associated with this type of labor-hour contract for administrative consulting?

The primary risks associated with a labor-hour contract for administrative consulting revolve around cost control and performance management. Since payment is based on the hours worked by contractor personnel, there is a risk of cost overruns if the project scope expands or if contractor efficiency is lower than anticipated. Effective risk mitigation requires robust oversight from the government, including detailed tracking of hours, regular performance reviews, and clear communication regarding project objectives and any scope changes. The agency must ensure that the contractor's efforts are directly aligned with the contract's goals and that the work performed provides demonstrable value.

What is the expected impact of these consulting services on the CDC's operational effectiveness?

The expected impact of these administrative management and general management consulting services on the CDC's operational effectiveness is anticipated to be positive, focusing on improving efficiency, streamlining processes, and potentially enhancing strategic planning. The specific impact will depend on the areas targeted by the consulting engagement, which could include organizational structure, workflow optimization, resource allocation, or policy development. By leveraging external expertise, the CDC aims to identify areas for improvement, implement best practices, and ultimately strengthen its capacity to fulfill its public health mission. The success will be measured by the tangible improvements achieved in the targeted operational areas.

What has been the historical spending trend for administrative management consulting services at HHS over the past five years?

Analyzing historical spending trends for administrative management consulting services at HHS over the past five years would reveal the agency's consistent reliance on external expertise to support its vast operations. While specific figures for this contract category are not provided here, federal agencies, including HHS, generally allocate significant budgets to professional services to address complex challenges, implement new initiatives, and improve internal processes. Trends may show an increase in spending if new programs were launched or existing ones expanded, or a decrease due to budget constraints or shifts in procurement strategies. Understanding these trends provides context for the current award and its place within the agency's overall procurement strategy.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 75D301-22-Q-75822

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Veritas Capital Fund Management, L.L.C.

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: $3,239,137

Exercised Options: $2,644,540

Current Obligation: $2,644,540

Actual Outlays: $2,049,942

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 75D30121A10022

IDV Type: BPA

Timeline