DOE awards $103.5M contract for appliance standards analysis, highlighting administrative management consulting needs

Contract Overview

Contract Amount: $103,496,499 ($103.5M)

Contractor: Guidehouse Inc.

Awarding Agency: Department of Energy

Start Date: 2021-11-30

End Date: 2027-11-30

Contract Duration: 2,191 days

Daily Burn Rate: $47.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: APPLIANCE STANDARDS ANALYSIS AND REGULATORY SUPPORT SERVICE (ASARSS)

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Energy obligated $103.5 million to GUIDEHOUSE INC. for work described as: APPLIANCE STANDARDS ANALYSIS AND REGULATORY SUPPORT SERVICE (ASARSS) Key points: 1. Contract value of $103.5M over 5 years indicates significant investment in regulatory support. 2. Full and open competition suggests a healthy market for these specialized consulting services. 3. The contract's duration and scope point to ongoing, complex analytical requirements. 4. Focus on administrative management and general management consulting aligns with agency operational needs. 5. The award to Guidehouse Inc. represents a substantial single-contract award in this domain. 6. The absence of small business set-aside suggests the primary contractor is likely a large business.

Value Assessment

Rating: good

The contract's value of $103.5 million over approximately five years for administrative management and general management consulting services appears reasonable given the scope of regulatory support and analysis required. Benchmarking against similar large-scale consulting contracts for federal agencies suggests this pricing is within expected ranges for comprehensive analytical and advisory services. The specific nature of appliance standards analysis and regulatory support implies a need for specialized expertise, which can command higher rates. Without detailed breakdowns of labor categories and hours, a precise value-for-money assessment is challenging, but the overall investment aligns with the complexity of the task.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors were likely solicited and had the opportunity to bid. The specific number of bidders is not provided, but the designation suggests a competitive process that allowed for a broad range of potential contractors to participate. This approach is generally favored to ensure the government receives the best possible value by leveraging market competition.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through a competitive bidding process, ensuring that the government is not overpaying for services and that the most cost-effective solutions are considered.

Public Impact

The Department of Energy benefits from expert analysis to inform regulatory decisions on appliance energy efficiency standards. Consumers and the environment are indirectly impacted through the development of more energy-efficient appliances. The contract supports federal efforts to reduce energy consumption and greenhouse gas emissions. Workforce implications include the need for specialized analysts, researchers, and consultants within the contractor organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if regulatory requirements evolve significantly during the contract period.
Reliance on a single large contractor may limit opportunities for smaller, specialized firms.
Ensuring continued access to up-to-date technical expertise in a rapidly evolving appliance market.

Positive Signals

Award through full and open competition suggests a robust selection process and potential for competitive pricing.
Long-term contract duration provides stability and continuity for critical regulatory analysis.
The contractor, Guidehouse Inc., likely possesses established expertise in management consulting and regulatory support.

Sector Analysis

The administrative management and general management consulting services sector is a significant component of the federal contracting landscape, supporting a wide array of agency functions. This contract, valued at over $100 million, falls within the upper tier of consulting awards. It aligns with the government's ongoing need for specialized expertise in areas like regulatory analysis, policy development, and program management. Comparable spending benchmarks for large federal consulting contracts often range from tens to hundreds of millions of dollars, depending on the duration and complexity of the services required.

Small Business Impact

The contract data indicates that this was not a small business set-aside, and the prime contractor is Guidehouse Inc., a large business. This suggests that small businesses are unlikely to be directly involved as prime contractors on this specific award. However, there may be opportunities for small businesses to participate as subcontractors to Guidehouse Inc., depending on the contractor's subcontracting plan and the specific needs of the project. The absence of a set-aside means the primary focus was on obtaining the best overall solution, rather than specifically promoting small business participation at the prime level.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Energy's contracting officers and program managers. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and approving deliverables. Transparency is facilitated through contract award databases and public reporting mechanisms. While specific Inspector General (IG) jurisdiction is not detailed here, the DOE Office of Inspector General typically has oversight over agency spending and contract performance to detect and prevent fraud, waste, and abuse.

Related Government Programs

Energy Efficiency and Conservation Block Grant Program
Appliance and Equipment Standards Program
Federal Energy Management Program
Environmental Protection Agency (EPA) Regulatory Support Contracts

Risk Flags

Contract duration exceeds typical shorter-term analytical needs.
Large contract value may indicate significant complexity or broad scope.
Potential for contractor lock-in due to specialized knowledge requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $103.5 million to GUIDEHOUSE INC.. APPLIANCE STANDARDS ANALYSIS AND REGULATORY SUPPORT SERVICE (ASARSS)

Who is the contractor on this award?

The obligated recipient is GUIDEHOUSE INC..

Which agency awarded this contract?

Awarding agency: Department of Energy (Department of Energy).

What is the total obligated amount?

The obligated amount is $103.5 million.

What is the period of performance?

Start: 2021-11-30. End: 2027-11-30.

What is Guidehouse Inc.'s track record with federal contracts, particularly in regulatory support and energy policy?

Guidehouse Inc. has a substantial history of federal contracting across various agencies, including significant work with the Department of Energy. Their expertise often spans management consulting, technology solutions, and program support. Within the energy sector, they have been involved in projects related to energy efficiency, renewable energy, grid modernization, and regulatory compliance. Their track record includes supporting policy development, data analysis, and implementation strategies for federal energy initiatives. This specific contract for appliance standards analysis and regulatory support aligns well with their demonstrated capabilities and past performance in similar complex analytical and advisory roles for government clients. Their experience suggests a capacity to handle the scope and technical demands of this significant award.

How does the $103.5 million contract value compare to similar federal contracts for regulatory analysis and consulting services?

The $103.5 million contract value over approximately five years places this award in the category of significant federal consulting engagements. When compared to similar contracts for comprehensive regulatory analysis, policy support, and management consulting services across various federal agencies, this amount is substantial but not unprecedented. Large-scale, multi-year contracts for specialized expertise, particularly in complex technical or regulatory domains like energy standards, often reach or exceed this valuation. For instance, contracts supporting environmental regulations, healthcare policy analysis, or defense program management can similarly involve expenditures in the tens to hundreds of millions of dollars. The value reflects the duration, the depth of analysis required, the specialized knowledge needed, and the potential impact of the regulatory outcomes.

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

Key risks for this contract include the potential for evolving regulatory landscapes that could necessitate scope adjustments, leading to cost overruns or schedule delays. Another risk is the contractor's ability to maintain a high level of specialized expertise throughout the contract's duration, especially in rapidly advancing appliance technologies. Mitigations could involve robust contract management with clear change control processes, regular performance reviews, and proactive engagement with the contractor to anticipate and address potential knowledge gaps. Ensuring the contractor maintains access to subject matter experts and invests in continuous learning will be crucial. Furthermore, the government's clear definition of requirements and performance metrics will help manage expectations and performance.

How effective is the Department of Energy likely to be in achieving its objectives for appliance standards analysis with this contract?

The Department of Energy is likely to be effective in achieving its objectives, given the contract's full and open competition award, suggesting a competitive selection process that favored a capable vendor. The substantial value ($103.5M) indicates a significant commitment of resources, allowing for in-depth analysis and comprehensive regulatory support. The long duration (approx. 5 years) provides continuity for complex, long-term analytical tasks. Guidehouse Inc.'s presumed expertise in management consulting and regulatory support further bolsters the likelihood of success. Effectiveness will hinge on clear tasking, diligent oversight by DOE program managers, and the contractor's ability to deliver high-quality, data-driven insights that inform sound regulatory decisions, ultimately contributing to energy efficiency goals.

What are the historical spending patterns for similar administrative management and consulting services at the Department of Energy?

Historical spending patterns for administrative management and general management consulting services at the Department of Energy (DOE) show a consistent need for external expertise to support various agency functions, including policy analysis, regulatory development, and program management. While specific figures fluctuate annually based on agency priorities and budget allocations, DOE regularly awards multi-million dollar contracts in this category. These contracts often support critical initiatives such as energy efficiency standards, grid modernization, research and development program oversight, and environmental compliance. The $103.5 million awarded for appliance standards analysis represents a significant, but not anomalous, investment within the broader context of DOE's reliance on specialized consulting services to achieve its complex energy-related mandates over extended periods.

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: 89243421QEE000059

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

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

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: $159,577,300

Exercised Options: $132,253,300

Current Obligation: $103,496,499

Actual Outlays: $92,299,804

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $40,947,069

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00F045DA

IDV Type: FSS

Timeline