DOE's $4.8M management consulting contract awarded to Guidehouse Inc. for electricity sector support
Contract Overview
Contract Amount: $4,834,966 ($4.8M)
Contractor: Guidehouse Inc.
Awarding Agency: Department of Energy
Start Date: 2023-09-27
End Date: 2026-09-26
Contract Duration: 1,095 days
Daily Burn Rate: $4.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: PROGRAMMATIC, OPERATIONAL, AND MANAGEMENT SUPPORT FOR THE OFFICE OF ELECTRICITY
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $4.8 million to GUIDEHOUSE INC. for work described as: PROGRAMMATIC, OPERATIONAL, AND MANAGEMENT SUPPORT FOR THE OFFICE OF ELECTRICITY Key points: 1. Contract provides essential programmatic, operational, and management support to the Office of Electricity. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. The contract duration of 1095 days (3 years) indicates a medium-term need for services. 4. Time and Materials pricing structure allows for flexibility but requires careful monitoring of costs. 5. The contractor, Guidehouse Inc., is a known entity in management consulting services. 6. This contract aligns with the Department of Energy's mission to advance energy security and innovation.
Value Assessment
Rating: good
The contract value of approximately $4.8 million over three years appears reasonable for specialized management and operational support services within the energy sector. Benchmarking against similar contracts for consulting services to federal agencies of this scope and duration would provide a more precise value-for-money assessment. The Time and Materials (T&M) pricing, while flexible, necessitates diligent oversight to ensure costs remain within expected parameters and that the services delivered provide adequate return on investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, potentially leading to better pricing and service quality. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition was sought.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for government funds by encouraging multiple firms to offer their services and pricing.
Public Impact
The Office of Electricity within the Department of Energy benefits directly from enhanced programmatic, operational, and management support. Services delivered are expected to improve the efficiency and effectiveness of the Office's initiatives related to the electricity sector. The primary geographic impact is within the District of Columbia, where the Department of Energy is headquartered. The contract supports professional services roles, potentially impacting the management consulting workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to the Time and Materials pricing structure if not closely managed.
- Reliance on a single contractor for critical support functions could pose a risk if performance falters.
Positive Signals
- Awarded through full and open competition, indicating a fair and transparent procurement process.
- Contract duration suggests a stable, ongoing need for the services provided.
- Contractor is a well-established firm with experience in government contracting.
Sector Analysis
The energy sector, particularly the electricity sub-sector, is a critical area of focus for the Department of Energy. This contract for management and operational support fits within the broader landscape of government consulting services aimed at enhancing policy development, program implementation, and regulatory oversight. Comparable spending in this area often involves significant investments in technical, strategic, and administrative consulting to manage complex energy initiatives and infrastructure.
Small Business Impact
The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, which are not detailed here. Without specific subcontracting plans or goals, it is difficult to assess the direct impact on the small business ecosystem from this particular award.
Oversight & Accountability
Oversight of this contract would typically fall under the Department of Energy's contracting officer and program managers. Accountability measures are inherent in the Time and Materials contract type, requiring detailed reporting of hours and costs against the scope of work. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and oversight activities are not detailed in the provided summary.
Related Government Programs
- Department of Energy - Office of Electricity Programs
- Federal Management Consulting Services
- Energy Sector Policy and Regulation Support
Risk Flags
- Potential for cost overruns due to T&M pricing
- Need for robust government oversight to ensure value for money
- Dependence on contractor performance for critical support functions
Tags
management-consulting, department-of-energy, office-of-electricity, administrative-support, programmatic-support, operational-support, time-and-materials, full-and-open-competition, district-of-columbia, bpa-call, guidehouse-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $4.8 million to GUIDEHOUSE INC.. PROGRAMMATIC, OPERATIONAL, AND MANAGEMENT SUPPORT FOR THE OFFICE OF ELECTRICITY
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 $4.8 million.
What is the period of performance?
Start: 2023-09-27. End: 2026-09-26.
What is Guidehouse Inc.'s track record with the Department of Energy and similar federal agencies?
Guidehouse Inc. has a significant track record of providing consulting services to various federal agencies, including the Department of Energy. Their expertise often spans areas such as financial management, IT modernization, program management, and strategic planning. For the Department of Energy specifically, Guidehouse has been involved in projects related to energy policy, grid modernization, and climate initiatives. Their past performance with federal clients is generally characterized by a broad range of capabilities, though specific contract performance details, including any past issues or exceptional successes, would require a deeper dive into federal procurement databases and agency performance reports. Their experience suggests they are well-positioned to handle complex programmatic and operational support.
How does the $4.8 million contract value compare to similar management consulting contracts for federal agencies?
The $4.8 million contract value over three years for programmatic, operational, and management support is within a common range for specialized consulting services to federal agencies. Many similar contracts for management and administrative support, particularly those involving policy analysis, program evaluation, or strategic planning for specific offices or programs, fall within the low to mid-single-digit millions. For instance, contracts supporting offices focused on critical infrastructure, regulatory bodies, or specific mission-oriented programs often have similar price points. The value is considered moderate, reflecting a need for expert advice and support rather than large-scale implementation or procurement.
What are the primary risks associated with a Time and Materials (T&M) contract of this nature?
The primary risk with a Time and Materials (T&M) contract, such as this one, is the potential for cost escalation if not managed diligently. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual labor hours and materials used. This can lead to higher-than-anticipated costs if the scope of work expands, inefficiencies arise, or the contractor does not manage resources effectively. For the government, this necessitates robust oversight, including detailed review of invoices, monitoring of labor categories and rates, and ensuring that the work performed directly aligns with the contract's objectives. Without strong controls, the total cost could exceed initial estimates, impacting the overall value for money.
How effective is the Office of Electricity likely to be with this enhanced support?
The effectiveness of the Office of Electricity is likely to be enhanced by the programmatic, operational, and management support provided under this contract. By engaging Guidehouse Inc., the Office gains access to specialized expertise that can help streamline operations, improve program execution, and provide strategic insights. This support can enable the Office to better address complex challenges within the electricity sector, such as grid modernization, cybersecurity, and the integration of renewable energy sources. The success will depend on the clarity of the SOW, the quality of the contractor's deliverables, and the agency's ability to integrate the contractor's support into its existing workflows and decision-making processes.
What is the historical spending trend for management consulting services within the Department of Energy?
The Department of Energy, like many large federal agencies, historically spends significant amounts on management and professional consulting services. This spending is driven by the need for specialized expertise in areas such as energy policy analysis, technological research and development support, program management, financial oversight, and strategic planning. Annual spending can fluctuate based on agency priorities, budget allocations, and the initiation of new programs or initiatives. While specific historical figures for management consulting require detailed analysis of federal procurement data, it is generally understood that such services represent a consistent and substantial portion of the DOE's operational budget, reflecting the complexity and breadth of its mission.
What are the implications of this contract being awarded as a BPA Call?
The contract being awarded as a BPA Call (Blanket Purchase Agreement Call) implies that it was issued under an existing BPA. A BPA is a simplified acquisition vehicle that allows federal agencies to fill anticipated repetitive needs for supplies or services. A 'Call' or 'Order' against a BPA is essentially a specific purchase made under the terms established in the BPA. This method can streamline the procurement process, potentially leading to faster award times and more efficient acquisition. It also suggests that the Department of Energy has pre-negotiated terms and conditions with the BPA holder, which could include pre-approved labor rates and contract clauses, contributing to administrative efficiency.
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) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
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: $12,260,912
Exercised Options: $5,372,649
Current Obligation: $4,834,966
Actual Outlays: $3,189,060
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 89303023ACF000013
IDV Type: BPA
Timeline
Start Date: 2023-09-27
Current End Date: 2026-09-26
Potential End Date: 2029-03-26 00:00:00
Last Modified: 2026-02-27
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