Guidehouse LLP awarded $75.4M for audit readiness and liaison services to the Department of Defense

Contract Overview

Contract Amount: $75,384,306 ($75.4M)

Contractor: Guidehouse LLP

Awarding Agency: Department of Defense

Start Date: 2015-09-25

End Date: 2020-11-25

Contract Duration: 1,888 days

Daily Burn Rate: $39.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: AUDIT READINESS, AUDIT LIAISON AND SYSTEMS SUPPORT IGF::OT::IGF

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22311

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $75.4 million to GUIDEHOUSE LLP for work described as: AUDIT READINESS, AUDIT LIAISON AND SYSTEMS SUPPORT IGF::OT::IGF Key points: 1. Contract provides essential support for audit readiness and liaison functions, critical for financial accountability. 2. Full and open competition suggests a robust market for these specialized services. 3. The contract duration of 1888 days indicates a long-term need for these services. 4. Services are delivered on a labor hours basis, allowing flexibility but requiring careful monitoring of effort. 5. The award was a single delivery order, suggesting a focused scope within a larger potential contract vehicle. 6. The contractor, Guidehouse LLP, is a known entity in government contracting for financial services.

Value Assessment

Rating: good

The contract value of $75.4 million over approximately five years represents a significant investment in audit support. Benchmarking against similar contracts for audit liaison and readiness services is challenging without more specific service details and market data. However, the pricing structure based on labor hours necessitates diligent oversight to ensure value for money. The total award amount appears reasonable for the scope and duration, assuming efficient service delivery and adherence to estimated labor rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This competitive process is generally expected to yield fair market pricing and encourage innovation. The fact that it resulted in a single delivery order suggests that while the opportunity was broadly advertised, Guidehouse LLP was selected as the most advantageous offer.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment, driving down costs and improving the quality of services received.

Public Impact

The Department of Defense benefits from improved financial transparency and auditability. Services support the ongoing efforts to achieve and maintain audit readiness for federal financial statements. The contract impacts the financial management workforce within the DoD by providing specialized support. Geographic impact is primarily within the operational areas of the Defense Finance and Accounting Service.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hours contracts can lead to cost overruns if not managed tightly.
Ensuring consistent quality of audit liaison and systems support across the contract duration is crucial.

Positive Signals

Awarded through full and open competition, indicating a competitive pricing environment.
Long contract duration suggests a stable and predictable need for these critical services.
Contractor has experience in providing similar financial and audit support services to the government.

Sector Analysis

This contract falls within the professional services sector, specifically accounting and auditing support. The market for these services is robust, with numerous firms capable of providing specialized expertise to government agencies. The total federal spending on accounting and auditing services is substantial, reflecting the government's commitment to financial integrity and compliance. This contract represents a portion of that broader spending, focusing on the unique needs of the Department of Defense's audit readiness efforts.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). While there is no direct indication of small business subcontracting requirements, large prime contractors are often encouraged or required to engage small businesses. The absence of a small business set-aside suggests that the primary competition was among larger, established firms capable of handling the full scope of services.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Finance and Accounting Service (DFAS) program office. Performance monitoring, invoice review, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract databases and reporting requirements. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse.

Related Government Programs

DoD Financial Improvement and Audit Readiness (FIAR) initiatives
Government Auditing Services
Financial Management Support Services
Contract Audit Readiness Support

Risk Flags

Potential for cost overruns in labor hours contracts.
Ensuring consistent quality and expertise over the contract duration.
Dependency on contractor expertise for critical financial functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $75.4 million to GUIDEHOUSE LLP. AUDIT READINESS, AUDIT LIAISON AND SYSTEMS SUPPORT IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is GUIDEHOUSE LLP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Finance and Accounting Service).

What is the total obligated amount?

The obligated amount is $75.4 million.

What is the period of performance?

Start: 2015-09-25. End: 2020-11-25.

What is Guidehouse LLP's track record with similar government contracts, particularly within the Department of Defense?

Guidehouse LLP has a significant history of performing professional services for the U.S. government, including extensive work within the Department of Defense. They specialize in areas such as financial management, audit, cybersecurity, and technology consulting. Their experience often involves supporting complex federal initiatives, including financial improvement and audit readiness programs. Publicly available contract databases and agency performance reports would provide more granular detail on their past performance, including specific contract values, performance ratings, and any past issues. However, their continued success in winning competitive bids suggests a generally positive track record in delivering required services.

How does the awarded amount of $75.4 million compare to other federal contracts for audit readiness and liaison services?

Comparing the $75.4 million award requires context regarding the specific services, duration, and scope. Contracts for audit readiness and liaison services can vary widely in value. Larger agencies like the Department of Defense, with complex financial systems and extensive audit requirements, naturally command higher contract values. This award, spread over approximately five years (1888 days), averages around $15 million annually. This figure appears within a reasonable range for specialized, high-level support to a major federal entity. Benchmarking against contracts for similar-sized agencies or for shorter durations would be necessary for a more precise comparison, but the amount reflects a substantial, long-term commitment to audit support.

What are the primary risks associated with this type of 'labor hours' contract, and how are they mitigated?

The primary risk with labor hours contracts is the potential for cost overruns if the level of effort exceeds initial estimates or if labor rates are not managed effectively. Scope creep and inefficient task execution can inflate costs without a proportional increase in value. Mitigation strategies include robust contract oversight by the government, detailed work breakdown structures, regular performance reviews, and strict monitoring of hours billed against specific tasks. The contracting officer's representative (COR) plays a crucial role in ensuring that the work performed aligns with the contract's objectives and that the labor hours are justified and necessary. Clear performance metrics and deliverables also help manage risk.

What is the expected impact of these audit support services on the Department of Defense's overall financial management effectiveness?

These services are expected to significantly enhance the Department of Defense's financial management effectiveness by directly supporting its audit readiness efforts. This includes assisting in the preparation, validation, and remediation of financial statements to meet audit standards. By providing specialized expertise, the contractor helps identify and resolve financial reporting issues, improve internal controls, and streamline processes. Ultimately, this contributes to greater financial transparency, accountability, and the ability to pass independent financial audits, which is a key objective for the DoD and a mandate from Congress.

How has federal spending on audit readiness and financial support services evolved over the past five years, and does this contract align with trends?

Federal spending on audit readiness and financial support services has generally increased over the past five years, driven by legislative mandates (like the Federal Information Security Modernization Act and ongoing audit requirements for agencies) and a greater emphasis on financial accountability. Agencies are increasingly outsourcing specialized functions to achieve audit compliance. This $75.4 million contract for the DoD aligns with this trend, reflecting a sustained investment in critical financial functions. The continued awarding of such contracts indicates that agencies view these services as essential for meeting their financial reporting and audit obligations, suggesting a stable or growing market for these specialized professional services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Offices of Certified Public Accountants

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pricewaterhousecoopers Public Sector LLP (UEI: 791716954)

Address: 1800 TYSONS BLVD 7TH FL, MCLEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $75,384,306

Exercised Options: $75,384,306

Current Obligation: $75,384,306

Actual Outlays: $3,439,320

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F0165N

IDV Type: FSS

Timeline