Guidehouse LLP awarded $27.7M for USTRANSCOM process improvement, highlighting administrative management consulting

Contract Overview

Contract Amount: $27,732,405 ($27.7M)

Contractor: Guidehouse LLP

Awarding Agency: Department of Defense

Start Date: 2015-12-01

End Date: 2020-09-30

Contract Duration: 1,765 days

Daily Burn Rate: $15.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CL::IGF TOTAL DISTRIBUTION PROCESS IMPROVEMENT

Place of Performance

Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $27.7 million to GUIDEHOUSE LLP for work described as: IGF::CL::IGF TOTAL DISTRIBUTION PROCESS IMPROVEMENT Key points: 1. Contract value of $27.7M for administrative management consulting services. 2. Awarded to Guidehouse LLP under full and open competition. 3. Performance period spans from December 2015 to September 2020. 4. Tasked with improving distribution processes for USTRANSCOM. 5. Firm Fixed Price contract type suggests defined scope and cost control. 6. No small business set-aside or subcontracting indicated. 7. Geographic location of performance is Illinois.

Value Assessment

Rating: good

The contract value of $27.7 million for administrative management consulting services appears reasonable given the 5-year performance period. Benchmarking against similar contracts for large-scale process improvement initiatives within defense logistics would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract suggests a degree of cost certainty for the government, assuming the scope was well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 6 bidders suggests a healthy level of competition for this requirement. This broad competition is generally favorable for price discovery and ensures the government receives offers from a diverse range of qualified contractors.

Taxpayer Impact: Full and open competition typically leads to more competitive pricing, potentially saving taxpayer dollars by ensuring the government secures services at a market-driven rate.

Public Impact

Benefits the Department of Defense, specifically USTRANSCOM, by enhancing operational efficiency. Services delivered focus on administrative management and general management consulting. Geographic impact is primarily within Illinois, where the performance occurred. Workforce implications include the engagement of consulting professionals from Guidehouse LLP.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term consulting engagements if not managed tightly.
Reliance on a single contractor for critical process improvement could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a competitive selection process.
Firm Fixed Price contract type provides cost predictability.
Long performance period suggests a sustained need and potential for significant impact.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is crucial for government operations, providing expertise to improve efficiency and effectiveness across various agencies. The market for such services is competitive, with numerous firms offering specialized consulting capabilities. The $27.7 million award is a significant but not extraordinary sum for a multi-year, large-scale consulting engagement within the federal government.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any small business set-aside provisions. Furthermore, the data does not specify any small business subcontracting requirements. This suggests that small businesses were not specifically targeted for this particular award, and their participation would likely be through subcontracting opportunities if offered by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration team within USTRANSCOM. The firm fixed-price nature of the contract provides a degree of accountability through adherence to the agreed-upon price and scope. Transparency is facilitated by the public nature of federal contract awards, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Logistics Agency (DLA) contracts
USTRANSCOM operational support contracts
Federal Management Consulting Services

Risk Flags

Long performance period requires sustained oversight.
Complexity of distribution processes may lead to unforeseen challenges.
Reliance on external consultants for core process improvement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.7 million to GUIDEHOUSE LLP. IGF::CL::IGF TOTAL DISTRIBUTION PROCESS IMPROVEMENT

Who is the contractor on this award?

The obligated recipient is GUIDEHOUSE LLP.

Which agency awarded this contract?

Awarding agency: Department of Defense (USTRANSCOM).

What is the total obligated amount?

The obligated amount is $27.7 million.

What is the period of performance?

Start: 2015-12-01. End: 2020-09-30.

What specific distribution processes were targeted for improvement under this contract?

The provided data indicates the contract was for 'IGF::CL::IGF TOTAL DISTRIBUTION PROCESS IMPROVEMENT' and falls under NAICS code 541611 (Administrative Management and General Management Consulting Services). While the specific processes are not detailed, the objective was clearly to enhance the efficiency and effectiveness of USTRANSCOM's distribution operations. This could encompass areas such as supply chain management, inventory control, transportation logistics, warehousing, and the administrative procedures supporting these functions. The 'IGF' likely refers to an internal USTRANSCOM initiative or system related to distribution.

How does the $27.7 million contract value compare to similar USTRANSCOM process improvement contracts?

Benchmarking the $27.7 million award requires comparing it to contracts of similar scope, duration, and complexity within USTRANSCOM or similar defense logistics agencies. Without access to a comprehensive database of historical USTRANSCOM contracts for process improvement, a direct comparison is challenging. However, for a 5-year engagement (December 2015 - September 2020) involving comprehensive administrative and management consulting for a major military command's distribution network, this value appears within a plausible range. Larger, more complex transformations could command higher values, while smaller, more targeted efforts would be less.

What were the key performance indicators (KPIs) used to measure the success of Guidehouse LLP's services?

The provided contract data does not specify the Key Performance Indicators (KPIs) used to measure the success of Guidehouse LLP's services. Typically, for process improvement contracts, KPIs would be established in the contract's Performance Work Statement (PWS) and could include metrics such as reduction in delivery times, decrease in operational costs, improvement in inventory accuracy, enhanced data visibility, or increased customer satisfaction within the distribution network. The firm fixed-price nature suggests that achieving predefined outcomes related to these potential KPIs would be critical for successful contract completion.

What is the track record of Guidehouse LLP in performing similar federal contracts?

Guidehouse LLP has a significant track record of performing federal contracts, particularly in management consulting, IT services, and financial management across various agencies. While this specific contract focused on USTRANSCOM's distribution processes, Guidehouse's broader experience includes large-scale transformation initiatives, strategic planning, and operational efficiency improvements. Their past performance would have been evaluated during the 'full and open competition' process for this award. A deeper dive into their contract history would reveal specific successes and challenges in delivering similar services to government clients.

Were there any significant risks identified during the contract performance period, and how were they mitigated?

The provided summary data does not detail specific risks identified during the contract performance period or their mitigation strategies. However, common risks in large-scale consulting engagements include scope creep, contractor underperformance, integration challenges with existing systems, and resistance to change within the client organization. For a firm fixed-price contract, managing scope creep is crucial. Mitigation strategies often involve robust project management, clear communication channels, regular progress reviews, and strong government oversight to ensure the contractor stays within the defined objectives and deliverables.

How has spending on administrative management and general management consulting services evolved within USTRANSCOM over time?

Analyzing the historical spending trends for administrative management and general management consulting services within USTRANSCOM requires access to historical contract databases and budget allocations. This specific $27.7 million contract represents a significant investment over its 5-year period. Without broader data, it's difficult to ascertain if this represents an increase or decrease in overall spending in this category for USTRANSCOM. Factors influencing such spending include evolving operational needs, strategic priorities, and the availability of internal expertise versus the need for external consulting support.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pricewaterhousecoopers Public Sector LLP

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: $28,516,920

Exercised Options: $27,732,405

Current Obligation: $27,732,405

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS10F0466N

IDV Type: FSS

Timeline