VA's $26.2M community care contract awarded to Guidehouse LLP for administrative management services

Contract Overview

Contract Amount: $26,191,583 ($26.2M)

Contractor: Guidehouse LLP

Awarding Agency: Department of Veterans Affairs

Start Date: 2017-07-20

End Date: 2019-03-15

Contract Duration: 603 days

Daily Burn Rate: $43.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF VHA COMMUNITY CARE CALL 0006 - YEAR TWO CALL TO PROVIDE SUPPORT FOR THE COMMUNITY CARE CHOICE PROGRAM JULY-NOVEMBER 2017.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20420

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $26.2 million to GUIDEHOUSE LLP for work described as: IGF::OT::IGF VHA COMMUNITY CARE CALL 0006 - YEAR TWO CALL TO PROVIDE SUPPORT FOR THE COMMUNITY CARE CHOICE PROGRAM JULY-NOVEMBER 2017. Key points: 1. Contract provides essential support for the Community Care Choice Program, aiming to improve veteran access to healthcare. 2. The contract duration of 603 days suggests a need for sustained administrative support. 3. Awarded under a Firm Fixed Price contract type, indicating predictable costs for the government. 4. The contract was awarded through full and open competition, suggesting a robust selection process. 5. The North American Industry Classification System (NAICS) code 541611 points to specialized management consulting services. 6. The contract's value of approximately $26.2 million over its period of performance warrants scrutiny for value for money.

Value Assessment

Rating: good

The contract value of $26.2 million for approximately 20 months of service appears reasonable for specialized administrative management and general management consulting services. Benchmarking against similar contracts for large-scale program support within the Department of Veterans Affairs (VA) would provide further context. However, given the scope of supporting a critical program like Community Care Choice, the investment is likely justified if it leads to improved veteran access and program efficiency. The firm fixed-price nature of the award helps control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This process is designed to foster 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 broad solicitation.

Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring that the government receives the best possible value through a wide range of offers and potentially lower prices due to competitive pressures.

Public Impact

Veterans will benefit from improved access to community care services through enhanced program administration. The contract supports the Community Care Choice Program, a key initiative for the VA. Services are delivered primarily in the District of Columbia, impacting local VA operations and potentially veteran care in that region. The contract likely involves a workforce of consultants and administrative staff, creating employment opportunities in the management consulting sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if program requirements evolve significantly during the contract period.
Ensuring consistent quality of administrative support across the contract duration is crucial.
Dependence on a single contractor for critical program support could pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, suggesting a competitive and fair selection process.
Firm Fixed Price contract type provides cost certainty for the VA.
The contract supports a vital program aimed at improving veteran healthcare access.

Sector Analysis

This contract falls within the administrative management and general management consulting services sector, a broad category encompassing strategic planning, operational improvement, and program management. The market for these services is highly competitive, with numerous firms offering specialized expertise. The VA's significant spending in this area reflects its complex operational needs and commitment to improving veteran services. Comparable spending benchmarks would involve looking at other large federal agencies procuring similar consulting services for program support.

Small Business Impact

The provided data indicates that small business participation (sb) was false (0) and there was no small business set-aside (ss) for this contract. This suggests that the contract was not specifically targeted towards small businesses, and larger, established firms were likely the primary bidders. Subcontracting opportunities for small businesses are not detailed in this summary but would depend on the prime contractor's strategy.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and program managers. The contract's performance would be monitored against defined deliverables and service level agreements. Transparency is generally maintained through contract award databases and public reporting, though specific oversight reports from an Inspector General are not detailed here. Accountability rests with Guidehouse LLP to meet contractual obligations.

Related Government Programs

VA Community Care Programs
Veteran Health Administration Services
Federal Management Consulting Contracts
Administrative Support Services
Program Management Support

Risk Flags

Contract duration may be lengthy, requiring sustained oversight.
Reliance on administrative support for a critical veteran care program.
Potential for performance issues impacting veteran access to care.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $26.2 million to GUIDEHOUSE LLP. IGF::OT::IGF VHA COMMUNITY CARE CALL 0006 - YEAR TWO CALL TO PROVIDE SUPPORT FOR THE COMMUNITY CARE CHOICE PROGRAM JULY-NOVEMBER 2017.

Who is the contractor on this award?

The obligated recipient is GUIDEHOUSE LLP.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $26.2 million.

What is the period of performance?

Start: 2017-07-20. End: 2019-03-15.

What is the track record of Guidehouse LLP in supporting similar large-scale government programs, particularly within the Department of Veterans Affairs?

Guidehouse LLP has a significant track record in providing management consulting services to various federal agencies, including the Department of Veterans Affairs. They often engage in large, complex projects related to healthcare, financial management, and technology modernization. Their experience typically involves supporting program implementation, operational efficiency improvements, and strategic planning. For VA-specific initiatives, Guidehouse has been involved in areas such as healthcare transformation, claims processing modernization, and data analytics. A detailed review of their past performance on contracts with similar scope, duration, and complexity would be necessary to fully assess their capability and reliability for this specific Community Care Choice Program support.

How does the awarded amount of $26.2 million compare to the estimated value or budget for the Community Care Choice Program support over the contract period?

The awarded amount of $26.2 million for the Community Care Choice Program support over approximately 20 months (July 2017 - March 2019) represents a substantial investment. To assess value for money, this figure needs to be compared against the program's overall budget and the anticipated benefits derived from the administrative support. Without access to the VA's internal budget allocations or cost-benefit analyses for this specific program phase, a direct comparison is challenging. However, the firm fixed-price nature suggests that the VA aimed to cap its expenditure. Further analysis would require understanding the program's objectives and the cost-effectiveness of the services provided in achieving those objectives.

What are the key performance indicators (KPIs) used to measure the success of Guidehouse LLP's administrative support for the Community Care Choice Program?

While specific Key Performance Indicators (KPIs) are not detailed in the provided summary, contracts of this nature typically include metrics related to program efficiency, timeliness of administrative processes, accuracy of data management, and stakeholder satisfaction. For the Community Care Choice Program, KPIs might focus on metrics such as the average time to process community care referrals, the accuracy rate of patient eligibility verification, the number of successful community care appointments facilitated through administrative support, and feedback from veterans and providers regarding the ease of navigating the program. The contract's success would be measured by Guidehouse's ability to meet or exceed these defined performance standards.

What is the historical spending pattern of the Department of Veterans Affairs on administrative management and general management consulting services?

The Department of Veterans Affairs (VA) is a significant procurer of administrative management and general management consulting services, reflecting its vast operational scale and the complexity of its healthcare and benefits delivery systems. Historical spending in this category has been substantial, often driven by needs for program modernization, efficiency improvements, strategic planning, and support for large-scale initiatives like electronic health record implementation or healthcare reform. The VA frequently engages consulting firms to address challenges related to organizational structure, process optimization, and the implementation of new policies and technologies. Annual spending can fluctuate based on specific program requirements and budgetary allocations, but it consistently represents a major area of federal contracting for the agency.

Are there any known risks or challenges associated with the Community Care Choice Program that this contract is intended to mitigate?

The Community Care Choice Program was established to address challenges veterans faced in accessing timely and appropriate healthcare through VA facilities. Key risks and challenges include long wait times, geographic barriers, and capacity limitations within the VA system. This contract for administrative support is likely intended to mitigate these by streamlining the processes involved in authorizing, coordinating, and paying for community care services. Potential risks this contract itself might introduce or need to manage include ensuring the accuracy of eligibility determinations, preventing improper payments, maintaining data security, and ensuring effective communication between the VA, community providers, and veterans. The success of the administrative support is critical to the overall effectiveness of the program in mitigating access issues.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 1800 TYSONS BLVD FL 7, 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: $40,846,729

Exercised Options: $26,191,583

Current Obligation: $26,191,583

Parent Contract

Parent Award PIID: VA119A16A0014

IDV Type: BPA

Timeline