Magellan Healthcare Inc. awarded $60M for Military and Family Life Counseling Program services

Contract Overview

Contract Amount: $60,080,030 ($60.1M)

Contractor: Magellan Healthcare Inc

Awarding Agency: General Services Administration

Start Date: 2018-07-13

End Date: 2019-05-14

Contract Duration: 305 days

Daily Burn Rate: $197.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Healthcare

Official Description: MILITARY AND FAMILY LIFE COUNSELING PROGRAM

Place of Performance

Location: MARYLAND HEIGHTS, SAINT LOUIS County, MISSOURI, 63043

State: Missouri Government Spending

Plain-Language Summary

General Services Administration obligated $60.1 million to MAGELLAN HEALTHCARE INC for work described as: MILITARY AND FAMILY LIFE COUNSELING PROGRAM Key points: 1. The contract value represents a significant investment in supporting military families. 2. Competition dynamics for this contract are assessed to understand pricing efficiency. 3. Risk indicators are evaluated based on contract type and performance history. 4. Performance context is provided by comparing this award to similar service contracts. 5. The contract positions Magellan Healthcare within the broader health and human services sector. 6. The duration of the contract is noted for its implications on service continuity.

Value Assessment

Rating: good

The contract value of approximately $60 million for a 305-day period appears reasonable for comprehensive family support services. Benchmarking against similar large-scale federal contracts for mental health and counseling services suggests that the pricing is competitive. Magellan Healthcare's established presence in government contracting further supports the assessment of value for money, assuming successful delivery.

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 had the opportunity to bid. The presence of a competitive bidding process generally leads to better price discovery and potentially more favorable terms for the government. The specific number of bidders is not detailed, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible price and quality for essential military family support services.

Public Impact

Military families and service members are the primary beneficiaries, receiving crucial counseling and support. Services delivered include individual and family counseling, crisis intervention, and support for deployment-related issues. The geographic impact is nationwide, supporting military installations and communities. Workforce implications include the employment of counselors and support staff by Magellan Healthcare.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if service needs expand beyond initial projections.
Ensuring consistent quality of care across diverse geographic locations.
Managing contractor performance to meet the unique needs of military populations.

Positive Signals

Awarded to a known entity with experience in government contracting.
Full and open competition suggests a market-driven price.
Focus on a critical support service for military personnel and their families.

Sector Analysis

This contract falls within the broader health and human services sector, specifically focusing on individual and family services. The market for such services is substantial, with significant government spending directed towards supporting military personnel and their families. Comparable spending benchmarks would include other large contracts for behavioral health, counseling, and support services awarded by agencies like the Department of Defense and Veterans Affairs.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is likely limited unless Magellan Healthcare voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the General Services Administration or the Department of Defense. Accountability measures would include performance reviews, adherence to service level agreements, and financial audits. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

Military OneSource Program
TRICARE Behavioral Health Services
Department of Defense Family Support Programs

Risk Flags

Contract Type Risk (Time and Materials)
Performance Monitoring Complexity
Geographic Service Consistency

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $60.1 million to MAGELLAN HEALTHCARE INC. MILITARY AND FAMILY LIFE COUNSELING PROGRAM

Who is the contractor on this award?

The obligated recipient is MAGELLAN HEALTHCARE INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $60.1 million.

What is the period of performance?

Start: 2018-07-13. End: 2019-05-14.

What is Magellan Healthcare Inc.'s track record with federal contracts, particularly in health and family services?

Magellan Healthcare Inc. has a significant track record with federal contracts, often serving in roles related to behavioral health, pharmacy benefits management, and specialized health services for government programs. Their experience includes managing complex health networks and providing support services to diverse populations, including military families. Past performance data, often available through federal procurement databases, would detail their success in meeting performance metrics, managing budgets, and adhering to contract terms on similar large-scale awards. This history is crucial for assessing their capability to deliver on the Military and Family Life Counseling Program.

How does the awarded amount compare to historical spending on similar military family support programs?

The $60 million award for the Military and Family Life Counseling Program is a substantial figure, reflecting the scope and importance of providing comprehensive support to military families. To assess its comparability, one would examine historical spending trends for similar programs managed by the Department of Defense or other agencies. This includes looking at the average contract values, contract durations, and the range of services covered in prior awards. If this award is in line with or lower than previous comparable contracts, adjusted for inflation and scope, it suggests reasonable value. Conversely, a significant deviation could warrant further investigation into the reasons for the difference, such as expanded service requirements or market shifts.

What are the primary risk indicators associated with this type of 'Time and Materials' contract for counseling services?

Time and Materials (T&M) contracts, like the one awarded here, carry inherent risks, primarily related to cost control. The risk for the government is that costs can escalate if the contractor's labor hours or material costs are not efficiently managed or are inflated. For counseling services, this could manifest as extended service periods or higher-than-anticipated resource utilization. Mitigating these risks requires robust oversight, clear definition of tasks, and diligent monitoring of billed hours and materials. The government must ensure that the contractor is incentivized to perform efficiently and that the 'not-to-exceed' (NTE) cap, if applicable, is strictly enforced.

How effective has the Military and Family Life Counseling Program been in previous iterations or under different contractors?

Assessing the effectiveness of the Military and Family Life Counseling Program requires examining performance metrics and outcomes from previous contract periods. This would involve reviewing reports on client satisfaction, the number of individuals and families served, the types of issues addressed, and any measurable impact on military readiness and family well-being. Data from Inspector General reports or program evaluations would provide critical insights into successes and areas needing improvement. Understanding past effectiveness helps in evaluating whether the current contract structure and contractor are likely to achieve desired program outcomes.

What are the historical spending patterns for the Military and Family Life Counseling Program over the last five fiscal years?

Analyzing historical spending patterns for the Military and Family Life Counseling Program over the last five fiscal years would reveal trends in funding allocation and contract values. This data would show whether spending has been consistent, increasing, or decreasing, and how it correlates with changes in military deployment cycles or family support needs. Examining the number and duration of contracts awarded during this period, as well as the primary contractors, provides context for the current $60 million award. Significant year-over-year fluctuations might indicate shifts in program priorities, budget constraints, or changes in service delivery models.

What is the typical duration and value range for federal contracts providing similar individual and family services?

Federal contracts for individual and family services, particularly those supporting large populations like the military, can vary significantly in duration and value. Typical durations often range from one to five years, with options for extension. Contract values are highly dependent on the scope of services, the number of beneficiaries, and the geographic reach. Awards can range from a few million dollars for localized services to hundreds of millions for nationwide programs. The $60 million award for this 305-day contract appears to be a significant, potentially project-specific or initial award, requiring comparison with similar large-scale, multi-year contracts to fully contextualize its value and duration.

Industry Classification

NAICS: Health Care and Social Assistance › Individual and Family Services › Other Individual and Family Services

Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: D17PS00077

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Magellan Health, Inc. (UEI: 049693732)

Address: 14100 MAGELLAN PLAZA, MARYLAND HEIGHTS, MO, 63043

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $376,974,211

Exercised Options: $78,648,177

Current Obligation: $60,080,030

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140D0418D0004

IDV Type: IDC

Timeline