DoD's $74M Recovery Care Program Support Services contract awarded to Magellan Federal, Inc
Contract Overview
Contract Amount: $74,201,585 ($74.2M)
Contractor: Magellan Federal, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-07-13
End Date: 2016-01-26
Contract Duration: 1,292 days
Daily Burn Rate: $57.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 16
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: RECOVERY CARE PROGRAM (RCP) SUPPORT SERVICES
Place of Performance
Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22332
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $74.2 million to MAGELLAN FEDERAL, INC. for work described as: RECOVERY CARE PROGRAM (RCP) SUPPORT SERVICES Key points: 1. Contract value of $74.2M over 4 years. 2. Awarded under full and open competition. 3. Services fall under Human Resources Consulting. 4. Potential for significant taxpayer impact due to scale.
Value Assessment
Rating: good
The contract value of $74.2M for 4 years of HR consulting services appears reasonable given the scope. Benchmarking against similar large-scale HR support contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing.
Taxpayer Impact: The $74.2M expenditure represents a significant investment. Ensuring efficient service delivery and cost-effectiveness is crucial for maximizing taxpayer value.
Public Impact
Supports critical recovery care services for personnel. Impacts human resources management within the Department of the Army. Potential for improved efficiency in personnel support functions.
Waste & Efficiency Indicators
Waste Risk Score: 57 / 10
Warning Flags
- Contract duration of over 3 years.
- Large contract value may attract scrutiny.
- Potential for scope creep in consulting services.
Positive Signals
- Awarded via full and open competition.
- Clear service category (HR Consulting).
Sector Analysis
This contract falls within the professional services sector, specifically HR consulting. Spending benchmarks for similar government HR support contracts can vary widely based on scope and duration.
Small Business Impact
The data indicates this contract was not set aside for small businesses and does not specify small business participation. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
Oversight would typically involve regular performance reviews by the contracting officer and program managers to ensure Magellan Federal, Inc. meets contractual obligations and service level agreements.
Related Government Programs
- Human Resources Consulting Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration.
- High total contract value.
- Lack of specific performance metrics in provided data.
- Potential for unquantified scope creep in consulting services.
Tags
human-resources-consulting-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $74.2 million to MAGELLAN FEDERAL, INC.. RECOVERY CARE PROGRAM (RCP) SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is MAGELLAN FEDERAL, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $74.2 million.
What is the period of performance?
Start: 2012-07-13. End: 2016-01-26.
What specific HR consulting services were provided under this contract, and how did they contribute to the Recovery Care Program's objectives?
The contract focused on Human Resources Consulting Services (NAICS 541612) for the Recovery Care Program. These services likely encompassed areas such as personnel management, administrative support, and potentially policy development or implementation related to the program's goals of assisting service members and their families during recovery periods.
Were there any performance issues or contract modifications during the 2012-2016 period that impacted the final cost or service delivery?
The provided data does not detail contract modifications or performance issues. A thorough review of contract history, including any supplemental agreements or performance reports, would be necessary to assess if the initial award value was maintained or if changes occurred that affected the overall cost and delivery of services.
How does the per-unit cost or cost-effectiveness of these HR consulting services compare to industry standards or previous government contracts for similar support?
Without specific details on the units of service or detailed cost breakdowns, a direct per-unit cost comparison is not feasible. However, the total contract value of $74.2M over approximately 3.5 years suggests a substantial investment. Benchmarking against similar large-scale HR support contracts within the federal government or private sector would be required for a meaningful cost-effectiveness assessment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Human Resources Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 16
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Magellan Health, Inc. (UEI: 049693732)
Address: 2800 S SHIRLINGTON RD STE 350, ARLINGTON, VA, 22206
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $148,168,055
Exercised Options: $148,168,055
Current Obligation: $74,201,585
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91WAW11D0031
IDV Type: IDC
Timeline
Start Date: 2012-07-13
Current End Date: 2016-01-26
Potential End Date: 2016-01-26 00:00:00
Last Modified: 2017-08-23
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