DoD Spends $60.5M on Army HR Consulting via Firm Fixed Price Delivery Order
Contract Overview
Contract Amount: $60,489,439 ($60.5M)
Contractor: Magellan Federal, Inc.
Awarding Agency: Department of Defense
Start Date: 2014-09-15
End Date: 2020-05-29
Contract Duration: 2,083 days
Daily Burn Rate: $29.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::CT::IGF AW2 ADVOCATE SUPPORT SERVICES
Place of Performance
Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22332
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $60.5 million to MAGELLAN FEDERAL, INC. for work described as: IGF::CT::IGF AW2 ADVOCATE SUPPORT SERVICES Key points: 1. Significant contract value of $60.5 million over 5.7 years. 2. Awarded to Magellan Federal, Inc. under full and open competition. 3. Contract type is Firm Fixed Price, indicating price certainty. 4. NAICS code 541612 suggests Human Resources Consulting Services.
Value Assessment
Rating: fair
The contract was awarded via a delivery order, which can sometimes lead to less price scrutiny than a new contract. The firm fixed price structure provides cost certainty for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better value.
Taxpayer Impact: Taxpayer funds are utilized for human resources consulting services, with the final value determined through a competitive process.
Public Impact
Supports Department of the Army human resources functions. Contract duration spans over five years, indicating ongoing need. Magellan Federal, Inc. is the primary contractor for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics provided.
- Potential for scope creep in consulting services.
- Limited insight into the specific HR challenges addressed.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type.
- Long-term contract indicates sustained need and potential for efficiency.
Sector Analysis
This contract falls within the professional services sector, specifically human resources consulting. Spending benchmarks for similar HR consulting services can vary widely based on scope and duration.
Small Business Impact
The contract was awarded to Magellan Federal, Inc., and there is no indication of small business participation or subcontracting in the provided data.
Oversight & Accountability
Oversight would typically involve contract performance reviews and audits by the Department of the Army to ensure services meet requirements and are cost-effective.
Related Government Programs
- Human Resources Consulting Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Contract duration is lengthy.
- Lack of detailed service description.
- No explicit mention of performance metrics.
- Potential for undefined scope creep in consulting.
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 $60.5 million to MAGELLAN FEDERAL, INC.. IGF::CT::IGF AW2 ADVOCATE 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 $60.5 million.
What is the period of performance?
Start: 2014-09-15. End: 2020-05-29.
What specific HR services were provided, and how did they contribute to the Army's mission effectiveness?
The provided data identifies the contract as 'Human Resources Consulting Services' under NAICS code 541612. However, it does not detail the specific services rendered, such as recruitment, training, compensation analysis, or organizational development. To assess value, a breakdown of deliverables and their alignment with the Army's strategic HR objectives would be necessary.
Were there any performance issues or contract modifications that indicate potential risks or inefficiencies?
The data does not explicitly mention performance issues or significant contract modifications. However, the duration of the contract (over five years) and the nature of consulting services inherently carry risks of scope creep or evolving requirements. Without detailed performance reports or modification logs, it's difficult to fully assess these risks.
How does the $60.5 million expenditure compare to industry benchmarks for similar HR consulting contracts?
Benchmarking this expenditure requires detailed knowledge of the specific HR services procured, the complexity of the Army's needs, and the geographic scope. While $60.5 million over nearly six years is substantial, its 'value' is relative. A comprehensive analysis would compare the cost per service or per employee supported against similar government or commercial contracts.
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
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Magellan Health, Inc.
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: $105,272,192
Exercised Options: $60,489,439
Current Obligation: $60,489,439
Contract Characteristics
Consolidated Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91WAW11D0031
IDV Type: IDC
Timeline
Start Date: 2014-09-15
Current End Date: 2020-05-29
Potential End Date: 2020-05-29 12:05:00
Last Modified: 2025-12-31
More Contracts from Magellan Federal, Inc.
- Military and Family Life Counseling. Requirement for Worldwide NON Medical Confidential Counseling Services — $1.1B (General Services Administration)
- This Action IS for Sexual Harassment/Assault Response&prevention (sharp) Ready and Resilient Directorate Training (SR2) Support on Behalf of the Headquarters, Department of the Army (hqda) G1, — $172.5M (Department of Defense)
- Other Direct Costs (odcs)for CSF2 Support Igf::cl,Ct::igf — $153.4M (Department of Defense)
- Personal Financial Counselors — $111.7M (Department of the Interior)
- Recovery Care Program Management Support — $77.0M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)