DoD's $153M Army Contract for HR Consulting Services Awarded to Magellan Federal
Contract Overview
Contract Amount: $153,381,150 ($153.4M)
Contractor: Magellan Federal, Inc.
Awarding Agency: Department of Defense
Start Date: 2014-09-26
End Date: 2022-06-14
Contract Duration: 2,818 days
Daily Burn Rate: $54.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST NO FEE
Sector: Other
Official Description: OTHER DIRECT COSTS (ODCS)FOR CSF2 SUPPORT IGF::CL,CT::IGF
Place of Performance
Location: ARLINGTON, ALEXANDRIA CITY County, VIRGINIA, 22206
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $153.4 million to MAGELLAN FEDERAL, INC. for work described as: OTHER DIRECT COSTS (ODCS)FOR CSF2 SUPPORT IGF::CL,CT::IGF Key points: 1. Significant contract value of $153.38 million over nearly 8 years. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract's duration and scope warrant scrutiny for ongoing value and effectiveness. 4. Focus on Human Resources Consulting Services within the Defense sector.
Value Assessment
Rating: fair
The contract's total value is substantial. Without specific per-unit cost data or benchmarks for similar HR consulting services, assessing its pricing fairness is challenging. The 'COST NO FEE' pricing structure needs further clarification regarding how costs are managed and reimbursed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically allows for the widest range of potential bidders and can lead to better price discovery. However, the specific details of the bidding process and the number of bids received are not provided.
Taxpayer Impact: Taxpayer funds are being utilized for extensive HR consulting services. The value derived from this investment will determine the ultimate taxpayer impact.
Public Impact
Impacts Army personnel and HR operations through consulting services. Potential for improved efficiency or effectiveness in HR functions. Significant federal spending allocated to a single contractor over an extended period.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (nearly 8 years) may lead to cost inefficiencies.
- Lack of detailed performance metrics makes value assessment difficult.
- Potential for scope creep over the contract's life.
Positive Signals
- Awarded via full and open competition.
- Contract supports critical HR functions for the Army.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically HR consulting. Benchmarks for similar large-scale HR consulting contracts within the federal government are needed for a comprehensive comparison.
Small Business Impact
The data indicates this contract was not set aside for small businesses (sb: false). Therefore, small businesses likely did not have a direct opportunity to bid on the prime contract, though they may have participated as subcontractors.
Oversight & Accountability
Oversight is crucial given the contract's duration and value. The Department of the Army is responsible for monitoring performance, ensuring compliance, and verifying that the services provided deliver the intended value and meet objectives.
Related Government Programs
- Human Resources Consulting Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration potentially leading to complacency or reduced innovation.
- Lack of specific performance metrics makes objective evaluation difficult.
- Potential for cost overruns if not rigorously managed under 'COST NO FEE'.
- Limited transparency on subcontractor utilization and small business participation.
Tags
human-resources-consulting-services, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $153.4 million to MAGELLAN FEDERAL, INC.. OTHER DIRECT COSTS (ODCS)FOR CSF2 SUPPORT IGF::CL,CT::IGF
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 $153.4 million.
What is the period of performance?
Start: 2014-09-26. End: 2022-06-14.
What specific HR consulting services were provided, and how did they demonstrably improve Army HR operations or efficiency?
The provided data lacks specifics on the exact HR consulting services rendered. To assess value, a detailed breakdown of deliverables, such as workforce planning, talent management, compensation analysis, or HR system implementation, would be necessary. Furthermore, quantifiable metrics demonstrating improvements in areas like employee retention, recruitment speed, or HR process efficiency are essential for a robust value assessment.
Given the 'COST NO FEE' pricing, what mechanisms are in place to control costs and prevent overruns, and how effective have they been?
The 'COST NO FEE' structure implies the government reimburses the contractor's allowable costs. Effective cost control relies on stringent oversight, clear cost accounting standards, and regular audits. Without detailed reporting on incurred costs versus budgeted amounts, and evidence of proactive cost management by the Army contracting officer, it's difficult to ascertain the effectiveness of cost controls and the potential for taxpayer waste.
How does the $153M contract value compare to industry benchmarks for similar HR consulting services over an equivalent period?
Benchmarking this $153M contract requires comparing it against similar large-scale HR consulting engagements within the federal or private sector, considering the duration (nearly 8 years) and the specific services provided to the Department of the Army. Without access to detailed service descriptions and market data on comparable contracts, a precise comparison is challenging. However, the substantial value suggests a significant scope of work.
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: COST NO FEE (S)
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: $284,497,745
Exercised Options: $153,381,150
Current Obligation: $153,381,150
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91WAW11D0031
IDV Type: IDC
Timeline
Start Date: 2014-09-26
Current End Date: 2022-06-14
Potential End Date: 2022-06-14 00:00:00
Last Modified: 2023-01-27
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