DoD's $49M Human Resources Consulting Contract Awarded to Magellan Federal, Inc. for 5 Years
Contract Overview
Contract Amount: $48,963,021 ($49.0M)
Contractor: Magellan Federal, Inc.
Awarding Agency: Department of Defense
Start Date: 2015-09-23
End Date: 2020-11-07
Contract Duration: 1,872 days
Daily Burn Rate: $26.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF
Place of Performance
Location: ARLINGTON, ALEXANDRIA CITY County, VIRGINIA, 22206
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $49.0 million to MAGELLAN FEDERAL, INC. for work described as: IGF::OT::IGF Key points: 1. The contract represents a significant investment in specialized human resources consulting services for the Department of the Army. 2. Magellan Federal, Inc. secured this contract through full and open competition, suggesting a competitive bidding process. 3. The firm-fixed-price contract type indicates that the contractor assumes the risk for cost overruns. 4. The duration of the contract, spanning over 1800 days, points to a long-term need for these services. 5. The contract's value of approximately $49 million warrants scrutiny regarding its cost-effectiveness and alignment with performance objectives. 6. The absence of small business set-aside flags suggests the primary award was not specifically targeted towards small businesses.
Value Assessment
Rating: fair
Benchmarking the value of this $49 million contract for human resources consulting services is challenging without specific performance metrics or comparable contract data. However, the duration of nearly five years suggests a substantial and ongoing need. The firm-fixed-price nature of the contract shifts cost risk to the contractor, which can be favorable for the government if managed effectively. Further analysis would require understanding the specific deliverables and comparing the per-unit cost of services against industry standards or similar government contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method generally fosters price discovery and allows the government to select the most advantageous offer based on a combination of price and technical factors. The open competition suggests a healthy market for these services.
Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it is expected to drive down prices through market forces and ensure the government receives competitive offers.
Public Impact
The Department of the Army is the primary beneficiary, receiving specialized human resources consulting services. Services likely include areas such as workforce planning, talent management, organizational development, and HR policy implementation. The geographic impact is likely concentrated within the Department of the Army's operational areas, potentially nationwide or global. Workforce implications could involve supporting military and civilian personnel management, impacting morale and operational readiness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics makes it difficult to assess the true value for money delivered.
- The substantial contract value over a long period necessitates robust oversight to ensure continued relevance and effectiveness.
- Without knowing the number of bidders, it's hard to definitively gauge the intensity of competition and its impact on pricing.
- The specific nature of 'Human Resources Consulting Services' can be broad; clarity on deliverables is key to evaluation.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process.
- Firm-fixed-price contract type transfers cost overrun risk to the contractor.
- The long contract duration indicates a sustained need and potential for building long-term expertise.
- The contract is with a specific entity, Magellan Federal, Inc., allowing for focused relationship management and accountability.
Sector Analysis
The human resources consulting sector within the federal government is a significant market, often supporting large agencies with complex personnel needs. This contract falls within the professional services category, specifically management and financial consulting, scientific and technical consulting services. Spending in this area is driven by the need for specialized expertise in areas like workforce transformation, compliance, and strategic HR planning, which government agencies may not possess internally. Comparable spending benchmarks would typically involve analyzing other large HR consulting contracts awarded by DoD or other federal agencies.
Small Business Impact
The data indicates that this contract was not awarded as a small business set-aside (ss: false, sb: false). This means the primary contract was competed broadly. While there's no direct indication of subcontracting requirements for small businesses within the provided data, large prime contractors are often encouraged or required to subcontract portions of their work to small businesses to foster their participation in federal contracting. The impact on the small business ecosystem would depend on whether Magellan Federal, Inc. actively pursues small business subcontractors for this specific contract.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are typically embedded within the contract's terms and conditions, including performance standards, reporting requirements, and payment schedules tied to deliverables. Transparency is facilitated through contract databases like FPDS-NG, where basic award information is publicly available. The Inspector General's office for the Department of Defense may conduct audits or investigations if performance issues or potential fraud are identified.
Related Government Programs
- Department of Defense Human Resources Management
- Federal Workforce Planning Contracts
- Management and Consulting Services Contracts
- Army Human Capital Management Initiatives
- Professional Services Schedule (PSS) Contracts
Risk Flags
- Lack of detailed performance metrics.
- Limited information on the number of bidders.
- Need for further analysis on cost-effectiveness.
- Potential for scope creep in long-term consulting contracts.
Tags
department-of-defense, department-of-the-army, human-resources, consulting-services, professional-services, firm-fixed-price, full-and-open-competition, magellan-federal-inc, virginia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $49.0 million to MAGELLAN FEDERAL, INC.. IGF::OT::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 $49.0 million.
What is the period of performance?
Start: 2015-09-23. End: 2020-11-07.
What specific human resources consulting services were delivered under this contract?
The provided data identifies the contract's North American Industry Classification System (NAICS) code as 541612, which corresponds to 'Human Resources Consulting Services.' While the specific deliverables are not detailed in the summary data, this typically encompasses a range of services such as workforce analysis, organizational design, talent management strategy, compensation and benefits consulting, HR policy development, change management, and employee relations support. The Department of the Army likely utilized these services to address specific challenges related to military and civilian personnel, such as recruitment, retention, performance management, or adapting to evolving operational requirements. A deeper dive into the contract's statement of work (SOW) would be necessary to ascertain the precise services rendered.
How does the $49 million contract value compare to similar HR consulting contracts within the DoD?
Comparing the $49 million value of this contract requires access to a broader dataset of similar HR consulting awards within the Department of Defense. Without that comparative data, it's difficult to definitively state whether this represents a high, low, or average expenditure. However, given that it spans nearly five years and was awarded through full and open competition, it suggests a significant and potentially complex set of requirements. Large-scale HR transformation initiatives, strategic workforce planning efforts, or extensive change management programs within major military branches can often run into tens of millions of dollars. To provide a precise benchmark, one would need to analyze contracts with similar NAICS codes (541612) awarded by DoD components over comparable timeframes.
What are the key performance indicators (KPIs) used to measure the success of Magellan Federal, Inc.'s services?
The provided summary data does not include specific Key Performance Indicators (KPIs) for this contract. Typically, KPIs for HR consulting services would be defined in the contract's Statement of Work (SOW) and could include metrics related to efficiency improvements in HR processes, successful implementation of new HR systems or policies, improvements in employee engagement or retention rates (if applicable to the consulting scope), timely completion of project milestones, and adherence to budget. The effectiveness of Magellan Federal, Inc.'s services would be assessed against these pre-defined metrics by the Army's contracting officer's representative (COR). Without access to the SOW, these specific KPIs remain unknown.
What is the historical spending pattern for Human Resources Consulting Services within the Department of the Army?
The provided data focuses on a single contract award. To understand historical spending patterns for Human Resources Consulting Services within the Department of the Army, one would need to analyze aggregated spending data over multiple fiscal years. This would involve querying federal procurement databases (like FPDS-NG) for all contracts awarded under NAICS code 541612 (and potentially related codes) by the Department of the Army. Analyzing this trend data would reveal the total annual expenditure, identify major contractors, and indicate whether spending has been increasing, decreasing, or remaining stable. This context is crucial for understanding the significance of the $49 million award to Magellan Federal, Inc. within the broader spending landscape.
What is Magellan Federal, Inc.'s track record with federal HR consulting contracts?
The provided data confirms Magellan Federal, Inc. was awarded this specific $49 million contract. To assess their broader track record in federal HR consulting, one would need to examine their contract history across all federal agencies. This involves searching procurement databases for other awards to Magellan Federal, Inc., particularly those under NAICS code 541612. Key aspects to review would include the total value of contracts awarded, the agencies they have served, the duration and types of services provided, past performance ratings (if available), and any history of contract disputes or terminations. A strong track record with successful past performance would generally indicate a lower risk for this current contract.
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) › ADMINISTRATIVE SUPPORT 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. (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: $57,088,227
Exercised Options: $48,963,021
Current Obligation: $48,963,021
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: 2015-09-23
Current End Date: 2020-11-07
Potential End Date: 2020-11-07 12:11:00
Last Modified: 2021-04-22
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)