GSA Awards Magellan Healthcare $277M for Worldwide Military Counseling Services

Contract Overview

Contract Amount: $276,961,710 ($277.0M)

Contractor: Magellan Healthcare Inc

Awarding Agency: General Services Administration

Start Date: 2019-02-27

End Date: 2021-05-14

Contract Duration: 807 days

Daily Burn Rate: $343.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Healthcare

Official Description: MILITARY AND FAMILY LIFE COUNSELING. REQUIREMENT FOR WORLDWIDE NON MEDICAL CONFIDENTIAL COUNSELING SERVICES.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $277.0 million to MAGELLAN HEALTHCARE INC for work described as: MILITARY AND FAMILY LIFE COUNSELING. REQUIREMENT FOR WORLDWIDE NON MEDICAL CONFIDENTIAL COUNSELING SERVICES. Key points: 1. Significant contract value of $277 million for essential counseling services. 2. Magellan Healthcare Inc. is the sole awardee, raising questions about competition. 3. Potential risk associated with a single provider for critical services. 4. Spending falls within the 'Other Individual and Family Services' sector.

Value Assessment

Rating: fair

The contract value of $277 million for counseling services appears substantial. Benchmarking against similar contracts for non-medical counseling is difficult without more specific service details, but the duration and scope suggest a significant investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bids were likely considered. However, the data specifies this is a 'Delivery Order', suggesting it might be part of a larger IDIQ contract where competition occurred previously.

Taxpayer Impact: Taxpayer funds are being used to provide essential support services to military families, which can have long-term benefits for morale and retention.

Public Impact

Provides critical mental health support to military personnel and their families. Ensures access to confidential counseling services across various global locations. Supports the well-being and readiness of the armed forces.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in provided data.
Potential for vendor lock-in if this is a sole-source follow-on.
Geographic scope presents logistical challenges.

Positive Signals

Addresses a vital need for military family support.
Awarded through a competitive process.
Long-term contract provides stability for service delivery.

Sector Analysis

This contract falls under 'Other Individual and Family Services' (NAICS 624190). Spending in this sector often supports vulnerable populations and social programs. The $277 million award is a significant allocation for specialized counseling services.

Small Business Impact

The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if small business participation was sought or if subcontracting opportunities were available.

Oversight & Accountability

The General Services Administration (GSA) managed this award through its Federal Acquisition Service. Oversight would involve monitoring contract performance, ensuring adherence to terms, and managing vendor relationships to guarantee service quality.

Related Government Programs

Other Individual and Family Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Potential for cost overruns due to T&M contract type.
Ensuring consistent service quality across diverse global locations.
Limited visibility into specific performance metrics.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $277.0 million to MAGELLAN HEALTHCARE INC. MILITARY AND FAMILY LIFE COUNSELING. REQUIREMENT FOR WORLDWIDE NON MEDICAL CONFIDENTIAL COUNSELING SERVICES.

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 $277.0 million.

What is the period of performance?

Start: 2019-02-27. End: 2021-05-14.

What specific metrics are used to evaluate the effectiveness and quality of Magellan Healthcare Inc.'s counseling services under this contract?

The provided data does not detail the specific performance metrics or Key Performance Indicators (KPIs) used to evaluate Magellan Healthcare Inc.'s services. Effective oversight would require tracking client satisfaction, service accessibility, counselor qualifications, and adherence to confidentiality protocols to ensure the quality and impact of the counseling provided.

Given the worldwide scope, what are the primary risks associated with ensuring consistent quality and accessibility of counseling services across diverse geographic locations?

Risks include varying cultural norms impacting service delivery, challenges in vetting and credentialing counselors in remote areas, ensuring consistent data security and privacy across different legal jurisdictions, and managing logistical complexities for service provision. Maintaining uniform quality standards and timely access globally requires robust management and quality assurance processes.

How does the 'Time and Materials' contract type potentially impact cost control and value for taxpayer money in this long-term counseling service contract?

Time and Materials (T&M) contracts can pose a risk to cost control as they reimburse the contractor for direct labor hours and costs, plus a fixed fee or percentage. Without strong oversight and defined ceilings, this can lead to cost overruns if not managed diligently. Ensuring value requires strict monitoring of labor hours, rates, and material costs against the necessity and effectiveness of services rendered.

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

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Centene Corporation

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: $941,325,029

Exercised Options: $793,596,770

Current Obligation: $276,961,710

Actual Outlays: $-23,055

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QFCA19D0003

IDV Type: IDC

Timeline