HHS awards $18M task order for EAP/Worklife Services to Magellan Federal, Inc
Contract Overview
Contract Amount: $18,050,908 ($18.1M)
Contractor: Magellan Federal, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2024-04-01
End Date: 2025-03-31
Contract Duration: 364 days
Daily Burn Rate: $49.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: EAP/WORKLIFE SERVICES TASK ORDER
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $18.1 million to MAGELLAN FEDERAL, INC. for work described as: EAP/WORKLIFE SERVICES TASK ORDER Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Task order value of $18.05 million for a 364-day period. 3. Services fall under 'Other Individual and Family Services' NAICS code. 4. Contract type is Time and Materials, which can pose cost control challenges. 5. Magellan Federal, Inc. is the sole awardee for this specific task order. 6. The contract is a delivery order under a larger contract vehicle. 7. Geographic location for performance is Maryland.
Value Assessment
Rating: fair
The task order value of $18.05 million for a 364-day period appears to be within a reasonable range for comprehensive Employee Assistance Program (EAP) and Worklife Services. However, without specific details on the scope of services and deliverables, a precise value-for-money assessment is difficult. The Time and Materials (T&M) contract type, while flexible, requires diligent oversight to prevent cost overruns and ensure efficient resource utilization. Benchmarking against similar large-scale EAP contracts would provide a clearer picture of pricing competitiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This task order was awarded under a full and open competition, indicating that all responsible sources were permitted to submit an offer. The specific number of bidders is not provided, but the 'full and open' designation generally implies a robust competitive environment. This approach is intended to foster price discovery and ensure the government receives the best value by considering a wide range of potential providers.
Taxpayer Impact: A full and open competition is favorable for taxpayers as it increases the likelihood of competitive pricing and encourages a broader pool of contractors to vie for government work, potentially driving down costs.
Public Impact
Federal employees and their families are the primary beneficiaries of Employee Assistance Programs (EAP) and Worklife Services. Services likely include counseling, mental health support, work-life balance resources, and crisis intervention. The contract is being performed in Maryland, impacting the local workforce and service delivery within that region. This contract supports the well-being and productivity of federal employees across potentially multiple agencies under HHS.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to uncontrolled costs if not closely monitored.
- Lack of specific performance metrics in the provided data makes it hard to gauge service effectiveness.
- The 'Other Individual and Family Services' category is broad; specific service details are needed for a full assessment.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process.
- The contract aims to provide essential support services for federal employees' well-being.
- Magellan Federal, Inc. is a known entity in providing such services, implying some level of established capability.
Sector Analysis
The market for Employee Assistance Programs (EAP) and Worklife Services is substantial, with significant government and private sector spending. This contract fits within the broader 'Professional, Scientific, and Technical Services' sector, specifically focusing on human resources and support services. Government contracts for EAP services are common, aiming to support the mental health and productivity of its workforce. Benchmarking against other federal EAP contracts would reveal if the $18 million award for a year of service is competitive.
Small Business Impact
The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, small businesses are unlikely to be direct prime contractors on this specific task order. However, Magellan Federal, Inc., as the prime contractor, may engage small businesses as subcontractors, depending on the scope of services and their subcontracting plans. The impact on the broader small business ecosystem would depend on whether subcontracting opportunities are made available.
Oversight & Accountability
Oversight for this task order would typically fall under the Office of the Assistant Secretary for Administration (ASA) within HHS. The contract's Time and Materials nature necessitates robust monitoring of labor hours and costs to ensure compliance and prevent overspending. Transparency is generally maintained through contract reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Federal Employee Assistance Programs (EAP)
- Worklife Services Contracts
- HHS Human Resources Support Services
- Individual and Family Services Contracts
Risk Flags
- Potential for cost overruns due to T&M contract type.
- Need for robust oversight to ensure value for money.
- Scope of services is broad; specific deliverables require monitoring.
Tags
health-and-human-services, employee-assistance-program, worklife-services, delivery-order, time-and-materials, full-and-open-competition, magellan-federal-inc, maryland, individual-and-family-services, hhs-office-of-the-assistant-secretary-for-administration
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $18.1 million to MAGELLAN FEDERAL, INC.. EAP/WORKLIFE SERVICES TASK ORDER
Who is the contractor on this award?
The obligated recipient is MAGELLAN FEDERAL, INC..
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).
What is the total obligated amount?
The obligated amount is $18.1 million.
What is the period of performance?
Start: 2024-04-01. End: 2025-03-31.
What is Magellan Federal, Inc.'s track record with similar government contracts, particularly for EAP and Worklife Services?
Magellan Federal, Inc. has a history of providing behavioral health and EAP services to various government agencies. While specific details on past performance for HHS are not provided in this data snippet, their specialization suggests experience in this domain. A deeper dive into their contract history, including past performance evaluations and any reported issues on previous federal contracts, would be necessary to fully assess their reliability and capability for this $18 million task order. Examining their success in delivering similar services within the specified timeframe and budget on prior contracts would offer valuable insights into their suitability.
How does the $18.05 million cost for 364 days of EAP/Worklife Services compare to market rates or similar federal contracts?
Benchmarking the $18.05 million cost for approximately one year of EAP/Worklife Services requires detailed comparison with similar federal contracts and private sector benchmarks. The average cost per federal employee for EAP services can vary significantly based on scope, utilization rates, and provider. Given this is a task order, it's likely part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, which may have pre-negotiated rates. Without knowing the number of employees covered or the specific service components included (e.g., counseling sessions, crisis support, financial wellness), a precise comparison is challenging. However, the Time and Materials (T&M) nature of the award suggests costs are driven by labor hours and direct costs, necessitating close monitoring against established rates to ensure value.
What are the primary risks associated with a Time and Materials (T&M) contract for EAP/Worklife Services, and how are they mitigated?
The primary risk with a T&M contract for EAP/Worklife Services is the potential for cost overruns if labor hours and material costs are not strictly controlled and monitored. Unlike fixed-price contracts, T&M agreements do not have a ceiling on the total cost, making them susceptible to scope creep or inefficient service delivery. Mitigation strategies typically involve robust government oversight, including detailed tracking of all hours worked and expenses incurred by the contractor. Clear performance work statements (PWS), regular progress reviews, and defined ceilings or limits within the contract can also help manage risks. The agency must actively manage the contractor's performance to ensure services are delivered efficiently and within budget expectations.
What is the expected impact of these EAP/Worklife Services on federal employee productivity and well-being within HHS?
The expected impact of comprehensive EAP and Worklife Services on federal employee productivity and well-being is generally positive. These services aim to provide confidential support for personal and work-related issues, such as stress, mental health concerns, family problems, and substance abuse. By offering resources for problem resolution and coping strategies, EAPs can help reduce absenteeism, improve morale, enhance focus, and increase overall job satisfaction. For HHS employees, who often work in high-stress environments, these services are crucial for maintaining a healthy and resilient workforce, ultimately contributing to the agency's mission effectiveness.
How has HHS's spending on EAP and Worklife Services evolved over the past few years, and does this award align with historical patterns?
Analyzing HHS's historical spending on EAP and Worklife Services would require access to detailed federal procurement data over several fiscal years. Without that specific data, it's difficult to definitively state whether this $18.05 million award aligns with historical patterns. However, federal agencies consistently invest in EAP programs as part of their commitment to employee welfare and productivity. Spending can fluctuate based on agency needs, contract cycles, and budget allocations. This award represents a significant investment for a single year, suggesting either an expansion of services, a new contract vehicle, or a renewal of a substantial existing program. A trend analysis of HHS's EAP spending would reveal if this amount is typical, an increase, or a decrease.
Industry Classification
NAICS: Health Care and Social Assistance › Individual and Family Services › Other Individual and Family Services
Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 75P00121R00087
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Magellan Federal Inc.
Address: 2800 S SHIRLINGTON RD STE 350, ARLINGTON, VA, 22206
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $18,050,908
Exercised Options: $18,050,908
Current Obligation: $18,050,908
Actual Outlays: $17,577,623
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $1,181,030
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 75P00124D00002
IDV Type: IDC
Timeline
Start Date: 2024-04-01
Current End Date: 2025-03-31
Potential End Date: 2025-03-31 00:00:00
Last Modified: 2025-03-04
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