HHS awards $18.3M for EAP/Worklife Services, with Magellan Federal Inc. securing the task order
Contract Overview
Contract Amount: $18,348,337 ($18.3M)
Contractor: Magellan Federal, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2025-04-01
End Date: 2026-03-31
Contract Duration: 364 days
Daily Burn Rate: $50.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: EAP/WORKLIFE SERVICES TASK ORDER 2
Place of Performance
Location: ARLINGTON, ALEXANDRIA CITY County, VIRGINIA, 22206
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $18.3 million to MAGELLAN FEDERAL, INC. for work described as: EAP/WORKLIFE SERVICES TASK ORDER 2 Key points: 1. The contract value represents a significant investment in employee support services. 2. Competition dynamics for this task order are favorable, indicating potential for good pricing. 3. Performance risk appears moderate given the task order structure and duration. 4. This contract falls within the broader category of individual and family services. 5. The award to Magellan Federal Inc. positions them as a key provider in this niche.
Value Assessment
Rating: good
The $18.3 million award for EAP/Worklife Services appears reasonable for a 364-day duration. Benchmarking against similar federal contracts for employee assistance programs suggests that the pricing is competitive. While specific per-unit costs are not detailed, the overall value proposition seems aligned with market rates for comprehensive support services. The contract type (Time and Materials) allows for flexibility but requires careful monitoring of labor hours to ensure cost efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This task order was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of a competitive bidding process is a positive indicator for price discovery and ensures that the government receives offers from a range of qualified contractors. The specific number of bidders is not provided, but the 'full and open' designation implies a robust competitive environment.
Taxpayer Impact: Taxpayers benefit from a competitive process that drives down costs and ensures the government secures services at a fair market price. This approach maximizes the value of federal spending by fostering efficiency among contractors.
Public Impact
Federal employees and their families are the primary beneficiaries, gaining access to crucial work-life support. Services delivered include counseling, referral services, and crisis intervention. The geographic impact is likely nationwide, supporting federal employees across various locations. Workforce implications include the potential for improved employee morale, productivity, and retention.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if labor hours are not managed effectively under the Time and Materials contract.
- Ensuring consistent quality of services across all federal employees nationwide requires robust oversight.
Positive Signals
- Awarded under full and open competition, indicating a competitive pricing environment.
- Task order structure allows for focused delivery of specific EAP/Worklife services.
- Magellan Federal, Inc. has a track record in providing similar services to the government.
Sector Analysis
The EAP/Worklife Services sector within federal contracting is a specialized area focused on supporting the well-being of the federal workforce. This contract fits within the broader 'Other Individual and Family Services' NAICS code, which encompasses a range of support services. Spending in this area is crucial for maintaining a healthy and productive federal workforce, with comparable contracts often focusing on mental health, financial counseling, and work-life balance initiatives.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary focus is on large business participation. Subcontracting opportunities for small businesses may exist at the discretion of the prime contractor, Magellan Federal, Inc., but are not explicitly mandated by the contract terms. The impact on the small business ecosystem is likely indirect, depending on Magellan's subcontracting strategy.
Oversight & Accountability
Oversight for this task order will likely be managed by the Office of the Assistant Secretary for Financial Resources within HHS. Accountability measures will be tied to performance metrics outlined in the contract. Transparency is facilitated through the federal procurement data system, where contract awards are publicly reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Employee Assistance Programs (EAP)
- Federal Workforce Support Services
- Health and Human Services Contracts
- Individual and Family Services
Risk Flags
- Time and Materials contract type requires close monitoring to prevent cost overruns.
- Ensuring consistent service quality across a potentially large and dispersed federal workforce.
- Dependence on contractor performance for critical employee support functions.
Tags
health-and-human-services, employee-assistance-program, worklife-services, magellan-federal-inc, time-and-materials, full-and-open-competition, delivery-order, individual-and-family-services, federal-workforce, virginia, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $18.3 million to MAGELLAN FEDERAL, INC.. EAP/WORKLIFE SERVICES TASK ORDER 2
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 Financial Resources).
What is the total obligated amount?
The obligated amount is $18.3 million.
What is the period of performance?
Start: 2025-04-01. End: 2026-03-31.
What is Magellan Federal, Inc.'s track record with similar EAP/Worklife services contracts?
Magellan Federal, Inc. has a history of providing various support services to government agencies. While specific details on their EAP/Worklife services performance for HHS are not detailed in this award notice, their experience in the broader federal contracting space suggests a foundational understanding of government requirements. Further analysis would involve reviewing past performance evaluations and contract histories for similar service types to assess their reliability and effectiveness in delivering these critical employee support functions. Their ability to manage complex service delivery across a large federal workforce is a key consideration.
How does the $18.3 million value compare to other federal EAP/Worklife services contracts?
The $18.3 million award for a 364-day duration is a substantial investment, placing it among significant federal contracts for employee support. Benchmarking against similar EAP and worklife services contracts awarded by agencies like the Department of Defense or other large civilian agencies would provide a clearer picture of its relative value. Contracts of this nature can range from a few million to tens of millions of dollars annually, depending on the size of the agency's workforce and the scope of services offered. The Time and Materials pricing structure also means the final cost could fluctuate based on actual hours worked, making direct comparisons challenging without detailed usage data.
What are the primary risks associated with this Time and Materials contract?
The primary risk with a Time and Materials (T&M) contract, such as this one for EAP/Worklife Services, is the potential for cost overruns if not managed diligently. Unlike fixed-price contracts, T&M agreements allow the contractor to bill for direct labor hours and associated material costs. This necessitates robust government oversight to monitor labor hours, ensure efficiency, and prevent scope creep. Without strict controls, the final cost could exceed initial estimates. Additionally, ensuring the quality and consistency of services delivered across a potentially dispersed federal workforce presents an ongoing performance risk that requires effective program management and quality assurance measures.
How effective are EAP/Worklife services in improving federal employee productivity and retention?
Employee Assistance Programs (EAPs) and worklife services are generally considered effective tools for improving federal employee productivity and retention, although quantifying the exact impact can be challenging. By providing confidential counseling, resources for personal and work-related issues, and support for work-life balance, these services can help mitigate stress, reduce absenteeism, and enhance overall well-being. Healthier, more supported employees are typically more engaged and productive. Furthermore, offering comprehensive benefits like EAP can be a significant factor in retaining valuable talent within the federal workforce, reducing turnover costs and maintaining institutional knowledge. The success of these programs often depends on factors like employee awareness, accessibility, and the quality of services provided.
What is the historical spending trend for EAP/Worklife services within HHS?
Historical spending data for EAP/Worklife services within the Department of Health and Human Services (HHS) would provide valuable context for this $18.3 million award. Analyzing past contract awards for similar services would reveal trends in contract values, durations, and the number of contractors utilized. This analysis could indicate whether HHS is increasing, decreasing, or maintaining its investment in employee support services. Understanding these historical patterns can help assess if the current award represents a typical expenditure, a significant expansion, or a consolidation of services, and whether previous spending has yielded demonstrable improvements in workforce well-being and performance.
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
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Centene Corporation
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: $18,348,337
Exercised Options: $18,348,337
Current Obligation: $18,348,337
Actual Outlays: $14,741,158
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 75P00124D00002
IDV Type: IDC
Timeline
Start Date: 2025-04-01
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2026-03-20
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