Air Force awards $21.1M contract for civilian health promotion services to Millennium Health & Fitness

Contract Overview

Contract Amount: $21,145,176 ($21.1M)

Contractor: Millennium Health & Fitness, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-08-01

End Date: 2026-07-31

Contract Duration: 1,095 days

Daily Burn Rate: $19.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CIVILIAN HEALTH PROMOTION SERVICES III (CHPS III)

Place of Performance

Location: ALLEN, COLLIN County, TEXAS, 75002

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $21.1 million to MILLENNIUM HEALTH & FITNESS, INC. for work described as: CIVILIAN HEALTH PROMOTION SERVICES III (CHPS III) Key points: 1. Contract aims to enhance physical fitness and well-being for Air Force personnel. 2. Firm Fixed Price contract type suggests clear cost expectations. 3. Competition was full and open, indicating a potentially competitive bidding process. 4. Contract duration of 1095 days allows for sustained program delivery. 5. Geographic focus on Texas for service delivery. 6. No small business set-aside, suggesting larger prime contractors were anticipated.

Value Assessment

Rating: good

The contract's value of $21.1 million over three years for fitness and recreational sports centers appears reasonable given the scope of services. Benchmarking against similar contracts for health and wellness programs within the Department of Defense is necessary for a definitive value assessment. The firm fixed-price structure provides cost certainty for the government, but the specific pricing details and profit margins are not publicly available for granular comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of 4 bidders indicates a degree of competition, which generally benefits price discovery and can lead to more favorable pricing for the government. The specific details of the bidding process and the relative strengths of each proposal are not disclosed.

Taxpayer Impact: Full and open competition typically results in better value for taxpayers by fostering a competitive environment that drives down costs and encourages innovation among bidders.

Public Impact

Benefits military personnel and their families by providing access to fitness and recreational facilities and programs. Services include fitness and recreational sports center operations. Geographic impact is primarily within Texas, where the services will be delivered. Potential workforce implications for instructors, trainers, and administrative staff employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics in the provided data makes it difficult to assess program effectiveness.
Geographic concentration in Texas may limit broader applicability or scalability of the model.
Reliance on a single contract for these services could pose a risk if the contractor underperforms.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Full and open competition suggests a robust selection process.
Long-term contract duration allows for consistent service delivery and relationship building.

Sector Analysis

The contract falls within the broader Health and Wellness sector, specifically focusing on fitness and recreational services. This sector is characterized by a mix of government contracts and private sector offerings. Spending in this area supports military readiness and personnel well-being. Comparable spending benchmarks would involve analyzing other contracts for similar fitness and recreational services across federal agencies, particularly within the Department of Defense.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary contractor is likely a larger entity, and opportunities for small businesses may be limited unless they are direct subcontractors to Millennium Health & Fitness, Inc.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Air Force. Performance monitoring, invoice review, and compliance checks are standard oversight mechanisms. Transparency is generally limited to the contract award notice, with detailed performance reports and audits often not publicly accessible.

Related Government Programs

Military Morale, Welfare, and Recreation (MWR) Programs
Department of Defense Health and Wellness Initiatives
Federal Employee Fitness Programs

Risk Flags

Potential for cost overruns if not managed tightly under fixed-price.
Dependence on contractor's ability to maintain service quality over contract duration.
Limited visibility into specific performance metrics and outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.1 million to MILLENNIUM HEALTH & FITNESS, INC.. CIVILIAN HEALTH PROMOTION SERVICES III (CHPS III)

Who is the contractor on this award?

The obligated recipient is MILLENNIUM HEALTH & FITNESS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $21.1 million.

What is the period of performance?

Start: 2023-08-01. End: 2026-07-31.

What is the track record of Millennium Health & Fitness, Inc. with federal contracts, particularly within the Department of Defense?

Millennium Health & Fitness, Inc. has a history of federal contracting, though specific details on the volume and nature of past contracts require deeper investigation. A review of the Federal Procurement Data System (FPDS) or other contract databases would reveal prior awards, performance history, and any reported issues. Understanding their past performance, especially with similar health and fitness services for military populations, is crucial for assessing their capability to successfully execute this $21.1 million contract over its three-year duration. Any history of contract disputes, performance failures, or positive performance commendations would be significant indicators.

How does the awarded price compare to market rates for similar civilian health promotion services?

A precise comparison of the awarded price to market rates is challenging without access to detailed service breakdowns and profit margins. However, the contract's value of $21.1 million over three years, for fitness and recreational sports centers, suggests an average annual value of approximately $7 million. This figure needs to be benchmarked against contracts for similar services provided to large organizations or military installations. Factors such as the scope of facilities managed, the range of programs offered (e.g., group fitness classes, personal training, sports leagues), and the number of personnel served would influence market rate comparisons. The firm fixed-price nature provides cost certainty, but the underlying value-for-money assessment depends on the quality and effectiveness of the services delivered relative to the cost.

What are the key performance indicators (KPIs) for this contract, and how will contractor performance be measured?

The provided data does not specify the key performance indicators (KPIs) for this contract. Typically, for fitness and recreational services, KPIs might include facility utilization rates, participant satisfaction scores, program attendance numbers, adherence to safety protocols, and potentially metrics related to improvements in personnel fitness levels or morale. The contracting officer's representative (COR) would be responsible for monitoring these KPIs and ensuring the contractor meets the performance standards outlined in the contract's Performance Work Statement (PWS). Failure to meet these standards could result in contract remedies, including financial penalties or termination.

What is the historical spending pattern for civilian health promotion services by the Department of the Air Force?

Historical spending on civilian health promotion services by the Department of the Air Force can be analyzed through federal procurement databases. This contract, valued at $21.1 million over three years, represents a significant investment in personnel well-being. Examining past awards for similar services, such as fitness center management, recreational programs, and health education, would reveal trends in spending levels, types of services procured, and the primary contractors involved. Understanding this historical context helps in assessing whether the current award is consistent with past investments or represents a shift in priorities or program scope.

Are there any identified risks associated with the contractor's ability to deliver these services effectively?

Without specific performance data or known issues, assessing contractor risk is preliminary. Potential risks could include the contractor's capacity to manage multiple facilities or programs simultaneously, unforeseen increases in operational costs impacting service quality under a fixed-price contract, or challenges in recruiting and retaining qualified staff in the specified geographic area (Texas). The fact that this is a new award (or at least the data provided is for a recent award) means there is limited recent performance history to evaluate. The Air Force's due diligence during the full and open competition process would have aimed to mitigate these risks by selecting a capable contractor.

Industry Classification

NAICS: Arts, Entertainment, and Recreation › Other Amusement and Recreation Industries › Fitness and Recreational Sports Centers

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA800323R0017

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 29 W FRENCH BROAD ST STE 108, BREVARD, NC, 28712

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $42,610,547

Exercised Options: $24,645,096

Current Obligation: $21,145,176

Actual Outlays: $2,940,876

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS03F021CA

IDV Type: FSS

Timeline