DoD's $9.3M Wellness Center Support Contract Awarded to Millennium Health & Fitness, Inc

Contract Overview

Contract Amount: $9,293,945 ($9.3M)

Contractor: Millennium Health & Fitness, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-12-09

End Date: 2025-12-09

Contract Duration: 1,826 days

Daily Burn Rate: $5.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MANAGED WELLNESS CENTER SUPPORT SERVICES

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $9.3 million to MILLENNIUM HEALTH & FITNESS, INC. for work described as: MANAGED WELLNESS CENTER SUPPORT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is a firm-fixed-price type, which shifts cost risk to the contractor. 3. Duration of 1826 days indicates a long-term need for these wellness services. 4. The North American Industry Classification System (NAICS) code 561990 covers 'All Other Support Services,' a broad category. 5. The award was a delivery order, implying it's part of a larger contract vehicle. 6. The contract value is relatively modest for a Department of Defense service contract.

Value Assessment

Rating: good

The contract value of approximately $9.3 million over five years for wellness support services appears reasonable for a federal agency. Benchmarking against similar contracts for managed wellness programs within the Department of Defense or other large federal agencies would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for the government as it caps costs. However, without detailed service delivery metrics or comparisons to private sector wellness program costs, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This suggests a robust competitive environment, which typically leads to better pricing and service offerings for the government. The specific number of bidders is not provided, but the designation implies multiple proposals were likely considered.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive marketplace that drives down costs and encourages innovation, ensuring the government receives the best possible value for its spending.

Public Impact

Serves Department of Defense personnel, potentially including military members and civilian employees, by providing access to wellness programs. Aims to improve the overall health and well-being of the DoD workforce. The services are likely delivered at or near Washington Headquarters Services facilities. May indirectly support military readiness and productivity by promoting healthier lifestyles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Broad NAICS code may obscure specific service details and performance expectations.
Lack of detailed performance metrics in the provided data makes assessing service quality difficult.
The long duration could lead to vendor lock-in if not managed carefully.

Positive Signals

Firm-fixed-price contract shifts cost overrun risk to the contractor.
Awarded via full and open competition, suggesting a competitive process.
Long-term contract provides stability for service delivery.

Sector Analysis

The contract falls within the broad 'Other Support Services' sector, specifically related to health and wellness programs. This sector is growing as organizations increasingly recognize the importance of employee well-being. Comparable spending in this area can vary widely depending on the scope and scale of services offered, but federal agencies often invest in such programs to support their workforce. The market for wellness services is diverse, ranging from fitness facilities to mental health support and health coaching.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus was likely on obtaining the best overall value through open competition. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in supporting these wellness services.

Oversight & Accountability

Oversight for this contract would typically reside with the Washington Headquarters Services (WHS) contracting office and relevant program managers within the Department of Defense. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is generally facilitated through contract award databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Health Program Support
Federal Employee Wellness Initiatives
Military and Family Support Programs
Washington Headquarters Services Contracts

Risk Flags

Broad NAICS code may limit transparency on specific services.
Lack of detailed performance metrics requires careful monitoring.
Long contract duration necessitates proactive contract management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.3 million to MILLENNIUM HEALTH & FITNESS, INC.. MANAGED WELLNESS CENTER SUPPORT SERVICES

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 (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $9.3 million.

What is the period of performance?

Start: 2020-12-09. End: 2025-12-09.

What specific wellness services are included under this contract?

The provided data does not specify the exact wellness services covered under contract number [Contract Number Not Provided]. The NAICS code 561990 ('All Other Support Services') is very broad. Typically, such contracts could encompass fitness center management, health education programs, nutritional counseling, stress management workshops, and potentially other health promotion activities. A detailed review of the contract's Statement of Work (SOW) would be necessary to ascertain the full scope of services delivered by Millennium Health & Fitness, Inc. to the Washington Headquarters Services.

How does the per-unit cost of these wellness services compare to market rates?

A precise per-unit cost comparison is not feasible with the current data. The contract value is a total award amount over a period of 1826 days. To benchmark per-unit costs, we would need to know the specific units of service (e.g., per participant, per session, per facility managed) and the corresponding prices. Without this granular detail, comparing Millennium Health & Fitness, Inc.'s pricing to private sector wellness providers or similar government contracts is speculative. The firm-fixed-price nature suggests the contractor is responsible for managing costs to meet the agreed-upon total price.

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

Information on Millennium Health & Fitness, Inc.'s specific track record with federal contracts is limited based solely on the provided data. While this award indicates they have secured a contract with the Department of Defense, further research into their past performance, including previous federal awards, contract values, and performance evaluations (e.g., CPARS reports), would be necessary for a comprehensive assessment. Understanding their history with similar service contracts, especially within the federal space, is crucial for evaluating their capability and reliability.

What are the potential risks associated with this contract?

Potential risks include scope creep if the definition of 'wellness services' is not tightly managed, potential for service quality issues if performance standards are not rigorously enforced, and the risk of the contractor becoming entrenched due to the long contract duration, potentially reducing future competitive pressure. Additionally, if the contract relies heavily on a broad NAICS code without specific performance metrics, it could be challenging to ensure optimal value and effectiveness. The firm-fixed-price nature mitigates cost overrun risk for the government but places cost management pressure on the contractor.

How does this contract fit into the broader context of DoD spending on employee support?

This $9.3 million contract represents a specific investment in managed wellness support services for personnel associated with the Washington Headquarters Services. It fits within the larger framework of Department of Defense spending aimed at maintaining workforce health, morale, and readiness. DoD allocates significant resources to various personnel support programs, including healthcare, family services, and quality-of-life initiatives. This wellness contract is a component of that broader strategy, focusing on preventative health and well-being, which can indirectly contribute to operational effectiveness and reduce healthcare costs.

Were there any other bidders, and what does the competition level imply?

The contract was awarded under 'full and open competition,' which legally mandates that all interested and responsible sources were allowed to submit proposals. While the exact number of bidders is not specified in the provided data, this designation strongly implies that multiple companies likely competed for the contract. A competitive process generally leads to better price discovery and encourages contractors to offer competitive terms and services to win the award. The level of competition can influence the final price and the quality of services offered.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HQ003420R0209

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 28170 N ALMA SCHOOL PKWY STE 204, SCOTTSDALE, AZ, 85262

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: $10,145,260

Exercised Options: $10,145,260

Current Obligation: $9,293,945

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ003421D0005

IDV Type: IDC

Timeline