DoD Spends $27.9M on Employee Assistance Program, Awarded to Magellan Federal, Inc
Contract Overview
Contract Amount: $27,916,017 ($27.9M)
Contractor: Magellan Federal, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-09-30
End Date: 2026-07-09
Contract Duration: 1,743 days
Daily Burn Rate: $16.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: EMPLOYEE ASSISTANCE PROGRAM & WORKLIFE SUPPORT SERVICES
Place of Performance
Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20374
Plain-Language Summary
Department of Defense obligated $27.9 million to MAGELLAN FEDERAL, INC. for work described as: EMPLOYEE ASSISTANCE PROGRAM & WORKLIFE SUPPORT SERVICES Key points: 1. Significant investment in employee well-being services by the Department of Defense. 2. Magellan Federal, Inc. holds the contract for these essential support services. 3. The contract duration extends to July 2026, indicating a long-term need. 4. Services fall under 'Other Individual and Family Services' NAICS code 624190.
Value Assessment
Rating: good
The contract value of $27.9 million over its term appears reasonable for comprehensive employee assistance and worklife support services. Benchmarking against similar large-scale EAP contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors had the opportunity to bid.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value services at competitive rates.
Public Impact
Supports the mental health and work-life balance of Department of Defense personnel. Aims to improve employee retention and productivity through accessible support services. Provides resources for individuals and families facing personal or professional challenges.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Full and open competition utilized.
- Focus on employee well-being.
- Long-term service provision.
Sector Analysis
The 'Other Individual and Family Services' sector encompasses a range of social assistance programs. Spending in this area by federal agencies is crucial for supporting the well-being of the workforce.
Small Business Impact
The provided data does not indicate whether small businesses were involved as subcontractors on this contract. Further analysis would be needed to assess small business participation.
Oversight & Accountability
The contract is managed by Washington Headquarters Services, indicating a centralized oversight mechanism for these critical support services.
Related Government Programs
- Other Individual and Family Services
- Department of Defense Contracting
- Washington Headquarters Services Programs
Risk Flags
- Contract duration extends to July 2026.
- Awarded to a single vendor, Magellan Federal, Inc.
- No specific small business participation noted in the data.
Tags
other-individual-and-family-services, department-of-defense, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.9 million to MAGELLAN FEDERAL, INC.. EMPLOYEE ASSISTANCE PROGRAM & WORKLIFE SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is MAGELLAN FEDERAL, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Washington Headquarters Services).
What is the total obligated amount?
The obligated amount is $27.9 million.
What is the period of performance?
Start: 2021-09-30. End: 2026-07-09.
What specific services are included in the Employee Assistance Program and Worklife Support?
The Employee Assistance Program (EAP) and Worklife Support Services typically include confidential counseling for personal and work-related issues, crisis intervention, referrals for legal and financial services, and resources for childcare, eldercare, and other life management needs. The goal is to enhance employee well-being and productivity.
What are the potential risks associated with a long-term contract for EAP services?
Potential risks include vendor lock-in, where switching providers becomes difficult or costly. There's also a risk of service quality degradation over time if not actively managed and monitored. Ensuring continuous alignment with evolving employee needs and federal regulations is also a consideration.
How does this spending contribute to the overall effectiveness of the Department of Defense workforce?
By providing robust EAP and worklife support, the DoD aims to mitigate stress, improve mental health, and enhance overall job satisfaction among its personnel. This can lead to increased productivity, reduced absenteeism, and improved retention rates, all of which are critical for the effectiveness of the defense mission.
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: HQ003420R0210
Pricing Type: FIRM FIXED PRICE (J)
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: $29,867,126
Exercised Options: $29,867,126
Current Obligation: $27,916,017
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $84,790
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HQ003421D0007
IDV Type: IDC
Timeline
Start Date: 2021-09-30
Current End Date: 2026-07-09
Potential End Date: 2026-07-09 00:00:00
Last Modified: 2026-01-08
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