Coast Guard's Employee Assistance Program contract awarded to Carelon Health for over $18.6 million
Contract Overview
Contract Amount: $18,679,222 ($18.7M)
Contractor: Carelon Health Federal Services, Inc
Awarding Agency: Department of Homeland Security
Start Date: 2012-04-01
End Date: 2017-09-30
Contract Duration: 2,008 days
Daily Burn Rate: $9.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: USCG EMPLOYEE ASSISTANCE PROGRAM
Place of Performance
Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23502
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $18.7 million to CARELON HEALTH FEDERAL SERVICES, INC for work described as: USCG EMPLOYEE ASSISTANCE PROGRAM Key points: 1. The contract provided essential support services to Coast Guard personnel. 2. A single award was made under full and open competition. 3. The contract duration spanned over five years, indicating a long-term need. 4. The firm-fixed-price structure aimed to control costs. 5. Services were delivered primarily in Virginia. 6. The program falls under the broader category of individual and family services.
Value Assessment
Rating: good
The total award of $18.67 million over approximately five years suggests a significant investment in employee well-being. Benchmarking this against similar Employee Assistance Programs (EAPs) for large federal agencies would provide a clearer picture of value for money. However, the firm-fixed-price contract type generally indicates a predictable cost structure for the government, which is a positive sign for value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. With three bidders participating, the competition level appears adequate, suggesting that the government likely received competitive pricing. The open nature of the bidding process is a positive indicator for price discovery and ensuring a fair market price was obtained.
Taxpayer Impact: Taxpayers benefit from a competitive bidding process that helps ensure the government is not overpaying for essential employee support services.
Public Impact
Coast Guard employees and their families received crucial support services. The program aimed to enhance mental health, resilience, and overall well-being of service members. Services likely included counseling, crisis intervention, and referrals. The geographic impact was concentrated in Virginia, where the services were primarily delivered. Workforce implications include improved morale, retention, and readiness of Coast Guard personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if services are highly specialized and difficult to transition.
- Ensuring consistent quality of care across all service delivery points.
- Measuring the direct impact of EAP services on employee performance and retention can be challenging.
Positive Signals
- Awarded through full and open competition, suggesting a robust market.
- Firm-fixed-price contract type provides cost certainty.
- Long contract duration indicates a sustained need and potential for established service delivery.
Sector Analysis
The Employee Assistance Program (EAP) sector within government contracting is a niche but vital area supporting federal workforces. While specific market size data for government EAPs is not readily available, the overall EAP market is substantial. This contract represents a significant portion of spending for a specific agency's EAP needs, fitting within the broader 'Other Individual and Family Services' category.
Small Business Impact
The contract was not set aside for small businesses, and there is no explicit information regarding subcontracting plans for small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem for this specific contract may be limited unless subcontracting occurred without explicit set-aside requirements.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices, with the U.S. Coast Guard as the end-user agency. Transparency is generally maintained through contract award databases like FPDS. Specific accountability measures would be detailed within the contract's performance work statement and quality assurance surveillance plans.
Related Government Programs
- Department of Homeland Security Employee Assistance Programs
- Department of Defense Employee Assistance Programs
- Federal Employee Health Benefits Program
- Mental Health Services for Federal Employees
Risk Flags
- Contract duration exceeds typical EAP contract lengths, requiring close monitoring for sustained value.
- Limited public data on specific performance metrics makes assessing program effectiveness challenging.
- Geographic concentration in Virginia may not fully address needs of geographically dispersed personnel.
Tags
uscg, employee-assistance-program, carelon-health-federal-services, department-of-homeland-security, firm-fixed-price, full-and-open-competition, definitive-contract, individual-and-family-services, virginia, health-services, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $18.7 million to CARELON HEALTH FEDERAL SERVICES, INC. USCG EMPLOYEE ASSISTANCE PROGRAM
Who is the contractor on this award?
The obligated recipient is CARELON HEALTH FEDERAL SERVICES, INC.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Coast Guard).
What is the total obligated amount?
The obligated amount is $18.7 million.
What is the period of performance?
Start: 2012-04-01. End: 2017-09-30.
What was the specific scope of services provided under the USCG Employee Assistance Program contract?
The contract, valued at over $18.6 million, was for the USCG Employee Assistance Program (EAP). While the specific details are not fully elaborated in the provided data, EAP services typically encompass a range of support for employees and their families. This often includes confidential counseling for personal and work-related issues (such as stress, grief, substance abuse, relationship problems), crisis intervention, referrals to specialized care, financial and legal consultations, and wellness programs. The program aims to proactively address issues that could impact an employee's well-being, job performance, and overall readiness.
How does the $18.6 million contract value compare to similar EAP contracts for other federal agencies?
Directly comparing the $18.6 million value requires access to a broader dataset of EAP contracts across federal agencies. However, for a large agency like the U.S. Coast Guard, with thousands of personnel, this figure appears to be a substantial and reasonable investment over a five-year period. For context, EAP contracts can range from a few million dollars for smaller agencies to tens or even hundreds of millions for very large departments like the Department of Defense or Veterans Affairs, depending on the scope, duration, and number of covered individuals. The firm-fixed-price nature suggests cost predictability.
What are the potential risks associated with a long-term (over 5 years) contract for employee assistance services?
Long-term contracts for EAP services, like this one spanning over five years, carry several potential risks. One risk is vendor lock-in, where the government may become dependent on a single provider, making it difficult or costly to switch even if performance declines or market alternatives emerge. Another risk is the potential for service quality degradation over time if not rigorously monitored. Furthermore, the needs of the workforce can evolve, and a long-term contract might not be agile enough to adapt to new challenges or incorporate innovative service delivery methods without costly modifications. Ensuring continuous value and relevance requires strong contract management and performance oversight.
What does the 'full and open competition' with 3 bidders indicate about the contractor selection process and potential value?
The fact that this contract was awarded under 'full and open competition' with three bidders is a positive indicator for the selection process and potential value. It signifies that the solicitation was broadly advertised, allowing any qualified vendor to submit a proposal. The presence of three distinct bidders suggests a degree of market interest and competition, which typically drives down prices and encourages higher quality service offerings as vendors vie for the contract. This level of competition helps ensure that the selected contractor, Carelon Health Federal Services, Inc., was chosen based on merit and competitive pricing, likely resulting in better value for the taxpayer compared to a sole-source or limited competition award.
How might the firm-fixed-price (FFP) contract type impact the delivery and cost of EAP services?
The firm-fixed-price (FFP) contract type is generally advantageous for the government in predictable service environments. For the USCG EAP contract, an FFP structure means that Carelon Health Federal Services, Inc. agreed to perform the work for a predetermined price, regardless of their actual costs. This provides significant cost certainty for the Coast Guard and the taxpayer, as the total expenditure is fixed upfront. It incentivizes the contractor to manage their costs efficiently to maintain profitability. However, for services like EAP where demand can fluctuate or unforeseen needs arise, an FFP contract might offer less flexibility for scope adjustments compared to cost-reimbursement types, potentially requiring contract modifications for significant changes.
What is the significance of the NAICS code 624190 (Other Individual and Family Services) for this contract?
The North American Industry Classification System (NAICS) code 624190, 'Other Individual and Family Services,' categorizes the primary business activity of the contractor for this specific contract. This code indicates that the services provided under the contract fall outside more specific categories like child daycare, family counseling, or substance abuse treatment centers, but are generally related to supporting individuals and families. For the USCG EAP, this broad classification likely encompasses a wide array of mental health, wellness, and support services tailored to the unique needs of military and civilian personnel and their dependents, reflecting the multifaceted nature of employee assistance programs.
Industry Classification
NAICS: Health Care and Social Assistance › Individual and Family Services › Other Individual and Family Services
Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HSCG23-12-R-PMD151
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1434 CROSSWAYS BLVD, CHESAPEAKE, VA, 23320
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $18,679,222
Exercised Options: $18,679,222
Current Obligation: $18,679,222
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2012-04-01
Current End Date: 2017-09-30
Potential End Date: 2017-09-30 00:00:00
Last Modified: 2018-10-02
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