Interior Department's $14M Outpatient Mental Health Contract Awarded to MHN Government Services

Contract Overview

Contract Amount: $14,087,537 ($14.1M)

Contractor: MHN Government Services LLC

Awarding Agency: Department of the Interior

Start Date: 2007-03-30

End Date: 2008-03-31

Contract Duration: 367 days

Daily Burn Rate: $38.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: OUT PATIENT MENTAL HEALTH

Place of Performance

Location: RICHMOND, CONTRA COSTA County, CALIFORNIA, 94804

State: California Government Spending

Plain-Language Summary

Department of the Interior obligated $14.1 million to MHN GOVERNMENT SERVICES LLC for work described as: OUT PATIENT MENTAL HEALTH Key points: 1. Contract awarded for outpatient mental health services, indicating a focus on behavioral health support. 2. The contract was secured through full and open competition, suggesting a competitive bidding process. 3. A single award was made, potentially limiting broader market engagement. 4. The contract duration was approximately one year, suggesting a need for ongoing but potentially short-term services. 5. The base contract value was $3.8M, with potential for growth to $14M, indicating flexibility in service needs. 6. Services were delivered in California, specifying a geographic focus for the mental health support.

Value Assessment

Rating: fair

The contract's base value of $3.8M for a one-year period for outpatient mental health services appears reasonable for specialized care. However, the potential to grow to $14M suggests significant scope expansion or additional task orders that would require further benchmarking. Without more detailed service delivery metrics or comparison to similar contracts for the full potential value, a precise value-for-money assessment is challenging. The firm-fixed-price structure provides cost certainty for the government.

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 fact that only one award was made suggests that MHN Government Services was the most advantageous offer received by the agency. While competition was open, the single award outcome warrants a closer look at the number of bids received to understand the true level of market interest and competitive pressure.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to solicit the best possible pricing and service offerings from a wide range of potential providers, driving down costs through market forces.

Public Impact

Beneficiaries include individuals requiring outpatient mental health services, likely federal employees or individuals under the purview of the Department of the Interior. Services delivered encompass outpatient mental health and substance abuse treatment. The geographic impact is concentrated in California, where the services were provided. Workforce implications include the employment of mental health professionals and support staff by MHN Government Services to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the significant difference between base and potential award value.
Limited visibility into the specific performance metrics and quality of care provided.
Single award may indicate limited market response or specific contractor qualifications.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent process.
Firm-fixed-price contract type provides cost predictability for the government.
Focus on essential mental health services addresses a critical need.

Sector Analysis

The healthcare services sector, specifically outpatient mental health, is a critical component of overall public health. Federal spending in this area supports the well-being of service members, veterans, federal employees, and other populations. Contracts like this are essential for providing specialized care that may not be readily available through other means. Benchmarking would involve comparing per-patient costs and service scope against other federal and commercial contracts for similar mental health services.

Small Business Impact

There is no indication from the provided data that this contract included a small business set-aside. The contract was awarded to MHN Government Services LLC. Further investigation would be needed to determine if subcontracting opportunities were made available to small businesses as part of this award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Interior's contracting officer and program managers. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is generally facilitated through contract award databases, though detailed performance reports are often internal. The Inspector General's office for the Department of the Interior would have jurisdiction for investigating fraud, waste, or abuse related to this contract.

Related Government Programs

Department of Veterans Affairs Mental Health Services
TRICARE Mental Health Benefits
Federal Employee Health Benefits (FEHB) Program Mental Health Coverage

Risk Flags

Potential for significant scope expansion requires monitoring.
Limited data on competition intensity despite full and open award.
Need for detailed performance metrics to assess value.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $14.1 million to MHN GOVERNMENT SERVICES LLC. OUT PATIENT MENTAL HEALTH

Who is the contractor on this award?

The obligated recipient is MHN GOVERNMENT SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $14.1 million.

What is the period of performance?

Start: 2007-03-30. End: 2008-03-31.

What was the specific nature of the outpatient mental health services provided under this contract?

The contract, NA 621420, was for 'Outpatient Mental Health and Substance Abuse Centers.' This indicates that the services provided likely included counseling, therapy, psychiatric evaluations, medication management, and potentially substance abuse treatment programs delivered in a non-residential setting. The specific scope would be detailed in the contract's Statement of Work (SOW), outlining the types of conditions treated, the modalities of therapy offered, and any specific patient populations targeted by the Department of the Interior.

How did the pricing of this contract compare to similar federal or commercial contracts for outpatient mental health services?

Benchmarking the pricing for this $3.8M base contract (potentially growing to $14M) requires access to detailed cost breakdowns and comparison with contracts for similar services, patient volumes, and geographic locations. Without specific per-patient costs or service unit rates, a direct comparison is difficult. However, the firm-fixed-price structure suggests the government aimed for predictable costs. The potential for significant growth to $14M warrants scrutiny to ensure the expanded services were competitively priced and represented good value.

What was the track record of MHN Government Services LLC prior to or during this contract?

Information on MHN Government Services LLC's track record prior to or during this specific contract (awarded March 2007 for a period ending March 2008) would typically be found in past performance evaluations submitted during the bidding process or in contract performance reports. As a government contractor, their history of meeting deadlines, quality standards, and budget adherence would have been assessed. A review of other federal contracts awarded to MHN Government Services could provide further insight into their performance history and reliability.

What was the total federal spending on outpatient mental health services during the contract period (2007-2008)?

Determining the total federal spending on outpatient mental health services for the 2007-2008 period across all agencies would require a comprehensive analysis of federal procurement data. This specific contract with the Department of the Interior represents a small fraction of that potential total. Agencies like the Department of Veterans Affairs (VA) and the Department of Defense are significant spenders in this category. Aggregating data from various agencies would be necessary to establish a complete picture of federal investment in outpatient mental health during that timeframe.

Were there any performance issues or contract modifications that significantly altered the scope or cost?

The provided data indicates a base award of $3,838,600 with a potential ceiling of $14,087,537 over a 367-day period. This significant difference suggests that the contract was structured with options or anticipated task orders that could substantially increase its value. Without access to the contract modifications log or performance reviews, it's impossible to detail specific issues or changes. However, such a large potential increase necessitates careful monitoring to ensure the expanded scope aligns with original requirements and represents continued value.

Industry Classification

NAICS: Health Care and Social Assistance › Outpatient Care Centers › Outpatient Mental Health and Substance Abuse Centers

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Health NET, Inc. (UEI: 798330908)

Address: 503 CANAL BLVD, RICHMOND, CA, 08

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $90,301,475

Exercised Options: $14,087,537

Current Obligation: $14,087,537

Parent Contract

Parent Award PIID: INN07PC10444

IDV Type: IDC

Timeline