Military Family Life Counseling Program awarded $637M to Magellan Healthcare Inc. under full and open competition
Contract Overview
Contract Amount: $636,978,864 ($637.0M)
Contractor: Magellan Healthcare Inc
Awarding Agency: Department of the Interior
Start Date: 2012-08-15
End Date: 2018-08-14
Contract Duration: 2,190 days
Daily Burn Rate: $290.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: MILITARY FAMILY LIFE COUNSELING PROGRAM
Place of Performance
Location: COLUMBIA, HOWARD County, MARYLAND, 21046
State: Maryland Government Spending
Plain-Language Summary
Department of the Interior obligated $637.0 million to MAGELLAN HEALTHCARE INC for work described as: MILITARY FAMILY LIFE COUNSELING PROGRAM Key points: 1. Magellan Healthcare Inc. secured a significant contract for a vital social service. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The program addresses child and youth services, indicating a focus on vulnerable populations. 4. The firm fixed price contract type aims to control costs for the government.
Value Assessment
Rating: good
The contract value of $637 million over six years is substantial. Benchmarking against similar social service contracts would be necessary for a precise value assessment, but the duration and scope suggest a fair price point was likely achieved through competition.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, allowing multiple vendors to bid. This method generally promotes competitive pricing and ensures the government receives the best value by selecting from a range of qualified offerors.
Taxpayer Impact: The competitive nature of the award suggests taxpayers likely benefited from a fair price for essential services, avoiding potential overpayment associated with less competitive methods.
Public Impact
Supports military families with essential counseling services. Addresses critical needs in child and youth welfare. Ensures continuity of care for a significant duration. Potential for positive impact on military readiness and family well-being.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for vendor lock-in if follow-on contracts are not competitively bid.
- Dependence on a single vendor for a critical service.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract type.
- Long-term contract provides service stability.
- Addresses a critical social need for military families.
Sector Analysis
This contract falls under social services, specifically child and youth services, supporting the Department of the Interior's broader mission. Spending in this sector is often driven by social needs and government mandates rather than purely economic factors.
Small Business Impact
The data indicates the prime contractor is Magellan Healthcare Inc., a large entity. There is no information provided on subcontracting opportunities for small businesses within this contract.
Oversight & Accountability
The contract was awarded by the Department of the Interior. Oversight would typically involve program managers ensuring service delivery meets contractual requirements and performance standards. The firm fixed price structure provides some cost control.
Related Government Programs
- Child and Youth Services
- Department of the Interior Contracting
- Departmental Offices Programs
Risk Flags
- Significant contract value.
- Long contract duration.
- Sole awardee for a critical service.
- Lack of small business participation noted.
- Potential for service disruption if vendor fails.
Tags
child-and-youth-services, department-of-the-interior, md, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $637.0 million to MAGELLAN HEALTHCARE INC. MILITARY FAMILY LIFE COUNSELING PROGRAM
Who is the contractor on this award?
The obligated recipient is MAGELLAN HEALTHCARE INC.
Which agency awarded this contract?
Awarding agency: Department of the Interior (Departmental Offices).
What is the total obligated amount?
The obligated amount is $637.0 million.
What is the period of performance?
Start: 2012-08-15. End: 2018-08-14.
What specific performance metrics were used to evaluate Magellan Healthcare Inc.'s success in delivering the Military Family Life Counseling Program?
The provided data does not detail specific performance metrics. Typically, such contracts would include key performance indicators (KPIs) related to service accessibility, client satisfaction, and program outcomes. Effective oversight would involve regular reviews of these metrics to ensure the contractor is meeting or exceeding expectations and delivering value.
What is the potential risk associated with Magellan Healthcare Inc. being the sole provider for this program over a six-year period?
The primary risk is vendor dependency; if Magellan Healthcare Inc. underperforms or faces financial instability, it could disrupt critical services for military families. Additionally, a lack of ongoing competition for six years might lead to complacency or less incentive for innovation compared to shorter, more frequently re-competed contracts.
How effectively does the firm fixed price contract type ensure value for money in a service-oriented program like this?
A firm fixed price contract is effective in controlling costs as the price is set upfront. However, for service-oriented programs, it relies heavily on well-defined scope and performance standards. If the scope is poorly defined or unforeseen issues arise, the contractor might struggle to deliver quality services within the fixed price, or the government might not achieve optimal value if the scope was too narrow.
Industry Classification
NAICS: Health Care and Social Assistance › Individual and Family Services › Child and Youth Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL 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: Magellan Health, Inc. (UEI: 049693732)
Address: 14100 MAGELLAN PLAZA, MARYLAND HEIGHTS, MO, 63043
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,146,348,222
Exercised Options: $636,978,864
Current Obligation: $636,978,864
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2012-08-15
Current End Date: 2018-08-14
Potential End Date: 2018-08-14 00:00:00
Last Modified: 2021-02-24
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