Interior Department awards $98.6M for non-medical military family counseling, with one bid

Contract Overview

Contract Amount: $98,563,990 ($98.6M)

Contractor: MHN Government Services LLC

Awarding Agency: Department of the Interior

Start Date: 2008-04-01

End Date: 2009-03-31

Contract Duration: 364 days

Daily Burn Rate: $270.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COMBINATION (TWO OR MORE)

Sector: Healthcare

Official Description: NON-MEDICAL MILITARY FAMILY LIFE COUNSELING SERVICES

Place of Performance

Location: RICHMOND, CONTRA COSTA County, CALIFORNIA, 94804

State: California Government Spending

Plain-Language Summary

Department of the Interior obligated $98.6 million to MHN GOVERNMENT SERVICES LLC for work described as: NON-MEDICAL MILITARY FAMILY LIFE COUNSELING SERVICES Key points: 1. Contract awarded to a single vendor, raising questions about competitive pricing. 2. The contract duration of one year suggests a need for ongoing services. 3. The specific NAICS code indicates a focus on outpatient mental health services. 4. Awarded under the Departmental Offices, indicating a broad administrative function. 5. The contract value is substantial, requiring careful oversight for value for money. 6. No small business set-aside was utilized, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: questionable

The contract value of $98.6 million for one year of non-medical military family counseling services appears high, especially given it was awarded under full and open competition with only one bid received. Benchmarking this against similar contracts for family support services is difficult without more detailed service descriptions and performance metrics. The lack of multiple bids in a full and open competition raises concerns about whether the government achieved the best possible price and value. Further analysis of the contractor's proposed pricing structure against industry standards for similar services would be beneficial.

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 a bid. However, only one bid was received. This situation can occur for various reasons, including a lack of qualified bidders, insufficient market research, or a highly specialized service requirement. The fact that only one bid was submitted limits the government's ability to leverage price competition to drive down costs and ensure the most advantageous terms.

Taxpayer Impact: A single bid in a full and open competition suggests that taxpayers may not have benefited from the full spectrum of competitive pricing that could have been achieved with multiple offers. This could lead to a higher overall cost for the services provided.

Public Impact

Military families, particularly those of service members, are the primary beneficiaries of these non-medical counseling services. Services are designed to provide support for mental health and well-being, addressing issues that can impact family stability. The geographic impact is likely nationwide, supporting military families across various installations, though specific locations are not detailed. The contract supports the well-being of the military community, indirectly contributing to service member readiness and retention.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition despite full and open solicitation raises concerns about price reasonableness.
The substantial contract value necessitates robust performance monitoring to ensure effective service delivery.
Limited information on specific service delivery metrics makes it difficult to assess performance outcomes.
The absence of small business participation warrants review to ensure equitable opportunity.

Positive Signals

Awarded under full and open competition, theoretically allowing for broad market participation.
The contract aims to provide critical support services to military families, addressing a vital need.
The contractor, MHN Government Services LLC, likely possesses specialized expertise in providing such services.

Sector Analysis

The contract falls within the healthcare services sector, specifically outpatient mental health and substance abuse centers (NAICS 621420). This sector is characterized by a mix of public and private providers, with significant government spending on services for specific populations, such as military families. The market size for government contracting in mental health services is substantial, driven by the need to support various federal agencies and their beneficiaries. This contract represents a significant portion of spending within this niche, focusing on non-medical support.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in delivering these critical services were not explicitly prioritized through this specific award. The impact on the small business ecosystem is neutral to negative, as it represents a missed opportunity for small, specialized providers to compete for a large federal contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Interior's contracting and program management offices. Accountability measures would be defined in the contract's statement of work, including performance standards and reporting requirements. Transparency is facilitated by the Federal Procurement Data System (FPDS), which reports contract awards. However, detailed performance data and specific oversight activities are not publicly available through this system.

Related Government Programs

Military Family Readiness Programs
TRICARE Mental Health Services
Department of Defense Family Support Programs
Veterans Affairs Mental Health Services

Risk Flags

Limited competition despite full and open solicitation
High contract value requires diligent oversight
Lack of detailed performance metrics in award data

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $98.6 million to MHN GOVERNMENT SERVICES LLC. NON-MEDICAL MILITARY FAMILY LIFE COUNSELING SERVICES

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 $98.6 million.

What is the period of performance?

Start: 2008-04-01. End: 2009-03-31.

What is the track record of MHN Government Services LLC in delivering similar non-medical family counseling services to the federal government?

Information regarding MHN Government Services LLC's specific track record in delivering non-medical military family counseling services to the federal government is not detailed in the provided data. However, as a government services provider, it is expected that they have experience in navigating federal contracting requirements and delivering services to government clients. Further investigation into their past performance on similar contracts, including client feedback and any documented performance issues or successes, would be necessary for a comprehensive assessment. The award of this significant contract suggests a level of confidence from the awarding agency in the contractor's capabilities, but independent verification of their past performance is crucial.

How does the awarded price compare to market rates for similar non-medical family counseling services?

The provided data does not include specific pricing details or a breakdown of the $98.6 million contract value per service unit, making a direct comparison to market rates challenging. The contract was awarded under full and open competition but with only one bid, which inherently limits the ability to benchmark against competitive offers. To assess value for money, one would need to compare the proposed hourly rates, service packages, and overhead costs against industry benchmarks for non-medical family counseling provided to similar populations. Without this granular data, it is difficult to definitively state whether the price is competitive or represents a premium due to the lack of competition.

What are the primary risks associated with this contract, given the limited competition?

The primary risk associated with this contract is the potential for inflated pricing and reduced service quality due to the lack of robust competition. With only one bid received under a full and open solicitation, the government may not have achieved the most cost-effective solution. There is also a risk that the contractor may have less incentive to innovate or exceed performance expectations if they perceive limited future competition. Furthermore, if the contractor faces performance issues, the process of finding and onboarding a replacement could be lengthy and disruptive to service delivery, given the specialized nature of the services and the potential scarcity of qualified alternative providers.

What are the expected outcomes and effectiveness measures for the non-medical military family counseling services?

The provided data does not specify the expected outcomes or effectiveness measures for these non-medical military family counseling services. Typically, such contracts would include a Statement of Work (SOW) detailing performance standards, key performance indicators (KPIs), and reporting requirements. These might include metrics related to client satisfaction, reduction in reported family stressors, improvement in family communication, or successful navigation of military life challenges. Without access to the SOW and performance reports, assessing the program's effectiveness and the contractor's success in achieving desired outcomes is not possible based solely on the award data.

What has been the historical spending pattern for non-medical military family counseling services by the Department of the Interior?

The provided data pertains to a single contract award and does not offer historical spending patterns for non-medical military family counseling services by the Department of the Interior. To understand historical spending, one would need to analyze procurement data over several fiscal years, looking for similar contracts awarded to this or other vendors. This would reveal trends in contract values, durations, competition levels, and the overall investment in such services. Without this broader historical context, it is difficult to determine if this $98.6 million award represents an increase, decrease, or consistent level of spending for these services.

Are there any specific geographic limitations or concentrations for the delivery of these services?

The provided data indicates the contract was awarded to MHN Government Services LLC in California (SN: CALIFORNIA), but it does not specify geographic limitations or concentrations for the delivery of the non-medical military family counseling services. Federal contracts for services supporting military families are often intended to be delivered nationwide, supporting families at various installations or through remote/telehealth options. The specific deployment locations or service areas would be detailed in the contract's Statement of Work. Without this information, it is assumed the services are intended to reach military families broadly, potentially across multiple states or globally, depending on the needs outlined in the SOW.

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: 1

Pricing Type: COMBINATION (TWO OR MORE) (2)

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: $98,563,990

Exercised Options: $98,563,990

Current Obligation: $98,563,990

Parent Contract

Parent Award PIID: INN07PC10444

IDV Type: IDC

Timeline