Interior Department awards $64.15M for non-medical military family counseling, highlighting outpatient mental health services

Contract Overview

Contract Amount: $64,150,000 ($64.2M)

Contractor: MHN Government Services LLC

Awarding Agency: Department of the Interior

Start Date: 2009-03-31

End Date: 2010-03-31

Contract Duration: 365 days

Daily Burn Rate: $175.8K/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 $64.2 million to MHN GOVERNMENT SERVICES LLC for work described as: NON-MEDICAL MILITARY FAMILY LIFE COUNSELING SERVICES Key points: 1. Contract value of $64.15M over one year suggests significant investment in family support services. 2. Awarded to MHN Government Services LLC, indicating a focus on specialized mental health providers. 3. The contract's duration of 365 days points to a need for ongoing, consistent support. 4. Service category 'Outpatient Mental Health and Substance Abuse Centers' (NAICS 621420) defines the scope. 5. Full and open competition suggests a robust market for these specialized services. 6. The contract was awarded under the 'Departmental Offices' (SA) of the Department of the Interior. 7. Geographic focus on California (SN) indicates a concentrated service area.

Value Assessment

Rating: good

The contract value of $64.15M for a one-year period for non-medical military family counseling services appears substantial. Benchmarking against similar contracts for family support and mental health services would be necessary for a precise value-for-money assessment. However, the full and open competition suggests that pricing was likely competitive. The specific services provided under 'Outpatient Mental Health and Substance Abuse Centers' are critical for military families, and the investment reflects the importance placed on their well-being.

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 were likely invited to bid. The presence of a single award (NO=1) suggests that one vendor, MHN Government Services LLC, was selected as the most advantageous offer. The competitive nature of the procurement process is expected to drive favorable pricing and service quality for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service delivery, maximizing the value of federal spending.

Public Impact

Military families, particularly those of service members, are the primary beneficiaries of these non-medical counseling services. The services delivered focus on outpatient mental health and substance abuse support. The contract has a specific geographic impact, concentrated in California. This contract supports a specialized segment of the healthcare services industry, focusing on mental and behavioral health.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service gaps if the single awardee faces operational challenges.
Dependence on a single contractor for critical family support services.
Geographic concentration in California might limit accessibility for families outside this region.

Positive Signals

Award to a specialized provider (MHN Government Services LLC) suggests expertise in the required services.
Full and open competition indicates a healthy market and potential for quality service.
The substantial funding suggests a commitment to adequately supporting military families.

Sector Analysis

This contract falls within the Healthcare and Social Assistance sector, specifically under Outpatient Mental Health and Substance Abuse Centers (NAICS 621420). The market for such services is significant, driven by both civilian and military needs. Federal spending in this area often supports specialized providers who can offer tailored services, such as those required for military families. Benchmarking against other federal contracts for similar family support or mental health services would provide further context on the scale of this award.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (SS=false, SB=false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. The primary contractor, MHN Government Services LLC, would determine any subcontracting opportunities based on their operational needs and business strategy.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Interior responsible for these services. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

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

Risk Flags

Single award contract for critical service
Potential for service continuity risk
Limited competition during performance period

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $64.2 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 $64.2 million.

What is the period of performance?

Start: 2009-03-31. End: 2010-03-31.

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

The provided data shows a single award of $64.15M for a 365-day period ending March 31, 2010. Without access to broader historical contract data for this specific service category and agency, it is difficult to establish a definitive spending pattern. However, this single, substantial award suggests a significant, potentially recurring need for these services. Further analysis would require querying federal procurement databases for similar contracts awarded by the Department of the Interior or other agencies serving military families over multiple fiscal years to identify trends in spending, contract duration, and award values.

How does the per-unit cost of these counseling services compare to market rates or similar federal contracts?

The provided data does not include specific per-unit cost details (e.g., cost per counseling session, cost per family served). The total award is $64.15M for a 365-day duration. To assess per-unit cost, we would need to know the number of units delivered (e.g., number of counseling hours, number of individuals served). Without this information, a direct comparison to market rates or similar federal contracts is not feasible. Typically, such analysis would involve obtaining detailed service delivery metrics and comparing them against established benchmarks for outpatient mental health services, adjusted for the specific population served (military families) and geographic location.

What is the track record of MHN Government Services LLC in providing similar federal contracts?

MHN Government Services LLC was awarded this $64.15M contract for non-medical military family counseling services. To assess their track record, one would need to examine their contract history within federal procurement databases. This would involve looking for prior awards for similar services (family support, mental health, counseling) to the Department of Defense, Department of Veterans Affairs, or other agencies. Key aspects to review would include contract performance ratings, any past performance issues or disputes, and the volume and value of previous contracts. A strong history of successful performance on comparable contracts would indicate reliability and expertise.

What are the potential risks associated with a single award for such a critical service?

A single award for critical services like non-medical military family counseling presents several potential risks. Firstly, there is a risk of service disruption if the sole contractor, MHN Government Services LLC, experiences financial difficulties, operational failures, or decides not to renew the contract. This could leave military families without essential support. Secondly, the lack of ongoing competition during the contract period might reduce incentives for the contractor to innovate or maintain the highest levels of service quality and cost-efficiency. Finally, if the contractor underperforms, the government has limited immediate alternatives for service continuity without potentially lengthy and costly re-procurement processes.

How does the scope of 'non-medical' counseling differ from medical mental health services in this context?

The distinction between 'non-medical' and 'medical' counseling is crucial. Non-medical counseling typically focuses on life skills, stress management, relationship issues, and adjustment challenges that do not require a diagnosis or treatment plan from a licensed medical professional. It often addresses situational stressors and aims to improve coping mechanisms and overall well-being. Medical mental health services, on the other hand, involve diagnosis, treatment, and management of mental health conditions by licensed psychiatrists, psychologists, or clinical social workers, often covered by health insurance. For military families, non-medical counseling provides accessible support for everyday challenges, complementing, but not replacing, professional medical mental healthcare.

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: $64,150,000

Exercised Options: $64,150,000

Current Obligation: $64,150,000

Parent Contract

Parent Award PIID: INN07PC10444

IDV Type: IDC

Timeline