Interior's $241M Military Family Counseling Contract Awarded to MHN Government Services LLC
Contract Overview
Contract Amount: $241,051,805 ($241.1M)
Contractor: MHN Government Services LLC
Awarding Agency: Department of the Interior
Start Date: 2009-09-25
End Date: 2010-09-24
Contract Duration: 364 days
Daily Burn Rate: $662.2K/day
Competition Type: FOLLOW ON TO COMPETED ACTION
Number of Offers Received: 1
Pricing Type: COMBINATION (TWO OR MORE)
Sector: Healthcare
Official Description: NON-MEDICAL MILITARY FAMILY COUNSELING SERVICES
Place of Performance
Location: RICHMOND, CONTRA COSTA County, CALIFORNIA, 94804
Plain-Language Summary
Department of the Interior obligated $241.1 million to MHN GOVERNMENT SERVICES LLC for work described as: NON-MEDICAL MILITARY FAMILY COUNSELING SERVICES Key points: 1. Contract value of $241 million for non-medical military family counseling. 2. Awarded to MHN Government Services LLC, a single vendor. 3. Follow-on to a competed action, suggesting prior competition. 4. Services provided under NAICS code 621420 (Outpatient Mental Health and Substance Abuse Centers).
Value Assessment
Rating: fair
The contract value of $241 million for a one-year duration appears high for outpatient mental health services. Benchmarking against similar large-scale contracts for family counseling would be necessary to assess pricing effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is a 'FOLLOW ON TO COMPETED ACTION,' indicating that the initial award was competed. However, the current award is not explicitly stated as competed, raising questions about the current level of competition and price discovery.
Taxpayer Impact: The significant contract value suggests a substantial taxpayer investment. Ensuring competitive pricing and efficient service delivery is crucial to maximize taxpayer value.
Public Impact
Provides essential non-medical counseling services to military families. Supports the well-being and readiness of military personnel and their families. Contract duration of one year with potential for extensions. Services are categorized under outpatient mental health and substance abuse centers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of clarity on current competition status.
- High contract value requires robust price justification.
- Potential for vendor lock-in if competition is reduced.
Positive Signals
- Follow-on to a previously competed action.
- Addresses critical needs for military family support.
- Specific NAICS code provides clear service definition.
Sector Analysis
This contract falls within the healthcare services sector, specifically outpatient mental health. Spending benchmarks for similar government contracts for family support services would be relevant for comparison.
Small Business Impact
The data does not indicate any specific set-aside for small businesses. Further analysis would be needed to determine if small businesses had an opportunity to participate in this contract.
Oversight & Accountability
Oversight would involve monitoring service delivery, quality, and cost-effectiveness. The Department of the Interior's role in managing this contract for military families warrants clear accountability mechanisms.
Related Government Programs
- Outpatient Mental Health and Substance Abuse Centers
- Department of the Interior Contracting
- Departmental Offices Programs
Risk Flags
- Potential lack of current competition.
- High contract value requires strong justification.
- Need for clear performance metrics and oversight.
- Limited information on small business participation.
Tags
outpatient-mental-health-and-substance-a, department-of-the-interior, ca, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $241.1 million to MHN GOVERNMENT SERVICES LLC. NON-MEDICAL MILITARY FAMILY 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 $241.1 million.
What is the period of performance?
Start: 2009-09-25. End: 2010-09-24.
What was the competitive landscape for this specific follow-on action, and how was the price determined to ensure value for money?
The data states this is a 'FOLLOW ON TO COMPETED ACTION,' implying the original award was competed. However, it does not specify if this particular follow-on action was re-competed or awarded sole-source. Understanding the procurement method is crucial for assessing price discovery and ensuring the government secured the best possible pricing for these essential services.
What are the specific performance metrics and quality assurance measures in place to ensure the effectiveness of the counseling services provided by MHN Government Services LLC?
Effective oversight requires clearly defined performance metrics and robust quality assurance processes. For a contract of this magnitude, the Department of the Interior should have established standards for service delivery, client satisfaction, and clinical outcomes. Regular performance reviews and audits are essential to ensure the counseling services meet the needs of military families and represent a responsible use of taxpayer funds.
How does the $241 million contract value compare to industry benchmarks for similar non-medical military family counseling services, and what is the projected cost per service or per family member?
A direct comparison to industry benchmarks for non-medical military family counseling is difficult without more specific service details. However, the $241 million price tag for a one-year contract is substantial. Establishing a clear per-unit cost (e.g., per counseling session, per family served) and comparing it to government and commercial sector averages would be critical to determine if this represents a fair and reasonable price.
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: FOLLOW ON TO COMPETED ACTION
Solicitation Procedures: ONLY ONE SOURCE
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: $241,051,805
Exercised Options: $241,051,805
Current Obligation: $241,051,805
Parent Contract
Parent Award PIID: INN07PC10444
IDV Type: IDC
Timeline
Start Date: 2009-09-25
Current End Date: 2010-09-24
Potential End Date: 2010-09-24 00:00:00
Last Modified: 2012-06-27
More Contracts from MHN Government Services LLC
- Military Family Life Counseling Program Igf::ot::igf — $638.8M (Department of the Interior)
- Military Family Life Counseling — $250.4M (Department of the Interior)
- Counseling Services — $241.6M (Department of the Interior)
- Non-Medical Military Family Life Counseling Services — $98.6M (Department of the Interior)
- Military and Family Life Counseling. Requirement for Worldwide NON Medical Confidential Counseling Services — $91.9M (General Services Administration)
Other Department of the Interior Contracts
- Department of Health and Human Services, Administration of Children and Families, Office of Refugee Resettlement's Legal Services for Unaccompanied Children — $832.4M (Acacia Center for Justice)
- Military Family Life Counseling Program Igf::ot::igf — $638.8M (MHN Government Services LLC)
- Military Family Life Counseling Program — $637.0M (Magellan Healthcare Inc)
- Grants Program Solutions and Information Technology Support Services — $446.3M (Guidehouse Digital LLC)
- THE Purpose of This Requirement for Grants Program Solutions and IT Support Services IS to Provide Efficient and Effective Grant, Financial, and Contract Management Services, IT Solutions, and Support to the Grantsolutions and ITS Partners — $403.1M (Guidehouse Inc.)