DoD Awards $68.3M for Family Advocacy Support Services to Magellan Federal, Inc
Contract Overview
Contract Amount: $68,259,567 ($68.3M)
Contractor: Magellan Federal, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-04-06
End Date: 2025-04-20
Contract Duration: 1,840 days
Daily Burn Rate: $37.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FAMILY ADVOCACY SUPPORT SERVICES
Place of Performance
Location: ARLINGTON, ALEXANDRIA CITY County, VIRGINIA, 22206
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $68.3 million to MAGELLAN FEDERAL, INC. for work described as: FAMILY ADVOCACY SUPPORT SERVICES Key points: 1. Significant contract value of $68.3 million over five years. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk is moderate, given the long duration and fixed-price nature. 4. Services fall under Human Resources Consulting, a common government need.
Value Assessment
Rating: good
The contract's firm fixed price structure with a base of $3.7M and potential for $68.3M suggests a well-defined scope. Benchmarking against similar HR consulting contracts would be beneficial, but the competitive award implies reasonable pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders participated. This method generally promotes price discovery and ensures the government receives competitive offers.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely led to a more cost-effective solution for essential family advocacy support services.
Public Impact
Supports military families, a critical demographic for force readiness. Services include program management, case management, and outreach. Contract duration extends to April 2025, ensuring continuity of care.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to scope creep if not managed.
- Reliance on a single awardee for critical support services.
Positive Signals
- Full and open competition promotes fair pricing.
- Firm fixed price contract limits cost overrun risk for the government.
Sector Analysis
This contract falls within the Human Resources Consulting Services sector, often characterized by service-based contracts. Spending benchmarks for similar services can vary widely based on scope and duration, but the competitive award suggests alignment with market rates.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The contract is a delivery order under a larger contract vehicle, implying prior oversight. The Department of the Army's oversight is crucial to ensure service delivery and contractor performance.
Related Government Programs
- Human Resources Consulting Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Contract duration
- Potential for scope creep
- Reliance on single awardee
- Lack of small business participation noted
Tags
human-resources-consulting-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $68.3 million to MAGELLAN FEDERAL, INC.. FAMILY ADVOCACY SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is MAGELLAN FEDERAL, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $68.3 million.
What is the period of performance?
Start: 2020-04-06. End: 2025-04-20.
What is the typical cost per service unit for family advocacy support, and how does this contract's pricing compare?
Determining a precise per-unit cost benchmark for family advocacy support is challenging due to the varied nature of services (e.g., counseling hours, program management). However, the contract's total value of $68.3M over 1840 days averages approximately $37,000 per day. Comparing this daily rate against similar government contracts for comprehensive support services would provide a better value assessment.
What are the primary risks associated with a long-term, firm-fixed-price contract for human resources consulting?
A key risk is potential contractor complacency or reduced service quality over the contract's long duration, especially if performance metrics are not rigorously monitored. For the government, the risk lies in the potential for the fixed price to become uncompetitive if market rates decrease significantly or if the scope needs substantial adjustment, leading to costly modifications.
How effectively does this contract ensure the continuity and quality of family advocacy support for military personnel?
The contract's five-year duration and firm fixed-price structure aim to ensure continuity by locking in services and pricing. Effectiveness hinges on robust performance management by the Department of the Army, including regular reviews of service delivery, client satisfaction, and adherence to program goals. The competitive award suggests a baseline quality was established.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Human Resources Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 8
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Magellan Federal Inc.
Address: 2800 S SHIRLINGTON RD STE 350, ARLINGTON, VA, 22206
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $68,259,567
Exercised Options: $68,259,567
Current Obligation: $68,259,567
Actual Outlays: $2,518,769
Subaward Activity
Number of Subawards: 24
Total Subaward Amount: $11,113,176
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15QKN19D0042
IDV Type: IDC
Timeline
Start Date: 2020-04-06
Current End Date: 2025-04-20
Potential End Date: 2025-04-20 12:04:00
Last Modified: 2025-04-10
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