DoD's $17.1M contract for health management consulting awarded to Eagle Health, LLC

Contract Overview

Contract Amount: $17,096,083 ($17.1M)

Contractor: Eagle Health, LLC

Awarding Agency: Department of Defense

Start Date: 2021-06-12

End Date: 2026-06-11

Contract Duration: 1,825 days

Daily Burn Rate: $9.4K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CONTRACT RESOURCE MANAGEMENT FOR THE DEFENSE HEALTH AGENCY

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $17.1 million to EAGLE HEALTH, LLC for work described as: CONTRACT RESOURCE MANAGEMENT FOR THE DEFENSE HEALTH AGENCY Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost savings through competition. 2. The contract duration of five years suggests a long-term need for these administrative management services. 3. Fixed-price contract type may offer some cost certainty, but the lack of competition limits price discovery. 4. The contractor, Eagle Health, LLC, is positioned to be a key provider for the Defense Health Agency. 5. Spending on administrative management consulting is a significant category within the federal IT sector. 6. The contract's value is substantial, warranting scrutiny for efficiency and effectiveness.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without comparable sole-source awards for similar services. The $17.1 million over five years averages to approximately $3.4 million annually. Given the lack of competition, it's difficult to assess if this represents a competitive price. Further analysis would require understanding the specific deliverables and market rates for specialized administrative management consulting within the defense health sector.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the simplified acquisition procedures and was awarded on a sole-source basis. This means that only one offeror, Eagle Health, LLC, was solicited and awarded the contract. The lack of competition limits the government's ability to explore alternative solutions or secure potentially lower prices that might arise from a competitive bidding process.

Taxpayer Impact: Taxpayers may not be receiving the best possible value due to the absence of competitive pressure, which typically drives down costs and encourages innovation.

Public Impact

The Defense Health Agency benefits from specialized administrative management and general management consulting services. These services are crucial for the efficient operation and strategic planning of military health programs. The contract supports the agency's mission to provide healthcare to service members and their families. The geographic impact is primarily within the Defense Health Agency's operational areas, likely supporting national-level functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Long contract duration (5 years) may reduce flexibility to adapt to changing needs or market conditions.
Lack of transparency in the justification for sole-source award requires further investigation.

Positive Signals

Firm fixed-price contract type provides cost predictability for the government.
Award to a single contractor can ensure continuity of essential services.
The contractor is likely specialized in defense health management, potentially offering deep expertise.

Sector Analysis

This contract falls within the Administrative Management and General Management Consulting Services sector, a critical support function for large government agencies. The federal market for these services is substantial, with agencies like the Defense Health Agency relying on external expertise for strategic planning, operational efficiency, and program management. Benchmarking this contract's value is difficult without specific details on the scope of work, but it represents a significant investment in specialized consulting.

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. Therefore, it is unlikely to have a direct positive impact on the small business ecosystem. The focus appears to be on securing specialized expertise from a specific contractor rather than promoting small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Health Agency's contracting and program management offices. Accountability measures would be defined in the contract's statement of work and performance metrics. Transparency regarding the sole-source justification and performance reporting would be key areas for assessment. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Defense Health Agency Operations Support
Management and Consulting Services
Federal Health IT Services
Department of Defense Administrative Support

Risk Flags

Sole-source award lacks competitive pricing.
Long contract duration may reduce flexibility.
Transparency of justification for sole-source award is unclear.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.1 million to EAGLE HEALTH, LLC. CONTRACT RESOURCE MANAGEMENT FOR THE DEFENSE HEALTH AGENCY

Who is the contractor on this award?

The obligated recipient is EAGLE HEALTH, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $17.1 million.

What is the period of performance?

Start: 2021-06-12. End: 2026-06-11.

What specific administrative management and general management consulting services are being provided under this contract?

The provided data indicates the contract is for 'CONTRACT RESOURCE MANAGEMENT FOR THE DEFENSE HEALTH AGENCY' and falls under NAICS code 541611 (Administrative Management and General Management Consulting Services). While the specific tasks are not detailed, these services typically encompass areas such as strategic planning, organizational analysis, process improvement, program management support, and resource allocation advice. For the Defense Health Agency, this could involve optimizing healthcare delivery systems, managing complex health IT projects, improving operational efficiency, or advising on policy implementation within the military health system. The 'contract resource management' aspect suggests a focus on the acquisition, oversight, and administration of other contracts within the agency.

What is the justification for awarding this contract on a sole-source basis?

The provided data states the contract was 'NOT COMPETED UNDER SAP' (Simplified Acquisition Procedures) and is a 'SOLE SOURCE'. However, the specific justification for this sole-source award is not detailed in the provided snippet. Typically, sole-source awards require a formal justification, such as the existence of only one responsible source capable of providing the required services, urgent and compelling needs that preclude competition, or specific national security reasons. Without the official justification document, it is impossible to definitively state why competition was bypassed. This lack of competition is a key area for scrutiny regarding potential value for taxpayers.

How does the $17.1 million contract value compare to similar contracts for administrative management consulting within the federal government?

Comparing the $17.1 million value of this five-year contract requires context regarding the scope and specific services rendered. Federal spending on administrative management and general management consulting is substantial across various agencies. For instance, other large agencies like the Department of Veterans Affairs or civilian departments also procure similar services. However, without knowing the precise deliverables, the size of the team, and the specific expertise required for the Defense Health Agency's unique mission, a direct comparison is difficult. The fact that this is a sole-source award further complicates benchmarking, as competitive bids often drive prices down. A more accurate comparison would involve analyzing other sole-source or competitively awarded contracts for similar scale and complexity within the defense or health sectors.

What is the track record of Eagle Health, LLC in providing services to the federal government, particularly the Department of Defense?

The provided data indicates Eagle Health, LLC is the contractor for this $17.1 million Defense Health Agency contract. To assess their track record, one would need to examine their past performance on federal contracts. This includes reviewing past performance evaluations, any awards or commendations received, and any instances of contract disputes or terminations. Information on their prior experience with the Department of Defense and specifically the Defense Health Agency would be crucial. A positive track record would suggest a higher likelihood of successful contract performance, while a history of issues might raise concerns about the agency's decision to award this significant contract on a sole-source basis.

What are the potential risks associated with a sole-source contract of this magnitude and duration?

Sole-source contracts, especially those of significant value ($17.1 million) and long duration (5 years), carry inherent risks. The primary risk is the lack of price competition, which can lead to the government paying more than necessary. Without multiple bidders vying for the contract, there is less incentive for the contractor to offer the most cost-effective solution. Another risk is reduced innovation, as the contractor may not feel pressured to explore novel approaches or efficiencies. Furthermore, a long-term sole-source award can create vendor lock-in, making it difficult for the government to switch providers or adapt to changing technological landscapes or requirements. Oversight becomes even more critical to ensure performance and value are being delivered.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: W81XWH21R0038

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cape FOX Corporation

Address: 7050 INFANTRY RIDGE RD, MANASSAS, VA, 20109

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,096,083

Exercised Options: $17,096,083

Current Obligation: $17,096,083

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline