VA's Veterans Crisis Line contract awarded to Mental Health Association of NYC for $40.6M over 4 years

Contract Overview

Contract Amount: $40,596,818 ($40.6M)

Contractor: THE Mental Health Association of NEW York City, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-05-01

End Date: 2023-04-30

Contract Duration: 1,460 days

Daily Burn Rate: $27.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VETERANS CRISIS LINE

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10004

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $40.6 million to THE MENTAL HEALTH ASSOCIATION OF NEW YORK CITY, INC. for work described as: VETERANS CRISIS LINE Key points: 1. Contract awarded to a single non-profit organization. 2. No competition was identified for this contract. 3. Potential for higher costs due to lack of competition. 4. Telecommunications sector spending benchmark is unclear without more data.

Value Assessment

Rating: questionable

The contract's value of $40.6 million over four years for telecommunications services appears high given the lack of competitive bidding. Without benchmarks for similar crisis line services or telecommunications contracts of this scope, it's difficult to definitively assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no opportunity for multiple vendors to bid and offer competitive pricing.

Taxpayer Impact: The lack of competition likely resulted in a higher price than could have been achieved through a competitive process, impacting taxpayer funds.

Public Impact

Ensures critical crisis support for veterans remains operational. Potential for taxpayer funds to be used inefficiently due to sole-source award. Lack of transparency in the procurement process raises concerns about fairness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
Potential for overpayment due to lack of price discovery.
Contract duration is lengthy.

Positive Signals

Provides essential services to veterans.
Contract is firm fixed price, offering cost certainty.

Sector Analysis

This contract falls under telecommunications services, specifically for a crisis hotline. Spending in this sector can vary widely based on the technology and scale of operations. The $40.6M award over four years suggests a significant operational footprint.

Small Business Impact

The contract was awarded to a non-profit organization, and there is no indication of small business participation. This award does not appear to support small business goals.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the VA obtained fair value and that this approach is justified. Accountability for the pricing and service delivery should be closely monitored.

Related Government Programs

All Other Telecommunications
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Lack of competition
Potential for inflated pricing
Limited transparency in procurement
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $40.6 million to THE MENTAL HEALTH ASSOCIATION OF NEW YORK CITY, INC.. VETERANS CRISIS LINE

Who is the contractor on this award?

The obligated recipient is THE MENTAL HEALTH ASSOCIATION OF NEW YORK CITY, INC..

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $40.6 million.

What is the period of performance?

Start: 2019-05-01. End: 2023-04-30.

What is the justification for awarding this contract sole-source instead of competing it?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available alternatives. Without specific documentation from the VA, it's impossible to determine the exact reason. However, the absence of competition raises questions about whether alternative providers could have met the service requirements, potentially at a lower cost.

How does the cost of this contract compare to similar crisis support services or telecommunications contracts?

Benchmarking this contract's cost is challenging without access to comparable data for similar crisis support services or telecommunications contracts. The $40.6 million price tag over four years, awarded non-competitively, suggests a potentially higher cost than a competitive bid might have yielded. Further analysis would require detailed cost breakdowns and comparisons with industry standards.

What measures are in place to ensure the effectiveness and efficiency of the services provided under this sole-source contract?

Given the sole-source nature, robust performance monitoring and accountability mechanisms are crucial. The VA should have clear performance metrics, regular reviews, and defined service level agreements with the Mental Health Association of New York City, Inc. to ensure the crisis line operates effectively and taxpayer funds are used efficiently.

Industry Classification

NAICS: Information › Other Telecommunications › All Other Telecommunications

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C10G19R0033

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 50 BROADWAY FL 19, NEW YORK, NY, 10004

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $58,240,249

Exercised Options: $40,596,818

Current Obligation: $40,596,818

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline