VA awards $15M contract for Veteran Crisis Line services to The Mental Health Association of New York City

Contract Overview

Contract Amount: $15,012,631 ($15.0M)

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

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-05-01

End Date: 2027-04-29

Contract Duration: 1,093 days

Daily Burn Rate: $13.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VETERAN CRISIS LINE

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10012

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $15.0 million to THE MENTAL HEALTH ASSOCIATION OF NEW YORK CITY, INC. for work described as: VETERAN CRISIS LINE Key points: 1. Contract awarded on a non-competitive basis, raising questions about potential cost savings through competition. 2. The fixed-price contract structure aims to control costs, but the absence of competition limits price discovery. 3. Performance is tied to the critical Veteran Crisis Line, indicating high stakes for service delivery. 4. The contract duration of nearly three years suggests a stable, ongoing need for these services. 5. Geographic focus on New York may indicate a regional approach to crisis support, potentially limiting broader reach.

Value Assessment

Rating: fair

The contract value of $15 million over approximately three years for telecommunications services related to the Veteran Crisis Line appears reasonable given the critical nature of the service. However, without competitive bidding, it is difficult to benchmark the pricing against market rates or alternative providers. The fixed-price nature provides cost certainty for the VA, but the lack of competition means potential savings from a more robust bidding process may have been forgone. Further analysis would require understanding the specific service requirements and comparing them to similar crisis hotline contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific vendor possesses unique capabilities or when there is an urgent need that cannot be met through a competitive process. The lack of competition means that the VA did not benefit from the price reductions and service innovations that can arise from a bidding war among potential contractors. This limits the ability to assess if the best possible price and terms were secured.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without a competitive process, there is less assurance that the contract represents the most cost-effective solution available.

Public Impact

Veterans in crisis across the nation will benefit from continued access to essential support services. The contract ensures the operational continuity of the Veteran Crisis Line, a vital resource for mental health emergencies. Services are delivered through telecommunications, likely involving call centers and digital communication platforms. While the contractor is based in New York, the service's impact is national, supporting veterans wherever they are located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits transparency and potential cost savings.
Lack of competition may lead to higher prices than a competed contract.
Dependence on a single provider for a critical service poses a risk if performance falters.

Positive Signals

Contract ensures continuity of a vital service for veterans.
Fixed-price contract provides cost predictability for the agency.
Contractor is likely experienced in providing mental health support services.

Sector Analysis

The telecommunications and mental health support sectors are critical for government service delivery. This contract falls within the broader IT and professional services categories, specifically focusing on critical communication infrastructure for a vulnerable population. The market for such services can be specialized, with a mix of large telecommunications providers and non-profit organizations offering crisis support. Benchmarking would require comparing the cost and scope of services to other crisis hotlines or mental health support contracts, which are often awarded through various procurement methods.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have specific small business set-aside provisions. There is no explicit mention of subcontracting requirements for small businesses. Therefore, this award is unlikely to directly benefit the small business ecosystem through prime contracting or mandated subcontracting.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs (VA) program managers responsible for the Veteran Crisis Line. The VA's Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency is limited due to the sole-source nature of the award, but contract performance metrics and reporting requirements should be available through VA procurement data systems.

Related Government Programs

Veteran Crisis Line Operations
Mental Health Services Contracts
Telecommunications Support Services
Department of Veterans Affairs Procurement

Risk Flags

Sole-source award
Lack of competition
Critical service dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $15.0 million to THE MENTAL HEALTH ASSOCIATION OF NEW YORK CITY, INC.. VETERAN 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 $15.0 million.

What is the period of performance?

Start: 2024-05-01. End: 2027-04-29.

What is the track record of The Mental Health Association of New York City, Inc. in providing similar crisis line services?

Information regarding the specific track record of The Mental Health Association of New York City, Inc. in managing large-scale, national crisis lines is not detailed in the provided data. However, as a mental health association, it is presumed to have expertise in the field. Further investigation would be needed to ascertain their experience with similar government contracts, their capacity to handle the volume and complexity of the Veteran Crisis Line, and their past performance ratings on relevant contracts. Understanding their history with crisis intervention, call center management, and data security protocols is crucial for assessing their capability to fulfill this significant federal obligation.

How does the awarded amount compare to similar crisis hotline contracts managed by other federal agencies?

Direct comparison of the $15 million award for the Veteran Crisis Line to similar federal contracts is challenging without more specific data on contract scope, duration, and service level agreements. However, the average cost for operating a 24/7 crisis hotline can vary significantly based on call volume, staffing levels, technology infrastructure, and geographic reach. Contracts for national suicide prevention lifelines or similar emergency response services can range from a few million to tens of millions of dollars annually. The fixed-price nature of this contract provides cost certainty, but the absence of competition makes it difficult to determine if this represents optimal value compared to what could be achieved through a competitive bidding process.

What are the primary risks associated with awarding this contract on a sole-source basis?

The primary risks associated with awarding this contract on a sole-source basis include a lack of price competition, which could lead to higher costs for taxpayers than if the contract were competed. There is also a reduced incentive for the contractor to innovate or improve services beyond the contract's minimum requirements, as there is no competitive pressure. Furthermore, sole-source awards can raise concerns about fairness and equal opportunity for other qualified vendors. For a critical service like the Veteran Crisis Line, over-reliance on a single provider also introduces a risk if the contractor experiences performance issues, financial instability, or other disruptions that could impact service continuity.

What are the key performance indicators (KPIs) for the Veteran Crisis Line contract, and how is performance measured?

The provided data does not specify the key performance indicators (KPIs) for the Veteran Crisis Line contract or the methods used for performance measurement. Typically, for such a critical service, KPIs would likely include metrics such as average response time for calls, call abandonment rates, resolution rates, client satisfaction scores, and adherence to privacy and security protocols. The Department of Veterans Affairs (VA) would be responsible for establishing these KPIs in the contract and monitoring the contractor's performance against them. Regular performance reviews and reporting would be essential to ensure the effectiveness and quality of the services provided.

What has been the historical spending by the VA on the Veteran Crisis Line or similar services over the past five years?

Historical spending data for the Veteran Crisis Line or similar services by the Department of Veterans Affairs (VA) is not included in the provided data snippet. To assess historical spending patterns, one would need to access VA procurement databases or budget reports. Analyzing past expenditures would help understand the trend in funding for this critical service, identify any significant increases or decreases in spending, and provide context for the current $15 million award. It would also reveal if previous contracts for these services were competed or awarded sole-source.

Industry Classification

NAICS: Information › All Other Telecommunications › All Other Telecommunications

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C10G24R0024

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 80 PINE ST FL 19, NEW YORK, NY, 10005

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: $29,334,519

Exercised Options: $15,012,631

Current Obligation: $15,012,631

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline