VA awards $79M contract for mental health outreach, with 2 bids received

Contract Overview

Contract Amount: $79,275,897 ($79.3M)

Contractor: J.R. Reingold & Associates, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-04-04

End Date: 2027-03-03

Contract Duration: 1,429 days

Daily Burn Rate: $55.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VA GENERAL MENTAL HEALTH AND SUICIDE PREVENTION AWARENESS AND EDUCATION OUTREACH SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $79.3 million to J.R. REINGOLD & ASSOCIATES, INC. for work described as: VA GENERAL MENTAL HEALTH AND SUICIDE PREVENTION AWARENESS AND EDUCATION OUTREACH SERVICES Key points: 1. Contract focuses on critical mental health and suicide prevention awareness for veterans. 2. Limited competition suggests potential for higher pricing, requiring careful value assessment. 3. Fixed-price contract type offers cost certainty but may limit flexibility. 4. Performance period of nearly four years allows for sustained program impact. 5. Geographic focus on Washington D.C. indicates targeted outreach efforts. 6. Contractor's track record and past performance will be key indicators of success.

Value Assessment

Rating: fair

The contract value of approximately $79 million over four years for mental health outreach services appears substantial. Benchmarking against similar large-scale public health awareness campaigns is necessary to determine value for money. The fixed-price nature of the contract provides cost predictability for the VA. However, with only two bids, the pricing may not have been aggressively driven down by competition, warranting scrutiny of the per-unit costs for services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, which is a positive sign for taxpayer value. However, only two bids were received, indicating a potentially limited pool of qualified offerors or a lack of interest from the market. This level of competition might not have fully leveraged market forces to achieve the lowest possible price. Further analysis of the bidding process and the reasons for limited participation would be beneficial.

Taxpayer Impact: While full and open competition was utilized, the low number of bidders suggests that taxpayers may not have received the full benefit of a highly competitive bidding environment, potentially leading to a higher overall cost than if more firms had competed.

Public Impact

Veterans nationwide will benefit from increased awareness and access to mental health and suicide prevention resources. The services delivered will include educational materials, outreach campaigns, and potentially support services. The primary geographic impact is focused on Washington D.C., suggesting a pilot or concentrated effort. The contract may indirectly support a workforce in the mental health advocacy and public health communication sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to suboptimal pricing.
Effectiveness of outreach in reaching target veteran populations needs monitoring.
Ensuring the quality and impact of awareness materials is crucial.

Positive Signals

Focus on a critical public health issue (mental health and suicide prevention).
Long-term contract allows for sustained program development and impact.
Fixed-price contract provides budget certainty for the VA.

Sector Analysis

This contract falls within the professional services sector, specifically focusing on public health outreach and communication. The market for such services is diverse, encompassing advertising agencies, public relations firms, and specialized health communication organizations. The value of this contract, at nearly $80 million, is significant within this niche, suggesting a large-scale, national-level initiative. Comparable spending benchmarks would involve looking at other federal agencies' campaigns for health awareness, disease prevention, or public service announcements.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities. The prime contractor, J.R. REINGOLD & ASSOCIATES, INC., will determine the extent to which small businesses are engaged. Without specific subcontracting plans mandated, the direct benefit to the small business ecosystem may be limited unless proactively pursued by the prime.

Oversight & Accountability

Oversight will likely be managed by the Department of Veterans Affairs program officials responsible for mental health services. Accountability measures will be tied to performance metrics outlined in the contract, such as reach of campaigns, engagement levels, and reported outcomes. Transparency can be assessed through public reporting on contract awards and performance, though detailed operational data may be less accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Mental Health Services
Veteran Suicide Prevention Programs
Public Health Awareness Campaigns
Department of Veterans Affairs Outreach

Risk Flags

Limited competition may impact price.
Effectiveness measurement for outreach is critical.
Contractor's past performance in sensitive areas needs verification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $79.3 million to J.R. REINGOLD & ASSOCIATES, INC.. VA GENERAL MENTAL HEALTH AND SUICIDE PREVENTION AWARENESS AND EDUCATION OUTREACH SERVICES

Who is the contractor on this award?

The obligated recipient is J.R. REINGOLD & ASSOCIATES, 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 $79.3 million.

What is the period of performance?

Start: 2023-04-04. End: 2027-03-03.

What is the track record of J.R. REINGOLD & ASSOCIATES, INC. in delivering similar public health outreach or mental health awareness services to federal agencies?

A thorough review of J.R. REINGOLD & ASSOCIATES, INC.'s past performance is crucial. This would involve examining previous contracts, particularly those with the VA or other health-focused agencies, to assess their experience in managing large-scale awareness campaigns, developing effective communication strategies, and achieving measurable outcomes. Specific attention should be paid to their success in sensitive areas like mental health and suicide prevention, looking for evidence of successful engagement with target populations and adherence to ethical communication standards. Past performance evaluations and any debriefings from prior solicitations would provide valuable insights into their capabilities and reliability.

How does the awarded price compare to industry benchmarks for similar mental health awareness and outreach services, considering the scope and duration?

To benchmark the awarded price of approximately $79 million, a comparative analysis against similar large-scale public health campaigns is necessary. This would involve researching contracts awarded by other federal agencies (e.g., HHS, CDC) or even state/local governments for health awareness initiatives, particularly those focused on mental health or sensitive topics. Factors to consider include the target audience size, the types of services procured (e.g., media buys, content creation, event management), the duration of the contract, and the geographic scope. Given the limited competition (two bidders), it is essential to determine if the pricing reflects a fair market value or if it may be inflated due to a lack of robust competition. Analyzing the cost per impression, cost per veteran reached, or cost per engagement could provide more granular insights.

What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure program effectiveness?

The key performance indicators (KPIs) for this contract are critical for measuring the effectiveness of the VA's mental health and suicide prevention outreach. While not detailed in the provided data, typical KPIs for such a contract would likely include metrics related to campaign reach (e.g., number of veterans exposed to messaging), engagement (e.g., website visits, resource downloads, event attendance), awareness levels (e.g., pre- and post-campaign surveys on mental health stigma and resource knowledge), and potentially referrals to mental health services. The contract should clearly define how these KPIs will be measured, the targets to be achieved, and the reporting frequency. The VA's oversight team will be responsible for monitoring these KPIs and assessing whether the contractor is meeting its obligations and delivering value.

What is the historical spending pattern of the VA on mental health awareness and outreach services, and how does this contract fit within that trend?

Analyzing historical spending by the VA on mental health awareness and outreach is essential to contextualize this $79 million contract. This involves examining previous fiscal years to identify trends in funding allocation for similar services. Understanding whether this award represents an increase, decrease, or stable level of investment can indicate shifts in VA priorities or the perceived urgency of mental health issues among veterans. It would also be beneficial to see if previous outreach efforts were successful and if this contract builds upon or diverges from those strategies. Comparing the current award amount to the average or median spending on comparable initiatives in prior years will help determine if this is an outlier or a continuation of established spending patterns.

Given the limited competition, what specific risk mitigation strategies has the VA implemented to ensure fair pricing and contractor performance?

The VA's risk mitigation strategies for this contract, especially given the limited competition, are crucial. While the data doesn't specify these, best practices would include rigorous price analysis, potentially using independent government cost estimates or market research data to validate the contractor's proposed pricing. The VA might also implement robust performance monitoring, with clear milestones and deliverables tied to payment schedules. Strong contract management, including regular progress reviews and potentially incorporating incentives for exceeding performance targets or penalties for underperformance, would be key. Furthermore, the VA could have engaged in detailed discussions with the bidders to understand their cost structures and ensure a competitive understanding, even with only two offers.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1321 DUKE ST, ALEXANDRIA, VA, 22314

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

Financial Breakdown

Contract Ceiling: $212,338,493

Exercised Options: $79,275,897

Current Obligation: $79,275,897

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QRAA21D001F

IDV Type: FSS

Timeline