GSA Awards $1.07B for Worldwide Military Family Counseling Services to Magellan Federal

Contract Overview

Contract Amount: $1,072,719,370 ($1.1B)

Contractor: Magellan Federal, Inc.

Awarding Agency: General Services Administration

Start Date: 2021-02-01

End Date: 2027-01-31

Contract Duration: 2,190 days

Daily Burn Rate: $489.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: MILITARY AND FAMILY LIFE COUNSELING. REQUIREMENT FOR WORLDWIDE NON MEDICAL CONFIDENTIAL COUNSELING SERVICES.

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $1.07 billion to MAGELLAN FEDERAL, INC. for work described as: MILITARY AND FAMILY LIFE COUNSELING. REQUIREMENT FOR WORLDWIDE NON MEDICAL CONFIDENTIAL COUNSELING SERVICES. Key points: 1. Significant contract value highlights the extensive need for military family support. 2. Magellan Federal, Inc. is the sole awardee, indicating a potentially limited competitive landscape. 3. The contract's duration and global scope present execution and oversight risks. 4. Services fall under 'Other Individual and Family Services', a critical social support sector.

Value Assessment

Rating: fair

The contract type is Cost Plus Award Fee, which can incentivize performance but may lead to higher costs if not managed carefully. Benchmarking against similar large-scale service contracts is difficult without more granular cost data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Although the award was made under full and open competition, the single awardee suggests that only one offeror met the requirements or was competitive. This limits price discovery and potentially reduces competitive pressure.

Taxpayer Impact: Taxpayer funds are being used to provide essential support services to military families, which is a high-priority government function. The cost-effectiveness will depend on Magellan Federal's performance and efficient service delivery.

Public Impact

Ensures critical mental health and support services are available to military families globally. Addresses the unique challenges faced by families of service members, including deployment and relocation. Supports the well-being and readiness of the armed forces by providing a vital resource.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with Cost Plus Award Fee structure.
Risk of service quality degradation over a long contract duration.
Dependence on a single contractor for a critical service.

Positive Signals

Addresses a vital need for military family support.
Global reach ensures comprehensive coverage.
Potential for high-quality service delivery through award fee incentives.

Sector Analysis

This contract falls within the 'Other Individual and Family Services' sector, which is crucial for social support. Spending benchmarks for similar global, long-term counseling contracts are scarce, making direct comparison challenging.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). There is no indication of subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The General Services Administration (GSA) is responsible for oversight. The long duration and worldwide scope necessitate robust performance monitoring and accountability mechanisms to ensure service quality and cost control.

Related Government Programs

Other Individual and Family Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Long contract duration increases risk of performance degradation.
Cost Plus Award Fee structure can lead to higher costs if not managed tightly.
Sole awardee limits competitive pressure and price discovery.
Global scope presents significant logistical and oversight challenges.
Lack of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $1.07 billion to MAGELLAN FEDERAL, INC.. MILITARY AND FAMILY LIFE COUNSELING. REQUIREMENT FOR WORLDWIDE NON MEDICAL CONFIDENTIAL COUNSELING SERVICES.

Who is the contractor on this award?

The obligated recipient is MAGELLAN FEDERAL, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $1.07 billion.

What is the period of performance?

Start: 2021-02-01. End: 2027-01-31.

How effectively are the award fee criteria structured to ensure both high-quality service delivery and cost control for this global contract?

The effectiveness of the award fee criteria hinges on their specificity and alignment with measurable outcomes. Well-defined metrics for service accessibility, responsiveness, and client satisfaction, coupled with clear cost-efficiency targets, are crucial. Without detailed insight into these criteria, it's difficult to assess their ability to balance quality incentives with taxpayer value.

What are the primary risks associated with relying on a single contractor for worldwide, non-medical confidential counseling services over a seven-year period?

The primary risks include potential service degradation due to complacency, lack of competitive pressure, and contractor burnout. A single point of failure exists if Magellan Federal faces financial instability, operational challenges, or significant staffing issues. Ensuring consistent quality and coverage across diverse global locations under one contract also presents logistical and oversight complexities.

How will the government measure the overall effectiveness and impact of these counseling services on military family well-being and force readiness?

Effectiveness will likely be measured through a combination of client satisfaction surveys, utilization rates, and potentially pre/post-service assessments of well-being indicators. The government should also track metrics related to service accessibility, wait times, and counselor qualifications. Linking these service metrics to broader outcomes like family retention and service member readiness provides a more comprehensive view of impact.

Industry Classification

NAICS: Health Care and Social Assistance › Individual and Family Services › Other Individual and Family Services

Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 8

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Centene Corporation

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: $1,976,726,417

Exercised Options: $1,347,996,714

Current Obligation: $1,072,719,370

Actual Outlays: $830,581,566

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $70,397,054

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline