DoD's $26M contract for clinical social workers and nurses awarded to CICONIX, LLC

Contract Overview

Contract Amount: $25,958,210 ($26.0M)

Contractor: Ciconix, LLC

Awarding Agency: Department of Defense

Start Date: 2021-05-12

End Date: 2026-05-18

Contract Duration: 1,832 days

Daily Burn Rate: $14.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: LICENSED CLINICAL SOCIAL WORKERS, NURSES, PROGRAM ASSISTANTS, PROGRAM COORDINATORS, DAVAS

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78226

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $26.0 million to CICONIX, LLC for work described as: LICENSED CLINICAL SOCIAL WORKERS, NURSES, PROGRAM ASSISTANTS, PROGRAM COORDINATORS, DAVAS Key points: 1. Contract awarded to CICONIX, LLC for essential healthcare and social services. 2. The contract duration spans over 1800 days, indicating a long-term need. 3. Services include licensed clinical social workers, nurses, and program support staff. 4. The contract was awarded under full and open competition. 5. The primary place of performance is Texas. 6. This contract supports the Department of the Air Force's mission.

Value Assessment

Rating: good

The contract value of $25.96 million over approximately five years for specialized healthcare and support personnel appears reasonable given the scope of services. Benchmarking against similar contracts for licensed clinical social workers and nurses requires detailed analysis of specific qualifications and service levels. However, the firm-fixed-price structure suggests a degree of cost certainty for the government. Without specific per-unit cost data or detailed comparisons to market rates for these specialized roles, a definitive value assessment is challenging, but the overall award seems aligned with typical government procurement for such services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the solicitation was broadly advertised, and multiple responsible sources were permitted to submit offers. The presence of six bids suggests a healthy level of competition for these specialized services. A competitive environment generally leads to better price discovery and potentially more favorable terms for the government, as contractors vie to win the award.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more cost-effective solution compared to a sole-source or limited competition scenario.

Public Impact

Provides essential healthcare services, including mental health support through licensed clinical social workers and nursing care. Supports military personnel and their families by ensuring access to critical health and social services. The contract's performance is primarily located in Texas, impacting the local healthcare workforce and economy. Ensures the availability of program assistants and coordinators to manage and deliver these vital services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased demand on specialized healthcare professionals, potentially impacting availability for other contracts.
Long contract duration could lead to vendor lock-in if not managed effectively.
Dependence on a single contractor for critical health services requires robust performance monitoring.

Positive Signals

Award to a single entity ensures streamlined service delivery and management.
Firm-fixed-price contract provides cost predictability for the government.
Full and open competition suggests a fair and transparent procurement process.

Sector Analysis

This contract falls within the broader healthcare services sector, specifically focusing on individual and family services. The market for healthcare professionals, including social workers and nurses, is consistently in demand, particularly within government contracts supporting military and veteran populations. The North American Industry Classification System (NAICS) code 624190, 'Other Individual and Family Services,' encompasses a range of support services. The value of this contract, approximately $26 million, is moderate within the context of large federal healthcare procurements, but significant for the specialized services it provides.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless CICONIX, LLC voluntarily engages small businesses as subcontractors. Further review of the contract's subcontracting plan would be necessary to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force contracting and program management offices. Accountability measures are embedded within the contract's performance standards and reporting requirements. Transparency is facilitated through the Federal Procurement Data System (FPDS) where contract awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Healthcare Services
TRICARE Program
Department of Veterans Affairs Healthcare
Community Health Services

Risk Flags

Potential for staffing shortages given the demand for specialized healthcare professionals.
Long contract duration requires diligent oversight to ensure continued value and performance.
Dependence on a single contractor for critical services necessitates robust contingency planning.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.0 million to CICONIX, LLC. LICENSED CLINICAL SOCIAL WORKERS, NURSES, PROGRAM ASSISTANTS, PROGRAM COORDINATORS, DAVAS

Who is the contractor on this award?

The obligated recipient is CICONIX, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $26.0 million.

What is the period of performance?

Start: 2021-05-12. End: 2026-05-18.

What is the track record of CICONIX, LLC in performing similar federal contracts, particularly in healthcare and social services?

A review of CICONIX, LLC's contract history within the Federal Procurement Data System (FPDS) would be necessary to assess their track record. Specifically, one would look for prior awards for licensed clinical social workers, nurses, and program support personnel. Analyzing past performance evaluations, any contract modifications, and the number and nature of any disputes or terminations would provide insight into their reliability and capability. Understanding their experience with the Department of Defense or other federal agencies in similar service areas is crucial for evaluating their suitability for this significant contract.

How does the per-unit cost of services (e.g., hourly rate for a social worker or nurse) compare to market rates and other federal contracts?

Determining the precise per-unit cost requires access to the detailed CLINs (Contract Line Item Numbers) and associated pricing within the contract. However, a benchmark analysis can be performed by comparing the estimated average hourly or daily rates for the personnel categories (social workers, nurses) against publicly available salary data for these professions in the relevant geographic locations (Texas) and against similar federal contracts awarded by agencies like the Department of Veterans Affairs or other branches of the DoD. Significant deviations from market rates or comparable federal pricing could indicate either exceptional value or potential overpricing, warranting further investigation into the specific service requirements and contractor overhead.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract, and how is performance being monitored?

The contract likely includes specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) designed to measure the contractor's performance in delivering licensed clinical social worker, nursing, and program support services. These might include metrics related to patient satisfaction, response times for services, staff qualifications and retention rates, and adherence to clinical protocols. The Department of the Air Force's program management office would be responsible for monitoring these KPIs through regular reporting from CICONIX, LLC, site visits, and potentially through independent quality assurance reviews. Robust monitoring is essential to ensure the government receives the quality and quantity of services outlined in the contract.

What is the historical spending trend for similar individual and family services contracts within the Department of the Air Force or DoD?

Analyzing historical spending trends for similar contracts within the Department of the Air Force and the broader Department of Defense is crucial for contextualizing the $25.96 million award. This involves examining spending data for NAICS code 624190 and related codes over the past 5-10 fiscal years. Key questions include whether this contract represents an increase or decrease in spending for these services, if there have been shifts in contracting strategies (e.g., from multiple smaller contracts to larger ones), and the average contract values and durations observed. Understanding these trends can help identify potential budget pressures, shifts in service needs, or emerging areas of focus for the DoD.

Are there any identified risks associated with CICONIX, LLC's performance on this contract, such as past performance issues or financial stability concerns?

Assessing risks associated with CICONIX, LLC requires a thorough review of their past performance records, including any documented issues on previous government contracts. This would involve checking for negative past performance ratings, contract disputes, or terminations for default. Additionally, an evaluation of the company's financial stability, particularly for a contract of this duration and value, might be warranted. While the award itself suggests the government found them capable, ongoing monitoring is essential. Risk flags could be raised if there are indications of staffing shortages, quality control issues, or financial distress that could jeopardize service delivery.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA805220R0002

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1997 ANNAPOLIS EXCHANGE PKWY STE 300, ANNAPOLIS, MD, 21401

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

Financial Breakdown

Contract Ceiling: $27,386,421

Exercised Options: $26,702,067

Current Obligation: $25,958,210

Actual Outlays: $5,014,958

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline