DoD awards $2.23M contract for mental health evaluations to Thomas & Reed LLC, citing no competition

Contract Overview

Contract Amount: $2,230,988 ($2.2M)

Contractor: Thomas & Reed LLC

Awarding Agency: Department of Defense

Start Date: 2022-03-25

End Date: 2026-03-28

Contract Duration: 1,464 days

Daily Burn Rate: $1.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MENTAL HEALTH EVALUATIONS

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46204

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $2.2 million to THOMAS & REED LLC for work described as: MENTAL HEALTH EVALUATIONS Key points: 1. Contract awarded without competition raises questions about potential value for money. 2. Limited competition may lead to higher prices than if multiple vendors were considered. 3. The contract duration of 1464 days suggests a long-term need for these services. 4. The specific service category (Offices of Mental Health Practitioners) indicates a specialized need. 5. Awarded to a single vendor without a competitive process presents a risk indicator for price and performance. 6. The firm fixed-price contract type provides some cost certainty but may limit flexibility.

Value Assessment

Rating: questionable

Benchmarking the value for this contract is challenging due to the lack of competitive data. The award was made on a sole-source basis, meaning there was no direct comparison with other potential providers to assess pricing. Without a competitive bidding process, it's difficult to determine if the fixed price represents a fair market value or if taxpayers received the best possible deal. The absence of comparable contract data further complicates a thorough value-for-money assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the Defense Counterintelligence and Security Agency did not solicit bids from multiple vendors. The justification for this approach is not detailed in the provided data. Typically, sole-source awards occur when only one vendor possesses the unique capability or when urgent circumstances prevent a competitive process. The lack of competition limits the agency's ability to explore different pricing structures and service delivery models.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits the opportunity for other businesses to compete for government contracts.

Public Impact

The primary beneficiaries are likely personnel requiring mental health evaluations, potentially within the defense or intelligence community. The services delivered are mental health evaluations, crucial for personnel readiness and security. The geographic impact is specified as Indiana (SN: INDIANA), suggesting services are primarily delivered or managed from this location. Workforce implications could include the need for qualified mental health practitioners employed by or contracted through Thomas & Reed LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Sole-source award limits transparency in the procurement process.
Performance metrics and quality assurance details are not provided, posing a risk to service quality.
Contract duration without competitive review could mask inefficiencies.

Positive Signals

Firm fixed-price contract provides cost predictability for the government.
Award to a single entity may indicate specialized expertise required for the service.
The contract is for a defined period, allowing for future re-evaluation of needs.

Sector Analysis

The healthcare services sector, specifically mental health practitioners, is a critical component of support services for government personnel. While the specific market size for sole-source mental health evaluations within the defense sector is not readily available, the broader healthcare services industry is substantial. This contract fits within the government's broader strategy to ensure the mental well-being and security clearance eligibility of its workforce. Comparable spending benchmarks are difficult to establish due to the sole-source nature of this award.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (SB: false) and there is no indication of small business subcontracting requirements (SS: false). Therefore, this award does not appear to directly benefit the small business ecosystem or promote small business participation in this specific contract.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) at the Defense Counterintelligence and Security Agency, responsible for monitoring performance and ensuring compliance with contract terms. Accountability measures are inherent in the firm fixed-price structure, which obligates the contractor to deliver services at the agreed-upon price. Transparency is limited due to the sole-source nature of the award; however, contract award data is publicly available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

DoD Mental Health Services
Defense Security Personnel Support
Healthcare Services Contracts
Sole-Source Procurements
Mental Health Practitioner Services

Risk Flags

Sole-source award without clear justification.
Lack of competitive bidding may lead to inflated costs.
Absence of performance metrics in provided data.
Limited transparency in procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.2 million to THOMAS & REED LLC. MENTAL HEALTH EVALUATIONS

Who is the contractor on this award?

The obligated recipient is THOMAS & REED LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Counterintelligence and Security Agency).

What is the total obligated amount?

The obligated amount is $2.2 million.

What is the period of performance?

Start: 2022-03-25. End: 2026-03-28.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded on a sole-source basis ('NOT AVAILABLE FOR COMPETITION'). However, the specific justification or rationale behind this decision is not detailed. Typically, sole-source awards are made when a unique capability is required that only one vendor possesses, or in cases of urgent and compelling need where competition is not feasible. Without further documentation from the agency, the precise reason for bypassing a competitive bidding process remains unknown. This lack of transparency can raise concerns about whether the government explored all available options to ensure the best value was obtained.

How does the contract value of $2.23 million compare to similar mental health evaluation contracts within the DoD or federal government?

Direct comparison of the $2.23 million contract value is difficult due to the sole-source nature of this award and the lack of specific details on the scope of services and duration. Federal procurement databases often contain numerous contracts for mental health services, but their values vary significantly based on the agency, geographic scope, number of individuals to be evaluated, and the specific types of evaluations required. Without knowing the exact deliverables, volume of services, and duration of comparable contracts, a precise benchmark is not feasible. However, for a contract spanning over 1400 days, $2.23 million suggests a moderate level of spending, but the absence of competition prevents an assessment of whether this represents optimal value.

What are the potential risks associated with awarding a long-term contract (1464 days) without competition?

Awarding a long-term contract without competition presents several potential risks. Firstly, it can lead to suboptimal pricing, as the contractor faces no pressure to offer competitive rates. Secondly, it may reduce the incentive for the contractor to innovate or improve service quality over time, knowing that their position is secured without ongoing competitive evaluation. Thirdly, the government might be locked into a contract that becomes less suitable or cost-effective as needs evolve or new technologies emerge. Finally, the lack of transparency inherent in sole-source awards can obscure potential inefficiencies or performance issues that might be revealed through a competitive process.

What performance standards or metrics are in place to ensure the quality of mental health evaluations provided by Thomas & Reed LLC?

The provided data does not include specific performance standards, metrics, or quality assurance clauses for this contract. In a typical federal contract, these details would be outlined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These sections define the expected level of service, quality requirements, and methods for measuring contractor performance. Without access to the full contract document, it is impossible to assess the specific quality controls. However, the contracting agency (Defense Counterintelligence and Security Agency) is responsible for monitoring contractor performance and ensuring that the services meet the required standards.

What is the historical spending pattern for mental health evaluations by the Defense Counterintelligence and Security Agency or similar DoD entities?

The provided data does not offer historical spending patterns for mental health evaluations by the Defense Counterintelligence and Security Agency (DCSA) or similar Department of Defense (DoD) entities. To analyze historical spending, one would need to access procurement data over multiple fiscal years, identifying contracts for similar services (e.g., NAICS code 621330, Offices of Mental Health Practitioners) awarded by the DCSA or related defense agencies. This analysis would reveal trends in contract values, competition levels, and contractor choices over time, providing context for the current $2.23 million award. Without this historical data, it's difficult to determine if this award represents an increase, decrease, or stable level of spending for these services.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Other Health Practitioners › Offices of Mental Health Practitioners (except Physicians)

Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 148 E MARKET ST, INDIANAPOLIS, IN, 46204

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,831,173

Exercised Options: $2,230,988

Current Obligation: $2,230,988

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HS002122D0001

IDV Type: IDC

Timeline