Over $250M awarded for Military Family Life Counseling services, with a significant portion allocated to outpatient mental health

Contract Overview

Contract Amount: $250,434,783 ($250.4M)

Contractor: MHN Government Services LLC

Awarding Agency: Department of the Interior

Start Date: 2010-08-01

End Date: 2011-07-31

Contract Duration: 364 days

Daily Burn Rate: $688.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MILITARY FAMILY LIFE COUNSELING

Place of Performance

Location: RICHMOND, CONTRA COSTA County, CALIFORNIA, 94804

State: California Government Spending

Plain-Language Summary

Department of the Interior obligated $250.4 million to MHN GOVERNMENT SERVICES LLC for work described as: MILITARY FAMILY LIFE COUNSELING Key points: 1. Contract awarded to MHN GOVERNMENT SERVICES LLC for comprehensive family support. 2. Services primarily focus on outpatient mental health and substance abuse treatment. 3. The contract spans over a year, indicating a substantial need for ongoing support. 4. Awarded under a firm-fixed-price contract type, suggesting predictable costs. 5. Geographic focus on California, highlighting a concentrated service area. 6. No small business set-aside was utilized, potentially limiting smaller contractor participation.

Value Assessment

Rating: good

The total award of over $250 million for Military Family Life Counseling is substantial. While direct comparisons to similar contracts are difficult without more granular data on service scope and duration, the fixed-price nature of the contract suggests a degree of cost control. Benchmarking the per-service cost would provide a clearer picture of value for money, but the scale of the award indicates a significant investment in supporting military families.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The use of full and open competition suggests a mature market for these types of services.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and high-quality services through a robust bidding process.

Public Impact

Military families, including active-duty personnel and their dependents, are the primary beneficiaries of these counseling services. Services delivered include outpatient mental health care and substance abuse treatment, crucial for family well-being. The geographic impact is concentrated in California, where the services are being provided. The contract supports a workforce of counselors and mental health professionals dedicated to military family support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bidder count limits assessment of true competitive intensity.
Geographic concentration in California may not address needs in other regions.
No small business participation noted, potentially missing opportunities for smaller, specialized providers.

Positive Signals

Awarded through full and open competition, suggesting a broad market engagement.
Firm-fixed-price contract type provides cost certainty for the government.
Focus on essential services like mental health and substance abuse treatment addresses critical needs.

Sector Analysis

The Military Family Life Counseling program falls within the broader healthcare and social services sector, specifically focusing on mental and behavioral health. This contract represents a significant investment in supporting the well-being of military personnel and their families, a critical component of defense readiness. Comparable spending in this niche often involves large-scale contracts awarded through competitive processes to specialized providers capable of delivering comprehensive care across various locations.

Small Business Impact

The absence of a small business set-aside for this contract indicates that it was not specifically targeted towards small businesses. While full and open competition allows for participation by all eligible firms, including small businesses, it does not guarantee their inclusion or a significant share of the subcontracting work. This could mean missed opportunities for smaller, agile providers to contribute to military family support services.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting agency (Department of the Interior, in this case, though the service is for military families) and potentially the Department of Defense's relevant branches. Accountability measures are embedded in the firm-fixed-price contract, requiring delivery of specified services. Transparency is generally facilitated by contract award data, but detailed performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

Military OneSource
TRICARE Mental Health Services
Department of Defense Family Support Programs

Risk Flags

Potential for service gaps if geographic concentration is insufficient.
Contractor performance risk on large-scale service delivery.
Ensuring continued access to care beyond the contract period.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $250.4 million to MHN GOVERNMENT SERVICES LLC. MILITARY FAMILY LIFE COUNSELING

Who is the contractor on this award?

The obligated recipient is MHN GOVERNMENT SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $250.4 million.

What is the period of performance?

Start: 2010-08-01. End: 2011-07-31.

What is the historical spending trend for Military Family Life Counseling services by the Department of the Interior?

The provided data reflects a single award of $250,434,782.61 to MHN GOVERNMENT SERVICES LLC for Military Family Life Counseling, with a performance period from August 1, 2010, to July 31, 2011. This represents a significant expenditure for a single contract year. To understand historical trends, one would need to examine spending data for this specific service category across multiple years and potentially across different agencies that might procure such services (e.g., Department of Defense). Without access to a broader dataset, it's impossible to determine if this award represents an increase, decrease, or stable level of spending for this particular service over time.

How does the per-unit cost of services under this contract compare to industry benchmarks for outpatient mental health?

Determining the precise per-unit cost is challenging without knowing the exact number of counseling sessions or service units delivered under this $250M contract. The contract is for 'Outpatient Mental Health and Substance Abuse Centers' and has a duration of 364 days. If we assume the $250M is spread evenly over the year, it's approximately $686,000 per day. However, this doesn't represent a 'per-unit' cost. To benchmark, we would need to know the number of unique individuals served, the average number of sessions per individual, or the cost per session. Industry benchmarks for outpatient mental health sessions vary widely based on location, provider type, and specific services offered. Without more granular data on service delivery volume, a direct comparison is not feasible.

What is the track record of MHN GOVERNMENT SERVICES LLC in delivering similar large-scale government contracts?

MHN GOVERNMENT SERVICES LLC, as a provider of government services, likely has a track record with various federal agencies. To assess their performance on this specific $250M Military Family Life Counseling contract, one would need to review contract performance reports, past performance questionnaires, and any documented issues or successes. Information regarding their history with similar large-scale health and human services contracts, particularly those focused on military populations, would be crucial. A review of federal procurement databases and contractor performance systems (like the Contractor Performance Assessment Reporting System - CPARS) would be necessary to evaluate their reliability, quality of service, and adherence to contract terms.

What specific risk indicators were identified during the procurement process for this contract?

The provided data does not explicitly detail risk indicators identified during the procurement process. However, general risks associated with large, complex service contracts like this include potential cost overruns (mitigated here by firm-fixed-price), performance deficiencies, contractor instability, and challenges in meeting service delivery demands. Given the 'full and open competition' award, the evaluation process likely assessed bidders' technical capabilities, past performance, and price. Any identified risks would have been factored into the source selection decision. Further investigation into the source selection justification document would be required to identify specific risk assessments.

How does the scope of 'Military Family Life Counseling' differ from standard mental health services offered through TRICARE?

Military Family Life Counseling (MFLC) services are designed to be readily accessible, confidential, and often delivered in non-traditional settings (like schools or community centers) to reduce stigma and barriers for military families. They typically focus on prevention, early intervention, and support for issues such as deployment stress, family dynamics, and behavioral challenges. While TRICARE is the primary health insurance provider for military members and their families, offering a broad range of medical and mental health services, MFLC often complements TRICARE by providing a more immediate, flexible, and less formal layer of support. MFLC counselors may not require referrals or authorizations in the same way as some TRICARE-covered services, making them easier to access for everyday concerns.

Industry Classification

NAICS: Health Care and Social Assistance › Outpatient Care Centers › Outpatient Mental Health and Substance Abuse Centers

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Centene Corporation

Address: 503 CANAL BLVD, RICHMOND, CA, 94804

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $250,434,783

Exercised Options: $250,434,783

Current Obligation: $250,434,783

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: INN07PC10444

IDV Type: IDC

Timeline