Interior's $65.6M EAP Contract with Carelon Behavioral Health Faces Scrutiny for Value and Competition

Contract Overview

Contract Amount: $65,615,248 ($65.6M)

Contractor: Carelon Behavioral Health, Inc.

Awarding Agency: Department of the Interior

Start Date: 2014-02-01

End Date: 2017-04-30

Contract Duration: 1,184 days

Daily Burn Rate: $55.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF MILITARY ONESOURCE 1-800 CALL CENTER, WEBSITE, NON-MEDICAL COUNSELING, AND OTHER EAP SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $65.6 million to CARELON BEHAVIORAL HEALTH, INC. for work described as: IGF::OT::IGF MILITARY ONESOURCE 1-800 CALL CENTER, WEBSITE, NON-MEDICAL COUNSELING, AND OTHER EAP SERVICES Key points: 1. The contract awarded to Carelon Behavioral Health, Inc. for EAP services represents a significant investment in employee well-being. 2. Competition was full and open, suggesting a robust price discovery process. 3. Potential risks include ensuring the effectiveness and cost-efficiency of non-medical counseling services over the contract's duration. 4. The IT sector is not directly applicable, but the service falls under 'Other Individual and Family Services'.

Value Assessment

Rating: fair

The contract's total value of $65.6 million over approximately 3.2 years needs further analysis against benchmarks for similar EAP services. Without specific per-unit cost data, it's difficult to definitively assess pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. The use of a definitive contract with multiple awards suggests a structured approach to securing services.

Taxpayer Impact: The taxpayer impact is the $65.6 million expenditure, which should be evaluated against the tangible benefits and cost savings derived from improved employee mental health and productivity.

Public Impact

Provides essential non-medical counseling and support services to federal employees, potentially improving morale and retention. The contract supports a broad range of services including call center and website access, indicating a comprehensive EAP offering. Ensuring the quality and accessibility of services across different locations and employee needs is crucial for realizing the contract's full potential.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics and outcome data.
Potential for scope creep in 'other EAP services'.
Ensuring equitable access for all employees.

Positive Signals

Full and open competition utilized.
Multiple award structure may indicate flexibility.
Focus on employee well-being.

Sector Analysis

This contract falls under 'Other Individual and Family Services,' a broad category. Benchmarking against similar EAP contracts within the federal government or private sector is necessary to assess cost-effectiveness.

Small Business Impact

The data indicates the prime contractor is Carelon Behavioral Health, Inc. There is no explicit information on small business subcontracting within this data snippet.

Oversight & Accountability

Oversight would involve monitoring service delivery, user satisfaction, and cost-effectiveness. The definitive contract structure with multiple awards may facilitate ongoing oversight and adjustments.

Related Government Programs

Other Individual and Family Services
Department of the Interior Contracting
Departmental Offices Programs

Risk Flags

Lack of detailed performance metrics.
Ambiguity in 'other EAP services' scope.
No clear indication of small business participation.
Need for cost-effectiveness benchmarking.
Potential for service quality variability.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $65.6 million to CARELON BEHAVIORAL HEALTH, INC.. IGF::OT::IGF MILITARY ONESOURCE 1-800 CALL CENTER, WEBSITE, NON-MEDICAL COUNSELING, AND OTHER EAP SERVICES

Who is the contractor on this award?

The obligated recipient is CARELON BEHAVIORAL HEALTH, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $65.6 million.

What is the period of performance?

Start: 2014-02-01. End: 2017-04-30.

What specific metrics are used to measure the effectiveness of the non-medical counseling and EAP services provided under this contract?

The provided data does not specify the metrics used to measure the effectiveness of the EAP services. A thorough review would require access to performance reports, employee utilization rates, satisfaction surveys, and potentially data on reduced absenteeism or improved productivity linked to the EAP program.

How does the per-employee cost of these EAP services compare to industry benchmarks for similar federal contracts?

Without specific per-employee cost data or detailed service utilization figures, a direct comparison to industry benchmarks is not possible. The total contract value of $65.6 million spread over an unspecified number of employees and a duration of over three years makes a precise benchmark difficult without further breakdown.

What is the potential risk of overpaying for services given the 'Other EAP Services' category, which could be broad?

The risk of overpaying for 'Other EAP Services' exists if the scope is not clearly defined and managed. Without detailed service descriptions and cost breakdowns for these 'other' services, it's challenging to ensure they align with market rates and deliver genuine value, potentially leading to inflated costs.

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

Solicitation ID: D12PS50899

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Elevance Health, Inc.

Address: 240 CORPORATE BLVD, NORFOLK, VA, 23502

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

Financial Breakdown

Contract Ceiling: $82,244,690

Exercised Options: $70,233,997

Current Obligation: $65,615,248

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline