DoD's $31.5M Psychological Health Outreach Services Contract with Serco Inc. Faces Scrutiny

Contract Overview

Contract Amount: $31,542,830 ($31.5M)

Contractor: Serco Inc

Awarding Agency: Department of Defense

Start Date: 2019-09-20

End Date: 2024-09-19

Contract Duration: 1,826 days

Daily Burn Rate: $17.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PSYCHOLOGICAL HEALTH OUTREACH SERVICES

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $31.5 million to SERCO INC for work described as: PSYCHOLOGICAL HEALTH OUTREACH SERVICES Key points: 1. Contract awarded to Serco Inc. for $31.5M over five years. 2. Services fall under 'Other Scientific and Technical Consulting Services' (NAICS 541690). 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract aims to provide psychological health outreach services. 5. Potential risks include service effectiveness and long-term value for taxpayer dollars.

Value Assessment

Rating: fair

The contract's value of $31.5M over five years averages $6.3M annually. Benchmarking against similar consulting services requires detailed scope comparison, but this appears within a reasonable range for specialized outreach programs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: Taxpayer funds are being used for essential psychological health services. The effectiveness and efficiency of these services will ultimately determine the value for money.

Public Impact

Provides critical psychological health support to service members and potentially their families. Aims to improve mental well-being and readiness within the military community. The contract's duration suggests a sustained need for these services. Success hinges on the quality and accessibility of the outreach provided.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Effectiveness of outreach services not explicitly detailed.
  • Long-term impact and scalability of services are unclear.
  • Potential for scope creep or unaddressed needs within the program.

Positive Signals

  • Awarded through full and open competition.
  • Addresses a critical area of military readiness and well-being.
  • Firm Fixed Price contract type helps control costs.

Sector Analysis

The Department of Defense frequently contracts for professional services, including consulting and health-related support. Spending benchmarks for psychological health outreach can vary significantly based on scope and target population, but this contract appears substantial for specialized services.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the prime contractor, Serco Inc., is a large business. There is no information provided on subcontracting opportunities for small businesses.

Oversight & Accountability

Oversight would typically be managed by the Department of the Navy, ensuring Serco Inc. meets contract requirements and performance standards. Regular performance reviews and reporting are crucial for accountability.

Related Government Programs

  • Other Scientific and Technical Consulting Services
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Lack of specific performance metrics.
  • Potential for provider burnout or turnover.
  • Dependence on a single large contractor for critical services.
  • Uncertainty regarding long-term impact and scalability.
  • Limited information on small business subcontracting.

Tags

other-scientific-and-technical-consultin, department-of-defense, va, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.5 million to SERCO INC. PSYCHOLOGICAL HEALTH OUTREACH SERVICES

Who is the contractor on this award?

The obligated recipient is SERCO INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $31.5 million.

What is the period of performance?

Start: 2019-09-20. End: 2024-09-19.

What specific metrics are used to measure the effectiveness of the psychological health outreach services provided by Serco Inc.?

Measuring the effectiveness of psychological health outreach requires clearly defined metrics. These could include rates of service utilization, reported improvements in mental health symptoms, reduction in mental health-related incidents (e.g., suicides, substance abuse), and feedback from service members receiving the outreach. The contract should specify these KPIs and the methodology for tracking and reporting them to ensure accountability and demonstrate value.

How does the Department of Defense ensure the quality and cultural competency of the psychological health outreach providers assigned by Serco Inc.?

Ensuring quality and cultural competency involves rigorous vetting and training protocols. The DoD likely requires Serco Inc. to demonstrate its selection process, including background checks, credential verification, and specific training on military culture, trauma-informed care, and diverse populations. Ongoing performance monitoring and feedback mechanisms from service members are essential to address any deficiencies promptly.

What is the long-term strategy for psychological health support, and how does this contract align with or contribute to that broader vision?

This contract represents a significant investment in psychological health outreach over five years. The DoD's long-term strategy should outline how such services integrate with broader mental healthcare systems, preventative measures, and resilience programs. Understanding this contract's role within that larger framework helps assess its strategic value and sustainability beyond its current term.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesManagement, Scientific, and Technical Consulting ServicesOther Scientific and Technical Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0018919RZ001

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12930 WORLDGATE DR STE 600, HERNDON, VA, 20170

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

Financial Breakdown

Contract Ceiling: $31,633,349

Exercised Options: $31,633,349

Current Obligation: $31,542,830

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $4,654,822

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline

Start Date: 2019-09-20

Current End Date: 2024-09-19

Potential End Date: 2024-09-19 00:00:00

Last Modified: 2023-11-18

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