DoD's $19.8M contract for overseas educational services awarded to Magnum Medical Overseas JV LLC

Contract Overview

Contract Amount: $19,798,647 ($19.8M)

Contractor: Magnum Medical Overseas JV LLC

Awarding Agency: Department of Defense

Start Date: 2019-08-01

End Date: 2025-07-31

Contract Duration: 2,191 days

Daily Burn Rate: $9.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: OCONUS EDUCATIONAL AND DEVELOPMENTAL INTERVENTION SERVICES (EDIS) IN THE PACIFIC AND ATLANTIC REGIONS

Plain-Language Summary

Department of Defense obligated $19.8 million to MAGNUM MEDICAL OVERSEAS JV LLC for work described as: OCONUS EDUCATIONAL AND DEVELOPMENTAL INTERVENTION SERVICES (EDIS) IN THE PACIFIC AND ATLANTIC REGIONS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract's value of nearly $20 million over approximately six years indicates a significant investment in educational services. 3. The definitive contract type suggests a long-term relationship for ongoing services. 4. The fixed-price nature of the contract shifts performance risk to the contractor. 5. The contract is managed by the Department of the Navy, part of the larger Department of Defense. 6. The North American Industry Classification System (NAICS) code 621340 points to services provided by health practitioners. 7. The contract duration of 2191 days spans over six years, allowing for sustained program delivery.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more granular data on the specific services provided and the geographic scope. However, the nearly $20 million expenditure over six years for educational and developmental intervention services suggests a substantial commitment. Without comparable contract data for similar overseas interventions, it's difficult to definitively assess value for money. The firm fixed-price structure provides cost certainty but relies on the contractor's efficiency to ensure value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of four bidders suggests a moderate level of competition for this requirement. While four bidders is not exceptionally high, it does provide some basis for price discovery and allows the government to select from multiple offers.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and better quality services compared to less competitive procurement methods.

Public Impact

The primary beneficiaries are likely military families and personnel stationed overseas who require educational and developmental intervention services. The contract delivers specialized intervention services, potentially including therapy, educational support, and developmental programs. The geographic impact is focused on the Pacific and Atlantic regions where U.S. military personnel are stationed. The contract may have implications for the workforce of specialized therapists, educators, and support staff operating in overseas locations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The specific nature of 'educational and developmental intervention services' is broad and could encompass a wide range of needs, potentially leading to scope creep if not clearly defined.
Overseas contracts can present logistical challenges and increased costs related to deployment, support, and management of personnel and resources.
The contractor, Magnum Medical Overseas JV LLC, is a joint venture, which may introduce complexities in management and accountability compared to a single entity.
The contract's duration of over six years necessitates ongoing monitoring to ensure continued performance and value.

Positive Signals

Awarded through full and open competition, indicating a robust and transparent procurement process.
The firm fixed-price contract type shifts financial risk to the contractor, encouraging cost efficiency.
The contract duration allows for sustained service delivery and relationship building with the client base.
The Department of the Navy's oversight suggests a structured management framework for this significant contract.

Sector Analysis

This contract falls within the healthcare and social assistance sector, specifically related to health practitioners' offices, as indicated by NAICS code 621340. The market for such specialized overseas services is often niche, catering to specific government needs in support of military personnel and their families. Comparable spending benchmarks would typically be found within Department of Defense or other federal agency contracts providing similar support services in overseas locations, though such data is not readily available.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement (ss: false, sb: false). Therefore, there are no explicit subcontracting implications mandated for small businesses within this contract's structure. The primary contractor, Magnum Medical Overseas JV LLC, is a joint venture, which may itself involve different business structures, but the contract does not appear to prioritize small business subcontracting.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of the Navy's contracting and program management offices. Accountability measures would be embedded in the contract's performance work statement and reporting requirements. Transparency is facilitated by the contract's award under full and open competition. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse, as is standard for all federal contracts.

Related Government Programs

Department of Defense Overseas Educational Services
Military Family Support Programs
TRICARE Overseas Program
Exceptional Family Member Program (EFMP)
Department of Defense Education Activity (DoDEA)

Risk Flags

Contract awarded to a Joint Venture
Overseas service delivery
Long-term contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.8 million to MAGNUM MEDICAL OVERSEAS JV LLC. OCONUS EDUCATIONAL AND DEVELOPMENTAL INTERVENTION SERVICES (EDIS) IN THE PACIFIC AND ATLANTIC REGIONS

Who is the contractor on this award?

The obligated recipient is MAGNUM MEDICAL OVERSEAS JV LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $19.8 million.

What is the period of performance?

Start: 2019-08-01. End: 2025-07-31.

What is the specific breakdown of services provided under the "OCONUS EDUCATIONAL AND DEVELOPMENTAL INTERVENTION SERVICES (EDIS)" contract?

The provided data abbreviates the contract's purpose as "OCONUS EDUCATIONAL AND DEVELOPMENTAL INTERVENTION SERVICES (EDIS) IN THE PACIFIC AND ATLANTIC REGIONS." The NAICS code 621340, "Offices of Physical, Occupational and Speech Therapists, and Audiologists," strongly suggests that the services primarily involve therapeutic interventions. This likely includes physical therapy, occupational therapy, speech therapy, and audiology services aimed at addressing developmental delays or disabilities in children within military families stationed overseas. The term 'educational' may also imply support for learning needs related to these interventions, potentially involving specialized educators or learning support specialists working in conjunction with the therapeutic team. A detailed breakdown would typically be found in the Performance Work Statement (PWS) of the contract.

How does the contract value of $19.8 million compare to similar overseas intervention service contracts?

Directly comparing the $19.8 million contract value to similar overseas intervention service contracts is challenging without access to a comprehensive database of comparable federal procurements. However, the value represents a significant investment over its approximately six-year duration (2191 days). Contracts for specialized medical and developmental services, especially those delivered in overseas locations which incur additional logistical and operational costs, tend to be substantial. The Department of Defense often procures such services to support military families. To provide a precise comparison, one would need to identify contracts with similar service scopes (e.g., pediatric therapy, developmental support), geographic focus (OCONUS), and client populations (military dependents) and analyze their total contract values and durations.

What are the key performance indicators (KPIs) or metrics used to evaluate the performance of Magnum Medical Overseas JV LLC under this contract?

The provided summary data does not specify the key performance indicators (KPIs) or metrics used to evaluate Magnum Medical Overseas JV LLC's performance. However, for a contract of this nature, typical KPIs would likely focus on the effectiveness and timeliness of therapeutic interventions, patient/client outcomes, adherence to treatment plans, patient satisfaction, and compliance with all contractual requirements. For example, metrics might include the percentage of children showing measurable developmental progress, the number of therapy sessions delivered on schedule, and feedback from parents or guardians. The contract's Performance Work Statement (PWS) would detail these specific metrics and the methods for measuring and reporting on them, forming the basis for performance evaluations and potential award fees or penalties.

What is the historical spending pattern for similar educational and developmental intervention services by the Department of the Navy or DoD?

Historical spending patterns for similar educational and developmental intervention services by the Department of the Navy or the broader Department of Defense (DoD) are not detailed in the provided data. However, the DoD has a consistent requirement for such services to support military families, particularly through programs like the Exceptional Family Member Program (EFMP). Spending in this area is driven by the needs of families with special medical or educational requirements. Over the years, the DoD has allocated significant funds to ensure these services are available to dependents regardless of their overseas duty station. Analyzing past contract awards for EDIS or similar services, including their values and durations, would reveal trends in spending and the types of contractors engaged.

What are the potential risks associated with a joint venture, Magnum Medical Overseas JV LLC, performing this contract?

Performing this contract as a joint venture (JV), Magnum Medical Overseas JV LLC, introduces specific potential risks. Firstly, the management structure of a JV can be more complex than that of a single entity, potentially leading to slower decision-making or internal disagreements between the JV partners. Secondly, accountability might be diffused if roles and responsibilities are not clearly delineated. Thirdly, the financial stability and operational capacity of the JV as a whole, and each partner individually, are crucial; a weakness in one partner could impact the JV's ability to perform. Finally, ensuring consistent quality and adherence to standards across all services provided by the JV requires robust internal controls and oversight mechanisms. The government's due diligence during the award process would aim to mitigate these risks.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Other Health Practitioners › Offices of Physical, Occupational and Speech Therapists, and Audiologists

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6264519R0003

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 929 COUNTY ROAD 687, ANGLETON, TX, 77515

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

Financial Breakdown

Contract Ceiling: $19,798,647

Exercised Options: $19,798,647

Current Obligation: $19,798,647

Actual Outlays: $789,673

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline