DoD awards $3.2M contract for behavioral health personnel, highlighting demand for specialized medical services
Contract Overview
Contract Amount: $3,199,377 ($3.2M)
Contractor: Giamed Alliance JV LLC
Awarding Agency: Department of Defense
Start Date: 2023-10-01
End Date: 2026-03-31
Contract Duration: 912 days
Daily Burn Rate: $3.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: PERSONAL SERVICES ONE (1) FULL-TIME EQUIVALENT (FTE) NURSE PRACTITIONER-PSYCHIATRIC- MENTAL HEALTH, ONE (1) FTE LICENSED CLINICAL SOCIAL WORKER, TEN (10) FTES REGISTERED NURSE- BEHAVIORAL HEALTH, AND SIX (6) FTES PSYCHIATRIC TECHNICIANS
Place of Performance
Location: FORT BLISS, EL PASO County, TEXAS, 79918
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $3.2 million to GIAMED ALLIANCE JV LLC for work described as: PERSONAL SERVICES ONE (1) FULL-TIME EQUIVALENT (FTE) NURSE PRACTITIONER-PSYCHIATRIC- MENTAL HEALTH, ONE (1) FTE LICENSED CLINICAL SOCIAL WORKER, TEN (10) FTES REGISTERED NURSE- BEHAVIORAL HEALTH, AND SIX (6) FTES PSYCHIATRIC TECHNICIANS Key points: 1. Contract addresses critical need for psychiatric and behavioral health professionals within the Department of Defense. 2. The award signifies a commitment to enhancing mental healthcare services for military personnel and their families. 3. Competition dynamics suggest a robust market for specialized healthcare staffing solutions. 4. Performance risk appears moderate, given the firm-fixed-price structure and defined service period. 5. This contract aligns with broader federal efforts to bolster mental health infrastructure. 6. The geographic focus on Texas indicates a specific regional requirement for these services.
Value Assessment
Rating: good
The contract's value of approximately $3.2 million for a period of roughly 2.5 years appears reasonable for the specialized personnel required. Benchmarking against similar contracts for FTE Nurse Practitioners, LCSWs, RNs, and Psychiatric Technicians in the healthcare sector suggests this pricing is competitive. The firm-fixed-price structure provides cost certainty for the government, though it may limit flexibility if needs change significantly. The specific mix of personnel (1 NP, 1 LCSW, 10 RNs, 6 Psych Techs) is tailored to behavioral health needs, justifying the overall cost.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, specific exclusions were applied, potentially to ensure specialized capabilities. With three bidders participating, the competition level suggests a healthy market for these specialized services. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.
Taxpayer Impact: The full and open competition, despite exclusions, likely resulted in a fair market price for taxpayers. The presence of multiple bidders helps prevent price gouging and encourages efficiency from the awarded contractor.
Public Impact
Military personnel and their families in the Texas region will benefit from enhanced access to behavioral health services. The contract directly supports the delivery of critical mental healthcare, including psychiatric evaluations, therapy, and patient support. Services will be delivered at a Department of the Army facility in Texas. The contract will support approximately 18 full-time equivalent positions, contributing to the behavioral health workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if the definition of 'behavioral health' expands beyond initial expectations.
- Reliance on a single contractor for critical personnel could pose a risk if performance issues arise.
- Ensuring consistent quality of care across all contracted personnel will require diligent oversight.
Positive Signals
- The firm-fixed-price contract provides budget predictability.
- The competition involved multiple bidders, suggesting a competitive market and potentially better value.
- The contract duration allows for stable service provision and reduces the frequency of re-competition.
Sector Analysis
This contract falls within the Healthcare sector, specifically focusing on general medical and surgical hospitals (NAICS 622110) with a specialization in behavioral and mental health services. The market for healthcare staffing, particularly for specialized roles like psychiatric nurse practitioners and social workers, is substantial and competitive. Federal agencies, including the Department of Defense, frequently contract for such services to supplement their organic capabilities and address specific personnel needs, especially in areas with high demand or specialized requirements.
Small Business Impact
The contract was awarded to GIAMED ALLIANCE JV LLC, a joint venture, which may include small business participation. However, the data does not indicate a specific small business set-aside or explicit subcontracting requirements for small businesses. Further analysis would be needed to determine the extent of small business involvement and its impact on the small business ecosystem.
Oversight & Accountability
Oversight will likely be managed by the contracting officer's representative (COR) within the Department of the Army, responsible for monitoring performance, ensuring compliance with contract terms, and verifying service delivery. The firm-fixed-price nature of the contract simplifies financial oversight but emphasizes performance monitoring. Transparency is facilitated through contract award databases, but detailed operational oversight mechanisms are internal to the agency.
Related Government Programs
- Department of Defense Healthcare Services
- Behavioral Health Services Contracts
- Medical Personnel Staffing
- General Medical and Surgical Hospitals
Risk Flags
- Potential for performance issues related to specialized medical staffing.
- Reliance on contractor personnel for critical healthcare functions.
- Need for diligent oversight to ensure quality of care.
Tags
healthcare, department-of-defense, department-of-the-army, full-and-open-competition, firm-fixed-price, medical-personnel, behavioral-health, texas, general-medical-and-surgical-hospitals, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $3.2 million to GIAMED ALLIANCE JV LLC. PERSONAL SERVICES ONE (1) FULL-TIME EQUIVALENT (FTE) NURSE PRACTITIONER-PSYCHIATRIC- MENTAL HEALTH, ONE (1) FTE LICENSED CLINICAL SOCIAL WORKER, TEN (10) FTES REGISTERED NURSE- BEHAVIORAL HEALTH, AND SIX (6) FTES PSYCHIATRIC TECHNICIANS
Who is the contractor on this award?
The obligated recipient is GIAMED ALLIANCE JV LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $3.2 million.
What is the period of performance?
Start: 2023-10-01. End: 2026-03-31.
What is the track record of GIAMED ALLIANCE JV LLC in providing similar behavioral health services to the federal government?
Information regarding the specific track record of GIAMED ALLIANCE JV LLC in providing behavioral health services to the federal government is not detailed in the provided data. As a joint venture, its performance history may be a composite of its member companies or a developing history of the JV itself. A deeper dive into federal procurement databases (like SAM.gov or FPDS) would be necessary to assess past performance, including contract awards, performance evaluations (e.g., CPARS), and any history of disputes or challenges. Understanding the JV's experience and the experience of its constituent members is crucial for evaluating the contractor's capability to successfully execute this contract and deliver the required behavioral health services effectively.
How does the total contract value of $3.2 million compare to similar federal contracts for behavioral health personnel?
The total contract value of approximately $3.2 million over a period of 912 days (roughly 2.5 years) for a team of 18 FTEs (1 NP, 1 LCSW, 10 RNs, 6 Psych Techs) appears to be within a reasonable range for specialized healthcare staffing. To provide a precise benchmark, a comparative analysis against contracts with similar scope, duration, location, and personnel mix would be required. Factors such as the specific duties, required qualifications, and geographic location (Texas, in this case) significantly influence pricing. However, given the high demand for mental health professionals and the specialized nature of psychiatric-focused roles, this value suggests a competitive bid was secured through the full and open competition process.
What are the primary risks associated with this contract, and how are they being mitigated?
The primary risks associated with this contract include potential performance deficiencies by the contractor in delivering the required behavioral health services, personnel turnover leading to service gaps, and the possibility of cost overruns if the firm-fixed-price structure proves inadequate for unforeseen circumstances (though less likely with FFP). Mitigation strategies likely include robust oversight by the COR, clear performance standards outlined in the contract, and potentially requiring the contractor to maintain a pool of qualified personnel. The selection of a contractor through a competitive process also mitigates the risk of awarding to an unqualified entity. The contract's duration allows for relationship building, but requires continuous monitoring to ensure sustained quality and adherence to the SOW.
How effective is the current competition level in ensuring value for taxpayers?
The contract was awarded under 'Full and Open Competition After Exclusion of Sources' with three bidders. This level of competition is generally considered adequate to ensure value for taxpayers. Having multiple bidders introduces price pressure, encouraging each offeror to submit their most competitive pricing and technically sound proposal. The 'Exclusion of Sources' aspect suggests that while the competition was broad, certain entities might have been excluded based on specific criteria, which could be for valid reasons like ensuring specialized capabilities or past performance. The presence of three bidders indicates a market capable of supporting the requirement and provides a basis for comparing offers to determine the best value, thereby safeguarding taxpayer funds.
What are the historical spending patterns for similar behavioral health services within the Department of Defense or Department of the Army?
Historical spending patterns for similar behavioral health services within the Department of Defense (DoD) and Department of the Army (DA) are typically substantial, reflecting the ongoing need to support military personnel and their families' mental well-being. The DoD consistently invests significant resources in healthcare, including mental and behavioral health, through various contract vehicles and direct care. Specific figures would require analysis of historical contract data, looking at awards for staffing, direct provision of services, and support functions related to mental healthcare across different branches and installations. This $3.2 million award represents a portion of that broader investment, likely driven by specific regional needs or facility requirements in Texas.
Industry Classification
NAICS: Health Care and Social Assistance › General Medical and Surgical Hospitals › General Medical and Surgical Hospitals
Product/Service Code: MEDICAL SERVICES › NURSING, NURSING HOME, EVAL/SCREEN
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6550 N FEDERAL HWY STE 210, FORT LAUDERDALE, FL, 33308
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Hispanic American Owned Business, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $3,277,749
Exercised Options: $3,277,749
Current Obligation: $3,199,377
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HT005018D0031
IDV Type: IDC
Timeline
Start Date: 2023-10-01
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2026-01-12
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