Magnificus Corporation awarded $15.6M contract for CONUS dental services to the Army

Contract Overview

Contract Amount: $15,639,509 ($15.6M)

Contractor: Magnificus Corporation

Awarding Agency: Department of Defense

Start Date: 2024-09-26

End Date: 2026-11-30

Contract Duration: 795 days

Daily Burn Rate: $19.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: DENTAL SERVICE, THAT PROVIDES DENTAL SERVICES TO ELIGIBLE BENEFICIARIES OF THE MILITARY HEALTH CARE SYSTEM IN SUPPORT OF THE ARMY DENTAL HEALTH ACTIVITIES FOR PERFORMANCE WITHIN THE CONTINENTAL UNITED STATES (CONUS).

Place of Performance

Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $15.6 million to MAGNIFICUS CORPORATION for work described as: DENTAL SERVICE, THAT PROVIDES DENTAL SERVICES TO ELIGIBLE BENEFICIARIES OF THE MILITARY HEALTH CARE SYSTEM IN SUPPORT OF THE ARMY DENTAL HEALTH ACTIVITIES FOR PERFORMANCE WITHIN THE CONTINENTAL UNITED STATES (CONUS). Key points: 1. Contract value of $15.6M over approximately 2 years. 2. Awarded under full and open competition. 3. No small business set-aside indicated. 4. Contract type is Firm Fixed Price. 5. Performance period spans from September 2024 to November 2026. 6. Services support Army Dental Health Activities within the Continental United States.

Value Assessment

Rating: good

The contract value of $15.6 million for approximately two years of dental services appears reasonable given the scope of supporting Army Dental Health Activities within the CONUS. Benchmarking against similar contracts for large-scale dental service provision within the military health system would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that cost risks are largely borne by the contractor, which can be favorable for the government if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that multiple potential bidders were considered and allowed to compete. The presence of 8 bids suggests a healthy level of competition, which typically drives better pricing and service offerings for the government. The exclusion of specific sources might be due to pre-existing relationships or specialized capabilities, but the overall open competition is a positive sign.

Taxpayer Impact: The robust competition for this dental services contract is beneficial for taxpayers as it likely resulted in more competitive pricing and a wider range of qualified service providers, ensuring efficient use of public funds.

Public Impact

Eligible beneficiaries of the Military Health Care System will receive dental services. Supports the Army Dental Health Activities, enhancing readiness and healthcare for service members. Services are delivered within the Continental United States (CONUS). Potential positive impact on the dental healthcare workforce supporting military personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if contractor performance falters.
Ensuring consistent quality of care across all CONUS locations.

Positive Signals

Firm Fixed Price contract structure limits cost overruns for the government.
Awarded through full and open competition, indicating a competitive bidding process.
Contract duration provides stability for service delivery.

Sector Analysis

The healthcare sector, specifically dental services for government entities, is a significant market. This contract falls within the General Medical and Surgical Hospitals subsector (NAICS 622110), though it focuses on a specialized service. The Department of Defense is a major procurer of healthcare services, and contracts of this nature are common to ensure the well-being of military personnel and their families. Benchmarking would involve comparing this contract's value and duration to other large-scale dental service contracts awarded by federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no indication of subcontracting requirements specifically for small businesses (ss: false). This suggests that the primary contractor, Magnificus Corporation, will be responsible for fulfilling the contract requirements. The absence of small business set-asides means that opportunities for small businesses to participate in this specific contract are limited, potentially impacting the broader small business ecosystem within the federal contracting space for dental services.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army, with specific contract officers and technical representatives responsible for monitoring performance and ensuring compliance with the firm fixed-price agreement. Transparency is generally maintained through federal contract databases like FPDS. Accountability measures are inherent in the contract terms, with potential penalties for non-performance. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

TRICARE Dental Program
Military Health System Services
Department of Veterans Affairs Dental Services
Federal Civilian Health Benefits Program Dental

Risk Flags

Potential for contractor performance issues impacting service delivery.
Ensuring consistent quality of care across multiple CONUS locations.
Dependency on a single contractor for a critical health service.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.6 million to MAGNIFICUS CORPORATION. DENTAL SERVICE, THAT PROVIDES DENTAL SERVICES TO ELIGIBLE BENEFICIARIES OF THE MILITARY HEALTH CARE SYSTEM IN SUPPORT OF THE ARMY DENTAL HEALTH ACTIVITIES FOR PERFORMANCE WITHIN THE CONTINENTAL UNITED STATES (CONUS).

Who is the contractor on this award?

The obligated recipient is MAGNIFICUS CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15.6 million.

What is the period of performance?

Start: 2024-09-26. End: 2026-11-30.

What is the track record of Magnificus Corporation in providing similar dental services to the federal government?

A thorough review of Magnificus Corporation's past performance is crucial. This would involve examining their contract history with the Department of Defense and other federal agencies, specifically looking for experience in delivering large-scale dental services. Key indicators would include past performance evaluations, any history of contract disputes or terminations, and the successful completion of similar scope and value contracts. Understanding their operational capacity, quality control measures, and ability to meet stringent military healthcare standards is essential for assessing their reliability in fulfilling this new $15.6 million contract over its two-year duration.

How does the awarded value compare to market rates for similar dental services?

To benchmark the value, we would compare the $15.6 million contract value against prevailing market rates for comparable dental services provided to large institutional clients or government entities. This involves analyzing the scope of services (e.g., general dentistry, specialized procedures, preventative care), the number of beneficiaries served, and the geographic coverage (CONUS). Industry reports, data from similar federal contracts, and commercial pricing for large group dental plans can serve as benchmarks. The firm fixed-price nature of this contract suggests the government aims for cost certainty, making a comparison to market rates critical to ensure it represents good value for money and avoids overpayment.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential variations in beneficiary demand, ensuring consistent quality of care across diverse CONUS locations, and contractor performance issues. The firm fixed-price structure mitigates financial risk for the government by capping costs, but contractor performance risk remains. Mitigation strategies likely involve robust contract oversight, clear performance metrics, regular quality assessments, and contingency plans for service continuity. The exclusion of specific sources in the competition might also introduce a risk if it limits the pool of highly qualified providers, though the presence of 8 bidders suggests this was not a significant issue here. Ensuring adequate staffing and resource availability by Magnificus Corporation is also a critical factor.

What is the expected effectiveness of these dental services in supporting Army readiness?

The effectiveness of these dental services in supporting Army readiness is expected to be high, provided Magnificus Corporation delivers quality care. Comprehensive dental health is directly linked to military readiness, as dental issues can lead to non-deployability and impact overall health and morale. By providing accessible and consistent dental care to eligible beneficiaries within the CONUS, this contract helps maintain the dental fitness of service members, reducing the likelihood of dental emergencies impacting operational capabilities. The contract's duration and scope are designed to ensure continuous support, contributing to a sustained level of dental health across the Army's CONUS-based personnel.

How has federal spending on dental services for the military evolved over the past five years?

Federal spending on dental services for the military has likely seen a steady demand, driven by the commitment to provide comprehensive healthcare to service members and their families. While specific figures for 'dental services' as a distinct category can fluctuate based on contracting strategies and specific program needs, overall military healthcare spending remains substantial. Trends may include shifts towards more integrated care models, increased use of telehealth for certain consultations, and a focus on preventative care to reduce long-term costs. The $15.6 million for this specific contract represents a portion of the broader military health budget, and understanding historical spending patterns can reveal trends in outsourcing, service scope, and cost management within this sector.

Industry Classification

NAICS: Health Care and Social Assistance › General Medical and Surgical Hospitals › General Medical and Surgical Hospitals

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9500 ANNAPOLIS RD STE A7, LANHAM, MD, 20706

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $69,779,358

Exercised Options: $50,238,117

Current Obligation: $15,639,509

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HT005018D0033

IDV Type: IDC

Timeline