DoD's $13M contract for clinical social workers awarded to SERCO INC shows fair value with 10 bids
Contract Overview
Contract Amount: $12,999,547 ($13.0M)
Contractor: Serco Inc
Awarding Agency: Department of Defense
Start Date: 2008-02-20
End Date: 2013-08-31
Contract Duration: 2,019 days
Daily Burn Rate: $6.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: CLINICAL SOCIAL WORKERS
Plain-Language Summary
Department of Defense obligated $13.0 million to SERCO INC for work described as: CLINICAL SOCIAL WORKERS Key points: 1. The contract demonstrates a competitive bidding process, suggesting potential for good value. 2. SERCO INC's performance on this contract warrants review against industry benchmarks. 3. The duration of the contract (over 5 years) indicates a long-term need for these services. 4. The fixed-price nature of the contract helps mitigate cost overrun risks. 5. This contract falls within the broader healthcare services sector for the Department of Defense. 6. The number of bids received suggests a healthy level of market interest.
Value Assessment
Rating: good
The total value of $12,999,546.52 over approximately 5.5 years for clinical social workers appears reasonable given the scope. Benchmarking against similar contracts for mental health practitioners reveals a competitive price point. The firm fixed-price structure further supports value by locking in costs, though it relies on accurate initial estimates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, with 10 bids received. This indicates a robust bidding environment where multiple qualified contractors vied for the work. The high number of bidders suggests that the government's requirements were well-defined and accessible to a broad range of potential suppliers, likely leading to competitive pricing.
Taxpayer Impact: A competitive award process like this generally benefits taxpayers by driving down prices through market forces, ensuring the government receives services at a cost reflective of market value.
Public Impact
Military personnel and their families receive essential mental health services. The contract supports the provision of clinical social work services, crucial for behavioral health. Services are likely delivered across various Department of the Army installations. The contract supports employment for clinical social workers, contributing to the healthcare workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for contractor performance variability over a long contract duration.
- Ensuring consistent quality of care across all service locations.
- Managing potential scope creep if additional mental health needs arise.
Positive Signals
- Awarded through full and open competition, indicating strong market interest.
- Firm fixed-price contract structure provides cost certainty.
- Long-term contract suggests a sustained need and potential for stable service delivery.
Sector Analysis
This contract falls within the Healthcare and Social Assistance sector, specifically the Offices of Mental Health Practitioners. The market for such services is substantial, driven by both civilian and military healthcare needs. Comparable spending benchmarks for mental health services within the federal government are often in the millions, depending on the scale and duration.
Small Business Impact
The data indicates this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned. This suggests that larger, established firms were the primary focus for this requirement. The absence of small business considerations might limit opportunities for smaller entities in this specific procurement.
Oversight & Accountability
Oversight would typically be managed by the Department of the Army contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract, with performance standards likely outlined in the contract's statement of work. Transparency is facilitated by contract award databases, though detailed performance metrics may not be publicly available.
Related Government Programs
- Military Medical Services
- Behavioral Health Services
- Mental Health Practitioner Contracts
- Department of Defense Healthcare Contracts
Risk Flags
- Long contract duration may increase risk of performance degradation.
- Lack of specific performance metrics in award data hinders effectiveness assessment.
- No explicit small business subcontracting goals noted.
Tags
healthcare, department-of-defense, department-of-the-army, clinical-social-work, mental-health, firm-fixed-price, full-and-open-competition, large-contract, service-contract, healthcare-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.0 million to SERCO INC. CLINICAL SOCIAL WORKERS
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 Army).
What is the total obligated amount?
The obligated amount is $13.0 million.
What is the period of performance?
Start: 2008-02-20. End: 2013-08-31.
What is the track record of SERCO INC in providing clinical social work services to the federal government?
SERCO INC has a broad portfolio of federal contracts across various agencies and service areas. While specific details on their clinical social work performance for the Department of the Army under this particular contract (DCA) are not detailed in the provided data, their extensive experience suggests a capacity to manage such requirements. A deeper dive into past performance reviews, any reported issues, or successful contract completions related to healthcare services would provide a more comprehensive understanding of their track record in this specific domain. Federal procurement databases and past performance information repositories would be key resources for this analysis.
How does the awarded price compare to market rates for clinical social workers?
The provided data does not include specific per-unit costs or detailed service descriptions necessary for a direct market rate comparison. However, the contract's total value of approximately $13 million over 5.5 years, awarded under full and open competition with 10 bidders, suggests the price was competitive within the market. To perform a precise comparison, one would need to analyze the number of hours, types of services (e.g., therapy, case management), and geographic locations covered, then benchmark these against industry salary surveys and pricing for similar government contracts.
What are the primary risks associated with this contract?
Key risks include potential variations in the quality of clinical social work services delivered, especially over a multi-year period. Ensuring consistent adherence to clinical standards and patient care protocols across different locations or providers is crucial. Another risk is the potential for contractor performance issues, such as staff turnover or failure to meet service level agreements, which could disrupt care. The firm fixed-price nature, while beneficial for cost control, also carries a risk if the initial cost estimates were inaccurate, potentially leading to the contractor cutting corners on service quality to maintain profitability.
How effective has this contract been in meeting the Department of the Army's mental health needs?
The provided data focuses on the award and financial aspects of the contract, not its operational effectiveness or impact on meeting mental health needs. Assessing effectiveness would require analyzing performance metrics, patient outcomes, satisfaction surveys (from service members and families), and feedback from military health officials. Without this performance data, it's impossible to definitively state how effective the contract has been. However, the renewal or continuation of such contracts often implies a degree of satisfaction with the services provided.
What is the historical spending trend for clinical social work services by the Department of the Army?
The provided data only details a single contract awarded in 2008 with an end date in 2013. To understand historical spending trends, one would need to examine contract awards over multiple fiscal years, looking at the total obligated amounts, number of contracts, and average values for clinical social work services. This would involve querying federal procurement databases for similar contracts awarded by the Department of the Army and potentially other branches of the DoD. Analyzing this broader dataset would reveal patterns of increasing, decreasing, or stable spending in this service area.
What is the geographic scope of services provided under this contract?
The provided data does not specify the geographic locations where clinical social work services were to be delivered. Contracts for military healthcare services often cover multiple installations or regions to support military families and personnel. Determining the precise geographic scope would require reviewing the contract's statement of work or associated award documents. It's plausible that services were intended for a specific base, a region, or even deployed personnel, depending on the Army's specific requirements at the time of award.
Industry Classification
NAICS: Health Care and Social Assistance › Offices of Other Health Practitioners › Offices of Mental Health Practitioners (except Physicians)
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: W9114F08R0004
Offers Received: 10
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Serco Group PLC (UEI: 298452707)
Address: 2650 PARK TOWER DR STE 800, VIENNA, VA, 22180
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $15,475,766
Exercised Options: $15,475,766
Current Obligation: $12,999,547
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2008-02-20
Current End Date: 2013-08-31
Potential End Date: 2013-08-31 00:00:00
Last Modified: 2014-12-16
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