DoD's $27.3M EFMP contract awarded to RehabPlus Staffing Group, Inc. shows potential value concerns

Contract Overview

Contract Amount: $27,373,017 ($27.4M)

Contractor: Rehabplus Staffing Group, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-09-30

End Date: 2012-09-29

Contract Duration: 730 days

Daily Burn Rate: $37.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EXCEPTIONAL FAMILY MEMBER PROGRAM (EFMP)

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22302

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $27.4 million to REHABPLUS STAFFING GROUP, INC. for work described as: EXCEPTIONAL FAMILY MEMBER PROGRAM (EFMP) Key points: 1. The contract's value appears high relative to its duration and the number of bids received. 2. Limited competition may have impacted pricing, suggesting potential for overpayment. 3. The contract's fixed-price nature shifts risk to the contractor, but oversight is crucial. 4. Performance context is limited without specific task order details or outcomes. 5. This contract falls within the broader 'Other Individual and Family Services' category. 6. The contractor's track record and past performance require further scrutiny. 7. The absence of small business set-asides warrants examination of subcontracting opportunities.

Value Assessment

Rating: questionable

The total award amount of $27.3 million over two years for the Exceptional Family Member Program (EFMP) raises questions about value for money. Benchmarking against similar contracts for family support services is difficult without more granular data on the specific services provided and their scope. The single bid received under a 'full and open competition after exclusion of sources' also suggests that the pricing may not have been rigorously tested against a competitive market, potentially leading to a higher-than-necessary cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources,' which implies that while the competition was initially open, certain sources were excluded before the final award. This procurement method, coupled with only one bid being received, significantly limits the competitive landscape. A single bidder scenario often leads to less favorable pricing for the government, as the contractor faces minimal pressure to offer competitive rates. The exclusion of sources prior to competition warrants further investigation into the rationale behind it.

Taxpayer Impact: The limited competition and single bid suggest that taxpayers may not have received the best possible price for these essential family support services. The government's negotiating position was likely weakened, potentially resulting in higher overall costs.

Public Impact

Military families enrolled in the Exceptional Family Member Program (EFMP) are the primary beneficiaries, receiving critical support services. Services delivered likely include case management, coordination of care, and access to specialized resources for family members with special needs. The geographic impact is likely broad, covering military installations where EFMP families are located. Workforce implications include the employment of staff by the contractor to deliver these specialized services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition with only one bid received.
Potential for inflated pricing due to lack of robust competition.
Rationale for excluding sources in 'full and open competition' is unclear.
Lack of transparency regarding the specific services and performance metrics.
Contract duration of two years may not be optimal for long-term program stability.

Positive Signals

Contract awarded to a single entity, potentially simplifying management.
Fixed-price contract shifts some performance risk to the contractor.
Services provided address a critical need for military families.

Sector Analysis

The 'Other Individual and Family Services' sector encompasses a wide range of support programs. Federal spending in this area often involves contracts for social services, counseling, and specialized care. The market size for such services can be substantial, particularly when serving specific populations like military families. This contract fits within the broader government effort to support military readiness by ensuring the well-being of service members' families. Comparable spending benchmarks are difficult to establish without detailed service scope.

Small Business Impact

The contract was not set aside for small businesses, and the data indicates no indication of small business subcontracting. This suggests that the primary contractor, RehabPlus Staffing Group, Inc., is likely a larger entity. The lack of small business involvement could mean missed opportunities for smaller, specialized firms to contribute to the EFMP, potentially limiting the diversity of service providers and innovation.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of the Army's contracting officers and program managers. Accountability measures would be tied to the terms of the definitive contract and any task orders issued. Transparency is often limited in definitive contracts unless specific reporting requirements are mandated. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.

Related Government Programs

Military Family Support Programs
Exceptional Family Member Program (EFMP) Administration
Department of Defense Family Readiness Initiatives
Individual and Family Services Contracts
Special Needs Support Services

Risk Flags

Limited competition
Potential for overpricing
Unclear source exclusion rationale
Lack of performance benchmarks

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.4 million to REHABPLUS STAFFING GROUP, INC.. EXCEPTIONAL FAMILY MEMBER PROGRAM (EFMP)

Who is the contractor on this award?

The obligated recipient is REHABPLUS STAFFING GROUP, 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 $27.4 million.

What is the period of performance?

Start: 2010-09-30. End: 2012-09-29.

What is the track record of RehabPlus Staffing Group, Inc. with federal contracts, particularly in providing family support services?

RehabPlus Staffing Group, Inc. has a history of federal contracting, primarily focused on staffing and healthcare services. Analysis of their contract history reveals multiple awards across various agencies, including the Department of Defense and Department of Veterans Affairs. While they have experience in providing services relevant to individual and family support, the specific scale and nature of the Exceptional Family Member Program (EFMP) contract awarded in 2010 represent a significant portion of their federal awards. Further investigation into their past performance ratings, any documented issues, and the successful completion of similar large-scale service contracts would be necessary to fully assess their capability and reliability for this specific EFMP requirement. Understanding their performance on previous contracts, especially those with similar service delivery models and client populations, is crucial for evaluating their suitability and the overall risk associated with this award.

How does the awarded amount of $27.3 million compare to similar contracts for EFMP or comparable family support services?

Comparing the $27.3 million award for the Exceptional Family Member Program (EFMP) to similar contracts is challenging without access to a comprehensive database of all EFMP contracts and their specific service scopes. However, based on general knowledge of federal contracting for support services, this amount appears substantial for a two-year definitive contract. The 'full and open competition after exclusion of sources' with only one bid received suggests that the pricing may not have been rigorously tested against market competition. Typically, contracts with multiple competitive bids tend to yield lower prices. To conduct a thorough value-for-money assessment, one would need to benchmark this contract against other EFMP contracts awarded by different military branches or other federal agencies providing similar family support services, considering factors like geographic scope, population served, and the specific services mandated. The lack of competitive bids raises a red flag regarding potential overpayment.

What are the specific risks associated with a 'full and open competition after exclusion of sources' award, especially with only one bid?

A 'full and open competition after exclusion of sources' award, particularly when resulting in only one bid, carries several significant risks. Firstly, the exclusion of sources prior to the competition raises questions about the fairness and completeness of the process. The rationale for these exclusions needs to be clearly documented and justified to ensure it was not arbitrary or designed to limit competition unfairly. Secondly, receiving only one bid severely undermines the principle of price discovery inherent in competitive contracting. The government loses the opportunity to compare multiple offers and negotiate the best possible price. This can lead to paying a premium for goods or services. The single bidder may also have less incentive to perform optimally, knowing they are the sole provider. This situation increases the risk of contractor underperformance, cost overruns (if not a firm-fixed-price contract), and a lack of innovation. Robust contract management and oversight become even more critical in such scenarios to mitigate these risks.

What does the 'definitive contract' type imply for the flexibility and potential for cost changes over the contract's life?

A definitive contract is a contract that is fixed in price and is not dependent on the posting of a future notice of proposed procurement by the Government. In this case, it's a 'firm fixed price' definitive contract, which means the price is set and generally not subject to adjustment based on the contractor's cost experience. This structure is advantageous for the government as it provides cost certainty and shifts the risk of cost overruns to the contractor. However, the flexibility for the government to adapt to changing needs or scope is limited without modifications. If the scope of services needs to change significantly, formal contract modifications would be required, which can be a lengthy process. The firm fixed price nature, combined with the limited competition, means that the initial price negotiated is critical. If that initial price was not competitive, the government is locked into paying that potentially inflated price for the duration of the contract, despite the risk being on the contractor.

What is the historical spending pattern for the Exceptional Family Member Program (EFMP) within the Department of the Army?

Analyzing the historical spending patterns for the Exceptional Family Member Program (EFMP) within the Department of the Army requires access to detailed historical contract data and budget allocations. This specific contract, awarded in 2010 for $27.3 million over two years, represents a snapshot of spending during that period. To understand broader trends, one would need to examine spending on EFMP services over multiple fiscal years, identifying any significant increases or decreases in contract values, the number of contracts awarded, and the types of services procured. Factors influencing spending patterns could include changes in military family demographics, policy shifts regarding family support, and the overall defense budget. Without this broader historical context, it's difficult to determine if this particular contract's value was an anomaly or part of a consistent spending trajectory for EFMP services within the Army.

What are the implications of the contract being awarded under 'Other Individual and Family Services' (NAICS code 624190) for oversight and performance measurement?

The classification of this contract under NAICS code 624190, 'Other Individual and Family Services,' places it within a broad category of social and support services. This classification implies that the oversight and performance measurement should focus on the delivery of qualitative services aimed at improving the well-being and support of military families with special needs. Oversight mechanisms would likely involve monitoring the contractor's adherence to service level agreements, case management protocols, and client satisfaction metrics. Performance measurement could include indicators such as timely access to resources, effectiveness of support coordination, and positive outcomes for family members. However, the 'other' nature of the NAICS code suggests that specific, standardized performance metrics might be less defined compared to more specialized service categories, potentially requiring the government to develop bespoke measurement tools tailored to the unique needs of the EFMP.

Industry Classification

NAICS: Health Care and Social Assistance › Individual and Family Services › Other Individual and Family Services

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W91WAW10R0136

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7474 GREENWAY CENTER DR STE 620, GREENBELT, MD, 20770

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,373,017

Exercised Options: $27,373,017

Current Obligation: $27,373,017

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline