DoD awards $12.3M contract for psychological health services to American Healthcare Services JV LLC

Contract Overview

Contract Amount: $12,294,216 ($12.3M)

Contractor: American Healthcare Services JV LLC

Awarding Agency: Department of Defense

Start Date: 2021-09-29

End Date: 2026-09-28

Contract Duration: 1,825 days

Daily Burn Rate: $6.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: NEW AWARD PSYCHOLOGICAL HEALTH SERVICES

Place of Performance

Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28310

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $12.3 million to AMERICAN HEALTHCARE SERVICES JV LLC for work described as: NEW AWARD PSYCHOLOGICAL HEALTH SERVICES Key points: 1. Contract awarded for a base period of 5 years, with potential for extensions. 2. Services to be delivered in North Carolina, impacting local healthcare access. 3. The contract type is Firm Fixed Price, indicating predictable costs for the government. 4. This award represents a significant investment in military mental healthcare. 5. The contractor is a Joint Venture, potentially indicating a focus on specialized capabilities. 6. Competition was open, suggesting a competitive bidding process for this service.

Value Assessment

Rating: good

The contract value of $12.3 million over five years for psychological health services appears reasonable given the scope and duration. Benchmarking against similar contracts for mental health support within the Department of Defense is crucial for a definitive value assessment. However, the firm fixed-price structure suggests that the government has negotiated a set price, which can be advantageous in controlling costs. The absence of specific performance metrics in the provided data makes a detailed value-for-money assessment challenging without further context on service delivery standards and outcomes.

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 while the competition was broad, specific sources may have been initially excluded before a full and open process was initiated. Ten bids were received, suggesting a healthy level of interest and competition for this requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The robust competition indicates that taxpayer funds are likely being used efficiently, as multiple companies vied to provide these essential services at a competitive price.

Public Impact

Military personnel and their families in North Carolina will benefit from enhanced psychological health services. The contract ensures the provision of mental health specialists and related services. Services are geographically focused within North Carolina. This contract supports the healthcare workforce by providing employment opportunities for mental health professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if service requirements are not clearly defined.
Dependence on a single contractor for critical mental health services.
Ensuring consistent quality of care across all service providers.

Positive Signals

Firm Fixed Price contract limits cost overruns.
Open competition suggests a competitive market for these services.
Long-term contract provides stability for service delivery.

Sector Analysis

The healthcare sector, specifically mental health services, is a critical component of overall healthcare delivery. This contract falls within the Offices of Physicians, Mental Health Specialists (NAICS 621112) category. The market for these services is substantial, driven by increasing awareness and demand for mental healthcare, particularly within government and military contexts. Comparable spending benchmarks would involve analyzing other DoD contracts for similar psychological support services across different geographic regions.

Small Business Impact

The provided data indicates that small business participation (sb) is false (false) and there is no set-aside (st: NC). This suggests that the contract was not specifically targeted towards small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor engages in significant subcontracting with small businesses, which is not detailed here.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant Department of the Army program managers. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver services within the agreed-upon price. Transparency is facilitated through contract award databases, though detailed performance reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

TRICARE Mental Health Services
Department of Veterans Affairs Mental Health Programs
DoD Psychological Health Readiness Programs
Military Family Support Programs

Risk Flags

Potential for performance issues if PWS is not sufficiently detailed.
Risks associated with Joint Venture internal dynamics.
Geographic concentration of services in North Carolina.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.3 million to AMERICAN HEALTHCARE SERVICES JV LLC. NEW AWARD PSYCHOLOGICAL HEALTH SERVICES

Who is the contractor on this award?

The obligated recipient is AMERICAN HEALTHCARE SERVICES 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 $12.3 million.

What is the period of performance?

Start: 2021-09-29. End: 2026-09-28.

What is the track record of American Healthcare Services JV LLC in providing similar psychological health services to the federal government?

A thorough review of American Healthcare Services JV LLC's past performance is essential to assess their capability to fulfill this contract. This would involve examining their contract history with federal agencies, specifically looking for prior awards related to psychological health, mental health counseling, or psychiatric services. Key indicators to evaluate include their performance ratings on previous contracts, any instances of contract disputes or terminations, and their experience with the specific patient population (e.g., military personnel and families). Understanding their past successes and challenges will provide critical insight into their reliability and expertise for this new $12.3 million award.

How does the awarded price of $12.3 million compare to market rates for similar psychological health services in North Carolina?

To benchmark the value, the awarded price of $12.3 million over five years needs to be compared against prevailing market rates for psychological health services in North Carolina. This involves analyzing average hourly rates for therapists, psychologists, and psychiatrists, as well as typical costs for group therapy sessions or specialized mental health programs. Factors such as the specific qualifications of the providers, the intensity of services, and the geographic distribution of service delivery points will influence these comparisons. If the government's negotiated rate is significantly lower than market averages, it suggests good value. Conversely, a higher rate might indicate potential overpayment or a need for further negotiation or justification.

What are the primary risk indicators associated with this contract award?

Several risk indicators warrant attention for this contract. Firstly, the 'Full and Open Competition After Exclusion of Sources' designation, while ultimately leading to open competition, suggests a potentially complex procurement history that could introduce unforeseen administrative or legal risks. Secondly, the reliance on a Joint Venture (JV) as the prime contractor might present risks related to internal JV governance, resource allocation, or potential disputes between JV partners, which could impact service continuity. Thirdly, without detailed performance metrics and quality assurance plans outlined in the award, there's a risk of inconsistent service quality or failure to meet the specific psychological needs of the target population. Finally, the concentration of services in North Carolina could pose a geographic risk if unforeseen events disrupt local operations.

How effective is the firm fixed-price contract type in ensuring program effectiveness for psychological health services?

The Firm Fixed Price (FFP) contract type aims to ensure cost predictability for the government by establishing a set price for the defined scope of work. For psychological health services, this means the contractor is obligated to deliver the specified services within the $12.3 million budget. While FFP controls costs, its effectiveness in ensuring *programmatic* success hinges heavily on the clarity and comprehensiveness of the contract's Performance Work Statement (PWS). If the PWS clearly defines required services, quality standards, and performance metrics, the FFP structure can drive efficiency. However, if the PWS is vague, the contractor might focus on meeting minimum requirements rather than optimizing patient outcomes, potentially limiting overall program effectiveness. Robust government oversight and quality assurance are crucial to mitigate this risk.

What are the historical spending patterns for psychological health services within the Department of Defense?

Historical spending on psychological health services within the Department of Defense (DoD) has generally trended upwards over the past two decades, driven by increased awareness of mental health issues, the demands of prolonged conflicts, and expanded healthcare benefits for service members and their families. The DoD allocates significant resources annually to mental healthcare through various channels, including direct provision of services, contracts with private providers (like this one), and programs like TRICARE. Analyzing past spending data reveals a consistent need and investment in these services. This $12.3 million award fits within this broader pattern of sustained federal investment in military mental healthcare, reflecting a long-term commitment to addressing the psychological well-being of the force.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Physicians › Offices of Physicians, Mental Health Specialists

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W91YTZ21R0029

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 501 HUNGERFORD DR APT P87, ROCKVILLE, MD, 20850

Business Categories: Black American Owned Business, Category Business, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $12,294,216

Exercised Options: $12,294,216

Current Obligation: $12,294,216

Actual Outlays: $616,408

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline