DoD Obligates $84.7M for Pharmacy Benefit Management to Wisconsin Physicians Service Insurance Corp
Contract Overview
Contract Amount: $84,714,895 ($84.7M)
Contractor: Wisconsin Physicians Service Insurance Corp.
Awarding Agency: Department of Defense
Start Date: 2008-07-01
End Date: 2009-06-30
Contract Duration: 364 days
Daily Burn Rate: $232.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIXED PRICE INCENTIVE
Sector: Healthcare
Official Description: OBLIGATE OPTION PERIOD 1 FUNDS FOR CLAIMS.
Place of Performance
Location: MONONA, DANE County, WISCONSIN, 53713
Plain-Language Summary
Department of Defense obligated $84.7 million to WISCONSIN PHYSICIANS SERVICE INSURANCE CORP. for work described as: OBLIGATE OPTION PERIOD 1 FUNDS FOR CLAIMS. Key points: 1. The contract is for Pharmacy Benefit Management and Third Party Administration. 2. Wisconsin Physicians Service Insurance Corp. is the incumbent contractor. 3. The contract was awarded under full and open competition. 4. The contract value is $84.7 million for the option period.
Value Assessment
Rating: good
The fixed-price incentive contract structure aims to control costs by incentivizing the contractor to stay within target costs. The obligated amount of $84.7M for one year appears reasonable for pharmacy benefit management services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process that should lead to fair pricing. The use of a delivery order under a larger contract indicates a structured procurement approach.
Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are being used efficiently for these essential healthcare services.
Public Impact
Ensures continued access to pharmacy benefits for eligible beneficiaries. Supports the operational efficiency of the Defense Health Agency. Maintains continuity of critical third-party administration services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if incentive targets are not met.
- Reliance on a single contractor for a critical service.
Positive Signals
- Awarded through full and open competition.
- Fixed-price incentive contract aims for cost control.
Sector Analysis
This contract falls within the Healthcare sector, specifically related to insurance and benefits administration. Spending benchmarks for PBM services can vary widely based on the covered population and scope of services.
Small Business Impact
No specific information is provided regarding small business participation in this contract. Further analysis would be needed to determine if small businesses were involved or had opportunities.
Oversight & Accountability
The contract is a delivery order under a larger contract, implying existing oversight mechanisms. The Defense Contract Audit Agency (DCAA) may be involved in auditing costs and performance.
Related Government Programs
- Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Contract awarded to incumbent.
- Fixed-price incentive contract requires careful monitoring.
- Potential for scope creep in option periods.
- Limited visibility into base contract details.
Tags
pharmacy-benefit-management-and-other-th, department-of-defense, wi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $84.7 million to WISCONSIN PHYSICIANS SERVICE INSURANCE CORP.. OBLIGATE OPTION PERIOD 1 FUNDS FOR CLAIMS.
Who is the contractor on this award?
The obligated recipient is WISCONSIN PHYSICIANS SERVICE INSURANCE CORP..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $84.7 million.
What is the period of performance?
Start: 2008-07-01. End: 2009-06-30.
What was the total contract value and duration for the base contract from which this delivery order was issued?
The provided data only details the option period obligation of $84.7M for a 364-day duration. Information on the base contract's total value and original duration is not available in this dataset. Understanding the full contract lifecycle is crucial for a comprehensive value assessment.
How does the per-unit cost of pharmacy benefit management services under this contract compare to industry benchmarks?
A direct per-unit cost benchmark is not available without specific service metrics (e.g., cost per prescription, per member per month). However, the fixed-price incentive structure suggests an effort to manage costs against targets. A detailed comparison would require access to specific performance data and industry PBM cost analyses.
What are the key performance indicators (KPIs) for this contract and how has the contractor performed against them?
The provided data does not include specific Key Performance Indicators (KPIs) for this contract. To assess effectiveness, one would need to review performance reports, quality assurance data, and beneficiary satisfaction surveys related to Wisconsin Physicians Service Insurance Corp.'s administration of pharmacy benefits.
Industry Classification
NAICS: Finance and Insurance › Agencies, Brokerages, and Other Insurance Related Activities › Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds
Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Address: 1717 W BROADWAY, MADISON, WI, 53713
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $84,842,510
Exercised Options: $84,842,510
Current Obligation: $84,714,895
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: H9400207D0001
IDV Type: IDC
Timeline
Start Date: 2008-07-01
Current End Date: 2009-06-30
Potential End Date: 2014-12-31 00:00:00
Last Modified: 2018-10-17
More Contracts from Wisconsin Physicians Service Insurance Corp.
- Federal Contract — $512.0M (Department of Defense)
- Federal Contract — $462.9M (Department of Health and Human Services)
- Medicare Administrative Contractor Jurisdiction 5 — $369.2M (Department of Health and Human Services)
- Part a and Part B Medicare Administrative Contract Jurisdiction 8 — $324.6M (Department of Health and Human Services)
- J8 A/B MAC — $318.9M (Department of Health and Human Services)
View all Wisconsin Physicians Service Insurance Corp. federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)