DoD awards $92.7M for Pharmacy Benefit Management to Wisconsin Physicians Service Insurance Corp
Contract Overview
Contract Amount: $92,718,492 ($92.7M)
Contractor: Wisconsin Physicians Service Insurance Corp.
Awarding Agency: Department of Defense
Start Date: 2010-07-01
End Date: 2011-06-30
Contract Duration: 364 days
Daily Burn Rate: $254.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIXED PRICE INCENTIVE
Sector: Healthcare
Official Description: ORDER SERVICES (PERIOD OF PERFORMANCE - JULY 1, 2010 THROUGH JUNE 30, 2011) FOR THE EXCERISE OF OPTION PERIOD 3 AND PROVIDE FY 10 FUNDING FOR THE PERIOD OF JULY 2010 THROUGH SEPTEMBER 2010.
Place of Performance
Location: MONONA, DANE County, WISCONSIN, 53713
Plain-Language Summary
Department of Defense obligated $92.7 million to WISCONSIN PHYSICIANS SERVICE INSURANCE CORP. for work described as: ORDER SERVICES (PERIOD OF PERFORMANCE - JULY 1, 2010 THROUGH JUNE 30, 2011) FOR THE EXCERISE OF OPTION PERIOD 3 AND PROVIDE FY 10 FUNDING FOR THE PERIOD OF JULY 2010 THROUGH SEPTEMBER 2010. Key points: 1. The contract is for Pharmacy Benefit Management and Third Party Administration. 2. Wisconsin Physicians Service Insurance Corp. is the sole awardee. 3. The contract was awarded under full and open competition. 4. The period of performance is July 1, 2010, through June 30, 2011.
Value Assessment
Rating: fair
The contract is a fixed-price incentive type, which can lead to cost overruns if not managed carefully. The provided data does not include specific cost benchmarks for comparison.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific number of bids received is not detailed, impacting the assessment of price discovery.
Taxpayer Impact: The total award amount of $92.7 million represents taxpayer funds allocated for essential pharmacy benefit management services.
Public Impact
Ensures continued pharmacy benefit management for beneficiaries. Supports the operational needs of the Defense Health Agency. Potential for cost savings through efficient PBM services. Impacts healthcare access for military personnel and their families.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Fixed-price incentive contracts can incentivize overspending.
- Lack of detailed bid information limits competition assessment.
Positive Signals
- Awarded under full and open competition.
- Provides essential healthcare services.
Sector Analysis
This contract falls within the Healthcare sector, specifically related to insurance and pension fund administration. Spending benchmarks for Pharmacy Benefit Management can vary significantly based on the scope of services and beneficiary population.
Small Business Impact
The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses had opportunities to participate as subcontractors.
Oversight & Accountability
The contract is a delivery order under a larger contract, suggesting existing oversight mechanisms. However, the effectiveness of this oversight in controlling costs and ensuring performance requires further investigation.
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
- Fixed-price incentive contracts carry inherent cost overrun risks.
- Lack of detailed bid data hinders competition assessment.
- No indication of small business participation.
- Potential for performance issues if incentives are not well-aligned.
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 $92.7 million to WISCONSIN PHYSICIANS SERVICE INSURANCE CORP.. ORDER SERVICES (PERIOD OF PERFORMANCE - JULY 1, 2010 THROUGH JUNE 30, 2011) FOR THE EXCERISE OF OPTION PERIOD 3 AND PROVIDE FY 10 FUNDING FOR THE PERIOD OF JULY 2010 THROUGH SEPTEMBER 2010.
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 $92.7 million.
What is the period of performance?
Start: 2010-07-01. End: 2011-06-30.
What was the total number of bids received during the full and open competition, and how did the winning bid compare to others?
The provided data does not specify the total number of bids received for this contract. Without this information, it is difficult to assess the competitiveness of the bidding process and determine if the winning bid represented the best value for the government. Further investigation into the solicitation details would be required.
What are the specific performance metrics and incentive structures within the fixed-price incentive contract, and how are they monitored?
The data indicates a 'FIXED PRICE INCENTIVE' contract type, but does not detail the specific performance metrics or incentive structures. Understanding these elements is crucial for assessing potential cost overruns and ensuring the contractor is motivated to achieve optimal performance within budgetary constraints. Oversight reports would be needed to evaluate monitoring effectiveness.
How does the cost of this Pharmacy Benefit Management contract compare to similar contracts awarded by other federal agencies or private sector entities?
A direct cost comparison is not possible with the provided data alone. To assess value, this contract's per-unit costs (e.g., cost per prescription, administrative fee per member per month) would need to be benchmarked against similar contracts. Factors like the scope of services, beneficiary demographics, and negotiated rebates significantly influence pricing, making direct comparisons challenging without detailed context.
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: $92,729,796
Exercised Options: $92,729,796
Current Obligation: $92,718,492
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: 2010-07-01
Current End Date: 2011-06-30
Potential End Date: 2014-12-31 00:00:00
Last Modified: 2016-04-15
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