Peace Corps awards $19.5M contract for health care benefits, pharmacy services to International Medical Group Inc

Contract Overview

Contract Amount: $19,450,171 ($19.5M)

Contractor: International Medical Group Inc

Awarding Agency: Peace Corps

Start Date: 2022-07-01

End Date: 2027-02-17

Contract Duration: 1,692 days

Daily Burn Rate: $11.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: HEALTH CARE BENEFITS SERVICES CONTRACT

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46208

State: Indiana Government Spending

Plain-Language Summary

Peace Corps obligated $19.5 million to INTERNATIONAL MEDICAL GROUP INC for work described as: HEALTH CARE BENEFITS SERVICES CONTRACT Key points: 1. Contract provides essential health care benefits and pharmacy services to Peace Corps personnel. 2. The contract was awarded using full and open competition, suggesting a competitive bidding process. 3. The firm-fixed-price structure aims to control costs by establishing a set price for services. 4. The contract duration of approximately 1692 days (over 4.5 years) indicates a long-term need for these services. 5. The award value of $19.5 million over the contract period suggests a significant investment in personnel well-being.

Value Assessment

Rating: good

The contract value of $19.5 million over nearly five years for health care benefits and pharmacy services appears reasonable for supporting Peace Corps personnel. Benchmarking against similar government contracts for health administration services is challenging without more specific service details. However, the firm-fixed-price nature of the contract provides cost certainty for the agency. The per-unit cost is difficult to ascertain without knowing the number of individuals served over the contract's life.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of multiple bidders, though not explicitly stated, is implied by the competition type. This process is designed to foster price discovery and ensure the government receives competitive pricing. The agency likely sought proposals that offered the best value in terms of cost and service quality.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces, ensuring that the government is not overpaying for essential services like health care benefits.

Public Impact

Peace Corps personnel, including volunteers and staff, will benefit from comprehensive health care benefits and pharmacy services. The services delivered are critical for maintaining the health and readiness of individuals serving abroad. The geographic impact is global, as Peace Corps personnel are stationed in various countries worldwide. This contract supports the operational capacity of the Peace Corps by ensuring the well-being of its workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen health needs arise beyond the initial contract scope.
Dependence on a single contractor for critical health services could pose a risk if performance issues emerge.

Positive Signals

Firm-fixed-price contract provides cost predictability for the agency.
Long-term contract duration allows for stable service provision and potential for building a strong working relationship.
Full and open competition suggests a competitive market was leveraged to secure favorable terms.

Sector Analysis

The health care benefits and pharmacy services sector is a significant area of government spending, encompassing a wide range of services from insurance administration to direct medical provision. This contract falls within the broader category of health services procurement, which is essential for supporting government employees and personnel operating in diverse environments. Comparable spending benchmarks would typically involve analyzing contracts for similar health and pharmacy benefit management services provided to other federal agencies or large organizations.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a firm-fixed-price contract awarded through full and open competition, it is likely that large businesses or established health service providers were the primary bidders. There is no explicit information regarding subcontracting plans with small businesses, which would be a key area to investigate for potential small business impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the Peace Corps' contracting officer and program managers responsible for personnel health services. Accountability measures are embedded within the contract's performance standards and service level agreements. Transparency is generally maintained through contract award databases and public reporting mechanisms. The Inspector General's office for the Peace Corps would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Employee Health Benefits Program
TRICARE
Pharmacy Benefit Management Services Contracts

Risk Flags

Long-term contract duration may not fully account for future inflation or technological changes in healthcare.
Firm-fixed-price structure could lead to overpayment if actual costs are lower than anticipated.
Dependence on a single provider for critical health services carries inherent performance and continuity risks.

Frequently Asked Questions

What is this federal contract paying for?

Peace Corps awarded $19.5 million to INTERNATIONAL MEDICAL GROUP INC. HEALTH CARE BENEFITS SERVICES CONTRACT

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL MEDICAL GROUP INC.

Which agency awarded this contract?

Awarding agency: Peace Corps (Peace Corps).

What is the total obligated amount?

The obligated amount is $19.5 million.

What is the period of performance?

Start: 2022-07-01. End: 2027-02-17.

What is the historical spending pattern for health care benefits and pharmacy services by the Peace Corps?

Analyzing historical spending patterns for the Peace Corps' health care benefits and pharmacy services is crucial for understanding the context of this $19.5 million award. Without access to specific historical contract data for the Peace Corps, a direct comparison is not possible. However, federal agencies generally experience fluctuations in health care costs due to factors like inflation, changes in healthcare utilization, and evolving medical technologies. The Peace Corps, operating globally, may also face unique cost drivers related to international healthcare access and logistics. A review of past solicitations and awards for similar services would reveal trends in contract values, durations, and the types of services procured, providing a baseline against which the current contract's value and scope can be assessed for reasonableness and potential cost efficiencies over time.

How does the per-unit cost of these services compare to similar contracts for other federal agencies?

Determining the per-unit cost for this contract is challenging without knowing the exact number of Peace Corps personnel (including volunteers and staff) covered throughout the contract period and the specific services utilized. However, if we were to estimate a per-person, per-year cost, it could be benchmarked against contracts for similar health benefits and pharmacy management services awarded to other federal agencies like the Department of State (for diplomats) or the Department of Defense (for military personnel and families). Factors such as the scope of coverage (e.g., comprehensive medical, prescription drugs only), geographic locations of beneficiaries, and the administrative overhead included in the pricing would need to be standardized for a meaningful comparison. Generally, contracts with broader coverage, higher utilization rates, or services in more expensive regions tend to have higher per-unit costs.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) are critical components of any government contract to ensure the contractor meets performance expectations. For a health care benefits and pharmacy services contract like this one, typical KPIs and SLAs would likely focus on areas such as: timeliness of claims processing and reimbursement, prescription fulfillment rates and accuracy, network adequacy (availability of healthcare providers and pharmacies), member satisfaction scores, and adherence to reporting requirements. The contract document itself would detail these specific metrics, along with the acceptable performance thresholds and any associated remedies or penalties for non-compliance. These measures are essential for the Peace Corps to monitor the effectiveness and efficiency of International Medical Group Inc.'s service delivery and to ensure the well-being of its personnel.

What is the track record of International Medical Group Inc. with government contracts, particularly in health services?

International Medical Group Inc. (IMG) has a significant track record in providing international health insurance and global medical assistance services, often catering to expatriates, travelers, and organizations with global workforces. Their experience aligns well with the needs of an agency like the Peace Corps, which operates internationally. Government contract databases, such as the Federal Procurement Data System (FPDS), would provide specific details on IMG's past performance with federal agencies, including contract values, types of services rendered, and performance ratings if available. A review of these records would indicate their history of meeting contractual obligations, managing complex international healthcare systems, and their overall reliability as a government contractor in the health services domain.

What are the potential risks associated with the long duration and firm-fixed-price nature of this contract?

The long duration (nearly five years) and firm-fixed-price (FFP) nature of this contract present specific risk considerations. For the government, an FFP contract carries the risk of paying a premium if costs decrease or utilization is lower than anticipated, as the contractor is guaranteed the agreed-upon price regardless of actual costs. Conversely, the contractor assumes the risk of cost overruns if expenses increase beyond projections. For a long-term contract, there's also a risk that the fixed price may not adequately account for future inflation or significant changes in healthcare costs and technology, potentially leading to dissatisfaction or a need for contract modifications. The Peace Corps must ensure robust oversight to monitor utilization and costs to mitigate these risks and ensure continued value throughout the contract's life.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 1145PC22R0001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sirius International Insurance Group Ltd

Address: 2960 N MERIDIAN ST, INDIANAPOLIS, IN, 46208

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $28,140,416

Exercised Options: $19,450,171

Current Obligation: $19,450,171

Actual Outlays: $15,817,413

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline