VA's $1.9B Patient Centered Community Care contract awarded to TriWest Healthcare Alliance Corp

Contract Overview

Contract Amount: $1,908,528,940 ($1.9B)

Contractor: Triwest Healthcare Alliance Corp

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-01-01

End Date: 2020-03-31

Contract Duration: 90 days

Daily Burn Rate: $21.2M/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE INCENTIVE

Sector: Healthcare

Official Description: EXPRESS REPORT FOR THE PATIENT CENTERED COMMUNITY CARE (PC3) CONTRACT FOR THE OFFICE OF COMMUNITY CARE (OCC).

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85053

State: Arizona Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $1.91 billion to TRIWEST HEALTHCARE ALLIANCE CORP for work described as: EXPRESS REPORT FOR THE PATIENT CENTERED COMMUNITY CARE (PC3) CONTRACT FOR THE OFFICE OF COMMUNITY CARE (OCC). Key points: 1. Contract value is substantial at $1.9 billion. 2. TriWest Healthcare Alliance Corp is the sole awardee. 3. Fixed Price Incentive contract type suggests shared risk. 4. The contract falls under the Offices of Physicians (except Mental Health Specialists) NAICS code. 5. This is a delivery order under a larger contract.

Value Assessment

Rating: fair

The contract is a delivery order, making direct pricing assessment difficult without the base contract details. However, the fixed price incentive structure aims to control costs by aligning contractor and government interests.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. However, this specific entry is a delivery order, suggesting it's one of potentially many under a broader contract.

Taxpayer Impact: The full and open competition aims to ensure taxpayer funds are used efficiently by soliciting the best value.

Public Impact

Provides healthcare services to veterans in Arizona. Aims to improve access to care for eligible veterans. Supports the Department of Veterans Affairs' mission to care for veterans.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Delivery order complexity
Potential for cost overruns with incentive contracts
Sole awardee for this specific order

Positive Signals

Full and open competition for the base contract
Focus on patient-centered care
Supports veteran healthcare access

Sector Analysis

This contract falls within the healthcare services sector, specifically related to physician services. Benchmarks for similar large-scale veteran healthcare contracts can vary significantly based on scope and region.

Small Business Impact

The provided data does not indicate any specific subcontracting or set-aside for small businesses within this delivery order.

Oversight & Accountability

Oversight is managed by the Department of Veterans Affairs' Office of Community Care. The fixed price incentive structure provides some level of financial oversight by linking contractor profit to cost performance.

Related Government Programs

Offices of Physicians (except Mental Health Specialists)
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Lack of base contract details
Limited insight into performance against target costs
Potential for scope creep in subsequent delivery orders
Sole awardee for this specific delivery order

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $1.91 billion to TRIWEST HEALTHCARE ALLIANCE CORP. EXPRESS REPORT FOR THE PATIENT CENTERED COMMUNITY CARE (PC3) CONTRACT FOR THE OFFICE OF COMMUNITY CARE (OCC).

Who is the contractor on this award?

The obligated recipient is TRIWEST HEALTHCARE ALLIANCE CORP.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $1.91 billion.

What is the period of performance?

Start: 2020-01-01. End: 2020-03-31.

What was the total value of the base contract from which this delivery order was issued?

The provided data only details a specific delivery order with a value of $1.9 billion. The total value of the overarching base contract is not specified, which is crucial for understanding the full scope and long-term financial commitment.

How did the final costs compare to the target costs under this fixed price incentive contract?

The fixed price incentive (FPI) contract type implies that both the contractor and the government share in any cost savings or overruns relative to target costs. Without post-award performance data, it's impossible to assess the effectiveness of this incentive structure in controlling costs for this specific delivery order.

What was the competitive landscape for the base contract, and how did it influence pricing?

The base contract was awarded under full and open competition, suggesting a competitive bidding process that should have driven favorable pricing. However, the specific pricing achieved for this delivery order, and how it compares to other potential bidders or similar services, requires further analysis of the contract's pricing details.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Physicians › Offices of Physicians (except Mental Health Specialists)

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Address: 16010 N 28TH AVE, PHOENIX, AZ, 85053

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

Financial Breakdown

Contract Ceiling: $1,908,528,940

Exercised Options: $1,908,528,940

Current Obligation: $1,908,528,940

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA79113D0054

IDV Type: IDC

Timeline