VA's $3.28B Patient Centered Community Care Contract Awarded to TriWest Healthcare Alliance Corp

Contract Overview

Contract Amount: $3,276,610,906 ($3.3B)

Contractor: Triwest Healthcare Alliance Corp

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-07-01

End Date: 2020-09-30

Contract Duration: 91 days

Daily Burn Rate: $36.0M/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

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85053

State: Arizona Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.28 billion to TRIWEST HEALTHCARE ALLIANCE CORP for work described as: EXPRESS REPORT FOR THE PATIENT CENTERED COMMUNITY CARE (PC3) CONTRACT Key points: 1. Significant contract value highlights the scale of community care services procured. 2. TriWest Healthcare Alliance Corp, a major player in veteran healthcare, secured this large award. 3. Potential risks include service delivery consistency and cost management over the contract duration. 4. The healthcare sector, particularly veteran-focused services, sees substantial government investment.

Value Assessment

Rating: good

The contract's total value of over $3.2 billion suggests a substantial investment. Benchmarking against similar large-scale healthcare service contracts would be necessary for a precise pricing assessment, but the fixed-price incentive structure aims to balance cost and performance.

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. This method generally leads to more competitive pricing as multiple vendors vie for the award.

Taxpayer Impact: The competitive award process is expected to yield good value for taxpayers by ensuring fair market pricing for essential healthcare services.

Public Impact

Ensures access to healthcare services for veterans in community settings. Supports TriWest Healthcare Alliance Corp's role in the veteran healthcare ecosystem. Potential for improved patient outcomes through expanded care options. Impacts healthcare providers within the contracted geographic areas.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

Contract duration is relatively short (91 days), potentially impacting long-term planning and stability.
Fixed Price Incentive (FPI) contracts can be complex to administer and monitor for cost efficiencies.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Significant contract value indicates a critical need for these services.
Focus on patient-centered care aligns with VA's mission.

Sector Analysis

This contract falls within the healthcare services sector, specifically focusing on community care for veterans. Spending in this area is substantial, driven by the VA's commitment to providing comprehensive care, often leveraging external providers to supplement internal capacity.

Small Business Impact

The provided data does not indicate specific subcontracting goals or performance related to small businesses for this contract. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The fixed-price incentive structure requires careful monitoring of performance and costs to ensure accountability and value for money.

Related Government Programs

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

Risk Flags

Potential for cost overruns if performance targets are not met efficiently.
Ensuring consistent quality of care across a dispersed network of community providers.
Managing patient transitions and care coordination between community providers and the VA.
Contract duration is short, raising questions about long-term service continuity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.28 billion to TRIWEST HEALTHCARE ALLIANCE CORP. EXPRESS REPORT FOR THE PATIENT CENTERED COMMUNITY CARE (PC3) CONTRACT

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 $3.28 billion.

What is the period of performance?

Start: 2020-07-01. End: 2020-09-30.

What is the projected cost savings or efficiency gains anticipated from this fixed-price incentive contract compared to other contract types?

Fixed-price incentive contracts aim to share cost risks and rewards between the government and contractor. The specific savings depend on the contractor's ability to control costs below target and the incentive fee structure. Without detailed contract terms and performance data, quantifying projected savings is difficult, but the structure incentivizes efficiency.

How does the geographic coverage and provider network under this contract compare to the VA's internal capacity and previous community care contracts?

This contract likely expands the VA's reach by utilizing TriWest's established network to serve veterans in specific regions, potentially addressing capacity limitations or geographic gaps. Comparing its scope to internal capacity and prior contracts would reveal the strategic role of community care in the VA's overall healthcare delivery model.

What performance metrics are being tracked to ensure the quality and effectiveness of patient-centered community care under this award?

Effective oversight would involve tracking metrics such as patient access to care times, patient satisfaction scores, clinical quality indicators, and adherence to care coordination protocols. The VA would monitor these to ensure the community care meets the 'patient-centered' mandate and achieves desired health outcomes.

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: $3,276,610,906

Exercised Options: $3,276,610,906

Current Obligation: $3,276,610,906

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA79113D0054

IDV Type: IDC

Timeline