VA awards $660M to TriWest Healthcare for medical insurance, direct health services in August FY23
Contract Overview
Contract Amount: $659,954,985 ($660.0M)
Contractor: Triwest Healthcare Alliance Corp
Awarding Agency: Department of Veterans Affairs
Start Date: 2023-08-01
End Date: 2023-08-31
Contract Duration: 30 days
Daily Burn Rate: $22.0M/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: EXPRESS REPORT FOR AUGUST FY23 R4 EXPRESS REPORT
Place of Performance
Location: FREDERICKSBURG, SPOTSYLVANIA County, VIRGINIA, 22408
State: Virginia Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $660.0 million to TRIWEST HEALTHCARE ALLIANCE CORP for work described as: EXPRESS REPORT FOR AUGUST FY23 R4 EXPRESS REPORT Key points: 1. Significant contract value of $660M highlights substantial investment in healthcare services. 2. Competition was full and open, suggesting a competitive bidding process. 3. Risk appears moderate given the established carrier and fixed-price contract. 4. Sector is healthcare, a critical area for government spending and public well-being.
Value Assessment
Rating: good
The contract value of $660M for a single month's delivery order is substantial. Benchmarking against similar large-scale healthcare contracts would be necessary to fully assess pricing, but the firm fixed-price structure provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives best value.
Taxpayer Impact: The competitive nature of this award suggests taxpayers are likely benefiting from a fair market price for essential healthcare services.
Public Impact
Ensures continued access to direct health and medical insurance for veterans. Supports a large healthcare provider network, impacting numerous beneficiaries. Significant federal expenditure in the healthcare sector, influencing market dynamics.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Monthly expenditure of $660M requires careful monitoring for efficiency.
- Dependence on a single carrier for a large population warrants contingency planning.
Positive Signals
- Full and open competition suggests a robust procurement process.
- Firm fixed-price contract provides budget predictability.
- Award to an established carrier implies operational readiness.
Sector Analysis
This contract falls within the healthcare sector, specifically focusing on direct health and medical insurance carriers. Government spending in this area is consistently high due to the critical need for services, particularly for veteran populations.
Small Business Impact
While the primary awardee is a large corporation, the contract's execution likely involves a network of smaller healthcare providers and subcontractors. Further analysis would be needed to determine the extent of small business participation in fulfilling this contract.
Oversight & Accountability
The Department of Veterans Affairs is responsible for oversight. Regular performance reviews and audits are crucial to ensure the contractor meets service level agreements and manages funds appropriately.
Related Government Programs
- Direct Health and Medical Insurance Carriers
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Large contract value requires diligent financial oversight.
- Potential for scope creep or unmanaged cost increases.
- Ensuring equitable access to care across the service area.
- Dependency on a single large contractor for critical services.
Tags
direct-health-and-medical-insurance-carr, department-of-veterans-affairs, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $660.0 million to TRIWEST HEALTHCARE ALLIANCE CORP. EXPRESS REPORT FOR AUGUST FY23 R4 EXPRESS REPORT
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 $660.0 million.
What is the period of performance?
Start: 2023-08-01. End: 2023-08-31.
What is the historical performance of TriWest Healthcare Alliance Corp with the VA on similar contracts?
TriWest Healthcare Alliance Corp has a history of working with the VA, often managing healthcare services for specific regions. Past performance data, including quality metrics, cost control, and beneficiary satisfaction, would be essential to evaluate their reliability and efficiency in fulfilling this substantial contract. Analyzing previous contract awards and their outcomes provides valuable insight into their capabilities and potential risks.
How does the per-member-per-month cost compare to other VA healthcare contracts or industry benchmarks?
A detailed cost analysis comparing the per-member-per-month (PMPM) cost under this contract to similar VA contracts and private sector benchmarks is crucial. Given the $660M value, even small variations in PMPM can represent millions in taxpayer savings or overspending. Understanding the specific services included in the PMPM rate is vital for an accurate comparison.
What are the key performance indicators (KPIs) and service level agreements (SLAs) for this contract, and how is performance being tracked?
The effectiveness of this contract hinges on clearly defined KPIs and SLAs that measure access to care, quality of services, and beneficiary satisfaction. Robust tracking mechanisms, including regular reporting from the contractor and independent VA monitoring, are necessary to ensure TriWest is meeting its obligations. Performance data should be transparently reviewed to identify any areas needing improvement or potential contract modifications.
Industry Classification
NAICS: Finance and Insurance › Insurance Carriers › Direct Health and Medical Insurance Carriers
Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 15810 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: $659,954,985
Exercised Options: $659,954,985
Current Obligation: $659,954,985
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 36C10G19D0038
IDV Type: IDC
Timeline
Start Date: 2023-08-01
Current End Date: 2023-08-31
Potential End Date: 2023-08-31 00:00:00
Last Modified: 2023-11-07
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