VA awards $3.6M BPA Call for pharmacy benefit management services to Palisade Strategies, LLC

Contract Overview

Contract Amount: $3,595,879 ($3.6M)

Contractor: Palisade Strategies, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-10-01

End Date: 2025-09-30

Contract Duration: 1,460 days

Daily Burn Rate: $2.5K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: BPA CALL: PHARMACY BENEFIT MANAGEMENT AND SERVICES FOR FILLING/PROVIDING VETERANS THEIR FIRST PRESCRIPTIONS. THIS COVERS THE FOLLOWING 4 LOCATIONS: PHOENIX, PRESCOTT, TUCSON AND ALBUQUERQUE.

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87108

State: New Mexico Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.6 million to PALISADE STRATEGIES, LLC for work described as: BPA CALL: PHARMACY BENEFIT MANAGEMENT AND SERVICES FOR FILLING/PROVIDING VETERANS THEIR FIRST PRESCRIPTIONS. THIS COVERS THE FOLLOWING 4 LOCATIONS: PHOENIX, PRESCOTT, TUCSON AND ALBUQUERQUE. Key points: 1. The contract aims to provide pharmacy benefit management and services for filling veterans' first prescriptions. 2. This award covers four key locations: Phoenix, Prescott, Tucson, and Albuquerque. 3. The contract was competed under the Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements. 4. The duration of the contract is 1460 days, spanning from October 1, 2021, to September 30, 2025. 5. The contract type is Firm Fixed Price, which provides cost certainty for the government. 6. The award was made to a single contractor, Palisade Strategies, LLC.

Value Assessment

Rating: fair

Benchmarking the value for this specific BPA Call is challenging without more granular data on the scope of services and the number of prescriptions filled. However, the total award amount of approximately $3.6 million over four years suggests a moderate investment in pharmacy benefit management. Comparisons to similar contracts would require detailed analysis of service offerings, patient populations, and geographic coverage. The firm fixed-price nature provides some cost control, but the overall value-for-money assessment depends heavily on the efficiency and effectiveness of the services provided by Palisade Strategies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a less extensive competition process than full and open competition. While the specific number of bidders is not provided, SAP is often used for procurements valued below a certain threshold, where competition may be limited to a smaller pool of qualified vendors. This approach aims to streamline the acquisition process for smaller contracts but may not always yield the most competitive pricing.

Taxpayer Impact: For taxpayers, a limited competition under SAP can mean potentially higher prices compared to a fully competed contract with numerous bidders. However, the streamlined process might also reduce administrative costs associated with the procurement itself.

Public Impact

Veterans in Phoenix, Prescott, Tucson, and Albuquerque will benefit from improved access to their first prescriptions. The contract ensures the provision of pharmacy benefit management services, streamlining prescription fulfillment. This initiative directly supports the Department of Veterans Affairs' mission to care for its service members. The contract may have implications for local pharmacy networks and pharmaceutical supply chains in the covered regions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP could result in less favorable pricing for the government.
The effectiveness of pharmacy benefit management is critical to ensuring veterans receive timely and appropriate medications.
Reliance on a single contractor for these essential services introduces a degree of vendor dependency.

Positive Signals

The contract is firm fixed-price, providing cost predictability.
The BPA Call structure allows for efficient ordering of services as needed.
The contract duration provides stability for service delivery to veterans.

Sector Analysis

The healthcare sector, particularly within government procurement, often involves complex service contracts for medical supplies and management. Pharmacy benefit management is a critical component of healthcare delivery, aiming to control costs and improve patient outcomes. This contract fits within the broader category of third-party administration of insurance and pension funds, specifically tailored for pharmaceutical services. Comparable spending benchmarks would likely be found within other VA or Department of Defense pharmacy contracts, or large civilian health insurance provider contracts.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly detailed for this BPA Call. Given the nature of the services and the contractor, it's unclear if small businesses were specifically targeted or involved in subcontracting opportunities. Further analysis would be needed to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is generally facilitated through contract award databases, though detailed performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

Department of Veterans Affairs Pharmacy Programs
Pharmacy Benefit Management Services
Third Party Administration of Insurance Funds
Veterans Health Administration Contracts

Risk Flags

Limited competition may impact price.
Vendor performance risk.
Potential for service disruption.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.6 million to PALISADE STRATEGIES, LLC. BPA CALL: PHARMACY BENEFIT MANAGEMENT AND SERVICES FOR FILLING/PROVIDING VETERANS THEIR FIRST PRESCRIPTIONS. THIS COVERS THE FOLLOWING 4 LOCATIONS: PHOENIX, PRESCOTT, TUCSON AND ALBUQUERQUE.

Who is the contractor on this award?

The obligated recipient is PALISADE STRATEGIES, LLC.

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 $3.6 million.

What is the period of performance?

Start: 2021-10-01. End: 2025-09-30.

What is the specific scope of 'pharmacy benefit management and services for filling/providing veterans their first prescriptions' under this BPA Call?

The BPA Call likely encompasses a range of services related to managing prescription benefits for veterans, focusing on their initial prescriptions. This could include formulary management, claims processing, drug utilization review, patient education on medication adherence, and potentially direct dispensing or coordination with retail pharmacies for filling prescriptions. The emphasis on 'first prescriptions' suggests a focus on initiating treatment and ensuring veterans have access to necessary medications early in their care journey. The exact services would be detailed in the BPA Call's statement of work, which is not provided here but would outline specific deliverables, performance standards, and reporting requirements for Palisade Strategies, LLC.

How does the $3.6 million award compare to typical spending for similar pharmacy benefit management contracts within the VA or other federal agencies?

Direct comparison of the $3.6 million award for this specific BPA Call is difficult without knowing the precise volume of prescriptions, the complexity of the formulary, and the specific services rendered. However, for context, larger-scale pharmacy benefit management contracts, such as those managed by the Defense Health Agency or major civilian health insurers, can run into hundreds of millions or even billions of dollars annually. This $3.6 million award appears to be for a more localized or specialized service, possibly covering a defined patient population or a specific phase of prescription fulfillment across four locations. It suggests a moderate-sized contract within the broader spectrum of federal healthcare spending.

What are the key performance indicators (KPIs) used to assess the performance of Palisade Strategies, LLC under this contract?

While specific KPIs are not detailed in the provided data, typical performance indicators for pharmacy benefit management contracts include metrics such as prescription fill rates, turnaround times for authorizations, patient satisfaction scores, medication adherence rates, cost savings achieved through formulary management and generic substitution, and compliance with regulatory requirements. The Department of Veterans Affairs would likely monitor these or similar metrics to ensure Palisade Strategies, LLC is effectively managing the pharmacy benefits and providing timely access to medications for veterans in the specified locations. Contract performance reviews would assess adherence to these KPIs.

What is the track record of Palisade Strategies, LLC in providing pharmacy benefit management services to government entities?

Information on Palisade Strategies, LLC's specific track record with government entities for pharmacy benefit management is not detailed in the provided data. A thorough assessment would require reviewing past performance evaluations, contract history, and any publicly available information on their previous work with federal, state, or local government agencies. Understanding their experience with similar patient populations, contract types (like BPA Calls), and regulatory environments would be crucial in evaluating their capability to fulfill this VA contract effectively. Further research into their corporate history and client testimonials would be necessary.

What are the potential risks associated with relying on a single contractor for pharmacy benefit management in these four locations?

Relying on a single contractor, Palisade Strategies, LLC, for pharmacy benefit management in four locations presents several potential risks. Firstly, there's a risk of vendor lock-in, making it difficult and costly to switch providers if performance issues arise. Secondly, a lack of competition could lead to complacency and potentially less innovation or cost-efficiency over time. Thirdly, if Palisade Strategies, LLC experiences operational disruptions (e.g., financial instability, system failures, or staffing shortages), it could directly impact the timely and accurate fulfillment of veterans' prescriptions across all four service areas, potentially leading to medication access issues and adverse health outcomes for veterans.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1740 CALIFORNIA AVE, RENO, NV, 89509

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $3,595,879

Exercised Options: $3,595,879

Current Obligation: $3,595,879

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26221A0021

IDV Type: BPA

Timeline