VA awards $55.9M Pharmacy Benefit Management contract to Signature Performance, Inc. under full and open competition

Contract Overview

Contract Amount: $55,935,284 ($55.9M)

Contractor: Signature Performance, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2018-05-16

End Date: 2018-12-31

Contract Duration: 229 days

Daily Burn Rate: $244.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TASK ORDER: 8

Place of Performance

Location: OMAHA, DOUGLAS County, NEBRASKA, 68114

State: Nebraska Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $55.9 million to SIGNATURE PERFORMANCE, INC. for work described as: TASK ORDER: 8 Key points: 1. Contract Value: $55.9 million for Pharmacy Benefit Management. 2. Competition: Full and open competition after exclusion of sources. 3. Risk: Moderate risk due to firm fixed price contract type. 4. Sector: Healthcare services, specifically third-party administration of insurance and pension funds.

Value Assessment

Rating: good

The contract value of $55.9 million appears reasonable for pharmacy benefit management services. Benchmarking against similar VA or other federal contracts for third-party administration of insurance and pension funds would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process was used. This method generally promotes price discovery and ensures fair market value.

Taxpayer Impact: The use of full and open competition suggests taxpayers are likely receiving a fair price for the services rendered.

Public Impact

Ensures access to essential pharmacy benefits for beneficiaries. Supports the operational efficiency of the Department of Veterans Affairs healthcare system. Impacts a significant number of veterans relying on these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is relatively short (229 days).
No small business set-aside noted.

Positive Signals

Awarded under full and open competition.
Firm fixed price contract type provides cost certainty.

Sector Analysis

This contract falls within the healthcare sector, specifically focusing on third-party administration of insurance and pension funds related to pharmacy benefits. Spending in this area is critical for healthcare delivery and program management.

Small Business Impact

The data indicates no specific small business set-aside for this contract. Further analysis would be needed to determine if small businesses had an opportunity to participate or were excluded.

Oversight & Accountability

Oversight would typically involve monitoring contract performance, adherence to terms, and financial accountability by the Department of Veterans Affairs to ensure effective service delivery and proper use of funds.

Related Government Programs

Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Contract duration is less than a year.
No small business participation noted.
Potential for contractor to manage costs at the expense of service quality.
Reliance on a single vendor for critical PBM services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $55.9 million to SIGNATURE PERFORMANCE, INC.. TASK ORDER: 8

Who is the contractor on this award?

The obligated recipient is SIGNATURE PERFORMANCE, INC..

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 $55.9 million.

What is the period of performance?

Start: 2018-05-16. End: 2018-12-31.

What specific pharmacy benefit management services are included in this contract?

The contract covers Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds. This likely includes services such as claims processing, formulary management, network contracting, and rebate negotiation to manage prescription drug benefits efficiently for beneficiaries.

What are the potential risks associated with a firm fixed price contract for PBM services?

A firm fixed price contract can pose risks if the scope of services is not precisely defined or if unforeseen market fluctuations occur. The contractor bears the risk of cost overruns, which could incentivize cost-cutting measures that might impact service quality or beneficiary access to medications.

How does this contract contribute to the overall effectiveness of VA healthcare delivery?

This contract is crucial for the effective delivery of VA healthcare by ensuring veterans have access to necessary prescription medications. Efficient PBM services can help control drug costs, improve medication adherence, and streamline the overall pharmacy benefit process, contributing to better 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: SOCIAL SERVICES › SOCIAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10330 REGENCY PARKWAY DR STE 305, OMAHA, NE, 68114

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

Financial Breakdown

Contract Ceiling: $144,012,849

Exercised Options: $123,801,485

Current Obligation: $55,935,284

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA79114D0028

IDV Type: IDC

Timeline