Humana awarded $12.89M contract for patient appointing services at Colorado Springs military facilities

Contract Overview

Contract Amount: $12,886,914 ($12.9M)

Contractor: Humana Government Business Inc

Awarding Agency: Department of Defense

Start Date: 2005-07-01

End Date: 2009-09-30

Contract Duration: 1,552 days

Daily Burn Rate: $8.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PATIENT APPOINTING SERVICE FOR COLORADO SPRINGS MILITARY TREATMENT FACILITIES.

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80913

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $12.9 million to HUMANA GOVERNMENT BUSINESS INC for work described as: PATIENT APPOINTING SERVICE FOR COLORADO SPRINGS MILITARY TREATMENT FACILITIES. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of over 4 years indicates a significant, long-term need for these services. 3. Fixed-price contract type may offer cost certainty for the government, but could limit flexibility. 4. The service category (Office Administrative Services) is common across government agencies. 5. Awarded by the Department of the Air Force, highlighting a specific military healthcare support need. 6. The contract value is moderate, suggesting it's a standard service requirement rather than a large-scale project.

Value Assessment

Rating: good

The contract value of $12.89 million over approximately 4 years for patient appointing services appears reasonable for the scope. Benchmarking against similar administrative service contracts for military treatment facilities is challenging without more specific data on service volume and complexity. However, the fixed-price nature suggests a degree of cost control. The award to Humana Government Business Inc. indicates a known entity in government contracting, which can sometimes correlate with established pricing structures.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of 3 bidders (as indicated by 'no': 3) suggests a healthy level of competition for this service. A competitive process generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value by encouraging multiple vendors to offer their most competitive pricing and service proposals.

Public Impact

Military personnel and their families in Colorado Springs benefit from efficient patient appointment scheduling. The services ensure smooth operation of administrative functions within military treatment facilities. The geographic impact is localized to Colorado Springs, supporting specific military healthcare infrastructure. The contract supports administrative roles, potentially impacting civilian or military administrative staff within the facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if service requirements become highly specialized over time.
Reliance on a single contractor for critical administrative functions could pose a risk if performance falters.

Positive Signals

Award through full and open competition suggests a robust vetting of potential providers.
Fixed-price contract can provide budget predictability for the procuring agency.
Contract duration indicates a stable, ongoing need being met.

Sector Analysis

The healthcare administrative services sector is a significant component of government contracting, particularly supporting military and veteran healthcare systems. This contract falls within the broader administrative and support services category, which is characterized by a wide range of providers, from large corporations to specialized small businesses. The market size for such services is substantial, driven by the ongoing need for efficient operations within federal agencies. Comparable spending benchmarks would typically involve analyzing other contracts for similar administrative support at other military treatment facilities or federal healthcare sites.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any specific subcontracting requirements for small businesses. As a result, the direct impact on the small business ecosystem for this particular award is likely minimal. However, larger prime contractors like Humana often engage small businesses for various support roles, so indirect subcontracting opportunities might exist.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the administrative contracting officer within the Department of the Air Force. Performance monitoring, quality assurance surveillance plans (QASPs), and regular reviews are standard mechanisms to ensure contractor compliance and service delivery. Transparency is generally maintained through contract award databases like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Health System Administration
Healthcare Support Services
Federal Administrative Services
Department of Defense Healthcare Operations

Risk Flags

Contract Duration
Fixed Price Contract Type
Administrative Services Scope

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.9 million to HUMANA GOVERNMENT BUSINESS INC. PATIENT APPOINTING SERVICE FOR COLORADO SPRINGS MILITARY TREATMENT FACILITIES.

Who is the contractor on this award?

The obligated recipient is HUMANA GOVERNMENT BUSINESS INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $12.9 million.

What is the period of performance?

Start: 2005-07-01. End: 2009-09-30.

What was the specific performance history of Humana Government Business Inc. on similar contracts prior to this award?

Assessing Humana Government Business Inc.'s prior performance requires access to detailed contract performance reports and past performance evaluations, which are typically not publicly available. However, as a large, established government contractor, Humana likely has a track record across various federal agencies and contract types. Agencies usually review past performance data during the source selection process. For this specific contract, the Department of the Air Force would have evaluated Humana's relevant experience and past performance against the solicitation requirements. Without access to those internal evaluations or specific contract histories, a precise assessment is not possible. Generally, large contractors are expected to meet performance standards, and agencies have mechanisms to address deficiencies if they arise.

How does the per-unit cost of this patient appointing service compare to market rates or similar federal contracts?

Determining a precise per-unit cost benchmark for this patient appointing service is difficult without knowing the specific metrics used (e.g., per appointment scheduled, per patient managed, per hour of administrative support). The contract is a Firm Fixed Price (FFP) award valued at approximately $12.89 million over 1552 days. If we approximate a daily rate, it's roughly $8,300 per day. However, this doesn't translate directly to a per-unit cost without understanding the volume of services delivered daily. Comparing this to market rates would require analyzing commercial healthcare administrative service providers in the Colorado Springs area or similar military treatment facilities nationwide. Federal agencies often conduct market research to establish independent government cost estimates (IGCEs) before bidding, but these are internal. The 'good' rating suggests the value was deemed fair during the procurement process, likely based on internal benchmarks and competitive bids.

What are the key performance indicators (KPIs) used to measure the success of this patient appointing service contract?

Key Performance Indicators (KPIs) for a patient appointing service contract typically focus on efficiency, accuracy, and user satisfaction. While specific KPIs for this Humana contract are not publicly detailed, common metrics would likely include: appointment scheduling success rate (percentage of requested appointments successfully booked), wait times for appointments (average time from request to scheduling), cancellation/no-show rates (and effectiveness of reminder systems), accuracy of patient information recorded, and potentially patient satisfaction scores related to the scheduling process. The Department of the Air Force would have established these KPIs in the Performance Work Statement (PWS) and monitored Humana's adherence to them. Failure to meet critical KPIs could lead to contract deficiencies, award deductions, or termination.

What is the historical spending trend for patient appointing services at these Colorado Springs military facilities?

Historical spending data for patient appointing services specifically at the Colorado Springs military treatment facilities prior to this $12.89 million contract (July 2005 - Sept 2009) is not directly provided in the summary data. However, the contract's duration (over 4 years) and value suggest a consistent and significant need for these services. To understand historical trends, one would need to examine contract awards for similar services at these specific facilities over previous periods. It's plausible that similar contracts existed, potentially with the same or different vendors, reflecting an ongoing requirement. The $12.89 million award suggests a substantial budget allocation for this function during the contract period, indicating it's a core operational need.

What risks are associated with a Firm Fixed Price (FFP) contract for administrative services like patient appointing?

A Firm Fixed Price (FFP) contract, like the one awarded to Humana, offers the government price certainty, meaning the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. The primary risk for the contractor is incurring costs higher than anticipated, potentially reducing their profit margin or leading to a loss. For the government, the main risk is that the contractor may be less inclined to accommodate changes or provide additional services beyond the strict scope of the contract without additional payment, potentially limiting flexibility. If the FFP price was set too high due to inadequate market research or competition, the government might overpay. Conversely, if the price was set too low, the contractor might cut corners on quality or service delivery to maintain profitability, although performance standards in the PWS aim to mitigate this.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Humana Inc. (UEI: 049944143)

Address: 500 WEST MAIN STREET, LOUISVILLE, KY, 03

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $12,886,914

Exercised Options: $12,886,914

Current Obligation: $12,886,914

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W81K0405D7002

IDV Type: IDC

Timeline