AmeriCorps Pharmacy Benefit Management Contract Awarded to International Medical Group for $38.3M

Contract Overview

Contract Amount: $38,290,672 ($38.3M)

Contractor: International Medical Group Inc

Awarding Agency: Corporation for National and Community Service

Start Date: 2014-09-30

End Date: 2020-03-29

Contract Duration: 2,007 days

Daily Burn Rate: $19.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF AMERICORPS VISTA ADMINISTRATION OF HEALTH BENEFITS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Corporation for National and Community Service obligated $38.3 million to INTERNATIONAL MEDICAL GROUP INC for work described as: IGF::OT::IGF AMERICORPS VISTA ADMINISTRATION OF HEALTH BENEFITS Key points: 1. The contract covers Pharmacy Benefit Management and related administrative services. 2. International Medical Group Inc. is the sole awardee. 3. The contract duration is approximately 5.5 years. 4. The contract type is Firm Fixed Price, indicating predictable costs. 5. This is a significant award for third-party administration of insurance and pension funds.

Value Assessment

Rating: fair

The contract value of $38.3 million over 5.5 years suggests a moderate annual spend. Benchmarking against similar PBM contracts would be necessary to assess value, as pricing can vary significantly based on services included and member populations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically leads to better price discovery and value for the government. The specific details of the bidding process and number of bidders are not provided, but the method itself is favorable.

Taxpayer Impact: Full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for contract awards.

Public Impact

Ensures health benefits administration for AmeriCorps VISTA members. Provides pharmacy benefit management services, potentially impacting prescription drug costs. Supports the operational needs of the Corporation for National and Community Service. The contract's success impacts the well-being and access to care for program participants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics.
Potential for price increases in subsequent contract periods.
Dependence on a single vendor for critical administrative functions.

Positive Signals

Awarded through full and open competition.
Firm Fixed Price contract type provides cost certainty.
Long-term contract provides stability for benefit administration.

Sector Analysis

This contract falls within the administrative and support services sector, specifically focusing on insurance and pension fund administration. Benchmarks for PBM services can vary widely, but consistent oversight is key to managing costs effectively.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the awardee is a corporation, suggesting no direct benefit to small businesses through this specific award.

Oversight & Accountability

Oversight would typically involve monitoring vendor performance against contract requirements, ensuring timely and accurate administration of benefits, and managing financial aspects. The Corporation for National and Community Service is responsible for this oversight.

Related Government Programs

Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds
Corporation for National and Community Service Contracting
Corporation for National and Community Service Programs

Risk Flags

Contract awarded via full and open competition.
Firm Fixed Price contract provides cost certainty.
Long contract duration offers stability.
Potential for sole-source dependency in future.
Limited detail on specific PBM services and performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Corporation for National and Community Service awarded $38.3 million to INTERNATIONAL MEDICAL GROUP INC. IGF::OT::IGF AMERICORPS VISTA ADMINISTRATION OF HEALTH BENEFITS

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL MEDICAL GROUP INC.

Which agency awarded this contract?

Awarding agency: Corporation for National and Community Service (Corporation for National and Community Service).

What is the total obligated amount?

The obligated amount is $38.3 million.

What is the period of performance?

Start: 2014-09-30. End: 2020-03-29.

What specific services are included in the Pharmacy Benefit Management and how do they compare to industry standards for similar contracts?

The provided data is limited and does not detail the specific services included in the Pharmacy Benefit Management (PBM). A comprehensive analysis would require reviewing the contract's Statement of Work (SOW) to understand the scope, such as formulary management, claims processing, rebate negotiation, and clinical programs. Comparing these services to industry standards and similar government contracts is crucial for assessing value and identifying potential areas for cost savings or improved efficiency.

What is the potential risk associated with International Medical Group Inc. being the sole administrator for these benefits?

The primary risk associated with a sole administrator is vendor lock-in and potential lack of leverage in future negotiations. If International Medical Group Inc. underperforms or significantly increases prices in subsequent periods, the Corporation for National and Community Service may face challenges in transitioning to a new vendor due to the specialized nature of PBM services. This could lead to service disruptions or higher costs for AmeriCorps VISTA members.

How effectively does this contract ensure cost-effectiveness and quality of care for AmeriCorps VISTA members' pharmacy needs?

The effectiveness of this contract in ensuring cost-effectiveness and quality of care hinges on the specific terms negotiated within the Firm Fixed Price agreement and the rigor of the Corporation for National and Community Service's oversight. While the fixed price offers budget certainty, it's essential that the contract incentivizes International Medical Group Inc. to manage drug costs through formulary design and rebate negotiations. Quality of care depends on the provider network and claims processing efficiency.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: International Medical Group Inc. (UEI: 544304412)

Address: 2960 N MERIDIAN, INDIANAPOLIS, IN, 46208

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

Financial Breakdown

Contract Ceiling: $38,290,672

Exercised Options: $38,290,672

Current Obligation: $38,290,672

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Timeline