Department of Defense awarded $521.8M contract for HMO Medical Centers to Martins Point Health Care Inc

Contract Overview

Contract Amount: $521,765,773 ($521.8M)

Contractor: Martins Point Health Care Inc

Awarding Agency: Department of Defense

Start Date: 2003-06-01

End Date: 2008-09-30

Contract Duration: 1,948 days

Daily Burn Rate: $267.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: 200608!608102!9700!H94002!TRICARE SUPPORT OFFICE !H9400203C0023 !A!N! !N! !P00009!20051201!20060531!002354637!002354637!002354637!N!PENOBSCOT BAY MEDICAL ASSOCIAT!331 VERANDA ST STE 1 !PORTLAND !ME!04103!60545!005!23!PORTLAND !CUMBERLAND !MAINE !+000003075000!N!N!000000000000!B537!MEDICAL & HEALTH STUDIES !S1 !SERVICES !000 !NOT DISCERNABLE !621491!E! !3!B!S!C! ! !99990909!B! ! !A! !D!N!J!1!001!N!5A!C!N!Z! ! !N!F!N! ! ! ! ! !A!A!000!A!A!N! ! ! ! ! ! !0001! !

Place of Performance

Location: PORTLAND, CUMBERLAND County, MAINE, 04104

State: Maine Government Spending

Plain-Language Summary

Department of Defense obligated $521.8 million to MARTINS POINT HEALTH CARE INC for work described as: 200608!608102!9700!H94002!TRICARE SUPPORT OFFICE !H9400203C0023 !A!N! !N! !P00009!20051201!20060531!002354637!002354637!002354637!N!PENOBSCOT BAY MEDICAL ASSOCIAT!331 VERANDA ST STE 1 !PORTLAND !ME!04103!60545!005!23!PORTLAND !CUMB… Key points: 1. Contract awarded for HMO Medical Centers services, indicating a focus on healthcare delivery. 2. The contract duration spans over 1900 days, suggesting a long-term need for these services. 3. The award was not available for competition, raising questions about potential cost efficiencies. 4. The geographic scope appears to be Maine, based on the contractor's location. 5. The contract value is substantial, representing significant federal spending in the healthcare sector. 6. The specific service code (621491) points to a specialized area within medical and health studies.

Value Assessment

Rating: questionable

The total award amount of $521.8 million over approximately 5.3 years is substantial. Without comparable contracts for similar HMO Medical Center services, it is difficult to definitively benchmark the value. However, the lack of competition suggests that the government may not have achieved the most favorable pricing. The per-unit cost is not discernible from the provided data, making a direct cost-effectiveness analysis challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not available for competition, indicating a sole-source award. This means only one vendor was considered for the contract. While sole-source awards can be justified in specific circumstances, they typically limit the government's ability to leverage competitive pressures to secure lower prices and potentially better terms.

Taxpayer Impact: For taxpayers, a sole-source award means there was no opportunity to benefit from competitive bidding, which could have led to cost savings. The absence of competition may result in a higher overall cost to the government.

Public Impact

Beneficiaries include military personnel and their families in Maine who utilize TRICARE services. The contract delivers essential healthcare services through HMO Medical Centers. The geographic impact is primarily focused on the state of Maine. The contract supports healthcare professionals employed by Martins Point Health Care Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Limited transparency into the justification for a sole-source award.
Potential for reduced innovation due to absence of competitive pressure.

Positive Signals

Ensures continued provision of critical healthcare services to a specific population.
Contractor is located within the service area, potentially improving accessibility.
Long contract duration provides stability for service delivery.

Sector Analysis

This contract falls within the Healthcare sector, specifically related to managed care and health maintenance organizations (HMOs). The federal government is a significant purchaser of healthcare services, particularly for military and veteran populations through programs like TRICARE. Spending in this area is driven by the need to provide comprehensive medical care. Comparable spending benchmarks would typically involve analyzing other TRICARE contracts or large-scale civilian managed care contracts.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract. Furthermore, there is no information regarding subcontracting plans or the impact on the small business ecosystem. Given the large dollar value and sole-source nature, it is less likely that small businesses would be primary awardees, though they could potentially be subcontractors.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the TRICARE Management Activity and potentially the Department of Defense's Inspector General. Accountability measures would be tied to performance metrics and service level agreements outlined in the contract. Transparency is limited due to the sole-source nature, but contract award details are generally made public.

Related Government Programs

TRICARE
HMO Contracts
Military Healthcare Services
Federal Health Insurance Programs

Risk Flags

Sole-source award limits competitive pricing.
Lack of detailed justification for non-competitive award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $521.8 million to MARTINS POINT HEALTH CARE INC. 200608!608102!9700!H94002!TRICARE SUPPORT OFFICE !H9400203C0023 !A!N! !N! !P00009!20051201!20060531!002354637!002354637!002354637!N!PENOBSCOT BAY MEDICAL ASSOCIAT!331 VERANDA ST STE 1 !PORTLAND !ME!04103!60545!005!23!PORTLAND !CUMBERLAND !MAINE !+000003075000!N!N!000000000000!B537!MEDICAL & HEALTH STUDIES !S1 !SERVICES !000 !NOT DISCERNABLE !621491!E! !3!B!S!C! ! !999

Who is the contractor on this award?

The obligated recipient is MARTINS POINT HEALTH CARE INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Tricare Management Activity).

What is the total obligated amount?

The obligated amount is $521.8 million.

What is the period of performance?

Start: 2003-06-01. End: 2008-09-30.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' which is a designation for sole-source awards. Specific justifications for sole-source contracts often include reasons such as urgency, unique capabilities of a single contractor, or situations where only one source is capable of meeting the requirement. Without further documentation from the awarding agency (Department of Defense, TRICARE Management Activity), the precise rationale remains undisclosed in this dataset. Typically, such justifications are publicly available through sources like the Federal Procurement Data System (FPDS) or agency contract award notices, detailing why competition was deemed impractical or impossible.

How does the awarded amount of $521.8 million compare to historical spending on similar HMO Medical Center services in Maine?

Benchmarking this $521.8 million award against historical spending for similar HMO Medical Center services in Maine is challenging with the provided data alone. The dataset indicates a contract duration of approximately 1948 days (over 5 years) and a total value of $521,765,773.35. To perform a meaningful comparison, one would need to access historical TRICARE contract data for the same or similar services within the same geographic region (Maine and surrounding areas served by the TRICARE North Region). This would involve identifying previous contracts for HMO services, their award amounts, durations, and the specific services rendered. Analyzing trends in per-member-per-month costs or overall contract values over time would provide context on whether this award represents an increase, decrease, or stable level of federal spending for these healthcare services.

What are the key performance indicators (KPIs) associated with this contract, and how is contractor performance monitored?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, for an HMO Medical Center contract under TRICARE, typical KPIs would likely revolve around patient access to care (e.g., appointment wait times), quality of care metrics (e.g., adherence to clinical guidelines, patient outcomes), beneficiary satisfaction surveys, and administrative efficiency. Contractor performance is generally monitored through regular reviews by the contracting officer's representative (COR) or the contracting officer (CO), who assess compliance with contract terms, service level agreements, and performance standards. Formal performance evaluations, such as Contractor Performance Assessment Reporting System (CPARS) reports, would also be used to document the contractor's track record.

What is the estimated number of beneficiaries served by this contract, and what is the projected cost per beneficiary?

The provided data does not directly state the estimated number of beneficiaries served by this contract or the projected cost per beneficiary. However, the contract is for 'HMO Medical Centers' under the TRICARE program, which serves active duty military personnel, retirees, and their families. To estimate the number of beneficiaries, one would need to consult TRICARE enrollment data for the specific region (Maine and potentially surrounding areas covered by Martins Point Health Care Inc.) during the contract period (2003-2008). Once the total number of beneficiaries is estimated, the cost per beneficiary could be calculated by dividing the total contract value ($521.8 million) by the estimated number of beneficiaries. This calculation would provide insight into the federal investment in healthcare for each individual covered under this specific HMO contract.

Are there any known issues or concerns regarding Martins Point Health Care Inc.'s past performance on federal contracts?

Information regarding specific past performance issues or concerns for Martins Point Health Care Inc. on federal contracts is not detailed within the provided dataset. The dataset does include a 'Contract Type' as 'NOT AVAILABLE FOR COMPETITION,' which, while not a performance issue, indicates a lack of competitive evaluation. To assess past performance, one would typically consult the Contractor Performance Assessment Reporting System (CPARS), which contains ratings and feedback on contractor performance for previous federal awards. Reviewing CPARS reports, if available for this contractor and relevant contracts, would provide insights into their reliability, quality of work, timeliness, and overall adherence to contractual obligations.

Industry Classification

NAICS: Health Care and Social Assistance › Outpatient Care Centers › HMO Medical Centers

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 331 VERANDA ST STE 1, PORTLAND, ME, 01

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

Contract Characteristics

Cost or Pricing Data: NO

Timeline