DoD awards $59.5M to OptumHealth for Global Nurse Advice Line Support Services
Contract Overview
Contract Amount: $59,534,526 ($59.5M)
Contractor: Optumhealth Care Solutions, LLC
Awarding Agency: Department of Defense
Start Date: 2023-03-18
End Date: 2024-03-17
Contract Duration: 365 days
Daily Burn Rate: $163.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: GLOBAL NURSE ADVICE LINE SUPPORT SERVICES
Place of Performance
Location: EDEN PRAIRIE, HENNEPIN County, MINNESOTA, 55344
Plain-Language Summary
Department of Defense obligated $59.5 million to OPTUMHEALTH CARE SOLUTIONS, LLC for work described as: GLOBAL NURSE ADVICE LINE SUPPORT SERVICES Key points: 1. Significant contract value of $59.5 million for essential healthcare support. 2. Sole-source award to OptumHealth raises questions about competition and potential cost savings. 3. Risk of limited market research and potential overpayment due to lack of competition. 4. Services fall under 'All Other Professional, Scientific, and Technical Services' sector.
Value Assessment
Rating: questionable
The contract value of $59.5 million for one year of support is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar services in the market.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may result in higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price for these critical services.
Public Impact
Ensures continuity of healthcare advice for military personnel and families. Potential for improved health outcomes through accessible nursing support. Sole-source award could limit innovation and service improvements from other providers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Essential service provision
- Experienced contractor
Sector Analysis
The 'All Other Professional, Scientific, and Technical Services' sector is broad. Benchmarking nurse advice line services within this category is challenging without more specific data, but $59.5M for a year suggests a high volume or complexity of support.
Small Business Impact
The contract was not set aside for small businesses, and the awardee is a large corporation. There is no indication of small business participation in this sole-source award.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the services are necessary, performed effectively, and priced reasonably. Transparency in justification for the sole-source award is crucial.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for cost overruns
- Limited transparency on justification
- No small business set-aside
Tags
all-other-professional-scientific-and-te, department-of-defense, mn, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $59.5 million to OPTUMHEALTH CARE SOLUTIONS, LLC. GLOBAL NURSE ADVICE LINE SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is OPTUMHEALTH CARE SOLUTIONS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $59.5 million.
What is the period of performance?
Start: 2023-03-18. End: 2024-03-17.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of other qualified sources. For this contract, the specific rationale from the Defense Health Agency would need to be reviewed to understand why competitive bidding was not pursued, ensuring it aligns with federal procurement regulations and serves the best interest of the government.
What are the risks associated with a sole-source contract for nurse advice line services?
Sole-source contracts carry risks of inflated pricing due to the absence of competitive pressure, potentially leading to inefficient use of taxpayer funds. There's also a risk of complacency from the contractor, potentially impacting service quality or innovation over time. Furthermore, it limits opportunities for other capable providers to offer their services and potentially better solutions.
How will the effectiveness and value of these services be measured without competition?
Effectiveness and value will be measured through performance metrics outlined in the contract, such as response times, patient satisfaction, and adherence to clinical protocols. The Defense Health Agency will need robust monitoring and evaluation processes to ensure OptumHealth meets these standards and delivers the intended health support, even without a competitive benchmark.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HT001123R0030
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Unitedhealth Group Incorporated
Address: 11000 OPTUM CIRCLE, EDEN PRAIRIE, MN, 55344
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $60,175,824
Exercised Options: $59,534,526
Current Obligation: $59,534,526
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-03-18
Current End Date: 2024-03-17
Potential End Date: 2024-03-17 00:00:00
Last Modified: 2023-12-15
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