DoD Awards $24.6M Bridge Contract for Global Nurse Advice Line Services to OptumHealth
Contract Overview
Contract Amount: $24,587,905 ($24.6M)
Contractor: Optumhealth Care Solutions, LLC
Awarding Agency: Department of Defense
Start Date: 2025-09-18
End Date: 2026-03-17
Contract Duration: 180 days
Daily Burn Rate: $136.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: GLOBAL NURSE ADVICE LINE (GNAL) SERVICES - 18 MONTH BRIDGE WITH 6-MONTH BASE PERIOD AND FOUR 3-MONTH OPTIONS
Place of Performance
Location: EDEN PRAIRIE, HENNEPIN County, MINNESOTA, 55344
Plain-Language Summary
Department of Defense obligated $24.6 million to OPTUMHEALTH CARE SOLUTIONS, LLC for work described as: GLOBAL NURSE ADVICE LINE (GNAL) SERVICES - 18 MONTH BRIDGE WITH 6-MONTH BASE PERIOD AND FOUR 3-MONTH OPTIONS Key points: 1. Contract awarded to OptumHealth Care Solutions, LLC for $24.6M. 2. Services are for a Global Nurse Advice Line (GNAL). 3. Contract is a bridge with a 6-month base and four 3-month options. 4. The NAICS code 541990 indicates 'All Other Professional, Scientific, and Technical Services'. 5. This contract was not competed.
Value Assessment
Rating: questionable
The contract value of $24.6M for 18 months of GNAL services appears high without competitive benchmarking. The lack of competition makes it difficult to assess if this price is reasonable compared to similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. Without competition, there's no price discovery mechanism to ensure the government is receiving the best value. The justification for sole-source is not provided.
Taxpayer Impact: The lack of competition raises concerns about potential overspending, meaning taxpayers may be paying more than necessary for these essential GNAL services.
Public Impact
Military families and personnel will continue to receive nurse advice services. The bridge contract ensures continuity of care while a more permanent solution is sought. Potential for increased costs due to lack of competitive bidding. Limited transparency on the specific services provided under this contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Bridge contract duration
- High dollar value for non-competed service
Positive Signals
- Ensures continuity of essential services
- Supports military healthcare access
Sector Analysis
The Defense Health Agency operates within the healthcare sector, providing medical services to military personnel and their families. Spending benchmarks for professional, scientific, and technical services can vary widely, but a lack of competition for a $24.6M contract warrants scrutiny.
Small Business Impact
This contract was awarded to OptumHealth Care Solutions, LLC, a large business. There is no indication that small businesses were involved in subcontracting opportunities for this specific award, which is common in sole-source procurements.
Oversight & Accountability
The non-competed nature of this award suggests a need for robust oversight from the Defense Health Agency and the Department of Defense to ensure the services are necessary, performed adequately, and priced fairly, especially given the bridge contract structure.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Sole-source award lacks competition
- Potential for inflated pricing
- Bridge contract may indicate planning issues
- Lack of transparency on justification
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 $24.6 million to OPTUMHEALTH CARE SOLUTIONS, LLC. GLOBAL NURSE ADVICE LINE (GNAL) SERVICES - 18 MONTH BRIDGE WITH 6-MONTH BASE PERIOD AND FOUR 3-MONTH OPTIONS
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 $24.6 million.
What is the period of performance?
Start: 2025-09-18. End: 2026-03-17.
What is the specific justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award is critical for understanding why competition was bypassed. Without this information, it's difficult to assess if the government received fair value. Agencies typically require detailed justifications, such as unique capabilities or urgent needs, to be documented. Robust oversight should involve reviewing this justification and potentially seeking independent cost estimates to validate the pricing.
How does the cost of these GNAL services compare to industry benchmarks or previous contracts, given the lack of competition?
Benchmarking is challenging without competitive bids. The $24.6M price tag for 18 months requires careful analysis against similar services procured competitively. The Defense Health Agency should conduct a thorough price analysis, potentially using historical data or market research, to determine if the negotiated price is reasonable and reflects fair market value, despite the sole-source award.
What is the long-term strategy for GNAL services, and will future procurements be competed to ensure better value and innovation?
The bridge contract nature implies a temporary solution. The agency's long-term strategy is crucial for understanding if this is a placeholder before a competitive solicitation or if similar sole-source awards are anticipated. Future competition is essential for driving innovation, fostering a broader vendor base, and ultimately securing better pricing and service quality for the DoD.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: MEDICAL SERVICES › NURSING, NURSING HOME, EVAL/SCREEN
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HT001125RE011
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Unitedhealth Group Incorporated
Address: 1 OPTUM CIR, 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: $75,238,874
Exercised Options: $24,587,905
Current Obligation: $24,587,905
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2025-09-18
Current End Date: 2026-03-17
Potential End Date: 2027-03-17 00:00:00
Last Modified: 2025-09-15
More Contracts from Optumhealth Care Solutions, LLC
- Global Nurse Advice Line Services — $210.2M (Department of Defense)
- Global Nurse Advice Line Support Services — $76.1M (Department of Defense)
- Global Nurse Advice Line Support Services — $59.5M (Department of Defense)
- THE Purpose of This Letter Contract IS to Provide Contract in Place in Order to Provide Back UP Support for the Late — $38.9M (Department of Veterans Affairs)
View all Optumhealth Care Solutions, LLC federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)