TRICARE Dental Program contract awarded to United Concordia for $298M, highlighting direct insurance carrier spending
Contract Overview
Contract Amount: $298,064,818 ($298.1M)
Contractor: United Concordia Companies, Inc.
Awarding Agency: Department of Defense
Start Date: 2017-04-06
End Date: 2018-04-30
Contract Duration: 389 days
Daily Burn Rate: $766.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: IGF::OT::IGF TRICARE DENTAL PROGRAM
Place of Performance
Location: HARRISBURG, DAUPHIN County, PENNSYLVANIA, 17110
Plain-Language Summary
Department of Defense obligated $298.1 million to UNITED CONCORDIA COMPANIES, INC. for work described as: IGF::OT::IGF TRICARE DENTAL PROGRAM Key points: 1. The contract value of $298M represents significant spending within the health insurance sector. 2. United Concordia Companies, Inc. is the sole awardee, indicating a specific market position. 3. The contract type is Firm Fixed Price, which helps manage cost certainty. 4. This award falls under the Direct Health and Medical Insurance Carriers NAICS code.
Value Assessment
Rating: good
The contract's firm fixed price structure provides cost predictability. Benchmarking against similar large-scale health insurance contracts would be necessary for a definitive value assessment, but the scale suggests competitive pricing was likely sought.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing by allowing all eligible vendors to bid.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential services like military dental care.
Public Impact
Ensures dental coverage for active duty and retired military personnel and their families. Supports the health and readiness of the U.S. Armed Forces by providing essential care. Impacts a large population of service members and their dependents nationwide.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is relatively short (approx. 13 months).
- No specific small business participation noted.
Positive Signals
- Firm Fixed Price contract type.
- Awarded under Full and Open Competition.
Sector Analysis
This contract falls within the health insurance sector, specifically focusing on direct medical insurance carriers. Spending in this area is critical for providing healthcare benefits to government personnel and their families.
Small Business Impact
The provided data does not indicate any specific set-aside for small businesses. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
The contract is managed by the Defense Health Agency, a component of the Department of Defense, implying established oversight mechanisms for healthcare contracts.
Related Government Programs
- Direct Health and Medical Insurance Carriers
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Short contract duration.
- No explicit small business participation noted.
- Potential for service disruption during transition if not renewed promptly.
- Dependence on a single carrier for a critical service.
Tags
direct-health-and-medical-insurance-carr, department-of-defense, pa, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $298.1 million to UNITED CONCORDIA COMPANIES, INC.. IGF::OT::IGF TRICARE DENTAL PROGRAM
Who is the contractor on this award?
The obligated recipient is UNITED CONCORDIA COMPANIES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $298.1 million.
What is the period of performance?
Start: 2017-04-06. End: 2018-04-30.
What was the competitive landscape like during the bidding process for this contract?
The contract was awarded under full and open competition, indicating that multiple vendors were likely invited to submit proposals. While United Concordia Companies, Inc. was the awardee, the competitive nature of the bidding process suggests that pricing and service offerings were evaluated against those of other potential providers in the market.
Are there any potential risks associated with the short contract duration?
A short contract duration of approximately 13 months could pose risks such as increased administrative burden for contract renewals and potential disruptions in service continuity if a new award process is lengthy. It might also limit the contractor's incentive to invest in long-term service improvements.
How does the per-unit cost of this contract compare to similar dental insurance programs?
Without specific per-member-per-month cost data or benchmarks for comparable large-scale dental insurance programs for military populations, it is difficult to definitively assess the cost-effectiveness. The total award value of $298M suggests a significant number of covered individuals.
Industry Classification
NAICS: Finance and Insurance › Insurance Carriers › Direct Health and Medical Insurance Carriers
Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HT940215R0001
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Highmark Inc (UEI: 067096644)
Address: 4401 DEER PATH RD, HARRISBURG, PA, 17110
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $298,064,818
Exercised Options: $298,064,818
Current Obligation: $298,064,818
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HT940216D0001
IDV Type: IDC
Timeline
Start Date: 2017-04-06
Current End Date: 2018-04-30
Potential End Date: 2018-04-30 00:00:00
Last Modified: 2018-02-23
More Contracts from United Concordia Companies, Inc.
- Award of Contract — $892.3M (Department of Defense)
- Active Duty Dental Program 3 (addp3) — $448.7M (Department of Defense)
- THE Tricare Dental Program Offers Worldwide Coverage for Dental Services to ALL Eligible Family Members of Uniformed Service Active Duty Personnel and the Selected Reserve and Individual Ready Reserve — $311.1M (Department of Defense)
- THE Tricare Dental Program Offers Worldwide Coverage for Dental Services to Eligible Family Members of Uniformed Service Active Duty Personnel and the Selected Reserve and Individual Ready Reserve — $301.4M (Department of Defense)
- Tricare Dental Program (TDP) — $300.0M (Department of Defense)
View all United Concordia Companies, Inc. 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)