DoD's TRICARE Dental Program Contract Awarded to United Concordia for $299M

Contract Overview

Contract Amount: $298,989,240 ($299.0M)

Contractor: United Concordia Companies, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-03-29

End Date: 2020-04-30

Contract Duration: 398 days

Daily Burn Rate: $751.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TRICARE DENTAL PROGRAM (TDP)

Place of Performance

Location: HARRISBURG, DAUPHIN County, PENNSYLVANIA, 17110

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $299.0 million to UNITED CONCORDIA COMPANIES, INC. for work described as: TRICARE DENTAL PROGRAM (TDP) Key points: 1. Contract value of $299M for dental insurance carriers. 2. United Concordia Companies, Inc. is the sole awardee. 3. Potential risk in limited competition for specialized health services. 4. Spending falls within the Defense Health sector.

Value Assessment

Rating: good

The contract value of $299M appears reasonable for a large-scale dental insurance program serving military personnel and their families. Benchmarking against similar government health insurance contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the award type is a delivery order, which may indicate a broader contract vehicle.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential dental services.

Public Impact

Ensures dental coverage for active duty and retired military members and their families. Supports the overall health and readiness of the U.S. Armed Forces. Provides a significant benefit to military families, enhancing quality of life.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Positive Signals

Competitive award process
Supports critical military personnel benefit

Sector Analysis

This contract falls under the Defense Health sector, specifically for health and medical insurance carriers. Spending benchmarks for similar large-scale government health insurance programs are typically in the hundreds of millions.

Small Business Impact

The data indicates that small businesses were not directly involved in this specific award, as the contract was awarded to United Concordia Companies, Inc. Further analysis would be needed to determine if subcontractors were utilized.

Oversight & Accountability

The Department of Defense, through the Defense Health Agency, is responsible for overseeing this contract. Standard oversight mechanisms for large federal contracts would apply to ensure performance and compliance.

Related Government Programs

Direct Health and Medical Insurance Carriers
Department of Defense Contracting
Defense Health Agency Programs

Risk Flags

Potential for service quality issues if not closely monitored.
Reliance on a single large provider.
Risk of inadequate pricing for long-term healthcare inflation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $299.0 million to UNITED CONCORDIA COMPANIES, INC.. TRICARE DENTAL PROGRAM (TDP)

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 $299.0 million.

What is the period of performance?

Start: 2019-03-29. End: 2020-04-30.

What is the long-term value proposition of this contract for the TRICARE program?

The long-term value proposition lies in providing consistent, quality dental care to military members and their families, contributing to readiness and morale. A stable provider ensures continuity of care, reducing administrative burden and potentially improving health outcomes over time. The firm fixed-price structure also offers budget predictability for the government.

What are the primary risks associated with this contract for the government?

Primary risks include potential cost overruns if the firm fixed-price model doesn't adequately account for unforeseen healthcare inflation or utilization changes. There's also a risk of service quality degradation if the contractor prioritizes profit over patient care. Dependence on a single large contractor could also pose a risk if performance issues arise.

How effectively does this contract support the health and readiness of military personnel?

This contract is crucial for supporting military health and readiness by ensuring access to essential dental care. Poor dental health can impact a service member's ability to perform duties and deploy. By providing comprehensive coverage, the contract helps maintain the overall well-being and deployability of the force.

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

Address: 1800 CENTER ST, CAMP HILL, PA, 17011

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

Financial Breakdown

Contract Ceiling: $298,989,240

Exercised Options: $298,989,240

Current Obligation: $298,989,240

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HT940216D0001

IDV Type: IDC

Timeline