DoD's Tricare Dental Program contract with United Concordia reached $301M, covering 395 days
Contract Overview
Contract Amount: $301,444,184 ($301.4M)
Contractor: United Concordia Companies, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-03-31
End Date: 2022-04-30
Contract Duration: 395 days
Daily Burn Rate: $763.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: 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
Place of Performance
Location: HARRISBURG, DAUPHIN County, PENNSYLVANIA, 17110
Plain-Language Summary
Department of Defense obligated $301.4 million to UNITED CONCORDIA COMPANIES, INC. for work described as: 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 Key points: 1. The contract provides dental services to military families and reserves worldwide. 2. United Concordia Companies, Inc. is the sole awardee. 3. The contract value is substantial, reflecting the program's broad reach. 4. Potential risks include service disruptions and cost overruns.
Value Assessment
Rating: good
The contract value of $301M for 395 days suggests a significant investment in dental care. Benchmarking against similar large-scale health insurance contracts would be necessary for a precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: The program ensures essential dental care for military families, contributing to overall force readiness and morale, which is a valuable use of taxpayer funds.
Public Impact
Ensures dental health for military families, enhancing readiness and quality of life. Provides worldwide coverage, a critical benefit for geographically dispersed personnel. Supports the well-being of reserve components, vital for national security.
Waste & Efficiency Indicators
Waste Risk Score: 76 / 10
Warning Flags
- Potential for scope creep or unaddressed service gaps.
- Dependence on a single contractor for a critical service.
Positive Signals
- Comprehensive worldwide coverage.
- Awarded through full and open competition.
- Addresses a key benefit for military personnel and families.
Sector Analysis
The healthcare sector, particularly health insurance carriers, sees significant government spending. This contract falls within the Direct Health and Medical Insurance Carriers NAICS code (524114), with a substantial value reflecting the scale of the Tricare program.
Small Business Impact
No specific information is provided regarding small business participation in this contract. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
The Department of Defense, through the Defense Health Agency, oversees this contract. Robust oversight is crucial to ensure service quality, cost control, and adherence to contract terms.
Related Government Programs
- Direct Health and Medical Insurance Carriers
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Contract duration is relatively short (395 days), potentially leading to frequent re-competition costs.
- No small business participation noted.
- Potential for service gaps or quality issues in remote locations.
- High contract value concentrated with one vendor.
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 $301.4 million to UNITED CONCORDIA COMPANIES, INC.. 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
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 $301.4 million.
What is the period of performance?
Start: 2021-03-31. End: 2022-04-30.
What is the projected cost per beneficiary for the Tricare Dental Program?
The total contract value is $301,444,183.60 over 395 days. With approximately 30 million eligible family members and selected reservists, the average cost per beneficiary per year would be roughly $2.47. This figure needs to be compared against industry benchmarks for similar dental insurance plans to assess value.
What are the primary risks associated with a single contractor providing worldwide dental services?
The primary risks include service disruptions due to contractor performance issues, potential lack of competitive pressure leading to price increases in future contracts, and challenges in ensuring consistent quality of care across diverse global locations. Dependence on one entity can also create vulnerabilities.
How effectively does this contract support the overall health and readiness of the U.S. military forces?
By providing comprehensive dental coverage, this contract significantly contributes to the health and readiness of uniformed service members and their families. Good oral health is linked to overall well-being and can prevent conditions that might impact deployability or performance, thus supporting force readiness.
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: $301,444,184
Exercised Options: $301,444,184
Current Obligation: $301,444,184
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
Start Date: 2021-03-31
Current End Date: 2022-04-30
Potential End Date: 2025-07-14 00:00:00
Last Modified: 2025-07-16
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)
- Tricare Dental Program (TDP) — $300.0M (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 — $299.9M (Department of Defense)
View all United Concordia Companies, Inc. federal contracts →
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