DoD's TRICARE Dental Program contract awarded to United Concordia for $300M, covering 1.2M+ beneficiaries worldwide
Contract Overview
Contract Amount: $299,881,862 ($299.9M)
Contractor: United Concordia Companies, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-04-26
End Date: 2023-04-30
Contract Duration: 369 days
Daily Burn Rate: $812.7K/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 ALL 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 $299.9 million to UNITED CONCORDIA COMPANIES, INC. for work described as: 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 Key points: 1. The contract provides essential dental services to military families, enhancing readiness and morale. 2. United Concordia Companies, Inc. is the incumbent contractor, suggesting potential for stable service delivery. 3. The firm-fixed-price structure helps control costs, but requires careful monitoring for scope creep. 4. This contract falls within the Health and Medical Insurance Carriers sector, a critical area for personnel support.
Value Assessment
Rating: good
The contract value of $299.9M over approximately one year appears reasonable given the scope of worldwide dental coverage for a large beneficiary population. Benchmarking against similar large-scale health insurance contracts would provide further validation.
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 that likely drove a fair price. The use of a delivery order under a larger contract suggests a structured approach to procurement.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for a vital benefit to military families.
Public Impact
Ensures dental health for over 1.2 million family members of active duty and reserve personnel. Supports military readiness by maintaining the health and well-being of service members' families. Provides access to dental care across the globe, a significant benefit for a mobile force.
Waste & Efficiency Indicators
Waste Risk Score: 85 / 10
Warning Flags
- Potential for contract modifications impacting final cost.
- Ensuring consistent quality of care across diverse geographic locations.
Positive Signals
- Large beneficiary base ensures significant demand and utilization.
- Incumbent contractor likely has established infrastructure and expertise.
- Firm-fixed-price contract provides cost certainty.
Sector Analysis
This contract is within the Direct Health and Medical Insurance Carriers sector, which is crucial for supporting the health and readiness of military personnel and their families. Spending in this sector is consistently high due to the essential nature of healthcare services.
Small Business Impact
The provided data does not indicate specific subcontracting goals or achievements for small businesses on this particular delivery order. Further analysis would be needed to assess small business participation.
Oversight & Accountability
The Department of Defense, through the Defense Health Agency, is responsible for overseeing this contract. Robust oversight is necessary to ensure service quality, beneficiary satisfaction, and adherence to contract terms.
Related Government Programs
- Direct Health and Medical Insurance Carriers
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Potential for increased costs due to unforeseen global events impacting service delivery.
- Risk of beneficiary dissatisfaction if network providers are insufficient in certain areas.
- Dependence on a single contractor for a critical service.
- Ensuring data security and privacy for a large beneficiary database.
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 $299.9 million to UNITED CONCORDIA COMPANIES, INC.. 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
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 $299.9 million.
What is the period of performance?
Start: 2022-04-26. End: 2023-04-30.
What is the historical cost trend for the TRICARE Dental Program, and how does this award compare?
Analyzing historical spending data for the TRICARE Dental Program is crucial to understand cost trends and identify any significant deviations. Comparing this $300M award against previous contract values, adjusted for inflation and beneficiary growth, will reveal if costs are escalating, stable, or decreasing. This context is vital for assessing long-term value for taxpayers.
What are the key performance indicators (KPIs) for this contract, and how is performance being measured?
Understanding the KPIs is essential for evaluating the effectiveness of the TRICARE Dental Program. These likely include metrics such as beneficiary satisfaction rates, network adequacy, claims processing timeliness, and quality of care standards. Regular performance reviews against these KPIs by the Defense Health Agency are critical to ensure the contractor is meeting its obligations.
Are there any identified gaps in dental care access or quality for specific geographic regions or beneficiary demographics under this contract?
While the contract aims for worldwide coverage, potential disparities in access or quality of care may exist in remote or underserved areas. Investigating beneficiary feedback, network provider availability, and utilization data across different regions is important. Identifying and addressing any such gaps proactively ensures equitable healthcare delivery for all eligible military families.
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: $322,161,398
Exercised Options: $322,161,398
Current Obligation: $299,881,862
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: 2022-04-26
Current End Date: 2023-04-30
Potential End Date: 2023-04-30 00:00:00
Last Modified: 2025-09-17
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)
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