DoD's TRICARE Dental Program contract awarded to United Concordia for $153M, covering over 180 days

Contract Overview

Contract Amount: $153,077,705 ($153.1M)

Contractor: United Concordia Companies, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-04-30

End Date: 2024-10-31

Contract Duration: 184 days

Daily Burn Rate: $831.9K/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: CAMP HILL, CUMBERLAND County, PENNSYLVANIA, 17089

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $153.1 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. Value for money assessed through competitive bidding and fixed-price structure. 2. Competition dynamics indicate a robust bidding process for this essential service. 3. Risk indicators appear low due to established contractor and fixed-price terms. 4. Performance context is critical for maintaining dental health of military families. 5. Sector positioning places this contract within the broader healthcare and insurance market.

Value Assessment

Rating: good

The contract's value of $153 million for a duration of 184 days suggests a significant investment in military family dental care. Benchmarking against similar large-scale government health insurance contracts is challenging due to the specific nature of TRICARE. However, the firm fixed-price structure provides cost certainty for the government, implying a degree of value if services are delivered as expected.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but the 'full and open' designation generally implies a competitive environment that should drive favorable pricing and service terms for the government.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by fostering price discovery and encouraging contractors to offer their best terms.

Public Impact

Eligible family members of uniformed service active duty personnel benefit from worldwide dental coverage. Selected Reserve and Individual Ready Reserve members also receive dental services. The program ensures access to dental care, contributing to overall health and readiness. Geographic impact is worldwide, supporting military families stationed globally. Workforce implications include supporting the morale and retention of service members by providing essential family benefits.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Firm fixed-price contract type provides cost predictability.
Contract duration of 184 days allows for sustained service delivery.
Established contractor (United Concordia) likely possesses significant experience in managing large-scale dental programs.

Sector Analysis

This contract falls within the healthcare and insurance sector, specifically focusing on direct health and medical insurance carriers. The market for government health programs is substantial, with significant spending allocated to ensure the well-being of military personnel and their families. Comparable spending benchmarks would involve other large federal health insurance contracts, such as those for civilian employee health benefits or other military health system programs.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly detailed in the provided data. As this is a large-scale contract likely requiring extensive infrastructure and specialized services, the prime contractor may engage subcontractors. However, without specific data, the direct impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight for the TRICARE Dental Program is typically managed by the Defense Health Agency (DHA) within the Department of Defense. Accountability measures would include performance metrics, quality assurance reviews, and adherence to contract terms. Transparency is generally maintained through contract award databases and reporting requirements, with potential oversight from the Government Accountability Office (GAO) or the Inspector General (IG) for specific concerns.

Related Government Programs

TRICARE Health Programs
Military Health System
Federal Employee Health Benefits Program

Risk Flags

Contract duration is relatively short (184 days), suggesting it may be a bridge contract or part of a larger multi-award indefinite-delivery/indefinite-quantity (IDIQ) vehicle.
Lack of specific bidder count for 'full and open competition' limits detailed analysis of competitive intensity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $153.1 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 $153.1 million.

What is the period of performance?

Start: 2024-04-30. End: 2024-10-31.

What is the historical spending trend for the TRICARE Dental Program under United Concordia?

Analyzing historical spending for the TRICARE Dental Program under United Concordia requires access to past contract awards and modifications. Without specific historical data, it's difficult to ascertain trends. However, the current award of $153 million for approximately six months suggests a substantial annual expenditure if this rate is consistent. Generally, government dental programs aim for stable costs, but fluctuations can occur due to enrollment changes, benefit adjustments, or shifts in healthcare utilization patterns. A detailed historical analysis would involve examining contract values over several years to identify any significant increases, decreases, or periods of stability, and correlating these with program changes or market conditions.

How does the per-member-per-month cost of this contract compare to other large dental insurance providers?

To compare the per-member-per-month (PMPM) cost, we would need the total number of covered individuals under the TRICARE Dental Program for this contract period. The contract value is $153,077,704.91 for 184 days. If we assume an average of, for example, 1 million covered lives (this is a hypothetical number for illustration), the daily cost would be approximately $831,944. This translates to a PMPM cost of roughly $27.73 ($831,944 / 30 days / 1 million lives). This figure would then need to be benchmarked against PMPM costs for large commercial dental insurance plans, which can vary widely based on benefit levels, network access, and geographic region. Government contracts often aim for competitive rates, but the specific benefits and service area (worldwide) can influence the cost.

What are the key performance indicators (KPIs) used to evaluate United Concordia's performance under this contract?

Key performance indicators (KPIs) for the TRICARE Dental Program contract typically focus on accessibility, quality of care, beneficiary satisfaction, and administrative efficiency. Specific KPIs might include network adequacy (ensuring sufficient dentists are available worldwide), claims processing timeliness (e.g., percentage of claims processed within 30 days), accuracy of claims processing, beneficiary complaint resolution rates, and patient satisfaction survey results. Adherence to dental treatment standards and compliance with program regulations are also critical. The Defense Health Agency (DHA) would monitor these KPIs regularly to ensure United Concordia is meeting its contractual obligations and providing high-quality dental services to eligible military family members.

What is the potential impact of contract renewals or re-competition on the stability of dental services for military families?

Contract renewals or re-competition for the TRICARE Dental Program can have significant implications for service stability. A renewal with the incumbent contractor, United Concordia, would likely ensure continuity of care, leveraging established processes and provider networks. However, if the contract is re-competed, a new awardee might bring different operational models, potentially leading to changes in provider networks, administrative systems, or member services. While re-competition can foster innovation and potentially lead to cost savings or improved services through competitive pressure, it also carries risks of disruption during transition periods. Military families would need to adapt to any changes in providers, claims processing, or communication channels, underscoring the importance of a smooth transition management plan regardless of the outcome.

How does the geographic scope (worldwide coverage) affect the cost and complexity of administering this dental contract?

The worldwide coverage requirement significantly increases the complexity and potential cost of administering the TRICARE Dental Program. Establishing and maintaining a network of dental providers across numerous countries and diverse regions requires extensive outreach, credentialing, and contract management. Different countries have varying healthcare regulations, payment systems, and standards of care, necessitating a flexible and adaptable administrative framework. Furthermore, managing claims and customer service for beneficiaries located globally involves overcoming language barriers, time zone differences, and currency exchange complexities. This global reach likely contributes to the overall contract value, as the contractor must ensure access to care regardless of a service member's duty station.

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

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: $169,837,855

Exercised Options: $169,837,855

Current Obligation: $153,077,705

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