Tricare Dental Program contract awarded to United Concordia for $265M, covering dental services for military families

Contract Overview

Contract Amount: $264,955,982 ($265.0M)

Contractor: United Concordia Companies, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-03-01

End Date: 2026-02-28

Contract Duration: 364 days

Daily Burn Rate: $727.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: THE TRICARE DENTAL PROGRAM OFFERS COVERAGE FOR DENTAL SERVICES TO ALL ELIGIBLE FAMILY MEMBERS OF UNIFORMED SERVICE ACTIVE DUTY, MEMBERS OF THE SELECTED RESERVE AND INDIVIDUAL READY RESERVE (IRR)

Place of Performance

Location: CAMP HILL, CUMBERLAND County, PENNSYLVANIA, 17011

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $265.0 million to UNITED CONCORDIA COMPANIES, INC. for work described as: THE TRICARE DENTAL PROGRAM OFFERS COVERAGE FOR DENTAL SERVICES TO ALL ELIGIBLE FAMILY MEMBERS OF UNIFORMED SERVICE ACTIVE DUTY, MEMBERS OF THE SELECTED RESERVE AND INDIVIDUAL READY RESERVE (IRR) Key points: 1. The contract provides essential dental coverage for military families, a critical component of overall well-being and retention. 2. The award was made under full and open competition, suggesting a competitive bidding process that likely influenced pricing. 3. The contract's duration of one year with potential for extensions indicates a need for ongoing, stable service provision. 4. The fixed-price contract type helps manage cost certainty for the government, shifting performance risk to the contractor. 5. This contract supports the Defense Health Agency's mission to provide healthcare services to uniformed service members and their families.

Value Assessment

Rating: good

The contract value of $265 million for one year of dental insurance coverage for military families appears reasonable when benchmarked against similar large-scale health insurance contracts. While specific per-member-per-month costs are not provided, the overall price reflects the extensive scope of services and the large eligible population. The fixed-price nature of the contract provides cost predictability for the government. Further analysis would require comparing the scope of covered services and utilization rates against other government health insurance contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This suggests a robust bidding process where multiple companies likely vied for the contract. The level of competition is generally expected to drive more favorable pricing and service terms for the government, as contractors aim to be the most competitive.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that is designed to secure the best value for money by encouraging lower prices and higher quality services.

Public Impact

Eligible family members of uniformed service members (active duty, Selected Reserve, and Individual Ready Reserve) benefit from access to dental care. The contract ensures the delivery of comprehensive dental services, contributing to the health and readiness of the military community. The geographic impact is nationwide, covering all eligible beneficiaries regardless of their duty station or residence. Workforce implications are positive, as access to dental care can improve morale and reduce distractions for service members, indirectly supporting military readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen dental needs arise beyond the standard coverage outlined.
Reliance on a single contractor for a critical benefit could pose risks if performance issues emerge.
Ensuring equitable access to dental providers across all geographic locations for beneficiaries.

Positive Signals

The contract is awarded through full and open competition, indicating a strong market response.
The fixed-price contract type provides cost certainty for the government.
The contract duration suggests a stable, long-term commitment to providing this essential benefit.

Sector Analysis

The healthcare insurance industry, particularly within the government sector, is characterized by large, complex contracts awarded through competitive bidding. This contract for the Tricare Dental Program falls within the Direct Health and Medical Insurance Carriers sub-sector. The market is typically dominated by a few large players capable of managing such extensive programs. Benchmarking this contract's value would involve comparing its per-member costs and scope of services against other large group health insurance contracts, both government and commercial.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale insurance program, it is likely that the prime contractor, United Concordia Companies, Inc., may engage subcontractors for specific services or administrative functions. However, the primary focus of this award is on the capabilities of the large prime contractor to manage the overall program. There is no explicit information provided regarding subcontracting plans or targets for small businesses within this specific award.

Oversight & Accountability

Oversight for the Tricare Dental Program is managed by the Defense Health Agency (DHA), a component of the Department of Defense. The DHA is responsible for ensuring the contractor meets contractual obligations, quality standards, and performance metrics. Accountability measures are typically embedded within the contract through performance standards, reporting requirements, and potential financial penalties for non-compliance. Transparency is facilitated through contract awards and public reporting mechanisms, though specific operational details may be sensitive.

Related Government Programs

Tricare Medical Programs
TRICARE For Life
Federal Employee Health Benefits (FEHB) Program
Medicare

Risk Flags

Contract duration is relatively short (1 year), potentially leading to frequent re-competition and associated transition costs.
Lack of detailed performance metrics and outcome-based evaluations in the provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $265.0 million to UNITED CONCORDIA COMPANIES, INC.. THE TRICARE DENTAL PROGRAM OFFERS COVERAGE FOR DENTAL SERVICES TO ALL ELIGIBLE FAMILY MEMBERS OF UNIFORMED SERVICE ACTIVE DUTY, MEMBERS OF THE SELECTED RESERVE AND INDIVIDUAL READY RESERVE (IRR)

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 $265.0 million.

What is the period of performance?

Start: 2025-03-01. End: 2026-02-28.

What is the historical spending trend for the Tricare Dental Program over the past five years?

Historical spending data for the Tricare Dental Program is crucial for understanding long-term cost trends and identifying any significant fluctuations. While the current award is for $264,955,982.41 for the period ending February 28, 2026, a five-year analysis would reveal if this represents an increase, decrease, or stable spending level. For instance, if spending has consistently risen year-over-year, it might indicate increasing utilization, rising healthcare costs, or contract modifications. Conversely, a decrease could suggest improved efficiency, changes in benefit structure, or a reduction in the eligible population. Without specific historical data, it is difficult to assess if the current award represents value for money in the long term or if there are emerging cost pressures that warrant closer scrutiny.

How does the per-member cost of the Tricare Dental Program compare to other large government dental insurance contracts?

Benchmarking the per-member cost is essential for evaluating the value proposition of the Tricare Dental Program contract. The total contract value of approximately $265 million covers an unspecified number of eligible family members. To conduct a meaningful comparison, we would need to know the average number of covered lives during the contract period and compare the resulting per-member-per-month (PMPM) cost against similar large-scale dental insurance contracts, such as those within the Federal Employees Dental and Vision Insurance Program (FEDVIP) or other state-level Medicaid dental programs. If the PMPM cost for Tricare is significantly higher than comparable programs, it could indicate potential inefficiencies, higher administrative costs, or a richer benefit package that warrants further investigation into its justification and cost-effectiveness.

What are the key performance indicators (KPIs) used to measure the success of the Tricare Dental Program contract?

The success of the Tricare Dental Program contract hinges on the effective measurement of key performance indicators (KPIs) that align with the program's objectives. These KPIs typically include metrics related to access to care (e.g., network adequacy, appointment wait times), quality of care (e.g., patient satisfaction surveys, adherence to clinical guidelines), administrative efficiency (e.g., claims processing timeliness, accuracy rates), and cost management. The Defense Health Agency (DHA) would establish these KPIs within the contract. Regular performance reviews and audits would assess the contractor's performance against these benchmarks. A lack of transparency regarding these KPIs and their performance outcomes makes it challenging to independently verify the program's effectiveness and the value delivered to beneficiaries and taxpayers.

What is United Concordia Companies, Inc.'s track record with similar large-scale government health insurance contracts?

United Concordia Companies, Inc. has a significant history of administering dental benefits, including for military populations. Their track record with similar large-scale government health insurance contracts is a critical factor in assessing the risk associated with this award. Past performance evaluations, contract compliance history, and any documented disputes or penalties from previous government contracts provide valuable insights. For instance, a history of successful contract execution, high beneficiary satisfaction, and efficient claims processing would indicate a lower risk profile. Conversely, a record of performance issues, significant cost overruns, or compliance failures would raise concerns and necessitate a more rigorous oversight approach for the current Tricare Dental Program contract.

Are there any specific dental health outcomes or readiness metrics tied to this contract?

While the primary goal of the Tricare Dental Program is to provide access to dental services for eligible military family members, linking the contract's success to specific dental health outcomes or military readiness metrics would provide a more comprehensive assessment of its value. For example, tracking metrics such as the reduction in preventable dental conditions, improvements in oral hygiene practices among beneficiaries, or a decrease in dental-related readiness issues for service members whose families are covered could demonstrate a direct impact. The absence of clearly defined and publicly reported outcome-based metrics makes it difficult to ascertain the full extent of the program's contribution beyond simply providing insurance coverage.

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: HT940222R0001

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: $520,671,273

Exercised Options: $520,671,273

Current Obligation: $264,955,982

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HT940224D0001

IDV Type: IDC

Timeline