VA awards $265M PCCC contract modification to Health Net Federal Services for physician services
Contract Overview
Contract Amount: $264,964,483 ($265.0M)
Contractor: Health NET Federal Services, LLC
Awarding Agency: Department of Veterans Affairs
Start Date: 2015-10-01
End Date: 2021-03-29
Contract Duration: 2,006 days
Daily Burn Rate: $132.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE
Sector: Healthcare
Official Description: IGF::CT::IGF PATIENT CENTERED COMMUNITY CARE (PCCC). MODIFICATION TO EXERCISE OPTION YEAR 2.
Place of Performance
Location: RANCHO CORDOVA, SACRAMENTO County, CALIFORNIA, 95742
Plain-Language Summary
Department of Veterans Affairs obligated $265.0 million to HEALTH NET FEDERAL SERVICES, LLC for work described as: IGF::CT::IGF PATIENT CENTERED COMMUNITY CARE (PCCC). MODIFICATION TO EXERCISE OPTION YEAR 2. Key points: 1. Contract modification exercises option year 2 for PCCC services. 2. Health Net Federal Services, LLC is the incumbent contractor. 3. The contract is for physician services in California. 4. Spending is fixed-price incentive, suggesting cost control mechanisms. 5. The award is a delivery order under a larger contract.
Value Assessment
Rating: good
The contract value of $265M for physician services over its period of performance appears reasonable when compared to similar large-scale healthcare service contracts. The fixed-price incentive structure aims to align contractor and government interests on cost.
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 ensures the government receives competitive pricing.
Taxpayer Impact: The competitive award process is expected to yield fair pricing, maximizing taxpayer value for essential healthcare services.
Public Impact
Ensures continued access to patient-centered community care for veterans. Supports healthcare delivery in California through physician services. Provides stability for healthcare providers and associated jobs.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Positive Signals
- Full and open competition
- Fixed-price incentive contract type
- Incumbent contractor with established performance
Sector Analysis
This contract falls within the healthcare sector, specifically physician services. The spending benchmark for this NAICS code (621111) can vary significantly based on geographic location and service scope, but $265M over several years suggests a substantial program.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The contract was awarded to Health Net Federal Services, LLC, which is likely a large business, suggesting limited direct opportunities for small businesses on this specific award.
Oversight & Accountability
The award is a modification to an existing contract, implying prior oversight. Further oversight would focus on performance metrics, quality of care, and adherence to contract terms, especially given the incentive structure.
Related Government Programs
- Offices of Physicians (except Mental Health Specialists)
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Potential for cost overruns if targets are not met.
- Reliance on a single large provider.
- Need for robust performance monitoring.
Tags
offices-of-physicians-except-mental-heal, department-of-veterans-affairs, ca, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $265.0 million to HEALTH NET FEDERAL SERVICES, LLC. IGF::CT::IGF PATIENT CENTERED COMMUNITY CARE (PCCC). MODIFICATION TO EXERCISE OPTION YEAR 2.
Who is the contractor on this award?
The obligated recipient is HEALTH NET FEDERAL SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).
What is the total obligated amount?
The obligated amount is $265.0 million.
What is the period of performance?
Start: 2015-10-01. End: 2021-03-29.
What is the specific performance history of Health Net Federal Services, LLC on this contract?
While the modification exercises an option, a detailed review of past performance reports, quality metrics, and any previous disputes or challenges would be necessary to fully assess the contractor's track record. This information is crucial for understanding the reliability and effectiveness of the services provided under this contract.
How does the fixed-price incentive structure impact cost savings or overruns?
The fixed-price incentive (FPI) contract type aims to provide a closer government-contractor relationship in monitoring and controlling costs. It establishes target costs, target profits, and sharing ratios for savings or overruns, incentivizing the contractor to perform efficiently and cost-effectively.
What is the geographic scope and patient population served by this PCCC contract?
The contract is associated with CALIFORNIA (SN: CALIFORNIA) and falls under NAICS code 621111 (Offices of Physicians). The PCCC program typically serves veterans, and understanding the specific regions within California and the patient demographics is key to assessing the contract's reach and impact.
Industry Classification
NAICS: Health Care and Social Assistance › Offices of Physicians › Offices of Physicians (except Mental Health Specialists)
Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Parent Company: Centene Corporation (UEI: 809245525)
Address: 2025 AEROJET RD, RANCHO CORDOVA, CA, 95742
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $268,564,483
Exercised Options: $268,564,483
Current Obligation: $264,964,483
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: VA79113D0053
IDV Type: IDC
Timeline
Start Date: 2015-10-01
Current End Date: 2021-03-29
Potential End Date: 2021-09-30 00:00:00
Last Modified: 2021-06-10
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