DoD Obligates Over $658 Million for Pharmacy Services in Option Period 1
Contract Overview
Contract Amount: $658,869,774 ($658.9M)
Contractor: Express Scripts Inc
Awarding Agency: Department of Defense
Start Date: 2015-04-14
End Date: 2016-04-30
Sector: Healthcare
Official Description: IGF::OT::IGF THE CLINS ORDERED ON THIS TASK ORDER REPRESENT OPTION PERIOD 1 (OP1) FOR CONTRACT HT9402-14-D-0002. FUNDING IS OBLIGATED TO SUPPORT PHARMACY SERVICES FOR OP1.
Plain-Language Summary
Department of Defense obligated $658.9 million to EXPRESS SCRIPTS INC for work described as: IGF::OT::IGF THE CLINS ORDERED ON THIS TASK ORDER REPRESENT OPTION PERIOD 1 (OP1) FOR CONTRACT HT9402-14-D-0002. FUNDING IS OBLIGATED TO SUPPORT PHARMACY SERVICES FOR OP1. Key points: 1. Significant funding allocated for pharmacy services, indicating a substantial need. 2. Competition details are not readily available, raising questions about cost-effectiveness. 3. Potential risks include service disruptions or cost overruns if not managed effectively. 4. Sole-source award could limit opportunities for other providers and potentially higher prices.
Value Assessment
Rating: good
The obligated amount of over $658 million for pharmacy services represents a significant investment. This funding supports Option Period 1 of a contract, suggesting a continuation of established services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, meaning only one vendor was considered. This approach may streamline service delivery but limits competitive pricing.
Taxpayer Impact: Taxpayers may not be receiving the best value due to the absence of competitive bidding.
Public Impact
Ensures continued access to essential pharmacy services for beneficiaries. Potential for price fluctuations due to sole-source nature of the award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to higher costs.
- Sole-source award limits market exploration for better pricing.
- Dependence on a single provider carries inherent risks.
Positive Signals
- Ensures continuity of critical pharmacy services.
- Established provider likely has a deep understanding of DoD needs.
Sector Analysis
This contract falls within the healthcare sector, specifically focusing on the provision of pharmacy services. Such services are critical for maintaining the health and readiness of military personnel and their families.
Small Business Impact
The award details do not indicate any specific provisions for small businesses or set-asides. This suggests the contract was not structured to prioritize small business participation.
Oversight & Accountability
Oversight of this contract will be crucial to ensure the quality and cost-effectiveness of the pharmacy services provided. The Defense Health Agency is responsible for managing this significant expenditure.
Related Government Programs
- Pharmacy Services
- Healthcare Contracts
- Option Period 1
Risk Flags
- Sole-source award
- Lack of competition
Tags
federal-spending, dod, pharmacy-services, healthcare, sole-source, contract-award, defense-health-agency, option-period
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $658.9 million to EXPRESS SCRIPTS INC. IGF::OT::IGF THE CLINS ORDERED ON THIS TASK ORDER REPRESENT OPTION PERIOD 1 (OP1) FOR CONTRACT HT9402-14-D-0002. FUNDING IS OBLIGATED TO SUPPORT PHARMACY SERVICES FOR OP1.
Who is the contractor on this award?
The obligated recipient is EXPRESS SCRIPTS INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $658.9 million.
What is the period of performance?
Start: 2015-04-14. End: 2016-04-30.
Analysis insight 1
The sole-source nature of this award warrants further investigation into the justification for not pursuing a competitive process.
Analysis insight 2
Analysis of historical pricing and service quality under this contract would be beneficial for future procurement decisions.
Analysis insight 3
Understanding the specific pharmacy services covered is key to assessing the overall value.