DoD's TRICARE Pharmacy Services contract with Express Scripts Inc. awarded for over $676 million
Contract Overview
Contract Amount: $676,427,891 ($676.4M)
Contractor: Express Scripts Inc
Awarding Agency: Department of Defense
Start Date: 2016-04-14
End Date: 2017-04-30
Sector: Healthcare
Official Description: IGF::OT::IGF TRICARE PHARMACY SERVICES
Plain-Language Summary
Department of Defense obligated $676.4 million to EXPRESS SCRIPTS INC for work described as: IGF::OT::IGF TRICARE PHARMACY SERVICES Key points: 1. Significant contract value for essential pharmacy services. 2. Sole-source provider raises questions about competition. 3. Potential for cost savings or overspending needs scrutiny. 4. Ensuring efficient delivery of prescription drugs is critical.
Value Assessment
Rating: good
The contract value of over $676 million for TRICARE Pharmacy Services indicates a substantial investment in healthcare delivery. While the award amount is significant, the focus will be on the efficiency and effectiveness of the services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis to Express Scripts Inc. This approach limits competition, potentially impacting cost-effectiveness and innovation.
Taxpayer Impact: Taxpayers may not benefit from competitive pricing due to the sole-source nature of this award.
Public Impact
Ensures access to prescription medications for military personnel and families. Potential impact on out-of-pocket costs for beneficiaries. Service disruptions could affect patient care.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to higher costs.
- Ensuring service continuity and quality is paramount.
- Monitoring contract performance for potential inefficiencies.
Positive Signals
- Provides essential pharmacy services to a critical population.
- Established provider likely has experience in managing large-scale pharmacy benefits.
Sector Analysis
This contract falls within the healthcare sector, specifically focusing on pharmaceutical services for the Department of Defense's TRICARE program, which serves active duty military, retirees, and their families.
Small Business Impact
The contract was awarded to Express Scripts Inc., a large corporation, and there is no indication of small business set-asides. The sole-source nature further suggests it was not intended for small business participation.
Oversight & Accountability
Oversight will be crucial to ensure Express Scripts Inc. meets performance standards and provides cost-effective pharmacy services. The Defense Health Agency is responsible for monitoring this contract to guarantee beneficiary access and manage expenditures.
Related Government Programs
- TRICARE Pharmacy Services
- Express Scripts Inc. Contract
- DoD Healthcare Services
Risk Flags
- Sole-source award
- Large contract value
Tags
defense-spending, healthcare, pharmacy-services, tricare, express-scripts, dod, sole-source, contract-award
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $676.4 million to EXPRESS SCRIPTS INC. IGF::OT::IGF TRICARE PHARMACY SERVICES
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 $676.4 million.
What is the period of performance?
Start: 2016-04-14. End: 2017-04-30.
Analysis insight 1
The sole-source award warrants examination of the justification for not seeking competitive bids.
Analysis insight 2
Analysis of cost trends and patient satisfaction under this contract will be important.
Analysis insight 3
The contract's duration and renewal options should be reviewed for long-term value.