DoD awards $99M contract for health insurance carriers, full and open competition

Contract Overview

Contract Amount: $99,060,983 ($99.1M)

Contractor: United Concordia Companies, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-09-29

End Date: 2009-01-31

Contract Duration: 124 days

Daily Burn Rate: $798.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIXED PRICE AWARD FEE

Sector: Healthcare

Official Description: OP-3, FY09 DELIVERY ORDER ISSUED SAF, NO FUNDS OBLIGATED.

Place of Performance

Location: HARRISBURG, DAUPHIN County, PENNSYLVANIA, 17110

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $99.1 million to UNITED CONCORDIA COMPANIES, INC. for work described as: OP-3, FY09 DELIVERY ORDER ISSUED SAF, NO FUNDS OBLIGATED. Key points: 1. Contract awarded to United Concordia Companies, Inc. for health insurance services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract value is substantial at $99,060,982.94. 4. This falls under the Direct Health and Medical Insurance Carriers sector.

Value Assessment

Rating: good

The award value of $99,060,982.94 appears reasonable for a large-scale health insurance contract. Benchmarking against similar large federal health insurance contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were allowed to bid. This method generally promotes price discovery and can lead to more competitive pricing.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it aims to secure the best value through market forces.

Public Impact

Provides essential health and medical insurance coverage for military personnel and their families. Supports the health and readiness of the armed forces through comprehensive insurance benefits. Impacts a significant number of beneficiaries within the Department of Defense.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Full and open competition utilized.
Awarded to a known entity in the health insurance sector.

Sector Analysis

This contract is within the healthcare sector, specifically focusing on health and medical insurance carriers. Federal spending in this area is substantial, supporting the health benefits of service members and their families.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The primary awardee is a large corporation, suggesting limited direct participation by small businesses in this specific contract.

Oversight & Accountability

The contract was awarded by the Department of Defense through the Defense Health Agency, indicating established oversight mechanisms for defense-related healthcare spending.

Related Government Programs

Direct Health and Medical Insurance Carriers
Department of Defense Contracting
Defense Health Agency Programs

Risk Flags

Lack of detailed performance metrics in the provided data.
Unclear relationship between 'BR' value and award amount.
Potential for cost overruns if award fee criteria are not well-defined.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $99.1 million to UNITED CONCORDIA COMPANIES, INC.. OP-3, FY09 DELIVERY ORDER ISSUED SAF, NO FUNDS OBLIGATED.

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 $99.1 million.

What is the period of performance?

Start: 2008-09-29. End: 2009-01-31.

What was the specific scope of services covered by this health insurance contract?

The contract falls under NAICS code 524114 (Direct Health and Medical Insurance Carriers). While the specific services aren't detailed, it likely encompasses medical, dental, and potentially pharmacy benefits for eligible Department of Defense personnel and their dependents, managed through a fixed-price award fee structure.

Were there any performance metrics or award fee criteria tied to this contract?

The contract type is 'FIXED PRICE AWARD FEE' (PT: 'FIXED PRICE AWARD FEE'). This suggests that a base fee was fixed, with potential additional award fees contingent upon meeting specific performance standards or achieving certain objectives outlined in the contract.

How does the awarded amount compare to the original estimated value or budget?

The provided data shows an award amount of $99,060,982.94. There is no explicit 'estimated value' or 'budget' provided in the data for direct comparison. However, the 'BR' field shows '798879', which might represent a bid or baseline value, but its exact meaning in relation to the award is unclear without further context.

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

Offers Received: 3

Pricing Type: FIXED PRICE AWARD FEE (M)

Evaluated Preference: NONE

Contractor Details

Parent Company: Highmark Inc (UEI: 067096644)

Address: 4401 DEER PATH ROAD, HARRISBURG, PA, 10

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $99,060,983

Exercised Options: $99,060,983

Current Obligation: $99,060,983

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: H9400205D0001

IDV Type: IDC

Timeline