VA awards $43M for 2-month extension of Community Care Network, funding Option Year 2

Contract Overview

Contract Amount: $43,005,783 ($43.0M)

Contractor: Optum Public Sector Solutions, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-10-01

End Date: 2021-09-30

Contract Duration: 364 days

Daily Burn Rate: $118.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: COMMUNITY CARE NETWORK (CCN) THE PURPOSE OF THIS TASK ORDER (TO) IS TO FUND OPTION YEAR (OY) 2 FOR A POP OF 2 MONTHS.

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $43.0 million to OPTUM PUBLIC SECTOR SOLUTIONS, INC. for work described as: COMMUNITY CARE NETWORK (CCN) THE PURPOSE OF THIS TASK ORDER (TO) IS TO FUND OPTION YEAR (OY) 2 FOR A POP OF 2 MONTHS. Key points: 1. Contract provides a short-term extension for essential healthcare services, ensuring continuity of care. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract type helps manage cost certainty for the government. 4. The duration of this specific task order is notably short, indicating a bridge or specific funding need. 5. The North American Industry Classification System (NAICS) code 524114 points to health insurance carriers, aligning with the service type.

Value Assessment

Rating: good

This task order for $43 million covers a 2-month period, which is a high cost for such a short duration. However, it represents Option Year 2, implying it's an extension of an existing service. Without knowing the scope and deliverables of the full Option Year 1 or the services provided in these two months, a direct value-for-money assessment is challenging. Benchmarking against similar short-term extensions for large-scale healthcare networks would be necessary for a more precise evaluation.

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 environment, which typically leads to better price discovery and potentially more favorable terms for the government. The number of bidders is not specified, but the open competition is a positive indicator for market responsiveness.

Taxpayer Impact: Taxpayers benefit from the competitive process, which is designed to ensure that the government receives the best possible value for its investment by fostering a competitive marketplace.

Public Impact

Veterans will continue to receive healthcare services through the Community Care Network. The contract ensures the ongoing operation of a critical healthcare delivery system. Services are likely delivered across various geographic locations where the CCN operates. The contract supports the healthcare workforce involved in delivering these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The short 2-month duration of this task order raises questions about long-term planning and potential inefficiencies if it's a recurring need for short extensions.
The significant dollar amount for a 2-month period warrants scrutiny to ensure cost-effectiveness and alignment with service delivery.

Positive Signals

Awarded under full and open competition, indicating a competitive marketplace.
The firm fixed-price contract type provides cost certainty.
Ensures continuity of care for beneficiaries, a critical public service.

Sector Analysis

The Community Care Network (CCN) operates within the broader healthcare services sector, specifically focusing on the delivery of medical services to veterans through non-VA facilities. This sector is characterized by significant government spending, complex regulatory environments, and a mix of large providers and specialized carriers. The NAICS code 524114, Direct Health and Medical Insurance Carriers, suggests the contractor's role may involve managing or facilitating these insurance-like aspects of care delivery. Spending in this area is substantial, driven by the government's commitment to veteran healthcare.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. It was awarded under full and open competition. Therefore, the direct impact on small business set-asides is likely minimal unless the prime contractor, Optum Public Sector Solutions, Inc., engages small businesses as subcontractors. Further analysis of subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

The Department of Veterans Affairs (VA) is responsible for overseeing this contract. As a task order under a larger contract vehicle, oversight would typically involve program managers monitoring performance, adherence to terms, and delivery of services. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse, with the VA Office of Inspector General being the relevant body.

Related Government Programs

Department of Veterans Affairs Healthcare Services
Community Health Programs
Veteran Care Coordination

Risk Flags

Short-term extension raises questions about long-term contract strategy.
High cost for a 2-month period requires justification.
Lack of detail on Option Year 1 performance and cost.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $43.0 million to OPTUM PUBLIC SECTOR SOLUTIONS, INC.. COMMUNITY CARE NETWORK (CCN) THE PURPOSE OF THIS TASK ORDER (TO) IS TO FUND OPTION YEAR (OY) 2 FOR A POP OF 2 MONTHS.

Who is the contractor on this award?

The obligated recipient is OPTUM PUBLIC SECTOR SOLUTIONS, INC..

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 $43.0 million.

What is the period of performance?

Start: 2020-10-01. End: 2021-09-30.

What was the total value and duration of the preceding Option Year 1 for this Community Care Network contract?

The provided data focuses solely on a 2-month extension for Option Year 2, with a value of $43,008,578.34. Information regarding the total value and duration of Option Year 1 is not included in this specific data snippet. To fully assess the contract's lifecycle and spending trajectory, details on Option Year 1 would be crucial. This would allow for a comparison of costs, performance periods, and potential trends in contract value over time, providing a more comprehensive understanding of the VA's investment in the Community Care Network.

How does the per-month cost of this 2-month extension compare to the average monthly cost of Option Year 1?

The current task order represents a 2-month period with a cost of approximately $43 million, equating to roughly $21.5 million per month. Without the specific cost and duration details for Option Year 1, a direct comparison of monthly costs is not possible. If Option Year 1 was significantly longer or shorter, or had a different cost structure, this 2-month extension's monthly rate might be an anomaly or indicative of a specific surge in demand or service need. A thorough analysis would require the full financial data for Option Year 1 to establish a baseline for comparison and identify any cost escalations or efficiencies.

What specific services are being funded by this 2-month extension, and are they critical to maintaining veteran care continuity?

This task order funds Option Year 2 for a period of 2 months for the Community Care Network (CCN). The CCN's primary purpose is to facilitate healthcare services for veterans through non-VA providers, ensuring access to care when VA facilities are unable to meet demand. Therefore, these 2 months of funding are critical for maintaining the continuity of these essential healthcare services for veterans who rely on the CCN. The specific services would encompass the range of medical treatments and support provided by the network's participating providers, ensuring veterans do not experience gaps in their care during this period.

What was the competitive landscape like for this contract award? How many bids were received?

The contract was awarded under 'FULL AND OPEN COMPETITION,' which signifies that the solicitation was made available to all responsible prospective contractors. While this indicates a potentially robust bidding environment, the specific number of bids received is not provided in the data. A higher number of bids generally suggests greater competition, which can lead to better pricing and terms for the government. Conversely, a low number of bids, even under full and open competition, might indicate market limitations or specific barriers to entry. Further investigation into the solicitation details would be needed to ascertain the exact number of proposals submitted.

Are there any performance concerns or positive performance indicators associated with Optum Public Sector Solutions, Inc. on this or similar VA contracts?

The provided data snippet does not contain specific performance metrics or historical performance reviews for Optum Public Sector Solutions, Inc. on this particular Community Care Network task order or other VA contracts. To assess their track record, one would need to consult performance evaluation reports (e.g., Contractor Performance Assessment Reporting System - CPARS), past performance questionnaires, or other relevant documentation. Without this information, it is difficult to determine if there have been any significant performance concerns or notable successes that would inform the risk assessment of this contract.

What is the historical spending trend for the Community Care Network program, and how does this $43M extension fit into that pattern?

The provided data only details a 2-month extension for Option Year 2, valued at $43,008,578.34. It does not offer historical spending data for the Community Care Network (CCN) program as a whole or for previous option years. To understand the historical spending trend, one would need to aggregate data across multiple years and contract actions related to the CCN. This would reveal whether spending has been increasing, decreasing, or remaining stable, and whether this $43 million for two months represents a typical expenditure level for such extensions or a deviation from the norm. Such analysis is crucial for budget forecasting and identifying potential shifts in program costs.

Industry Classification

NAICS: Finance and Insurance › Insurance Carriers › Direct Health and Medical Insurance Carriers

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Unitedhealth Group Incorporated

Address: 800 KING FARM BLVD STE 500, ROCKVILLE, MD, 20850

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $43,754,384

Exercised Options: $43,754,384

Current Obligation: $43,005,783

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C79119D0005

IDV Type: IDC

Timeline