VA's $1.15B Patient Centered Community Care Contract Awarded to TriWest Healthcare Alliance Corp

Contract Overview

Contract Amount: $1,153,416,135 ($1.2B)

Contractor: Triwest Healthcare Alliance Corp

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-10-01

End Date: 2020-12-31

Contract Duration: 91 days

Daily Burn Rate: $12.7M/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE INCENTIVE

Sector: Healthcare

Official Description: EXPRESS REPORT FOR SERVICES FOR THE PATIENT CENTERED COMMUNITY CARE (PC3) CONTRACT FOR THE OFFICE OF COMMUNITY CARE (OCC).

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85053

State: Arizona Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $1.15 billion to TRIWEST HEALTHCARE ALLIANCE CORP for work described as: EXPRESS REPORT FOR SERVICES FOR THE PATIENT CENTERED COMMUNITY CARE (PC3) CONTRACT FOR THE OFFICE OF COMMUNITY CARE (OCC). Key points: 1. The contract, valued at over $1.15 billion, supports patient-centered community care for veterans. 2. Awarded under full and open competition, it aims to leverage external healthcare providers. 3. Potential risks include ensuring consistent quality of care across a wide network. 4. The sector is healthcare services, specifically physician offices, serving a critical veteran population.

Value Assessment

Rating: good

The contract's fixed-price incentive structure suggests an effort to control costs while incentivizing performance. Benchmarking against similar large-scale healthcare service contracts is difficult without more granular data on specific services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a robust price discovery process. This method allows for multiple qualified vendors to bid, potentially leading to more competitive pricing.

Taxpayer Impact: The use of competition aims to ensure taxpayer funds are used efficiently for essential veteran healthcare services.

Public Impact

Ensures access to healthcare services for veterans in community settings. Supports TriWest Healthcare Alliance Corp in delivering care to a large veteran population. Potential for improved patient outcomes through timely access to specialized care. Impacts healthcare providers within the TriWest network across Arizona.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for inconsistent care quality across diverse providers.
Dependence on a single large awardee for a critical service.
Ensuring effective coordination between VA and community providers.

Positive Signals

Awarded through full and open competition.
Focus on patient-centered care delivery.
Incentive structure to drive performance.

Sector Analysis

This contract falls within the healthcare services sector, specifically the 'Offices of Physicians' NAICS code. Spending in this area is substantial, driven by the need for accessible medical care, particularly for veteran populations.

Small Business Impact

Analysis of small business participation is not directly available from the provided data. Large contracts like this can sometimes subcontract to smaller businesses, but the primary awardee is a large corporation.

Oversight & Accountability

Oversight is crucial to ensure the quality and timeliness of care delivered by TriWest. The Department of Veterans Affairs is responsible for monitoring contract performance and addressing any deficiencies.

Related Government Programs

Offices of Physicians (except Mental Health Specialists)
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Contract value exceeds $1 billion.
Single awardee for a critical service.
Potential for inconsistent quality across network providers.
Long-term reliance on a single entity.
Complexity of coordinating VA and community care.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $1.15 billion to TRIWEST HEALTHCARE ALLIANCE CORP. EXPRESS REPORT FOR SERVICES FOR THE PATIENT CENTERED COMMUNITY CARE (PC3) CONTRACT FOR THE OFFICE OF COMMUNITY CARE (OCC).

Who is the contractor on this award?

The obligated recipient is TRIWEST HEALTHCARE ALLIANCE CORP.

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 $1.15 billion.

What is the period of performance?

Start: 2020-10-01. End: 2020-12-31.

How does the per-unit cost of services under this contract compare to similar VA community care contracts?

Without specific service line data and unit cost breakdowns, a direct per-unit cost comparison is challenging. The contract's fixed-price incentive structure suggests an effort to manage costs, but the overall value of $1.15 billion reflects the scale of services. Benchmarking would require detailed analysis of the specific medical services rendered and their associated costs across different contracts and providers.

What are the primary risks associated with relying on TriWest Healthcare Alliance Corp for this large-scale community care contract?

Key risks include ensuring consistent quality of care across a potentially vast network of subcontracted providers, managing patient access and wait times effectively, and maintaining seamless coordination between the VA and community-based healthcare services. There's also a risk of vendor lock-in or performance issues arising from the contract's significant value and duration.

How effectively does this contract model ensure value for taxpayer money in delivering veteran healthcare?

The contract's value proposition hinges on its ability to provide timely and appropriate care to veterans in their communities, potentially reducing VA facility burdens. The full and open competition aims for cost-effectiveness, and the incentive structure encourages performance. However, ongoing oversight is critical to ensure that the quality of care justifies the significant expenditure and meets veteran needs efficiently.

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: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Address: 16010 N 28TH AVE, PHOENIX, AZ, 85053

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

Financial Breakdown

Contract Ceiling: $1,153,416,135

Exercised Options: $1,153,416,135

Current Obligation: $1,153,416,135

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA79113D0054

IDV Type: IDC

Timeline