VA Awards $2.22 Billion to TriWest Healthcare for Region 4 Medical Services Through 2027

Contract Overview

Contract Amount: $2,224,839,173 ($2.2B)

Contractor: Triwest Healthcare Alliance Corp

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-08-25

End Date: 2027-03-31

Contract Duration: 1,314 days

Daily Burn Rate: $1.7M/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EXPRESS REPORT: REGION 4 QUARTER 3 FY23

Place of Performance

Location: FREDERICKSBURG, SPOTSYLVANIA County, VIRGINIA, 22408

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.22 billion to TRIWEST HEALTHCARE ALLIANCE CORP for work described as: EXPRESS REPORT: REGION 4 QUARTER 3 FY23 Key points: 1. Significant contract value highlights the scale of healthcare services procured. 2. Full and open competition suggests a potentially competitive bidding process. 3. Long contract duration (over 3 years) implies a need for sustained services. 4. The sector is critical for veteran healthcare delivery.

Value Assessment

Rating: good

The contract value of $2.22 billion over approximately 3.5 years is substantial. Benchmarking against similar large-scale healthcare service contracts would be necessary to fully assess pricing, but the full and open competition suggests an effort to achieve competitive rates.

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 had the opportunity to bid. This method is generally expected to drive competitive pricing and ensure the government receives the best value.

Taxpayer Impact: The significant award amount means taxpayer funds are being utilized for essential veteran healthcare services, with the competitive nature aiming to maximize the value derived from this expenditure.

Public Impact

Ensures continued access to healthcare services for veterans in Region 4. Supports the Department of Veterans Affairs' mission to provide comprehensive care. Impacts numerous veterans who rely on these medical insurance carriers.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Positive Signals

Full and open competition utilized
Clear contract end date
Significant value awarded

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on direct health and medical insurance carriers. The VA's spending in this area is substantial and crucial for fulfilling its commitment to veteran healthcare.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

The contract is managed by the Department of Veterans Affairs. Oversight would focus on performance metrics, service delivery quality, and adherence to contract terms to ensure accountability and effective use of funds.

Related Government Programs

Direct Health and Medical Insurance Carriers
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for vendor lock-in due to long contract duration.
Need for robust oversight to ensure quality of care and cost control.
Limited visibility into specific service inclusions and exclusions.
No explicit mention of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.22 billion to TRIWEST HEALTHCARE ALLIANCE CORP. EXPRESS REPORT: REGION 4 QUARTER 3 FY23

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 $2.22 billion.

What is the period of performance?

Start: 2023-08-25. End: 2027-03-31.

What specific healthcare services are covered under this contract, and how do they align with veteran needs in Region 4?

The contract is for Direct Health and Medical Insurance Carriers, suggesting it covers a broad range of medical services and insurance provisions for veterans. A detailed breakdown of services would clarify how effectively they meet the specific health requirements and demands of the veteran population within Region 4, ensuring comprehensive care is provided.

What were the key performance indicators (KPIs) used during the full and open competition, and how did TriWest Healthcare Alliance Corp demonstrate its ability to meet them?

While not detailed here, KPIs likely included network adequacy, claims processing times, patient satisfaction scores, and adherence to VA healthcare standards. TriWest's proposal would have needed to demonstrate a strong track record and robust operational capacity to meet or exceed these critical performance benchmarks effectively.

How will the VA measure the long-term effectiveness and value of this contract beyond the initial award, especially given its significant duration?

The VA will likely employ ongoing performance reviews, beneficiary feedback mechanisms, and cost-effectiveness analyses throughout the contract's life. Measuring long-term effectiveness involves tracking veteran health outcomes, satisfaction levels, and the overall efficiency of service delivery compared to alternative models or previous contracts.

Industry Classification

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

Product/Service Code: SOCIAL SERVICES › SOCIAL 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

Address: 15810 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: $2,224,839,173

Exercised Options: $2,224,839,173

Current Obligation: $2,224,839,173

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10G19D0038

IDV Type: IDC

Timeline