VA awards $696M contract to TriWest Healthcare Alliance Corp for direct health and medical insurance carriers

Contract Overview

Contract Amount: $696,018,880 ($696.0M)

Contractor: Triwest Healthcare Alliance Corp

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-12-01

End Date: 2023-12-31

Contract Duration: 30 days

Daily Burn Rate: $23.2M/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EXPRESS REPORT: DECEMBER EXPRESS REPORT Q1

Place of Performance

Location: FREDERICKSBURG, SPOTSYLVANIA County, VIRGINIA, 22408

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $696.0 million to TRIWEST HEALTHCARE ALLIANCE CORP for work described as: EXPRESS REPORT: DECEMBER EXPRESS REPORT Q1 Key points: 1. The contract value of $696 million is substantial, indicating significant program scope. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract is a delivery order under a larger award, implying ongoing program management. 4. The sector is healthcare, a critical area for government spending and public well-being.

Value Assessment

Rating: good

The contract value of $696 million for a 30-day period is high. Benchmarking against similar large-scale healthcare contracts would be necessary to fully assess value, but the full and open competition suggests a potentially competitive price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically leads to better price discovery and potentially lower costs for the government. The use of a delivery order suggests this is part of a broader contracting vehicle.

Taxpayer Impact: The significant award amount indicates a substantial taxpayer investment in healthcare services for veterans.

Public Impact

Ensures continued access to healthcare services for veterans. Supports the operational capacity of the Department of Veterans Affairs. Impacts the healthcare provider network within the service area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High contract value for a short duration.
Potential for scope creep in subsequent delivery orders.

Positive Signals

Full and open competition utilized.
Clear contract type (firm fixed price).

Sector Analysis

This contract falls within the healthcare sector, specifically focusing on direct health and medical insurance carriers. Government spending in this area is consistently high due to the demand for services, particularly for veteran populations.

Small Business Impact

The provided data does not indicate any specific set-aside for small businesses. Further analysis would be needed to determine the extent of small business participation in this contract.

Oversight & Accountability

The Department of Veterans Affairs is the contracting and awarding agency, responsible for oversight. The use of delivery orders under a larger award necessitates careful monitoring of performance and expenditures.

Related Government Programs

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

Risk Flags

High dollar value
Short contract duration (30 days)
Delivery order under a larger award

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $696.0 million to TRIWEST HEALTHCARE ALLIANCE CORP. EXPRESS REPORT: DECEMBER EXPRESS REPORT Q1

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 $696.0 million.

What is the period of performance?

Start: 2023-12-01. End: 2023-12-31.

What is the historical performance of TriWest Healthcare Alliance Corp on similar VA contracts?

Historical performance data is crucial for assessing the reliability and effectiveness of TriWest Healthcare Alliance Corp. Reviewing past contract execution, adherence to timelines, quality of services, and any past performance issues or commendations would provide valuable insight into their capabilities and potential risks associated with this new award.

How does the pricing structure for this delivery order compare to industry benchmarks for similar healthcare services?

A detailed pricing analysis against industry benchmarks is essential to determine if the $696 million award represents fair and reasonable pricing. This would involve comparing unit costs, overhead rates, and profit margins to those of comparable contracts awarded to other entities for similar services, considering the specific scope and duration.

What are the key performance indicators (KPIs) and service level agreements (SLAs) for this contract, and how will they be monitored?

Understanding the KPIs and SLAs is vital for evaluating the effectiveness of the contract. The VA must have robust mechanisms in place to monitor TriWest's performance against these metrics, ensuring that veterans receive timely and quality healthcare services as stipulated in the contract. Regular performance reviews and reporting are critical.

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: $696,018,880

Exercised Options: $696,018,880

Current Obligation: $696,018,880

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10G19D0038

IDV Type: IDC

Timeline