VA awards $744.8M contract to TriWest Healthcare Alliance Corp for health insurance services in Q3 2024

Contract Overview

Contract Amount: $744,762,072 ($744.8M)

Contractor: Triwest Healthcare Alliance Corp

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-11-01

End Date: 2024-11-30

Contract Duration: 29 days

Daily Burn Rate: $25.7M/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EXPRESS REPORT: NOV. 2024 Q3

Place of Performance

Location: FREDERICKSBURG, SPOTSYLVANIA County, VIRGINIA, 22408

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $744.8 million to TRIWEST HEALTHCARE ALLIANCE CORP for work described as: EXPRESS REPORT: NOV. 2024 Q3 Key points: 1. Significant contract value of $744.8 million awarded. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is for direct health and medical insurance carriers. 4. Potential risks include service delivery and cost overruns given the large scale.

Value Assessment

Rating: good

The contract value of $744.8 million for a 29-day period is substantial. Benchmarking against similar large-scale health insurance contracts would be necessary to fully assess pricing, but the firm fixed-price structure provides some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition indicates that multiple vendors were likely able to bid, promoting price discovery and potentially leading to a more favorable price for the government. The award was a delivery order under a larger contract.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a fair market price for the health insurance services provided.

Public Impact

Veterans will receive health and medical insurance coverage through this contract. The large contract value suggests a significant number of beneficiaries will be served. The duration of the delivery order (29 days) implies this is part of a larger, ongoing program.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is very short (29 days) for such a large value, raising questions about the overall program structure.
Lack of specific service details makes it hard to assess value for money.
No indication of small business participation.

Positive Signals

Full and open competition utilized.
Firm fixed-price contract type offers cost predictability.
Awarded by the Department of Veterans Affairs, indicating a focus on veteran services.

Sector Analysis

The healthcare sector, particularly health insurance carriers, sees substantial government spending. This contract falls within the Direct Health and Medical Insurance Carriers industry code (NAICS 524114). Benchmarks for similar large-scale insurance contracts are typically in the hundreds of millions annually.

Small Business Impact

The provided data does not indicate any specific set-aside for small businesses, nor does it mention small business participation in this particular delivery order. Further investigation would be needed to determine if small businesses were involved in the bidding or subcontracting.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Given the significant value, robust oversight mechanisms should be in place to ensure service delivery, cost control, and compliance with contract terms.

Related Government Programs

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

Risk Flags

High contract value for a very short duration.
Lack of detail on the parent contract.
No information on small business participation.
Potential for service gaps or quality issues with rapid deployment.
Need for detailed performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $744.8 million to TRIWEST HEALTHCARE ALLIANCE CORP. EXPRESS REPORT: NOV. 2024 Q3

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 $744.8 million.

What is the period of performance?

Start: 2024-11-01. End: 2024-11-30.

What is the total value and duration of the parent contract from which this delivery order was issued?

The provided data only details a specific delivery order valued at $744.8 million with a duration of 29 days. Understanding the scope and timeline of the overarching contract is crucial for a comprehensive assessment of the total spending and long-term value. This information is necessary to determine if this delivery order represents a significant portion of a larger program or a standalone, short-term requirement.

How does the per-beneficiary cost compare to industry benchmarks for similar health insurance services?

Without knowing the number of beneficiaries covered by this $744.8 million delivery order, a per-beneficiary cost cannot be calculated. Comparing this to industry benchmarks would require data on the expected patient population and the scope of services provided. This analysis is essential to determine if the pricing is competitive and offers good value for the taxpayer.

What specific performance metrics and quality assurance measures are in place to ensure effective service delivery by TriWest Healthcare Alliance Corp?

The data does not specify the performance metrics or quality assurance measures tied to this contract. Effective oversight requires clearly defined standards for service quality, access to care, and claims processing. Understanding these measures is vital to assess the contractor's ability to meet the needs of veterans and ensure the successful execution of the contract's objectives.

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: $744,762,072

Exercised Options: $744,762,072

Current Obligation: $744,762,072

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10G19D0038

IDV Type: IDC

Timeline