VA awards $843M contract to TriWest Healthcare Alliance for health insurance services in May 2025

Contract Overview

Contract Amount: $843,331,825 ($843.3M)

Contractor: Triwest Healthcare Alliance Corp

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-05-01

End Date: 2025-05-30

Contract Duration: 29 days

Daily Burn Rate: $29.1M/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EXPRESS REPORT: MAY 2025

Place of Performance

Location: FREDERICKSBURG, SPOTSYLVANIA County, VIRGINIA, 22408

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $843.3 million to TRIWEST HEALTHCARE ALLIANCE CORP for work described as: EXPRESS REPORT: MAY 2025 Key points: 1. The contract value is substantial at over $843 million. 2. Competition method is 'FULL AND OPEN COMPETITION', indicating broad market engagement. 3. Risk appears moderate given the fixed-price contract type and established carrier. 4. The sector is healthcare, specifically direct health and medical insurance carriers.

Value Assessment

Rating: good

The contract's value of $843M for a 29-day period suggests a high per-diem cost. Benchmarking against similar large-scale health insurance contracts would be necessary to fully assess pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically drives competitive pricing. The specific price discovery mechanisms used in this award are not detailed but the method itself is favorable for price discovery.

Taxpayer Impact: Taxpayer funds are being used for essential healthcare services, with the competitive award process aiming to ensure value for money.

Public Impact

Veterans will receive direct health and medical insurance coverage. The contract supports the Department of Veterans Affairs' mission to provide healthcare. The large contract value indicates significant resource allocation to this service.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High contract value for a short duration may warrant further scrutiny on cost-effectiveness.
Lack of specific performance metrics or outcomes in the provided data.

Positive Signals

Awarded under full and open competition.
Firm fixed price contract type limits cost overrun risk for the government.

Sector Analysis

This contract falls within the healthcare sector, specifically focusing on health insurance carriers. Spending in this area is critical for government healthcare provision, and benchmarks often relate to per-member-per-month costs or capitated rates.

Small Business Impact

The provided data does not indicate any specific set-asides for small businesses. 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 typically involve monitoring service delivery, quality of care, and adherence to contract terms to ensure accountability.

Related Government Programs

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

Risk Flags

High total contract value.
Short contract duration (29 days) may indicate a temporary or bridge solution.
Potential for high per-unit costs given the total value and duration.
Lack of detailed performance metrics in the provided summary.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $843.3 million to TRIWEST HEALTHCARE ALLIANCE CORP. EXPRESS REPORT: MAY 2025

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 $843.3 million.

What is the period of performance?

Start: 2025-05-01. End: 2025-05-30.

What is the cost per beneficiary or per service provided under this contract?

The provided data does not detail the cost per beneficiary or per service. The total award is $843,331,825.13 for a 29-day period. To assess value, this total would need to be divided by the number of beneficiaries served or the volume of services rendered during that period.

What are the key performance indicators (KPIs) for this contract and how is TriWest performing against them?

Key performance indicators are not specified in the provided data. Effective oversight would require defined KPIs related to access to care, quality of services, patient satisfaction, and claims processing times. Performance against these would be crucial for assessing effectiveness and value.

How does the pricing compare to similar contracts awarded by other federal agencies or private insurers?

Without specific service details and beneficiary demographics, a direct price comparison is difficult. However, the 'full and open competition' award method suggests a competitive pricing environment. Benchmarking against similar contracts for health insurance carriers would be essential for a definitive assessment.

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: $843,331,825

Exercised Options: $843,331,825

Current Obligation: $843,331,825

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10G19D0038

IDV Type: IDC

Timeline