VA awards $796M delivery order to TriWest Healthcare for June 2025 services

Contract Overview

Contract Amount: $795,723,889 ($795.7M)

Contractor: Triwest Healthcare Alliance Corp

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-06-01

End Date: 2025-06-30

Sector: Healthcare

Official Description: JUNE EXPRESS REPORT 2025

Plain-Language Summary

Department of Veterans Affairs obligated $795.7 million to TRIWEST HEALTHCARE ALLIANCE CORP for work described as: JUNE EXPRESS REPORT 2025 Key points: 1. Significant contract value of $795.7M for a single month's services. 2. TriWest Healthcare Alliance Corp is the sole awardee, raising questions about competition. 3. Potential risk associated with a large, single-award delivery order for healthcare services. 4. Healthcare sector spending is substantial and critical for veteran well-being.

Value Assessment

Rating: questionable

The $795.7M value for a single month's delivery order is exceptionally high. Without comparable contracts or detailed breakdowns, assessing its value against similar healthcare service procurements is difficult. This large sum warrants scrutiny for efficiency and necessity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This appears to be a sole-source award, indicated by the lack of competition details. Sole-source awards can limit price discovery and potentially lead to higher costs for taxpayers if not rigorously justified and monitored.

Taxpayer Impact: The substantial value of this delivery order means a significant portion of taxpayer funds is allocated. The lack of competition raises concerns about whether these funds are being used most efficiently.

Public Impact

Veterans will continue to receive healthcare services under this contract. The large contract value may impact the availability of funds for other VA initiatives. Potential for scrutiny regarding the justification for a sole-source award of this magnitude.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • High contract value for a single month
  • Lack of detailed justification for sole-source

Positive Signals

  • Ensures continuity of healthcare services for veterans

Sector Analysis

This award falls within the Healthcare sector, specifically for healthcare services provided to veterans. Spending in this sector is consistently high due to the critical nature of care. Benchmarks for similar large-scale veteran healthcare contracts would be useful for comparison.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this delivery order. Large sole-source contracts often bypass opportunities for small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. Given the sole-source nature and high value, robust oversight is crucial to ensure fair pricing, quality of service, and adherence to contract terms.

Related Government Programs

  • Department of Veterans Affairs Contracting
  • Department of Veterans Affairs Programs

Risk Flags

  • Sole-source award
  • High value for a single month
  • Lack of competitive bidding
  • Potential for cost overruns
  • Limited transparency on justification

Tags

department-of-veterans-affairs, delivery-order, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $795.7 million to TRIWEST HEALTHCARE ALLIANCE CORP. JUNE EXPRESS REPORT 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 $795.7 million.

What is the period of performance?

Start: 2025-06-01. End: 2025-06-30.

What is the specific justification for awarding this substantial delivery order on a sole-source basis, and how does it ensure value for money?

The justification for a sole-source award of this magnitude is critical. Typically, sole-source awards are reserved for situations where only one responsible source can provide the required supplies or services. For this contract, the VA must demonstrate that TriWest is uniquely qualified or that an emergency situation necessitates this approach. Ensuring value for money requires rigorous negotiation, performance monitoring, and comparison to potential alternative solutions, even if not formally competed.

What are the potential risks to service quality and cost-effectiveness associated with a sole-source award of this size for healthcare services?

Sole-source awards of this scale carry inherent risks. Without competitive pressure, there's a risk of inflated pricing and reduced incentive for the contractor to innovate or optimize service delivery. For healthcare, this could translate to higher per-patient costs or potential compromises in the breadth or quality of services offered if not meticulously managed and overseen by the contracting agency.

How will the VA ensure accountability and measure the effectiveness of the services provided under this $796 million delivery order?

Accountability and effectiveness measurement are paramount. The VA must establish clear performance metrics and key performance indicators (KPIs) tied to veteran health outcomes and satisfaction. Regular performance reviews, audits, and feedback mechanisms are essential. Strong contract management, including diligent tracking of service delivery against requirements and prompt resolution of any issues, will be key to ensuring the funds are used effectively.

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