VA Awards $72M Pharmacy Services Contract to Palisade-Heritage JV LLC

Contract Overview

Contract Amount: $72,000 ($72.0K)

Contractor: Palisade-Heritage JV LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-06-01

End Date: 2027-05-31

Contract Duration: 364 days

Daily Burn Rate: $198/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: THIRD-PARTY 1ST FILL PHARMACY (RX) SERVICES

Place of Performance

Location: COPPELL, DALLAS County, TEXAS, 75019

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $72,000 to PALISADE-HERITAGE JV LLC for work described as: THIRD-PARTY 1ST FILL PHARMACY (RX) SERVICES Key points: 1. Contract awarded for Pharmacy (RX) Services, a critical healthcare component. 2. Competition method is 'COMPETED UNDER SAP', indicating a potentially limited but structured process. 3. Risk of price escalation is mitigated by a 'FIRM FIXED PRICE' contract type. 4. The sector is Healthcare, with significant government spending in this area.

Value Assessment

Rating: good

The contract's firm fixed price structure suggests a controlled cost environment. Benchmarking against similar pharmacy benefit management contracts would provide further insight into value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

Competed under SAP (Simplified Acquisition Procedures) suggests competition was sought within a specific threshold, potentially limiting the pool of bidders. This method aims for efficiency but may not always yield the lowest price.

Taxpayer Impact: The firm fixed price contract aims to provide cost certainty for taxpayers, preventing unexpected overruns.

Public Impact

Ensures continued access to essential prescription medications for veterans. Supports the Department of Veterans Affairs' mission to provide comprehensive healthcare. Potential for improved pharmacy service efficiency and cost-effectiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to SAP.
Potential for vendor lock-in if not managed proactively.

Positive Signals

Firm fixed price contract type.
Long-term contract duration provides stability.

Sector Analysis

This contract falls within the Healthcare sector, specifically Pharmacy Benefit Management. Government spending in healthcare is substantial, with PBM services being a key area for cost control and service delivery.

Small Business Impact

The contract was awarded to a joint venture, Palisade-Heritage JV LLC. Analysis is needed to determine the extent of small business participation within this joint venture.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. Standard contract management practices should ensure performance and adherence to terms.

Related Government Programs

Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for limited competition.
Reliance on a single joint venture for critical services.
Need for ongoing performance monitoring to ensure value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $72,000 to PALISADE-HERITAGE JV LLC. THIRD-PARTY 1ST FILL PHARMACY (RX) SERVICES

Who is the contractor on this award?

The obligated recipient is PALISADE-HERITAGE JV LLC.

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 $72,000.

What is the period of performance?

Start: 2026-06-01. End: 2027-05-31.

What is the expected impact of this contract on veteran pharmacy access and wait times?

This contract is expected to ensure uninterrupted access to prescription medications for veterans served by the VA. By securing a dedicated provider, the VA aims to maintain or improve service levels, potentially reducing wait times and ensuring timely fulfillment of prescriptions. The firm fixed price structure should also contribute to predictable service delivery.

How does the 'COMPETED UNDER SAP' process compare to full and open competition in terms of cost savings?

Competing under SAP typically involves simplified procedures and may limit the number of potential bidders compared to full and open competition. While SAP aims for efficiency in smaller procurements, it might not always achieve the same level of price competition or discover the absolute lowest market price as a broader solicitation. However, for this contract value, SAP can be an effective method.

What are the key performance indicators (KPIs) being used to measure the effectiveness of these pharmacy services?

Specific KPIs are not detailed in the provided data, but typical metrics for pharmacy services include prescription fulfillment rates, turnaround times, medication error rates, patient satisfaction scores, and cost per prescription. The VA would likely monitor these to ensure the contractor meets performance expectations and delivers value.

Industry Classification

NAICS: Finance and Insurance › Agencies, Brokerages, and Other Insurance Related Activities › Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 750 CANYON DR STE 120, COPPELL, TX, 75019

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $72,000

Exercised Options: $72,000

Current Obligation: $72,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C26022A0014

IDV Type: BPA

Timeline