VA awards $45M contract for 3rd Party Pharmacy Services to Palisade-Heritage JV LLC

Contract Overview

Contract Amount: $45,000 ($45.0K)

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: $124/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 $45,000 to PALISADE-HERITAGE JV LLC for work described as: THIRD-PARTY 1ST FILL PHARMACY (RX) SERVICES Key points: 1. Contract value of $45 million over one year. 2. Awarded to Palisade-Heritage JV LLC. 3. Managed by the Department of Veterans Affairs. 4. Service category: Pharmacy Benefit Management. 5. Contract type: Firm Fixed Price.

Value Assessment

Rating: good

The contract value of $45 million for a one-year period for pharmacy services appears reasonable given the scope. Benchmarking against similar large-scale pharmacy benefit management contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Small Acquisition Procedures), suggesting a limited competition approach. While SAP can expedite procurement, it may not always yield the most competitive pricing compared to full and open competition.

Taxpayer Impact: The firm fixed price contract aims to control costs, but the limited competition might impact the ultimate savings for taxpayers.

Public Impact

Ensures access to prescription medications for veterans. Supports the VA's healthcare mission. Potential impact on pharmaceutical costs and veteran satisfaction.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to higher costs.
Vendor performance risk.
Potential for scope creep.

Positive Signals

Firm fixed price contract provides cost certainty.
Experienced vendor potentially ensures service continuity.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on pharmacy benefit management. Spending in this area is substantial across government agencies, driven by healthcare needs and drug costs.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and the awardee is a joint venture, suggesting a focus on capability rather than small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. Contract performance monitoring and regular reviews will be crucial to ensure service delivery and cost control.

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 increased costs due to limited competition.
Reliance on a single joint venture for critical pharmacy services.
Risk of service disruption if the vendor underperforms.
Complexity of managing third-party pharmacy benefits.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $45,000 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 $45,000.

What is the period of performance?

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

What is the historical cost performance of Palisade-Heritage JV LLC on similar contracts?

Analyzing the historical cost performance of Palisade-Heritage JV LLC on comparable contracts is essential to gauge their efficiency and pricing strategies. This data would help determine if their current bid reflects competitive rates or potential overpricing based on past execution and profit margins.

What are the key performance indicators (KPIs) for this contract and how will they be measured?

Key performance indicators are crucial for measuring the effectiveness of the third-party pharmacy services. These might include metrics like prescription fulfillment rates, turnaround times, drug cost savings achieved, and member satisfaction. Clear measurement protocols ensure accountability and allow the VA to assess contractor performance against contract requirements.

How does the VA ensure the security and privacy of veteran prescription data under this contract?

The VA must implement stringent security protocols and contractual clauses to ensure the protection of sensitive veteran prescription data. This includes adherence to HIPAA regulations, regular security audits of the contractor's systems, and clear procedures for data breach notification and mitigation to maintain veteran privacy.

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: $45,000

Exercised Options: $45,000

Current Obligation: $45,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C26022A0014

IDV Type: BPA

Timeline