VA's $58.3M PCCC Contract with TriWest Healthcare Alliance Corp. Faces Scrutiny

Contract Overview

Contract Amount: $58,296,150 ($58.3M)

Contractor: Triwest Healthcare Alliance Corp

Awarding Agency: Department of Veterans Affairs

Start Date: 2018-04-01

End Date: 2019-09-28

Contract Duration: 545 days

Daily Burn Rate: $107.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE INCENTIVE

Sector: Healthcare

Official Description: IGF::CT::IGF PATIENT CENTERED COMMUNITY CARE (PCCC). ED TO CHOICE

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85053

State: Arizona Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $58.3 million to TRIWEST HEALTHCARE ALLIANCE CORP for work described as: IGF::CT::IGF PATIENT CENTERED COMMUNITY CARE (PCCC). ED TO CHOICE Key points: 1. The contract awarded to TriWest Healthcare Alliance Corp. for patient-centered community care is a significant expenditure. 2. Competition for this contract was full and open, suggesting a competitive bidding process. 3. Potential risks include the fixed-price incentive structure and the delivery order nature of the award. 4. The sector is healthcare services, specifically physician offices, with a benchmark of $107M.

Value Assessment

Rating: fair

The contract's value of $58.3M is within a reasonable range for large-scale healthcare services, but the fixed-price incentive structure warrants close monitoring for cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically promotes competitive pricing. However, the delivery order mechanism might allow for adjustments impacting the final price.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently, but the final cost will depend on performance and potential incentive payouts.

Public Impact

Veterans may experience improved access to community-based healthcare services. The contract's success hinges on TriWest's ability to deliver quality care and meet performance metrics. Transparency in contract performance and spending is crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Fixed-price incentive contract type can lead to cost overruns if not managed carefully.
Delivery order awards may lack the upfront price certainty of a fully defined contract.
The specific performance metrics and incentive triggers need thorough review.

Positive Signals

Awarded through full and open competition, indicating a robust market assessment.
Aims to improve patient-centered care for veterans.
The contract duration and value suggest a significant commitment to veteran healthcare.

Sector Analysis

This contract falls within the healthcare services sector, specifically related to physician offices. The benchmark for this sector is $107M, indicating this contract is moderately sized within its category.

Small Business Impact

There is no specific indication of small business participation in this award data. Further analysis would be needed to determine if small businesses were subcontracted.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The use of delivery orders and incentive contracts necessitates diligent monitoring of performance and costs to ensure accountability.

Related Government Programs

Offices of Physicians (except Mental Health Specialists)
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for cost overruns due to fixed-price incentive structure.
Lack of detailed performance metrics in the provided data.
Delivery order awards can sometimes lack upfront price certainty.
Need for ongoing monitoring of TriWest's performance and adherence to care standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $58.3 million to TRIWEST HEALTHCARE ALLIANCE CORP. IGF::CT::IGF PATIENT CENTERED COMMUNITY CARE (PCCC). ED TO CHOICE

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 $58.3 million.

What is the period of performance?

Start: 2018-04-01. End: 2019-09-28.

What specific performance metrics are tied to the incentive portion of this fixed-price incentive contract, and how do they align with the goal of patient-centered care?

The contract details should outline specific, measurable, achievable, relevant, and time-bound (SMART) metrics related to patient outcomes, access to care, patient satisfaction, and potentially cost-efficiency. These metrics are crucial for the incentive structure to effectively drive desired performance and ensure the 'patient-centered' aspect is realized, rather than just focusing on service delivery volume.

Given the delivery order nature, what mechanisms are in place to prevent scope creep and ensure the total cost remains within reasonable bounds, especially with the incentive component?

Delivery orders typically allow for flexibility, but robust oversight is essential. Mechanisms should include clear task orders, defined ceilings for each order, regular reviews of progress against objectives, and strict change control processes. The contracting officer must actively manage the cumulative cost and ensure each order directly contributes to the overall contract goals without unnecessary expansion.

How does the performance of TriWest Healthcare Alliance Corp. under this contract compare to industry benchmarks for similar community care services provided to veteran populations?

Performance comparison would involve analyzing key metrics such as patient wait times, patient satisfaction scores, readmission rates, and cost per patient episode against established benchmarks for similar VA community care contracts or comparable civilian healthcare networks. A favorable comparison would validate the contract's effectiveness and value for taxpayer dollars.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Physicians › Offices of Physicians (except Mental Health Specialists)

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Address: 16010 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: $58,296,150

Exercised Options: $58,296,150

Current Obligation: $58,296,150

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA79113D0054

IDV Type: IDC

Timeline