VA awards $118M PCCC contract to TriWest Healthcare Alliance for physician services in Arizona

Contract Overview

Contract Amount: $118,124,025 ($118.1M)

Contractor: Triwest Healthcare Alliance Corp

Awarding Agency: Department of Veterans Affairs

Start Date: 2018-10-01

End Date: 2019-09-30

Contract Duration: 364 days

Daily Burn Rate: $324.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE INCENTIVE

Sector: Healthcare

Official Description: IGF::CT::IGF PATIENT CENTERED COMMUNITY CARE (PCCC).FY19 FUNDING

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85053

State: Arizona Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $118.1 million to TRIWEST HEALTHCARE ALLIANCE CORP for work described as: IGF::CT::IGF PATIENT CENTERED COMMUNITY CARE (PCCC).FY19 FUNDING Key points: 1. The contract focuses on physician services, a critical component of healthcare delivery. 2. TriWest Healthcare Alliance is a significant player in managing VA healthcare networks. 3. The fixed-price incentive contract type aims to control costs while ensuring quality. 4. Spending in the Offices of Physicians sector is substantial and subject to oversight.

Value Assessment

Rating: good

The contract value of $118M for one year of physician services appears reasonable given the scope. Benchmarking against similar large-scale healthcare delivery contracts managed by the VA would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing for the government.

Taxpayer Impact: Full and open competition is expected to yield fair pricing, maximizing taxpayer value for essential physician services.

Public Impact

Veterans in Arizona will receive enhanced access to community-based physician care. The contract supports the VA's initiative to leverage external healthcare providers for improved service delivery. This award signifies continued investment in the PCCC program to meet veteran healthcare needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is one year, potentially requiring frequent re-competition.
Fixed-price incentive contracts can lead to cost overruns if not managed carefully.

Positive Signals

Awarded under full and open competition.
Focuses on critical physician services for veterans.
Supports a key VA healthcare initiative.

Sector Analysis

This contract falls within the healthcare sector, specifically physician services. Spending in this area is consistently high due to the essential nature of medical care. Benchmarks for similar physician service contracts can vary widely based on geographic location and service scope.

Small Business Impact

The data does not indicate any specific provisions or awards made to small businesses under this contract. Further analysis would be needed to determine if small business participation was a consideration or requirement.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Robust oversight is crucial to ensure the quality of care, adherence to contract terms, and effective use of taxpayer funds.

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 with FPI contract type.
Reliance on a single large contractor for a significant service area.
Need for robust ongoing performance monitoring.
Contract duration may necessitate future competitive procurements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $118.1 million to TRIWEST HEALTHCARE ALLIANCE CORP. IGF::CT::IGF PATIENT CENTERED COMMUNITY CARE (PCCC).FY19 FUNDING

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 $118.1 million.

What is the period of performance?

Start: 2018-10-01. End: 2019-09-30.

What is the projected cost per veteran served by this contract?

Calculating the exact cost per veteran requires knowing the number of veterans expected to utilize the PCCC services under this contract. Without that specific metric, a precise per-veteran cost cannot be determined. However, the total contract value of $118M for physician services in Arizona suggests a significant investment in ensuring adequate healthcare access for a substantial veteran population within the state.

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

Key performance indicators for this contract likely revolve around access to care, quality of medical services provided, patient satisfaction, and adherence to VA healthcare standards. The Department of Veterans Affairs would have specific monitoring mechanisms in place, potentially including regular performance reviews, data reporting from TriWest, and patient feedback surveys, to ensure these KPIs are met.

How does the fixed-price incentive structure impact the potential for cost savings or overruns?

The fixed-price incentive (FPI) structure establishes a target cost and target profit. If the final cost is below the target, both the contractor and the government share in the savings. Conversely, if the cost exceeds the target, savings are reduced, and at a certain point, the contractor assumes more of the cost overrun. This incentivizes efficiency but carries risk if costs escalate significantly.

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: $118,124,025

Exercised Options: $118,124,025

Current Obligation: $118,124,025

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA79113D0054

IDV Type: IDC

Timeline