VA Awards $77.3M PCCC Contract to TriWest Healthcare Alliance for Physician Services in Arizona
Contract Overview
Contract Amount: $77,309,756 ($77.3M)
Contractor: Triwest Healthcare Alliance Corp
Awarding Agency: Department of Veterans Affairs
Start Date: 2019-04-17
End Date: 2024-09-30
Contract Duration: 1,993 days
Daily Burn Rate: $38.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIXED PRICE INCENTIVE
Sector: Healthcare
Official Description: IGF::CT::IGF PATIENT CENTERED COMMUNITY CARE (PCCC) FY 19 FUNDING
Place of Performance
Location: PHOENIX, MARICOPA County, ARIZONA, 85053
State: Arizona Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $77.3 million to TRIWEST HEALTHCARE ALLIANCE CORP for work described as: IGF::CT::IGF PATIENT CENTERED COMMUNITY CARE (PCCC) FY 19 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 government healthcare contracts. 3. The fixed-price incentive contract type aims to balance cost control with performance. 4. Spending in the healthcare sector, particularly for veteran services, remains a high priority.
Value Assessment
Rating: good
The $77.3 million award over five years appears reasonable for physician services, especially considering the fixed-price incentive structure which can reward efficiency. Benchmarking against similar VA contracts for community care programs would provide a more precise assessment.
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 by allowing all eligible vendors to bid.
Taxpayer Impact: The competitive award process is designed to ensure taxpayer funds are used efficiently for essential veteran healthcare services.
Public Impact
Ensures continued access to community-based physician services for veterans in Arizona. Supports the VA's mission to provide comprehensive healthcare to its beneficiaries. Potentially impacts the workload and revenue for local healthcare providers participating in the PCCC network.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Positive Signals
- Full and open competition utilized.
- Long-term contract provides stability for service delivery.
- Fixed-price incentive contract can drive efficiency.
Sector Analysis
This contract falls within the healthcare sector, specifically focusing on physician services. Healthcare spending, particularly for veteran care, is a substantial and growing area of federal expenditure, often benchmarked against national healthcare cost trends and VA-specific program costs.
Small Business Impact
While the primary awardee is TriWest Healthcare Alliance, a large entity, the execution of this contract likely involves numerous smaller physician practices and clinics within Arizona, providing opportunities for small businesses to participate as subcontractors or direct service providers.
Oversight & Accountability
The Department of Veterans Affairs is responsible for oversight. The fixed-price incentive contract structure includes performance metrics that should be monitored to ensure accountability and value for money.
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 if performance targets are not met efficiently.
- Reliance on a single large contractor for a critical service.
- Ensuring consistent quality of care across numerous providers.
- Complexity of managing incentive fee structures.
Tags
offices-of-physicians-except-mental-heal, department-of-veterans-affairs, az, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $77.3 million to TRIWEST HEALTHCARE ALLIANCE CORP. IGF::CT::IGF PATIENT CENTERED COMMUNITY CARE (PCCC) FY 19 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 $77.3 million.
What is the period of performance?
Start: 2019-04-17. End: 2024-09-30.
What is the projected cost per veteran served under this contract, and how does it compare to VA's internal care costs?
Calculating the precise cost per veteran requires data on the number of veterans served and the specific services utilized. However, the contract's fixed-price incentive nature suggests an aim to manage costs effectively. A comparison with VA's internal care costs would reveal the cost-effectiveness of outsourcing these community-based services and inform future contracting strategies.
What are the key performance indicators (KPIs) for this contract, and how are they being measured to ensure quality of care?
Key performance indicators likely include patient access times, patient satisfaction scores, adherence to clinical guidelines, and potentially specific health outcome measures. The VA's contract management team would be responsible for monitoring these KPIs through regular reporting, site visits, and potentially patient surveys to ensure the quality and effectiveness of the care provided by TriWest.
How does the pricing structure of this fixed-price incentive contract incentivize TriWest to manage costs while maintaining high-quality patient care?
The fixed-price incentive contract establishes a target cost and target profit. If TriWest completes the work below the target cost, both the contractor and the government share in the savings, up to a ceiling price. Conversely, if costs exceed the target, the contractor's profit is reduced. This structure incentivizes efficiency and cost control while performance standards ensure quality is not compromised.
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: $77,309,756
Exercised Options: $77,309,756
Current Obligation: $77,309,756
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: VA79113D0054
IDV Type: IDC
Timeline
Start Date: 2019-04-17
Current End Date: 2024-09-30
Potential End Date: 2025-03-31 00:00:00
Last Modified: 2023-10-12
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