VA awards $400M+ for physician services to TriWest Healthcare Alliance Corp in FY19 Q1

Contract Overview

Contract Amount: $400,192,182 ($400.2M)

Contractor: Triwest Healthcare Alliance Corp

Awarding Agency: Department of Veterans Affairs

Start Date: 2018-10-01

End Date: 2018-12-31

Contract Duration: 91 days

Daily Burn Rate: $4.4M/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE INCENTIVE

Sector: Healthcare

Official Description: EXPRESS REPORT: FY19 QTR 1

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85053

State: Arizona Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $400.2 million to TRIWEST HEALTHCARE ALLIANCE CORP for work described as: EXPRESS REPORT: FY19 QTR 1 Key points: 1. Significant contract value awarded to a single vendor. 2. Competition method was full and open, suggesting potential for competitive pricing. 3. Fixed Price Incentive contract type introduces performance-based incentives. 4. Spending is within the Offices of Physicians sector.

Value Assessment

Rating: good

The contract value of over $400M for a 91-day period is substantial. Benchmarking against similar physician service contracts would be necessary to fully assess value, but the full and open competition suggests a reasonable price discovery process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically allows for the widest range of potential bidders and can lead to more competitive pricing. The use of a delivery order under a larger contract structure is noted.

Taxpayer Impact: The full and open competition method is generally favorable for taxpayers as it aims to secure the best value through market forces.

Public Impact

Direct impact on healthcare services for veterans. Potential for improved access to physician services. Vendor performance will be critical to service delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is short (91 days), raising questions about long-term strategy.
Lack of specific small business participation noted.

Positive Signals

Awarded under full and open competition.
Fixed Price Incentive contract type can drive performance.

Sector Analysis

This contract falls within the healthcare sector, specifically for physician services. Spending in this area is consistently high across government agencies, driven by demand for medical expertise and patient care.

Small Business Impact

The provided data does not indicate specific small business participation in this contract award. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight of this contract. The use of a delivery order suggests it may be part of a larger contracting vehicle requiring its own oversight mechanisms.

Related Government Programs

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

Risk Flags

Significant contract value.
Short contract duration.
Lack of explicit small business participation.
Potential for cost overruns with FPI contract type if not managed closely.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $400.2 million to TRIWEST HEALTHCARE ALLIANCE CORP. EXPRESS REPORT: FY19 QTR 1

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 $400.2 million.

What is the period of performance?

Start: 2018-10-01. End: 2018-12-31.

What is the projected cost per physician per day for this contract?

Without specific details on the number of physicians or the exact breakdown of services, calculating a precise cost per physician per day is not possible from the provided data. The total award of $400M over 91 days suggests a significant daily expenditure, but this covers all aspects of the service delivery, not just physician salaries.

What are the key performance indicators (KPIs) tied to the incentive portion of the Fixed Price Incentive contract?

The Fixed Price Incentive (FPI) contract type implies that both the government and the contractor share in any cost savings or overruns relative to target costs and prices. Specific KPIs would be detailed in the contract's Statement of Work and would likely relate to service availability, quality of care, patient satisfaction, and potentially cost-efficiency metrics.

How does the performance of TriWest Healthcare Alliance Corp on this contract compare to previous contracts or industry benchmarks?

Assessing TriWest's performance requires access to historical contract data and performance reviews, which are not included here. A comparative analysis against industry benchmarks for similar healthcare service contracts would also be necessary to determine if this award represents effective use of taxpayer funds and meets expected service levels.

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: $400,192,182

Exercised Options: $400,192,182

Current Obligation: $400,192,182

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA79113D0054

IDV Type: IDC

Timeline