VA awards $760M contract to TriWest Healthcare Alliance Corp for physician services in FY19

Contract Overview

Contract Amount: $759,561,970 ($759.6M)

Contractor: Triwest Healthcare Alliance Corp

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-06-30

End Date: 2019-06-30

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE INCENTIVE

Sector: Healthcare

Official Description: EXPRESS REPORT: FY19 3RD QUARTER REPORT

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85053

State: Arizona Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $759.6 million to TRIWEST HEALTHCARE ALLIANCE CORP for work described as: EXPRESS REPORT: FY19 3RD QUARTER REPORT Key points: 1. The contract value of $760M is significant, indicating substantial demand for physician services. 2. Competition details are not fully specified, but the award method suggests a competitive process. 3. Potential risks include service delivery challenges and ensuring quality of care across a large geographic area. 4. The sector is Healthcare, specifically physician services, a critical area for government operations.

Value Assessment

Rating: good

The contract value of $760M for physician services appears to be a substantial investment. Benchmarking against similar large-scale healthcare service contracts would be necessary for a precise pricing 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 aims to secure the best value for the government.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it encourages competitive pricing and potentially better service offerings.

Public Impact

Veterans will benefit from access to physician services, potentially improving healthcare outcomes. The contract supports healthcare providers and related jobs within the specified region. Government spending on healthcare services directly impacts the federal budget and resource allocation.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

Geographic scope of services
Quality assurance of physician services
Potential for cost overruns if not managed effectively

Positive Signals

Awarded under full and open competition
Addresses critical healthcare needs for veterans
Significant contract value indicates market confidence

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on physician services. Spending in this area is consistently high due to the essential nature of medical care.

Small Business Impact

Analysis of small business participation is not provided in the data. Further investigation would be needed to determine the extent of small business involvement in subcontracting.

Oversight & Accountability

Oversight will be crucial to ensure TriWest Healthcare Alliance Corp meets performance standards and delivers quality physician services as per the contract terms.

Related Government Programs

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

Risk Flags

Potential for service gaps if provider network is insufficient.
Ensuring consistent quality of care across diverse geographic locations.
Managing patient volume and demand effectively.
Contractor performance and adherence to service level agreements.
Long-term cost implications and budget sustainability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $759.6 million to TRIWEST HEALTHCARE ALLIANCE CORP. EXPRESS REPORT: FY19 3RD QUARTER REPORT

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 $759.6 million.

What is the period of performance?

Start: 2019-06-30. End: 2019-06-30.

What is the specific scope of physician services covered under this contract and how does it align with VA's needs?

The contract is for Offices of Physicians (except Mental Health Specialists), identified by NAICS code 621111. This likely encompasses a broad range of medical specialties required by the VA to serve its veteran population. The alignment with VA's needs would depend on the specific service requirements detailed in the contract's statement of work, ensuring it addresses critical care gaps and patient volume.

What are the key performance indicators (KPIs) and quality metrics used to evaluate TriWest's performance?

Key performance indicators and quality metrics are essential for monitoring the effectiveness of this contract. These would typically include patient wait times, patient satisfaction scores, adherence to clinical protocols, and successful treatment outcomes. The VA would establish these KPIs in the contract's performance work statement to ensure high-quality care delivery and accountability from TriWest.

How does the fixed-price incentive (FPI) contract structure incentivize cost control and performance for TriWest?

The Fixed Price Incentive (FPI) contract structure aims to share cost savings and cost overruns between the government and the contractor. It incentivizes TriWest to perform efficiently and control costs by offering a target profit and cost, with adjustments based on actual performance against these targets. This encourages cost-consciousness while maintaining a focus on achieving contract objectives.

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: $759,561,970

Exercised Options: $759,561,970

Current Obligation: $759,561,970

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA79113D0054

IDV Type: IDC

Timeline