DHS Awards $9.3M Pharmacy Benefit Management Contract to Ardent Group, LLC
Contract Overview
Contract Amount: $9,296,000 ($9.3M)
Contractor: Ardent Group, LLC
Awarding Agency: Department of Homeland Security
Start Date: 2025-10-25
End Date: 2026-04-24
Contract Duration: 181 days
Daily Burn Rate: $51.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: THE PURPOSE OF THIS CONTRACT IS TO PROVIDE ICE HEALTH SERVICE CORPS WITH A PHARMACY BENEFIT MANAGER TO MANAGE FORMULARY, CLAIMS PROCESSING, PHARMACY NETWORK ADMINISTRATION, AND BENEFIT PLAN DESIGN.
Place of Performance
Location: BRECKENRIDGE, SUMMIT County, COLORADO, 80424
State: Colorado Government Spending
Plain-Language Summary
Department of Homeland Security obligated $9.3 million to ARDENT GROUP, LLC for work described as: THE PURPOSE OF THIS CONTRACT IS TO PROVIDE ICE HEALTH SERVICE CORPS WITH A PHARMACY BENEFIT MANAGER TO MANAGE FORMULARY, CLAIMS PROCESSING, PHARMACY NETWORK ADMINISTRATION, AND BENEFIT PLAN DESIGN. Key points: 1. The contract aims to establish a Pharmacy Benefit Manager (PBM) for ICE Health Service Corps, covering formulary, claims, network, and benefit design. 2. Ardent Group, LLC secured this definitive contract, valued at $9.3 million. 3. The contract duration is 181 days, ending April 24, 2026. 4. This is a firm-fixed-price contract, indicating a defined scope and cost. 5. The contract was not competed, raising questions about potential cost savings from competition.
Value Assessment
Rating: questionable
The contract value of $9.3 million for 181 days of PBM services needs further benchmarking against similar government or private sector contracts to assess its reasonableness. Without competitive bids, it's difficult to determine if this price reflects market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, which limits price discovery and potentially leads to higher costs for taxpayers. A sole-source award bypasses the opportunity to solicit bids from multiple vendors, which typically drives down prices and encourages innovation.
Taxpayer Impact: The lack of competition may result in the government paying more than necessary for these essential pharmacy benefit management services.
Public Impact
Ensures continuity of pharmacy services for ICE Health Service Corps personnel. Potential for increased healthcare costs due to non-competitive award. Impacts the efficiency and cost-effectiveness of healthcare delivery within ICE. Highlights a gap in competitive procurement for specialized health services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Short contract duration may indicate a stop-gap measure or future competition
- No small business participation noted
Positive Signals
- Addresses a critical need for pharmacy benefit management
- Firm-fixed-price contract provides cost certainty
Sector Analysis
The healthcare sector, particularly within government agencies, often relies on third-party administrators for complex functions like pharmacy benefit management. Benchmarking PBM costs is crucial, as these services can represent a significant portion of healthcare expenditures.
Small Business Impact
There is no indication of small business participation in this contract award. Further analysis would be needed to determine if opportunities were missed to engage small businesses in this procurement.
Oversight & Accountability
The non-competitive nature of this award warrants scrutiny to ensure the government received fair value. Oversight should focus on the justification for the sole-source award and the process for future procurements.
Related Government Programs
- Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds
- Department of Homeland Security Contracting
- U.S. Immigration and Customs Enforcement Programs
Risk Flags
- Lack of competition
- Potential for overpayment
- Limited transparency in pricing
- No small business set-aside identified
Tags
pharmacy-benefit-management-and-other-th, department-of-homeland-security, co, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $9.3 million to ARDENT GROUP, LLC. THE PURPOSE OF THIS CONTRACT IS TO PROVIDE ICE HEALTH SERVICE CORPS WITH A PHARMACY BENEFIT MANAGER TO MANAGE FORMULARY, CLAIMS PROCESSING, PHARMACY NETWORK ADMINISTRATION, AND BENEFIT PLAN DESIGN.
Who is the contractor on this award?
The obligated recipient is ARDENT GROUP, LLC.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).
What is the total obligated amount?
The obligated amount is $9.3 million.
What is the period of performance?
Start: 2025-10-25. End: 2026-04-24.
What is the justification for awarding this contract on a sole-source basis instead of through full and open competition?
The justification for a sole-source award typically involves specific circumstances such as only one responsible source being available, or an urgent need that precludes full competition. Without detailed documentation, it's difficult to ascertain the precise reason. However, such awards often raise concerns about whether the government explored all viable options to ensure the best value and price.
How does the pricing of this contract compare to industry benchmarks for similar Pharmacy Benefit Management services, especially given the lack of competition?
Benchmarking is challenging without competitive data. However, PBM services are a significant cost driver in healthcare. A non-competed contract may not reflect the most cost-effective pricing available in the market. A thorough review comparing the contract's unit costs and overall value against publicly available data or similar government contracts would be necessary to assess its fairness.
What is the expected impact of this contract on the overall effectiveness and efficiency of ICE's healthcare services?
A well-managed Pharmacy Benefit Manager can significantly improve the efficiency and cost-effectiveness of healthcare services by optimizing drug formularies, negotiating rebates, and streamlining claims processing. The effectiveness of this specific contract will depend on Ardent Group's performance and its ability to deliver these core PBM functions within the defined scope and timeframe.
Industry Classification
NAICS: Finance and Insurance › Agencies, Brokerages, and Other Insurance Related Activities › Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 54 SHEPPARD CIR, BRECKENRIDGE, CO, 80424
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,318,968
Exercised Options: $21,318,968
Current Obligation: $9,296,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-10-25
Current End Date: 2026-04-24
Potential End Date: 2026-04-24 00:00:00
Last Modified: 2025-12-04
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