FSAFEDS Health Spending Account Contract Awarded to HealthEquity for $22.5M

Contract Overview

Contract Amount: $22,486 ($22.5K)

Contractor: Healthequity, Inc.

Awarding Agency: Export-Import Bank of the United States

Start Date: 2022-01-01

End Date: 2025-12-31

Contract Duration: 1,460 days

Daily Burn Rate: $15/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FSAFEDS HEALTH SPENDING ACCOUNT

Place of Performance

Location: DRAPER, SALT LAKE County, UTAH, 84020

State: Utah Government Spending

Plain-Language Summary

Export-Import Bank of the United States obligated $22,485.98 to HEALTHEQUITY, INC. for work described as: FSAFEDS HEALTH SPENDING ACCOUNT Key points: 1. Contract value is $22.5 million over 5 years. 2. HealthEquity, Inc. is the sole awardee. 3. Pharmacy Benefit Management is the service category. 4. The contract was awarded under full and open competition. 5. The contract type is Firm Fixed Price.

Value Assessment

Rating: good

The contract value of $22.5 million over five years appears reasonable for pharmacy benefit management and third-party administration services. Benchmarking against similar contracts would provide a more precise assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors had the opportunity to bid.

Taxpayer Impact: The competitive award process is expected to ensure taxpayer funds are used efficiently for these essential health spending account services.

Public Impact

Ensures access to pharmacy benefits and administration for federal employees. Supports health and wellness by managing spending accounts effectively. Provides continuity of service for a critical employee benefit.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if future contracts are not competitively re-awarded.
Reliance on a single vendor for critical administrative functions.

Positive Signals

Awarded through full and open competition.
Firm Fixed Price contract provides cost certainty.
Long-term contract ensures service stability.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on third-party administration of insurance and pension funds, including pharmacy benefit management. Spending in this area is crucial for employee benefits.

Small Business Impact

The data indicates this contract was awarded to HealthEquity, Inc. and does not specify any set-asides or participation goals for small businesses. Further analysis would be needed to determine small business involvement.

Oversight & Accountability

The Export-Import Bank of the United States is the contracting agency. Oversight would involve monitoring contract performance, adherence to terms, and financial expenditures to ensure accountability.

Related Government Programs

Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds
Export-Import Bank of the United States Contracting
Export-Import Bank of the United States Programs

Risk Flags

Sole awardee may limit future competition.
Potential for price increases in subsequent contract periods.
Dependence on a single vendor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Export-Import Bank of the United States awarded $22,485.98 to HEALTHEQUITY, INC.. FSAFEDS HEALTH SPENDING ACCOUNT

Who is the contractor on this award?

The obligated recipient is HEALTHEQUITY, INC..

Which agency awarded this contract?

Awarding agency: Export-Import Bank of the United States (Export-Import Bank of the United States).

What is the total obligated amount?

The obligated amount is $22,485.98.

What is the period of performance?

Start: 2022-01-01. End: 2025-12-31.

What is the specific scope of 'Pharmacy Benefit Management and Other Third Party Administration' covered under this contract?

The contract likely encompasses a range of services including processing prescription drug claims, managing formularies, negotiating rebates with pharmaceutical manufacturers, and providing administrative support for health spending accounts. This ensures efficient and cost-effective management of prescription drug benefits for federal employees.

What are the key performance indicators (KPIs) used to measure the effectiveness of HealthEquity's services under this contract?

Key performance indicators would likely include metrics such as claim processing accuracy, turnaround times for reimbursements, participant satisfaction rates, cost savings achieved through formulary management and rebate negotiation, and compliance with all relevant federal regulations and data security standards.

How does the firm fixed price structure impact the government's ability to manage costs if unforeseen service demands arise?

A firm fixed price contract provides cost certainty for the government, as the price is set regardless of the contractor's actual costs. However, if unforeseen service demands arise that are outside the original scope, the government may need to issue modifications or new contracts, potentially leading to renegotiated prices or additional procurement efforts.

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: SOCIAL SERVICES › SOCIAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 15 W SCENIC POINTE DR STE 100, DRAPER, UT, 84020

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,486

Exercised Options: $22,486

Current Obligation: $22,486

Actual Outlays: $15,084

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 24361820D0002

IDV Type: GWAC

Timeline