CFPB Spends $7.9M on Dental Insurance Services with United Concordia, Awarded via Full and Open Competition
Contract Overview
Contract Amount: $7,948,520 ($7.9M)
Contractor: United Concordia Companies, Inc.
Awarding Agency: Consumer Financial Protection Bureau
Start Date: 2020-10-27
End Date: 2026-01-10
Contract Duration: 1,901 days
Daily Burn Rate: $4.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Healthcare
Official Description: CFPB DENTAL INSURANCE SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20552
Plain-Language Summary
Consumer Financial Protection Bureau obligated $7.9 million to UNITED CONCORDIA COMPANIES, INC. for work described as: CFPB DENTAL INSURANCE SERVICES Key points: 1. Contract Value: $7.95 million over approximately 1901 days. 2. Competition: Awarded through full and open competition, indicating a competitive bidding process. 3. Risk: Fixed Price with Economic Price Adjustment contract type introduces potential for cost fluctuations. 4. Sector: Healthcare - specifically direct health and medical insurance carriers.
Value Assessment
Rating: good
The contract value of $7.95 million for dental insurance services appears reasonable given the duration and scope. Benchmarking against similar government contracts for health insurance would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it aims to secure the best possible pricing through market forces.
Public Impact
Ensures access to dental care for consumers served by the CFPB. Supports the health and well-being of CFPB employees or beneficiaries. Represents a significant expenditure in the healthcare insurance sector for a federal agency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment clause may lead to cost increases.
- Contract duration is substantial (over 5 years).
Positive Signals
- Awarded through full and open competition.
- Clear contract award and duration.
Sector Analysis
This contract falls within the Healthcare sector, specifically for direct health and medical insurance carriers. Government spending in this area is substantial, covering a wide range of services for federal employees and beneficiaries.
Small Business Impact
The data indicates that small businesses were not directly involved in this specific contract award, as it was awarded to United Concordia Companies, Inc. Further analysis would be needed to determine if subcontracting opportunities exist.
Oversight & Accountability
The contract was awarded by the Consumer Financial Protection Bureau (CFPB). Oversight would involve monitoring contract performance, adherence to terms, and financial expenditures to ensure value and compliance.
Related Government Programs
- Direct Health and Medical Insurance Carriers
- Consumer Financial Protection Bureau Contracting
- Consumer Financial Protection Bureau Programs
Risk Flags
- Potential for cost escalation due to economic price adjustment.
- Long contract duration may limit flexibility for future service changes.
- Lack of small business participation directly in the prime contract.
- Specific performance metrics and value assessment details are not provided.
Tags
direct-health-and-medical-insurance-carr, consumer-financial-protection-bureau, dc, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Consumer Financial Protection Bureau awarded $7.9 million to UNITED CONCORDIA COMPANIES, INC.. CFPB DENTAL INSURANCE SERVICES
Who is the contractor on this award?
The obligated recipient is UNITED CONCORDIA COMPANIES, INC..
Which agency awarded this contract?
Awarding agency: Consumer Financial Protection Bureau (Consumer Financial Protection Bureau).
What is the total obligated amount?
The obligated amount is $7.9 million.
What is the period of performance?
Start: 2020-10-27. End: 2026-01-10.
What is the specific scope of dental services covered under this contract?
The provided data does not detail the specific scope of dental services. A comprehensive review of the contract's statement of work would be necessary to understand the covered procedures, limitations, and any associated co-pays or deductibles for beneficiaries.
How does the economic price adjustment mechanism work, and what are the potential risks to the government?
The economic price adjustment allows for changes in contract price based on fluctuations in economic factors, such as inflation or material costs. The risk to the government is that these adjustments could lead to higher-than-anticipated costs over the contract's life, potentially exceeding initial budget projections.
What metrics are used to assess the effectiveness and value of the dental insurance services provided?
Effectiveness and value are typically assessed through metrics such as beneficiary satisfaction, utilization rates, cost per enrollee, and comparison of premiums to market benchmarks. The CFPB would likely have specific performance standards and reporting requirements within the contract.
Industry Classification
NAICS: Finance and Insurance › Insurance Carriers › Direct Health and Medical Insurance Carriers
Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 9531CB20R0031
Offers Received: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Address: 4401 DEER PATH RD, HARRISBURG, PA, 17110
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $7,948,520
Exercised Options: $7,948,520
Current Obligation: $7,948,520
Actual Outlays: $6,499,257
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2020-10-27
Current End Date: 2026-01-10
Potential End Date: 2026-01-10 00:00:00
Last Modified: 2026-03-04
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