DOE-RL Seeks Third Party Administrator for Hanford Workers' Compensation Program for $3.06M
Contract Overview
Contract Amount: $3,059,335 ($3.1M)
Contractor: Penser North America, Inc.
Awarding Agency: Department of Energy
Start Date: 2014-10-01
End Date: 2019-09-30
Contract Duration: 1,825 days
Daily Burn Rate: $1.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::CL::IGF THE UNITED STATED DEPARTMENT OF ENERGY , RICHLAND OPERATIONS OFFICE (DOE-RL) HAS A NEED FOR THIRD PARTY ADMINISTRATOR (TPA) FOR THE WORKERS COMPENSATION PROGRAM (WCP) AT THE DEPARTMENT OF ENERGY HANFORD SITE, LOCATED IN RICHLAND WASHINGTON, TO ENSURE COMPLIANCE WITH THE REVISED CODE OF WASHINGTON (RCW) TITLE 51 WASHINGTON STATE CODE (WAC) 296, DEPARTMENT OF LABOR AND INDUSTRIES , WASHINGTON STATE DEPARTMENT OF LABOR AND INDUSTRIES (WSDL&I) SELF INSURANCE SECTION CLAIMS ADMINISTRATION POLICY MANUAL, AND THE WSDL&I WORKERS COMPENSATION MANUAL A GUIDE TO CLAIMS ADJUDICATION IN WASHINGTON STATE, AS REVISED DURING CONTRACT PERFORMANCE.
Place of Performance
Location: RICHLAND, BENTON County, WASHINGTON, 99352
Plain-Language Summary
Department of Energy obligated $3.1 million to PENSER NORTH AMERICA, INC. for work described as: IGF::CL::IGF THE UNITED STATED DEPARTMENT OF ENERGY , RICHLAND OPERATIONS OFFICE (DOE-RL) HAS A NEED FOR THIRD PARTY ADMINISTRATOR (TPA) FOR THE WORKERS COMPENSATION PROGRAM (WCP) AT THE DEPARTMENT OF ENERGY HANFORD SITE, LOCATED IN RICHLAND WASHINGTON, TO ENSURE COMPLIANCE WIT… Key points: 1. The Department of Energy's Richland Operations Office requires a Third Party Administrator (TPA) for its Workers' Compensation Program at the Hanford Site. 2. The contract aims to ensure compliance with Washington State's Revised Code and Department of Labor and Industries policies. 3. The estimated value is $3.06 million over a 5-year period. 4. The service falls under Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds.
Value Assessment
Rating: good
The contract value of $3.06 million over five years suggests a reasonable annual cost for administering a workers' compensation program. Benchmarking against similar government contracts for TPA services would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process was used. This method generally promotes price discovery and fair market value.
Taxpayer Impact: The use of full and open competition is expected to result in a fair price, maximizing taxpayer value for the essential administrative services.
Public Impact
Ensures continued compliance with Washington State workers' compensation laws for DOE employees at Hanford. Provides essential administrative services for claims processing and management. Supports the health and safety of the workforce by managing compensation claims effectively. Maintains operational continuity for the Hanford Site's workers' compensation program.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for increased costs if claims volume or complexity exceeds projections.
- Reliance on a single TPA could lead to vendor lock-in if not managed carefully.
Positive Signals
- Clear compliance requirements ensure adherence to state regulations.
- Firm Fixed Price contract provides cost certainty for the government.
- Long-term contract (5 years) allows for stable service delivery.
Sector Analysis
This contract falls within the administrative and support services sector, specifically focusing on insurance and pension fund administration. Government spending in this area is often driven by regulatory compliance and operational efficiency needs.
Small Business Impact
The provided data does not indicate whether small businesses were involved in this procurement, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract is managed by the Department of Energy's Richland Operations Office. Oversight would involve monitoring the TPA's performance against contract requirements, ensuring compliance with state regulations, and managing payments.
Related Government Programs
- Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Compliance with evolving state regulations
- Potential for unforeseen claims volume or complexity
- Vendor performance and service quality
- Accuracy and timeliness of claims processing
Tags
pharmacy-benefit-management-and-other-th, department-of-energy, wa, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $3.1 million to PENSER NORTH AMERICA, INC.. IGF::CL::IGF THE UNITED STATED DEPARTMENT OF ENERGY , RICHLAND OPERATIONS OFFICE (DOE-RL) HAS A NEED FOR THIRD PARTY ADMINISTRATOR (TPA) FOR THE WORKERS COMPENSATION PROGRAM (WCP) AT THE DEPARTMENT OF ENERGY HANFORD SITE, LOCATED IN RICHLAND WASHINGTON, TO ENSURE COMPLIANCE WITH THE REVISED CODE OF WASHINGTON (RCW) TITLE 51 WASHINGTON STATE CODE (WAC) 296, DEPARTMENT OF LABOR AND INDUSTRIES , WASHINGTON STATE DEPARTMENT OF LABOR AND INDUSTRIES (WSDL&I) SELF INSURANCE SECTION CLAIMS ADMINISTRA
Who is the contractor on this award?
The obligated recipient is PENSER NORTH AMERICA, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $3.1 million.
What is the period of performance?
Start: 2014-10-01. End: 2019-09-30.
What is the expected caseload and complexity of claims this TPA will manage?
The data does not specify the expected caseload or complexity of workers' compensation claims. This information is crucial for a thorough value assessment, as it directly impacts the TPA's workload and the appropriateness of the contract's fixed price. Understanding historical claim data and projected trends would inform whether the $3.06 million is adequate or excessive.
What are the key performance indicators (KPIs) for the TPA, and how is performance measured?
The provided data does not detail the specific Key Performance Indicators (KPIs) or the performance measurement methods for the Third Party Administrator. Effective oversight requires clearly defined KPIs related to claims processing times, accuracy, customer satisfaction, and compliance adherence. Without this, assessing the TPA's effectiveness and ensuring taxpayer value is challenging.
Are there any provisions for contract modifications or adjustments based on changes in Washington State's workers' compensation laws?
The contract requires compliance with revised state codes and manuals 'as revised during contract performance.' This implies a mechanism for adapting to regulatory changes. However, the specifics of how such changes would impact cost or scope are not detailed, which could present a risk if significant legislative updates occur.
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) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: DE-SOL-0006930
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 700 SLEATER KINNEY RD SE, LACEY, WA, 98503
Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $3,325,592
Exercised Options: $3,325,592
Current Obligation: $3,059,335
Actual Outlays: $57,996
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-10-01
Current End Date: 2019-09-30
Potential End Date: 2019-09-30 00:00:00
Last Modified: 2026-01-26
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