DoD's $573M TRICARE contract to Johns Hopkins Medical Services Corporation for medical support services

Contract Overview

Contract Amount: $573,315,942 ($573.3M)

Contractor: THE Johns Hopkins Medical Services Corporation

Awarding Agency: Department of Defense

Start Date: 2003-06-01

End Date: 2008-09-30

Contract Duration: 1,948 days

Daily Burn Rate: $294.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: 200608!607103!9700!H94002!TRICARE SUPPORT OFFICE !H9400203C0021 !A!N! !N! !P00012!20060105!20060531!069390037!069390037!155348113!N!HOPKINS JOHNS MEDICAL SERVICES!3100 WYMAN PARK DR !BALTIMORE !MD!21211!04000!510!24!BALTIMORE !BALTIMORE (CITY) !MARYLAND !+000071838606!N!N!000000000000!B537!MEDICAL & HEALTH STUDIES !S1 !SERVICES !000 !NOT DISCERNABLE !621491!E! !3!B!S!C! ! !99990909!B! ! !A! !D!N!J!1!001!N!5A!C!N!Z! ! !N!F!N! ! ! ! ! !A!A!000!A!A!N! ! ! ! ! ! !0001! !

Place of Performance

Location: BALTIMORE, BALTIMORE (CITY) County, MARYLAND, 21211

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $573.3 million to THE JOHNS HOPKINS MEDICAL SERVICES CORPORATION for work described as: 200608!607103!9700!H94002!TRICARE SUPPORT OFFICE !H9400203C0021 !A!N! !N! !P00012!20060105!20060531!069390037!069390037!155348113!N!HOPKINS JOHNS MEDICAL SERVICES!3100 WYMAN PARK DR !BALTIMORE !MD!21211!04000!510!24!BALTIMORE !BALT… Key points: 1. Contract awarded for a significant duration, suggesting a long-term need for these medical services. 2. The contract value is substantial, indicating a major investment in healthcare support for military personnel and families. 3. Awarded to a single entity, raising questions about the extent of competition and potential cost efficiencies. 4. The services provided are critical for the health and well-being of beneficiaries. 5. Geographic focus on Maryland, with services potentially impacting a significant population of military families in the region.

Value Assessment

Rating: fair

The contract value of over $573 million over its period of performance is substantial. Benchmarking this against similar large-scale medical support contracts is challenging without more specific service details. However, the duration and scale suggest a significant investment. The lack of competition information makes a direct value-for-money assessment difficult, but the price appears to be a firm fixed price, which can offer cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source procurement. This means that only one offeror was solicited and considered. While sole-source contracts can be justified for unique capabilities or urgent needs, they typically limit price discovery and may not result in the most competitive pricing for the government.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from competitive bidding, potentially leading to higher costs than if multiple vendors had competed.

Public Impact

Beneficiaries include military personnel, their families, and potentially other eligible individuals receiving TRICARE services. Services delivered encompass medical support, likely including healthcare services, administrative support for medical facilities, and potentially research or health studies. Geographic impact is centered in Maryland, serving the TRICARE beneficiaries in that region. Workforce implications include employment opportunities within Johns Hopkins Medical Services Corporation and its subcontractors in the healthcare and administrative sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award raises concerns about whether alternative, potentially more cost-effective solutions were overlooked.
Long contract duration without clear performance metrics makes ongoing value assessment difficult.

Positive Signals

Award to a well-established medical services provider suggests a high likelihood of reliable service delivery.
Firm fixed price contract provides cost certainty for the government.
Focus on medical support services directly addresses critical healthcare needs of the military community.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on medical support services for a government health program (TRICARE). The market for large-scale healthcare support services is significant, with numerous providers ranging from large hospital systems to specialized medical management companies. This contract represents a substantial portion of spending within this niche, serving a critical government function.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly detailed in the provided data. As a sole-source award, the opportunities for small businesses to directly participate as prime contractors are limited. Subcontracting opportunities would depend on the prime contractor's strategy and requirements.

Oversight & Accountability

Oversight for TRICARE contracts typically falls under the TRICARE Management Activity (TMA) and the Department of Defense. Specific oversight mechanisms for this contract would include contract performance monitoring, financial audits, and potentially reviews by the Inspector General. Transparency is generally maintained through contract award databases, though detailed performance reports may be less public.

Related Government Programs

TRICARE Prime
TRICARE Standard
Military Health System
DoD Healthcare Services
Medical Support Contracts

Risk Flags

Sole-source award limits competition.
Lack of detailed performance metrics in summary data.
Potential for higher costs due to non-competitive award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $573.3 million to THE JOHNS HOPKINS MEDICAL SERVICES CORPORATION. 200608!607103!9700!H94002!TRICARE SUPPORT OFFICE !H9400203C0021 !A!N! !N! !P00012!20060105!20060531!069390037!069390037!155348113!N!HOPKINS JOHNS MEDICAL SERVICES!3100 WYMAN PARK DR !BALTIMORE !MD!21211!04000!510!24!BALTIMORE !BALTIMORE (CITY) !MARYLAND !+000071838606!N!N!000000000000!B537!MEDICAL & HEALTH STUDIES !S1 !SERVICES !000 !NOT DISCERNABLE !621491!E! !3!B!S!C! ! !999

Who is the contractor on this award?

The obligated recipient is THE JOHNS HOPKINS MEDICAL SERVICES CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Tricare Management Activity).

What is the total obligated amount?

The obligated amount is $573.3 million.

What is the period of performance?

Start: 2003-06-01. End: 2008-09-30.

What specific medical services are included under this contract?

The provided data indicates the North American Industry Classification System (NAICS) code 621491, which corresponds to 'Medical Outpatient Clinics, Other Than Mental Health and Substance Abuse.' This suggests a broad range of medical services, potentially including primary care, specialty outpatient services, diagnostic services, and health management programs. However, the exact scope of services is not detailed in the abbreviated data. Further investigation into the contract statement of work would be necessary for a precise understanding of the services rendered, such as physician services, nursing care, laboratory testing, or administrative support for medical facilities.

How does the $573 million contract value compare to similar TRICARE support contracts?

Comparing the $573 million contract value requires context regarding the specific services rendered and the duration of the contract. TRICARE contracts can vary widely in scope and cost, from regional support contracts to specialized service procurements. Given this contract's duration of approximately 5 years (from 2003 to 2008), the annual value is roughly $114 million. This is a significant amount, but without knowing if it covers a large region, a specific medical specialty, or administrative functions, a direct comparison to other TRICARE contracts is difficult. However, it indicates a substantial investment in healthcare support for the military community.

What are the risks associated with a sole-source award for critical medical services?

A sole-source award for critical medical services carries several risks. Primarily, the lack of competition can lead to higher costs for the government and taxpayers, as there is no market pressure to drive down prices. It also reduces the incentive for the contractor to innovate or improve efficiency beyond what is contractually required. Furthermore, if the sole-source provider experiences performance issues or fails to deliver, the government has limited immediate alternatives, potentially disrupting essential services. This situation also raises concerns about whether the government adequately explored all potential sources or if the justification for a sole-source award was robust.

What is the track record of The Johns Hopkins Medical Services Corporation in handling large government contracts?

The Johns Hopkins Medical Services Corporation, as part of the broader Johns Hopkins Medicine system, has a well-established reputation in healthcare delivery and research. While specific details on their track record with large government contracts are not in the provided data snippet, Johns Hopkins institutions frequently engage in research grants and partnerships with federal agencies, including the Department of Defense and Health and Human Services. Their extensive experience in managing complex healthcare operations and research initiatives suggests a capacity to handle large-scale contracts. However, a thorough assessment would require reviewing their past performance on similar government contracts, including client satisfaction, adherence to timelines, and budget management.

How has spending on TRICARE support services evolved over time, and does this contract fit historical patterns?

Spending on TRICARE support services has generally increased over time, driven by factors such as expanding healthcare benefits, an aging military population, and rising healthcare costs. This contract, awarded in 2003 for services through 2008, represents a significant investment during a period of active military engagement. Historical patterns show the DoD consistently allocates substantial funds to healthcare for its beneficiaries. While the exact dollar amount of this specific contract is $573 million, it aligns with the overall trend of significant federal spending on healthcare support for the military community. Analyzing year-over-year spending trends for TRICARE and similar support services would provide a clearer picture of how this contract fits within broader budgetary allocations and program evolution.

Industry Classification

NAICS: Health Care and Social Assistance › Outpatient Care Centers › HMO Medical Centers

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Johns Hopkins Health System Corporation (UEI: 155348113)

Address: 3100 WYMAN PARK DR, BALTIMORE, MD, 90

Business Categories: Category Business, Hospital, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline