DoD's $83.6M Tricare Program Management Contract Awarded to Axiom Resource Management

Contract Overview

Contract Amount: $83,626,597 ($83.6M)

Contractor: Axiom Resource Management, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-04-01

End Date: 2023-03-06

Contract Duration: 1,800 days

Daily Burn Rate: $46.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PROGRAM MANAGEMENT SUPPORT SERVICES TO TRICARE HEALTH PLAN (THP), CLINICAL SERVICES, PHARMACY, AND ALL SUBORDINATE CHIEFS, MANAGERS, AND STAFF. SERVICES SUPPORT THE FOLLOWING AREAS AND FUNCTIONS: MANAGEMENT AND ADMINISTRATION OF THP PROGRAMS; MANAGEMENT OF THE MILITARY HEALTH SYSTEM HEALTH PLAN AND ASSOCIATED MANAGED HEALTH CARE PROGRAMS; PROGRAM AND ACQUISITION MANAGEMENT OF TRICARE PURCHASED HEALTH CARE SERVICES; MANAGEMENT AND ADMINISTRATION OF PROGRAMS AND ACTIVITIES; OPERATION OF ELEMENTS OF HEALTH CARE OPERATIONS DIRECTORATE (J-3), THP AND THE FRONT OFFICE; AND OVERALL ACCOMPLISHMENT OF THE MISSIONS, FUNCTIONS, AND TASKS OF THE THP ENTERPRISE AND ITS ORGANIZATIONAL ENTITIES.

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $83.6 million to AXIOM RESOURCE MANAGEMENT, INC. for work described as: PROGRAM MANAGEMENT SUPPORT SERVICES TO TRICARE HEALTH PLAN (THP), CLINICAL SERVICES, PHARMACY, AND ALL SUBORDINATE CHIEFS, MANAGERS, AND STAFF. SERVICES SUPPORT THE FOLLOWING AREAS AND FUNCTIONS: MANAGEMENT AND ADMINISTRATION OF THP PROGRAMS; MANAGEMENT OF THE MILITARY HEALTH SYS… Key points: 1. Contract supports critical Tricare Health Plan operations, including clinical services and pharmacy. 2. Axiom Resource Management, Inc. secured the award under full and open competition. 3. The contract value of $83.6M over approximately 5 years presents a significant investment. 4. Services encompass program management, acquisition, and administration within the Military Health System.

Value Assessment

Rating: good

The contract value of $83.6M over 5 years suggests a substantial investment in program management support. Benchmarking against similar large-scale health program management contracts would provide further insight into its pricing competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, indicating a robust process for soliciting bids and ensuring fair market pricing. This method generally leads to more competitive pricing outcomes.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair value for the services rendered, minimizing the risk of overpayment.

Public Impact

Ensures continuity of essential healthcare services for military personnel and their families. Supports the efficient administration of the Tricare health plan, impacting millions of beneficiaries. Contributes to the effective management of healthcare programs within the Department of Defense. Facilitates the acquisition of crucial healthcare services, maintaining readiness and well-being.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for scope creep in complex program management.
  • Reliance on a single contractor for critical health plan functions.
  • Ensuring consistent quality of services across diverse program areas.

Positive Signals

  • Awarded through full and open competition.
  • Supports a vital national defense healthcare program.
  • Long-term contract provides stability for service delivery.

Sector Analysis

This contract falls within the administrative management and general management consulting services sector, specifically supporting healthcare operations. Spending in this area is crucial for the efficient functioning of large government health programs like Tricare.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.

Oversight & Accountability

The Department of Defense, through the Defense Health Agency, is responsible for overseeing this contract. Robust oversight mechanisms are essential to ensure performance, cost control, and adherence to program objectives.

Related Government Programs

  • Administrative Management and General Management Consulting Services
  • Department of Defense Contracting
  • Defense Health Agency Programs

Risk Flags

  • Potential for contractor lock-in.
  • Complexity of managing diverse healthcare services.
  • Ensuring data security and patient privacy.
  • Dependence on contractor for critical functions.

Tags

administrative-management-and-general-ma, department-of-defense, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $83.6 million to AXIOM RESOURCE MANAGEMENT, INC.. PROGRAM MANAGEMENT SUPPORT SERVICES TO TRICARE HEALTH PLAN (THP), CLINICAL SERVICES, PHARMACY, AND ALL SUBORDINATE CHIEFS, MANAGERS, AND STAFF. SERVICES SUPPORT THE FOLLOWING AREAS AND FUNCTIONS: MANAGEMENT AND ADMINISTRATION OF THP PROGRAMS; MANAGEMENT OF THE MILITARY HEALTH SYSTEM HEALTH PLAN AND ASSOCIATED MANAGED HEALTH CARE PROGRAMS; PROGRAM AND ACQUISITION MANAGEMENT OF TRICARE PURCHASED HEALTH CARE SERVICES; MANAGEMENT AND ADMINISTRATION OF PROGRAMS AND ACTIVITIES; OPERATION OF ELEMENTS O

Who is the contractor on this award?

The obligated recipient is AXIOM RESOURCE MANAGEMENT, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $83.6 million.

What is the period of performance?

Start: 2018-04-01. End: 2023-03-06.

What specific performance metrics are used to evaluate the contractor's success in managing Tricare programs?

Performance metrics likely include adherence to program timelines, budget management, quality of clinical and pharmacy support, stakeholder satisfaction (e.g., beneficiaries, military leadership), and successful execution of acquisition strategies. The contract's statement of work would detail these specific KPIs, with regular reviews and reporting ensuring accountability and value for money.

What are the primary risks associated with outsourcing complex program management functions for a large health plan like Tricare?

Key risks include potential loss of institutional knowledge within the government, contractor dependency, challenges in ensuring data security and privacy for sensitive health information, and the possibility of cost overruns if contract scope is not tightly managed. Effective government oversight and clear contract terms are crucial to mitigate these risks.

How does this contract contribute to the overall effectiveness and efficiency of the Military Health System?

This contract is vital for the effective and efficient operation of the Military Health System by providing specialized expertise in program management, administration, and acquisition for the Tricare Health Plan. It allows the Defense Health Agency to focus on strategic health policy and oversight, while the contractor handles day-to-day operational support, ensuring beneficiaries receive timely and quality healthcare services.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesManagement, Scientific, and Technical Consulting ServicesAdministrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HT001117R0006

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2941 FAIRVIEW PARK DR STE 850, FALLS CHURCH, VA, 22042

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

Financial Breakdown

Contract Ceiling: $84,374,481

Exercised Options: $83,626,597

Current Obligation: $83,626,597

Actual Outlays: $2,712,548

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS10F0065N

IDV Type: FSS

Timeline

Start Date: 2018-04-01

Current End Date: 2023-03-06

Potential End Date: 2023-03-06 00:00:00

Last Modified: 2023-09-18

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