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 Services › Management, Scientific, and Technical Consulting Services › Administrative 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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