DoD's TRICARE Health Plan Support Contract Awarded to AXIOM for $45.7M
Contract Overview
Contract Amount: $45,752,139 ($45.8M)
Contractor: Axiom Resource Management, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-03-08
End Date: 2025-10-08
Contract Duration: 945 days
Daily Burn Rate: $48.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SERVICES SUPPORTING TRICARE HEALTH PLAN, CLINICAL SERVICES, AND PHARMACY ORGANIZATIONS. SERVICES SUPPORT MANAGEMENT OF THE MILITARY HEALTH SYSTEM HEALTH PLAN, AS WELL AS PROGRAM AND ACQUISITION MANAGEMENT OF PURCHASED HEALTH CARE SERVICES.
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $45.8 million to AXIOM RESOURCE MANAGEMENT, INC. for work described as: SERVICES SUPPORTING TRICARE HEALTH PLAN, CLINICAL SERVICES, AND PHARMACY ORGANIZATIONS. SERVICES SUPPORT MANAGEMENT OF THE MILITARY HEALTH SYSTEM HEALTH PLAN, AS WELL AS PROGRAM AND ACQUISITION MANAGEMENT OF PURCHASED HEALTH CARE SERVICES. Key points: 1. Contract supports critical Military Health System functions including clinical services and pharmacy. 2. AXIOM RESOURCE MANAGEMENT, INC. is the prime contractor. 3. The contract value is substantial at $45.7 million. 4. Competition was full and open, suggesting potential for competitive pricing. 5. The contract spans nearly two years, indicating ongoing support needs.
Value Assessment
Rating: good
The contract value of $45.7M for custom computer programming services appears reasonable given the scope of supporting the TRICARE health plan and the Military Health System. Benchmarking against similar large-scale IT service contracts for government health programs 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, which generally promotes competitive pricing and allows for a wide range of potential contractors to bid. This method is expected to yield fair market value for the services provided.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by leveraging market forces to achieve competitive pricing for essential health support services.
Public Impact
Ensures continuity of care and operational efficiency for the TRICARE health program. Supports the management of purchased healthcare services, impacting millions of service members and their families. The contract's duration suggests a stable, long-term need for these specialized IT and management services within the DoD. Potential for improved health outcomes through effective program and acquisition management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is significant, requiring ongoing monitoring.
- Reliance on a single contractor for critical health system functions.
- Potential for scope creep or unmanaged changes over the contract term.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type can control costs.
- Supports a vital government health program.
Sector Analysis
This contract falls within the IT services sector, specifically custom computer programming and management support for healthcare organizations. Spending in this area is significant across government agencies, particularly for large-scale health systems like TRICARE, where efficiency and reliability are paramount.
Small Business Impact
While the prime contractor is AXIOM RESOURCE MANAGEMENT, INC., the provided data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of Defense, specifically the Defense Health Agency, is responsible for overseeing this contract. Robust oversight mechanisms, including performance monitoring and regular reviews, are crucial to ensure the contractor meets performance requirements and delivers value for taxpayer money.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Contract duration
- Complexity of services
- Potential for cost overruns if scope is not well-managed
- Dependence on a single contractor for critical functions
Tags
custom-computer-programming-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $45.8 million to AXIOM RESOURCE MANAGEMENT, INC.. SERVICES SUPPORTING TRICARE HEALTH PLAN, CLINICAL SERVICES, AND PHARMACY ORGANIZATIONS. SERVICES SUPPORT MANAGEMENT OF THE MILITARY HEALTH SYSTEM HEALTH PLAN, AS WELL AS PROGRAM AND ACQUISITION MANAGEMENT OF PURCHASED HEALTH CARE SERVICES.
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 $45.8 million.
What is the period of performance?
Start: 2023-03-08. End: 2025-10-08.
What specific performance metrics are being used to evaluate AXIOM's success in managing the TRICARE health plan and associated services?
Performance metrics likely include key performance indicators (KPIs) related to system uptime, response times for support requests, accuracy of data management, adherence to program timelines, and successful execution of acquisition strategies. The contract's success hinges on meeting these defined standards to ensure the seamless operation of critical health services for military personnel and their families.
How does the $45.7M contract value compare to previous contracts for similar TRICARE support services, considering inflation and scope changes?
A comparative analysis against historical contract values, adjusted for inflation and any documented changes in scope or service requirements, is necessary. This comparison will reveal whether the current award represents cost savings, reflects increased service demands, or indicates potential price escalation compared to prior agreements for similar functions within the Military Health System.
What are the potential risks associated with the firm-fixed-price contract type for these complex IT and management services?
While firm-fixed-price contracts aim to control costs, they can pose risks if the scope is not precisely defined or if unforeseen technical challenges arise. The contractor may face financial strain if costs exceed estimates, potentially leading to reduced quality or attempts to cut corners. Conversely, the government risks paying a premium if the contractor's initial cost estimates were overly conservative.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: HT001123R0027
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: $45,752,139
Exercised Options: $45,752,139
Current Obligation: $45,752,139
Actual Outlays: $3,013,910
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS35F360DA
IDV Type: FSS
Timeline
Start Date: 2023-03-08
Current End Date: 2025-10-08
Potential End Date: 2025-10-08 00:00:00
Last Modified: 2026-01-06
More Contracts from 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 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 — $83.6M (Department of Defense)
- Base Period Dhims BUS Process Supt — $57.0M (Department of Defense)
- Garrison Operation Support TAS::21 2020::TAS — $38.5M (Department of Defense)
- Pmro - Program Manager for Ticket to Work Recruitment and Outreach — $21.6M (Social Security Administration)
- Task 4 - Administrative Support — $20.9M (Department of Defense)
View all Axiom Resource Management, Inc. federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)