DoD's TRICARE Health Plan Enterprise Support Contract Awarded to Insignia Federal Group for $12.47M
Contract Overview
Contract Amount: $12,466,726 ($12.5M)
Contractor: Insignia Federal Group, LLC
Awarding Agency: Department of Defense
Start Date: 2025-10-09
End Date: 2026-10-08
Contract Duration: 364 days
Daily Burn Rate: $34.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: SERVICES SUPPORTING TRICARE HEALTH PLAN ENTERPRISE AND EXECUTIVE OFFICES PROVIDING 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 $12.5 million to INSIGNIA FEDERAL GROUP, LLC for work described as: SERVICES SUPPORTING TRICARE HEALTH PLAN ENTERPRISE AND EXECUTIVE OFFICES PROVIDING MANAGEMENT OF THE MILITARY HEALTH SYSTEM HEALTH PLAN, AS WELL AS PROGRAM AND ACQUISITION MANAGEMENT OF PURCHASED HEALTH CARE SERVICES Key points: 1. The contract supports the management of the Military Health System's TRICARE health plan. 2. Insignia Federal Group, LLC, a small business, was awarded the contract. 3. The contract is for Administrative Management and General Management Consulting Services. 4. The award value is $12.47 million with a duration of one year.
Value Assessment
Rating: good
The contract value of $12.47 million for a one-year term appears reasonable for comprehensive support of the TRICARE Health Plan Enterprise and Executive Offices. Benchmarking against similar management consulting contracts for large federal health programs would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may impact price discovery and potentially lead to higher costs compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are being used for essential health plan management services. The limited competition raises a flag for potential overspending, though the value appears reasonable for the scope.
Public Impact
Ensures continued management and program oversight for the TRICARE health plan, impacting millions of service members and their families. Supports the operational efficiency of the Military Health System's purchased healthcare services. Provides critical administrative and executive support to the Defense Health Agency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may not yield the best price.
- Small business status not met, potentially missing opportunities for small business set-asides.
Positive Signals
- Contract supports a critical health program.
- Definitive contract provides a clear framework for services.
Sector Analysis
This contract falls within the professional services sector, specifically administrative and management consulting. Spending in this area is common across federal agencies for program management and operational support. Benchmarks for similar contracts are often in the millions of dollars depending on scope and duration.
Small Business Impact
Although Insignia Federal Group, LLC is listed as a small business, the contract was not awarded as a small business set-aside. This suggests that while the company qualifies as small, the procurement strategy did not prioritize small business participation.
Oversight & Accountability
The Defense Health Agency is responsible for overseeing this contract. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method implies a specific justification for limiting the pool of potential bidders, which should be well-documented and auditable.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Potential for suboptimal pricing due to limited competition.
- Lack of small business set-aside despite the awardee being a small business.
- Justification for 'exclusion of sources' needs clear documentation.
- Dependence on a single contractor for critical health plan enterprise support.
Tags
administrative-management-and-general-ma, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.5 million to INSIGNIA FEDERAL GROUP, LLC. SERVICES SUPPORTING TRICARE HEALTH PLAN ENTERPRISE AND EXECUTIVE OFFICES PROVIDING 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 INSIGNIA FEDERAL GROUP, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $12.5 million.
What is the period of performance?
Start: 2025-10-09. End: 2026-10-08.
What specific criteria led to the exclusion of other sources in this 'limited' full and open competition, and how does this impact the overall value for money?
The exclusion of sources typically stems from specific technical requirements, existing contractor performance, or unique capabilities needed for the contract. Understanding these criteria is crucial to assessing if the limited competition was justified or if it restricted the agency's ability to secure the most competitive pricing. Without this information, it's difficult to definitively state the impact on value for money, though limited competition generally poses a risk to optimal pricing.
What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure effective service delivery for TRICARE?
Effective service delivery for TRICARE hinges on measurable KPIs related to program management efficiency, acquisition support timeliness, and the overall health of the purchased healthcare services portfolio. The Defense Health Agency should have established clear metrics for contract performance, such as response times for executive support, accuracy in program reporting, and successful milestone completion for acquisition tasks. Regular performance reviews against these KPIs are essential for accountability.
Given the $12.47 million value and the 'limited' competition, what is the projected taxpayer savings or cost-efficiency compared to alternative procurement strategies?
Projecting taxpayer savings requires a baseline comparison. If this contract's value is significantly lower than previous similar contracts or industry benchmarks for comparable services, it suggests cost-efficiency. However, the 'limited' competition aspect raises concerns about whether a broader competition could have yielded even greater savings. A detailed cost-benefit analysis, considering the specific justifications for limited competition, would be needed to accurately assess the taxpayer impact.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HT001125R0001
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1751 PINNACLE DR STE 600, MC LEAN, VA, 22102
Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $35,299,647
Exercised Options: $12,466,726
Current Obligation: $12,466,726
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2025-10-09
Current End Date: 2026-10-08
Potential End Date: 2028-07-23 00:00:00
Last Modified: 2025-12-31
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