DoD's $1.47B Brighton Marine Contract for Healthcare Services Lacks Competition, Raises Cost Concerns
Contract Overview
Contract Amount: $1,467,822,927 ($1.5B)
Contractor: Brighton Marine, Inc.
Awarding Agency: Department of Defense
Start Date: 2013-10-01
End Date: 2023-09-30
Contract Duration: 3,651 days
Daily Burn Rate: $402.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: COMPREHENSIVE HEALTHCARE SERVICES
Place of Performance
Location: BRIGHTON, SUFFOLK County, MASSACHUSETTS, 02135
Plain-Language Summary
Department of Defense obligated $1.47 billion to BRIGHTON MARINE, INC. for work described as: COMPREHENSIVE HEALTHCARE SERVICES Key points: 1. The contract awarded to Brighton Marine, Inc. represents a significant expenditure of $1.47 billion over 10 years. 2. Lack of competition is a major red flag, potentially leading to inflated prices and reduced innovation. 3. The 'NOT AVAILABLE FOR COMPETITION' status warrants scrutiny regarding the justification for sole-sourcing. 4. The healthcare sector is a critical area for government spending, making efficient and competitive procurement paramount.
Value Assessment
Rating: questionable
The contract's value of $1.47 billion over 10 years is substantial. Without competitive bidding, it's difficult to assess if this represents fair market value compared to similar healthcare service contracts. The lack of disclosed pricing details further hinders a robust value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and negotiation leverage for the government, potentially resulting in higher costs than if competition had been pursued.
Taxpayer Impact: The absence of competition for a contract of this magnitude means taxpayers may be overpaying for healthcare services, as there's no market pressure to drive down prices.
Public Impact
Veterans and military personnel rely on these healthcare services, making continuity of care a priority. The significant financial outlay impacts the overall defense budget and resources available for other critical needs. Lack of transparency in sole-source awards can erode public trust in government procurement processes.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of competition justification
Positive Signals
- Provides essential healthcare services
- Long-term commitment ensures service continuity
Sector Analysis
This contract falls within the healthcare services sector, specifically direct health and medical insurance carriers. Government spending in this area is substantial, and competitive procurement is crucial for managing costs and ensuring quality of care for beneficiaries.
Small Business Impact
The data provided does not indicate any specific provisions or set-asides for small businesses in this contract. The sole-source nature of the award likely precluded small business participation.
Oversight & Accountability
The sole-source nature of this large contract raises questions about the adequacy of oversight and whether alternative, competitive options were thoroughly explored. Further review of the justification for not competing is warranted.
Related Government Programs
- Direct Health and Medical Insurance Carriers
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Sole-source award lacks competition
- Potential for inflated pricing
- Limited transparency in procurement
- Long contract duration without re-evaluation
- Significant taxpayer investment
Tags
direct-health-and-medical-insurance-carr, department-of-defense, ma, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.47 billion to BRIGHTON MARINE, INC.. COMPREHENSIVE HEALTHCARE SERVICES
Who is the contractor on this award?
The obligated recipient is BRIGHTON MARINE, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $1.47 billion.
What is the period of performance?
Start: 2013-10-01. End: 2023-09-30.
What specific justification was provided by the Defense Health Agency for awarding this $1.47 billion contract on a sole-source basis, and has this justification been independently verified?
The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. For a contract of this magnitude and duration, the agency would need to demonstrate compelling reasons, such as unique capabilities or urgent needs, that preclude competition. Independent verification would involve reviewing the agency's documentation and potentially assessing if market research was adequately conducted to support the sole-source determination.
How does the per-unit cost or service delivery cost under this contract compare to industry benchmarks for similar comprehensive healthcare services, given the lack of competitive pricing?
Without competitive bids, establishing a direct comparison to industry benchmarks is challenging. The government would ideally conduct market research to establish fair and reasonable pricing. However, the absence of competition means there's no market validation of Brighton Marine's pricing. A thorough analysis would require comparing negotiated rates against publicly available data for similar services, adjusted for scope and location, which may reveal potential overpricing.
What mechanisms are in place to ensure the effectiveness and quality of healthcare services provided by Brighton Marine, Inc. under this long-term, sole-source contract?
Despite the sole-source nature, the contract should include robust performance standards, service level agreements, and quality assurance surveillance plans. The Defense Health Agency would be responsible for monitoring Brighton Marine's performance against these metrics. Regular performance reviews, patient satisfaction surveys, and clinical outcome assessments are crucial to ensure the effectiveness and quality of care delivered over the contract's 10-year duration.
Industry Classification
NAICS: Finance and Insurance › Insurance Carriers › Direct Health and Medical Insurance Carriers
Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HT940213R0015
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 77 WARREN ST 7TH FL, BRIGHTON, MA, 02135
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,471,499,772
Exercised Options: $1,471,499,772
Current Obligation: $1,467,822,927
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2013-10-01
Current End Date: 2023-09-30
Potential End Date: 2023-09-30 00:00:00
Last Modified: 2025-04-02
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