DoD's Active Duty Dental Program contract awarded to United Concordia for $99M, highlighting insurance carrier services
Contract Overview
Contract Amount: $98,996,789 ($99.0M)
Contractor: United Concordia Companies, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-07-13
End Date: 2019-07-31
Contract Duration: 383 days
Daily Burn Rate: $258.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: ACTIVE DUTY DENTAL PROGRAM
Place of Performance
Location: HARRISBURG, DAUPHIN County, PENNSYLVANIA, 17110
Plain-Language Summary
Department of Defense obligated $99.0 million to UNITED CONCORDIA COMPANIES, INC. for work described as: ACTIVE DUTY DENTAL PROGRAM Key points: 1. Contract value of $98.99M for dental insurance carrier services. 2. Competition method was Full and Open, suggesting broad market engagement. 3. Risk is moderate, given the nature of health insurance services. 4. Sector is Healthcare, specifically direct health and medical insurance.
Value Assessment
Rating: good
The contract value of $98.99M for dental insurance services appears reasonable for a program of this scale. Benchmarking against similar large-scale dental insurance contracts 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, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.
Taxpayer Impact: The competitive award process likely resulted in cost savings for taxpayers by securing services at a favorable price point.
Public Impact
Ensures dental care access for active-duty military personnel. Provides essential health services, contributing to military readiness. Impacts a significant population of service members and their families.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if utilization exceeds projections.
- Dependence on a single carrier for a critical service.
Positive Signals
- Competitive award process.
- Focus on a vital military support function.
Sector Analysis
This contract falls within the Healthcare sector, specifically focusing on health and medical insurance carriers. Spending benchmarks for similar large-scale government health insurance contracts are typically in the tens to hundreds of millions of dollars annually.
Small Business Impact
The data does not indicate any specific provisions or awards made to small businesses under this contract. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
The contract was awarded by the Defense Health Agency, a component of the Department of Defense, suggesting established oversight mechanisms. However, the duration and value warrant ongoing monitoring for performance and cost-effectiveness.
Related Government Programs
- Direct Health and Medical Insurance Carriers
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Potential for increased costs due to unforeseen healthcare trends.
- Dependence on contractor's network adequacy and provider availability.
- Risk of service quality degradation if oversight is insufficient.
- Vulnerability to changes in healthcare regulations.
Tags
direct-health-and-medical-insurance-carr, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $99.0 million to UNITED CONCORDIA COMPANIES, INC.. ACTIVE DUTY DENTAL PROGRAM
Who is the contractor on this award?
The obligated recipient is UNITED CONCORDIA COMPANIES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $99.0 million.
What is the period of performance?
Start: 2018-07-13. End: 2019-07-31.
What is the historical cost per member per month for this program compared to industry averages?
Determining the precise historical cost per member per month requires access to detailed utilization data and enrollment figures. However, comparing this to industry benchmarks for similar dental insurance plans, adjusted for the specific demographics and service offerings, would reveal if the government is receiving competitive rates. This analysis is crucial for assessing long-term value.
What are the key performance indicators (KPIs) for this contract and how has the contractor performed against them?
Key performance indicators for such a contract typically include network adequacy, claims processing timeliness, member satisfaction rates, and compliance with service level agreements. Performance against these KPIs is essential for ensuring the quality and effectiveness of the dental services provided. Regular reviews and audits by the Defense Health Agency are necessary to monitor contractor performance.
Are there any potential risks associated with the sole reliance on United Concordia for this program?
Sole reliance on United Concordia could pose risks related to service disruptions if the contractor faces financial or operational issues. It also limits the government's ability to leverage competition for potentially better terms or innovative solutions in the future. Contingency planning and robust contract management are vital to mitigate these risks.
Industry Classification
NAICS: Finance and Insurance › Insurance Carriers › Direct Health and Medical Insurance Carriers
Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HT940214R0002
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Highmark Inc
Address: 4401 DEER PATH RD, HARRISBURG, PA, 17110
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $98,996,789
Exercised Options: $98,996,789
Current Obligation: $98,996,789
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HT940214D0001
IDV Type: IDC
Timeline
Start Date: 2018-07-13
Current End Date: 2019-07-31
Potential End Date: 2019-07-31 00:00:00
Last Modified: 2025-04-23
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