Active Duty Dental Program contract awarded to United Concordia for $94.8M, covering 366 days
Contract Overview
Contract Amount: $94,760,381 ($94.8M)
Contractor: United Concordia Companies, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-07-31
End Date: 2020-07-31
Contract Duration: 366 days
Daily Burn Rate: $258.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: ACTIVE DUTY DENTAL PROGRAM
Place of Performance
Location: CAMP HILL, CUMBERLAND County, PENNSYLVANIA, 17011
Plain-Language Summary
Department of Defense obligated $94.8 million to UNITED CONCORDIA COMPANIES, INC. for work described as: ACTIVE DUTY DENTAL PROGRAM Key points: 1. Contract value of $94.8M for a 366-day period. 2. United Concordia Companies, Inc. is the sole awardee. 3. The contract falls under the Direct Health and Medical Insurance Carriers sector. 4. Awarded via Full and Open Competition.
Value Assessment
Rating: good
The contract value of $94.8M for a one-year period 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 through Full and Open Competition, suggesting a competitive bidding process that likely resulted in fair pricing. The use of a Delivery Order under a larger contract structure is noted.
Taxpayer Impact: The competitive nature of the award is expected to ensure taxpayer funds are used efficiently for dental services.
Public Impact
Ensures dental care access for active-duty military personnel. Supports the health and readiness of the armed forces. Provides a significant revenue stream for the awarded insurance carrier.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases in subsequent contract periods.
- Dependence on a single carrier for a critical service.
Positive Signals
- Competitive award process.
- Clear contract duration and value.
Sector Analysis
This contract falls within the Healthcare sector, specifically related to health insurance carriers. Spending in this area is substantial, driven by the need to provide comprehensive medical and dental coverage for military personnel and their families.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. The primary contractor is a large entity.
Oversight & Accountability
The contract is managed by the Defense Health Agency, a component of the Department of Defense, indicating established oversight mechanisms for healthcare services.
Related Government Programs
- Direct Health and Medical Insurance Carriers
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Potential for cost escalation in future contract periods.
- Reliance on a single provider for a critical service.
- Need for ongoing monitoring of service quality and beneficiary satisfaction.
- Contract duration is relatively short (one year), requiring frequent re-competition or extension.
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 $94.8 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 $94.8 million.
What is the period of performance?
Start: 2019-07-31. End: 2020-07-31.
What is the historical performance of United Concordia Companies, Inc. in managing similar government dental contracts?
Assessing United Concordia's past performance is crucial. Reviewing their track record with previous military dental programs or other large federal health insurance contracts can reveal insights into their ability to meet service level agreements, manage costs effectively, and maintain beneficiary satisfaction. This historical data informs the current contract's risk assessment and potential for successful execution.
How does the per-member-per-month (PMPM) cost compare to industry benchmarks for similar active-duty dental plans?
Calculating the PMPM cost by dividing the total contract value by the number of covered individuals and the contract duration is essential for benchmarking. Comparing this figure to PMPM costs for comparable civilian dental insurance plans or other military health programs can highlight potential cost efficiencies or overspending. Significant deviations warrant further investigation into the scope of services and specific plan design.
What mechanisms are in place to ensure the quality and accessibility of dental care provided under this contract?
Effective oversight requires clear performance metrics and quality assurance processes. This includes monitoring network adequacy, patient wait times, provider qualifications, and beneficiary grievance procedures. The Defense Health Agency should have established protocols for tracking these indicators and addressing any deficiencies to ensure active-duty personnel receive timely and appropriate dental care.
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: $94,760,381
Exercised Options: $94,760,381
Current Obligation: $94,760,381
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HT940214D0001
IDV Type: IDC
Timeline
Start Date: 2019-07-31
Current End Date: 2020-07-31
Potential End Date: 2020-07-31 00:00:00
Last Modified: 2023-02-03
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