DoD's Active Duty Dental Program contract awarded to United Concordia for $51.1M, covering 183 days
Contract Overview
Contract Amount: $51,145,652 ($51.1M)
Contractor: United Concordia Companies, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-08-01
End Date: 2021-01-31
Contract Duration: 183 days
Daily Burn Rate: $279.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: ACTIVE DUTY DENTAL PROGRAM (ADDP)SUPPLEMENTS DENTAL CARE PROVIDED IN DOD DENTAL TREATMENT FACILITIES (DTFS)AND PROVIDES CARE TO THOSE ADSMS WITHOUT ACCESS TO A DTF.
Place of Performance
Location: HARRISBURG, DAUPHIN County, PENNSYLVANIA, 17110
Plain-Language Summary
Department of Defense obligated $51.1 million to UNITED CONCORDIA COMPANIES, INC. for work described as: ACTIVE DUTY DENTAL PROGRAM (ADDP)SUPPLEMENTS DENTAL CARE PROVIDED IN DOD DENTAL TREATMENT FACILITIES (DTFS)AND PROVIDES CARE TO THOSE ADSMS WITHOUT ACCESS TO A DTF. Key points: 1. The Active Duty Dental Program (ADDP) ensures dental care for service members not accessing DoD facilities. 2. United Concordia Companies, Inc. is the incumbent contractor for this program. 3. The contract is a Firm Fixed Price delivery order, indicating predictable costs. 4. This program falls under the Defense Health Agency's purview within the Defense sector.
Value Assessment
Rating: good
The contract value of $51.1M for a 183-day period appears reasonable for a specialized dental insurance program. Benchmarking against similar direct health and medical insurance carrier 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, suggesting a competitive bidding process that likely led to a fair price discovery. The delivery order structure implies it was part of a larger contract vehicle.
Taxpayer Impact: Taxpayer funds are used to ensure dental readiness and well-being of active duty personnel, which is a critical component of military readiness.
Public Impact
Ensures dental readiness for active duty service members, contributing to overall military effectiveness. Provides access to dental care for those without direct access to military dental facilities. Supports the health and morale of service members and their families.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Short contract duration (183 days) may indicate a bridge contract or a need for re-evaluation.
- Lack of small business participation noted.
Positive Signals
- Full and open competition ensures a competitive environment.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
This contract falls within the Healthcare sector, specifically focusing on direct health and medical insurance carriers. Spending benchmarks for similar programs are typically tied to per-member-per-month costs for dental insurance.
Small Business Impact
The data indicates that small businesses were not involved in this specific contract award. Further analysis would be needed to determine if opportunities for small businesses exist within the broader ADDP framework or related services.
Oversight & Accountability
The Defense Health Agency is responsible for overseeing this contract. Standard oversight mechanisms for delivery orders and insurance contracts would apply, focusing on performance and adherence to terms.
Related Government Programs
- Direct Health and Medical Insurance Carriers
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Short contract duration.
- No small business participation.
- Potential for incumbent contractor complacency.
- Reliance on external insurance carriers.
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 $51.1 million to UNITED CONCORDIA COMPANIES, INC.. ACTIVE DUTY DENTAL PROGRAM (ADDP)SUPPLEMENTS DENTAL CARE PROVIDED IN DOD DENTAL TREATMENT FACILITIES (DTFS)AND PROVIDES CARE TO THOSE ADSMS WITHOUT ACCESS TO A DTF.
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 $51.1 million.
What is the period of performance?
Start: 2020-08-01. End: 2021-01-31.
What is the historical performance of United Concordia Companies, Inc. in administering similar dental programs for the DoD?
United Concordia Companies, Inc. has a history of administering dental benefits programs. Assessing their past performance, including patient satisfaction, claims processing efficiency, and adherence to contract requirements for similar DoD programs, is crucial for evaluating the value and effectiveness of this specific contract award.
What are the key performance indicators (KPIs) used to measure the success of the Active Duty Dental Program?
Key performance indicators for the ADDP likely include metrics such as dental readiness rates among active duty personnel, patient satisfaction scores, claims processing timeliness, network adequacy (availability of dentists), and cost-effectiveness. Monitoring these KPIs ensures the program meets its objectives of providing timely and quality dental care.
How does the cost of this contract compare to industry benchmarks for providing dental insurance to a similar population size?
Comparing the $51.1M contract value for 183 days to industry benchmarks requires calculating the per-member-per-month cost. If the contract covers a significant number of active duty personnel, its cost-effectiveness can be assessed against average commercial dental insurance premiums for comparable coverage levels and demographics.
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: HT940213R0002
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: $71,543,946
Exercised Options: $71,543,946
Current Obligation: $51,145,652
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: 2020-08-01
Current End Date: 2021-01-31
Potential End Date: 2021-01-31 00:00:00
Last Modified: 2023-04-06
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- THE Tricare Dental Program Offers Worldwide Coverage for Dental Services to Eligible Family Members of Uniformed Service Active Duty Personnel and the Selected Reserve and Individual Ready Reserve — $301.4M (Department of Defense)
- Tricare Dental Program (TDP) — $300.0M (Department of Defense)
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