DoD's Active Duty Dental Program 3 contract awarded to United Concordia for $448.7M, running through 2026
Contract Overview
Contract Amount: $448,732,353 ($448.7M)
Contractor: United Concordia Companies, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-04-29
End Date: 2026-04-30
Contract Duration: 1,827 days
Daily Burn Rate: $245.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: ACTIVE DUTY DENTAL PROGRAM 3 (ADDP3)
Place of Performance
Location: CAMP HILL, CUMBERLAND County, PENNSYLVANIA, 17011
Plain-Language Summary
Department of Defense obligated $448.7 million to UNITED CONCORDIA COMPANIES, INC. for work described as: ACTIVE DUTY DENTAL PROGRAM 3 (ADDP3) Key points: 1. Contract Value: $448.7 million over its term. 2. Incumbent: United Concordia Companies, Inc. is the sole awardee. 3. Risk: Potential for price increases without ongoing competition. 4. Sector: Healthcare insurance services for military personnel.
Value Assessment
Rating: good
The contract value of $448.7 million for a 5-year period appears reasonable for a large-scale dental insurance program serving active duty personnel. Benchmarking against similar large federal health insurance contracts would provide further context.
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. This method generally promotes price discovery and ensures the government receives competitive pricing.
Taxpayer Impact: The competitive award process aims to secure cost-effective dental coverage for active duty service members, optimizing taxpayer investment in military healthcare.
Public Impact
Ensures dental care access for active duty military members. Provides a significant healthcare service contract for the awarded company. Impacts military readiness by maintaining service member health.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation noted.
- Potential for price escalation in future contract renewals without competition.
Positive Signals
- Awarded through full and open competition.
- Long-term contract provides stability for service delivery.
Sector Analysis
This contract falls within the healthcare sector, specifically focusing on health and medical insurance carriers. Federal spending in this area is substantial, supporting the health and well-being of government personnel and their families.
Small Business Impact
The data indicates no small business participation in this contract. For future procurements, exploring opportunities for small business involvement could enhance economic impact and competition.
Oversight & Accountability
The Department of Defense, through the Defense Health Agency, is responsible for overseeing this contract. Robust oversight is crucial to ensure service quality and cost-effectiveness throughout the contract period.
Related Government Programs
- Direct Health and Medical Insurance Carriers
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- No small business participation.
- Potential for price increases upon re-competition if market conditions change.
- Reliance on a single incumbent provider for an extended period.
Tags
direct-health-and-medical-insurance-carr, department-of-defense, pa, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $448.7 million to UNITED CONCORDIA COMPANIES, INC.. ACTIVE DUTY DENTAL PROGRAM 3 (ADDP3)
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 $448.7 million.
What is the period of performance?
Start: 2021-04-29. End: 2026-04-30.
What is the projected cost per member per year, and how does it compare to industry benchmarks?
The provided data does not include per-member-per-year cost breakdowns. To assess value effectively, a detailed analysis comparing the contract's per-member costs against similar large-scale federal or commercial dental insurance programs would be necessary. This comparison would highlight potential cost efficiencies or areas for negotiation.
What are the key performance indicators (KPIs) for this contract, and how is performance being monitored?
Specific Key Performance Indicators (KPIs) are not detailed in the provided data. Effective monitoring typically involves tracking metrics such as claims processing times, network adequacy, patient satisfaction, and adherence to quality standards. The Defense Health Agency's oversight mechanisms should include regular performance reviews against established KPIs.
Are there provisions for contract modifications or re-competition that could impact long-term costs?
The contract is a definitive contract with a set end date, suggesting it will likely be re-competed. While the current award was full and open, future competitions could introduce new pricing dynamics. Provisions for modifications should be reviewed to understand any flexibility that might affect the total contract value over its lifespan.
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: HT940220R0001
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1800 CENTER ST, CAMP HILL, PA, 17011
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,100,195,675
Exercised Options: $695,354,979
Current Obligation: $448,732,353
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-04-29
Current End Date: 2026-04-30
Potential End Date: 2029-04-30 00:00:00
Last Modified: 2025-12-10
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