DoD Awards $372.6M Contract for Managed Health Care Services to Brighton Marine, Inc
Contract Overview
Contract Amount: $372,650,000 ($372.6M)
Contractor: Brighton Marine, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-10-01
End Date: 2026-09-30
Contract Duration: 1,095 days
Daily Burn Rate: $340.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: MANAGED HEALTH CARE PLAN SERVICES FROM A DESIGNATED PROVIDER
Place of Performance
Location: BRIGHTON, SUFFOLK County, MASSACHUSETTS, 02135
Plain-Language Summary
Department of Defense obligated $372.6 million to BRIGHTON MARINE, INC. for work described as: MANAGED HEALTH CARE PLAN SERVICES FROM A DESIGNATED PROVIDER Key points: 1. Significant contract value of $372.6 million over three years. 2. Sole-source award to Brighton Marine, Inc. raises questions about competition. 3. Potential risk associated with a single provider for essential health services. 4. Spending falls within the Health and Medical Insurance Carriers sector.
Value Assessment
Rating: questionable
The contract value of $372.6 million for three years suggests a substantial investment. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar managed health care plans.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning competition was not sought. This limits price discovery and may result in higher costs for taxpayers.
Taxpayer Impact: The lack of competition for a large contract like this could lead to suboptimal pricing, impacting taxpayer funds.
Public Impact
Ensures health care services for a specific population under the Department of Defense. Potential impact on beneficiaries if service quality or cost is not optimized due to sole-source award. Taxpayers may be bearing a higher cost than if the contract were competitively bid.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of transparency in pricing
- Potential for reduced service quality due to lack of competition
Positive Signals
- Ensures continuity of care
- Supports a designated provider
Sector Analysis
This contract falls under the Health and Medical Insurance Carriers sector, specifically for managed health care plan services. Spending in this sector is critical for providing healthcare benefits to government personnel and their families.
Small Business Impact
The data does not indicate any specific provisions or considerations for small businesses in this sole-source award. Further analysis would be needed to determine if small businesses were excluded or had opportunities to participate.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the Defense Health Agency is receiving value for money and that the provider is meeting all contractual obligations effectively.
Related Government Programs
- Direct Health and Medical Insurance Carriers
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Potential for inflated costs due to lack of competitive bidding.
- Risk of suboptimal service quality without competitive pressure.
- Lack of transparency regarding the justification for sole-source procurement.
Tags
direct-health-and-medical-insurance-carr, department-of-defense, ma, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $372.6 million to BRIGHTON MARINE, INC.. MANAGED HEALTH CARE PLAN SERVICES FROM A DESIGNATED PROVIDER
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 $372.6 million.
What is the period of performance?
Start: 2023-10-01. End: 2026-09-30.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of adequate competition. Without further details, it's impossible to ascertain the specific reasons. Understanding this justification is crucial for assessing the necessity and fairness of the procurement process and ensuring taxpayer funds are used appropriately.
How does Brighton Marine, Inc.'s pricing compare to industry benchmarks for similar managed health care services?
Benchmarking Brighton Marine, Inc.'s pricing against industry standards is challenging due to the sole-source nature of the award. A thorough analysis would require access to detailed cost breakdowns and comparisons with other government or private sector contracts for comparable services. This would help determine if the $372.6 million price tag represents fair value.
What mechanisms are in place to ensure the effectiveness and quality of managed health care services provided under this contract?
Given the sole-source award, robust oversight mechanisms are essential to guarantee the effectiveness and quality of services. This includes regular performance reviews, beneficiary feedback collection, and adherence to strict service level agreements. The Defense Health Agency must actively monitor the contract to ensure beneficiaries receive high-quality care and that the provider meets all performance metrics.
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: HT940223R0002
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 77 WARREN STREET, 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: $1,991,791,959
Exercised Options: $487,076,089
Current Obligation: $372,650,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-10-01
Current End Date: 2026-09-30
Potential End Date: 2033-09-30 00:00:00
Last Modified: 2025-12-10
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