DoD Awards $7.24M Contract for Pharmacy Benefit Management to Consumer Capital Group Corp
Contract Overview
Contract Amount: $7,240,000 ($7.2M)
Contractor: Consumer Capital Group Corp.
Awarding Agency: Department of Defense
Start Date: 2025-01-01
End Date: 2026-12-31
Contract Duration: 729 days
Daily Burn Rate: $9.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: MEDICAL EXPENSES
Place of Performance
Location: CHICAGO, COOK County, ILLINOIS, 60643
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $7.2 million to CONSUMER CAPITAL GROUP CORP. for work described as: MEDICAL EXPENSES Key points: 1. The Department of Defense is spending $7.24 million on Pharmacy Benefit Management services. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The firm fixed price contract type aims to control costs for the government. 4. This spending falls under the broader category of insurance and pension fund administration.
Value Assessment
Rating: good
The contract is a firm fixed price award, which provides cost certainty. Benchmarking against similar contracts for Pharmacy Benefit Management services would be necessary for a more precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The firm fixed price contract aims to ensure predictable costs for taxpayers over the contract period.
Public Impact
Ensures access to essential pharmacy benefits for service members and their families. Supports the operational readiness of the Department of Defense by managing healthcare costs. Potential for cost savings through efficient pharmacy benefit management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if not managed effectively.
- Dependence on a single vendor for critical pharmacy services.
- Ensuring compliance with all regulatory requirements.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type.
- Supports critical healthcare services for the military.
Sector Analysis
This contract falls within the Healthcare sector, specifically focusing on third-party administration of insurance and pension funds related to pharmacy benefits. Spending benchmarks for PBM services can vary significantly based on the scope and population served.
Small Business Impact
The data indicates this contract was not set-aside for small businesses (ss: false, sb: false). Therefore, small businesses were likely not the primary focus of this specific award, though they may participate as subcontractors.
Oversight & Accountability
The contract is managed by the Department of the Navy, a component of the Department of Defense. Oversight will involve ensuring the contractor meets performance requirements and adheres to the firm fixed price terms.
Related Government Programs
- Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for increased drug costs.
- Vendor performance risk.
- Data security and privacy concerns.
- Contract duration and renewal uncertainty.
Tags
pharmacy-benefit-management-and-other-th, department-of-defense, il, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.2 million to CONSUMER CAPITAL GROUP CORP.. MEDICAL EXPENSES
Who is the contractor on this award?
The obligated recipient is CONSUMER CAPITAL GROUP CORP..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $7.2 million.
What is the period of performance?
Start: 2025-01-01. End: 2026-12-31.
What is the expected impact of this contract on the overall healthcare costs for the Department of Defense?
The contract aims to manage pharmacy expenses, potentially leading to cost savings through negotiated drug prices and efficient claims processing. However, the actual impact depends on the effectiveness of the PBM services provided and the utilization patterns of beneficiaries. A detailed cost-benefit analysis would be required to quantify the precise impact on the DoD's healthcare budget.
What are the primary risks associated with this Pharmacy Benefit Management contract?
Key risks include potential for inadequate cost containment if the PBM's negotiation power is limited, or if there are unforeseen increases in prescription drug utilization. There's also a risk of service disruptions if the contractor fails to meet performance standards. Ensuring data security and privacy for sensitive health information is another critical risk area.
How does this contract contribute to the overall effectiveness of military healthcare delivery?
This contract is crucial for ensuring that military personnel and their families have timely and affordable access to necessary prescription medications. Effective PBM services can streamline the prescription process, reduce out-of-pocket costs for beneficiaries, and contribute to better health outcomes, thereby supporting the overall well-being and readiness of the force.
Industry Classification
NAICS: Finance and Insurance › Agencies, Brokerages, and Other Insurance Related Activities › Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0018924RZ145
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2136 W 95TH ST, CHICAGO, IL, 60643
Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $49,270,002
Exercised Options: $16,580,000
Current Obligation: $7,240,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-01-01
Current End Date: 2026-12-31
Potential End Date: 2030-06-30 00:00:00
Last Modified: 2025-12-15
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