DoD Awards $15M Medical Referral Services Contract to OptumServe Health, Full Competition
Contract Overview
Contract Amount: $14,977,217 ($15.0M)
Contractor: Optumserve Health Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-06-28
End Date: 2026-06-27
Contract Duration: 364 days
Daily Burn Rate: $41.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: MEDICAL REFERRAL SERVICES - USMEPCOM
Place of Performance
Location: LA CROSSE, LA CROSSE County, WISCONSIN, 54601
Plain-Language Summary
Department of Defense obligated $15.0 million to OPTUMSERVE HEALTH SERVICES, INC. for work described as: MEDICAL REFERRAL SERVICES - USMEPCOM Key points: 1. Contract value of $14.98M for medical referral services. 2. Awarded to OptumServe Health Services, Inc. under full and open competition. 3. Managed by the Department of the Army, part of DoD spending. 4. Focuses on physician office services (NAICS 621111).
Value Assessment
Rating: good
The contract value of $14.98M appears reasonable for 364 days of medical referral services. Benchmarking against similar contracts would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing.
Taxpayer Impact: Competitive bidding in this instance likely ensures taxpayer funds are used efficiently for essential medical referral services.
Public Impact
Ensures access to medical referral services for military personnel. Supports the operational readiness of USMEPCOM by facilitating necessary medical evaluations. Provides a critical link in the healthcare chain for service members.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Full and open competition utilized.
- Clear contract duration and scope.
- Awarded by a major federal agency (DoD).
Sector Analysis
This contract falls within the healthcare services sector, specifically related to physician office operations. Federal spending in this area is substantial, driven by the need to support military health and readiness.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as it was awarded to OptumServe Health Services, Inc. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is responsible for oversight. The use of full and open competition suggests a structured procurement process, but ongoing performance monitoring is crucial.
Related Government Programs
- Offices of Physicians (except Mental Health Specialists)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for subcontractor reliance on small businesses.
- Need for robust performance monitoring to ensure service quality.
- Dependency on a single prime contractor for critical services.
Tags
offices-of-physicians-except-mental-heal, department-of-defense, wi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.0 million to OPTUMSERVE HEALTH SERVICES, INC.. MEDICAL REFERRAL SERVICES - USMEPCOM
Who is the contractor on this award?
The obligated recipient is OPTUMSERVE HEALTH SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $15.0 million.
What is the period of performance?
Start: 2025-06-28. End: 2026-06-27.
What is the specific scope of 'medical referral services' covered by this contract?
The contract likely covers services related to scheduling, coordinating, and facilitating medical appointments and referrals for individuals undergoing military entrance processing. This could include initial screenings, specialist consultations, and follow-up care coordination to ensure individuals meet medical standards for service.
Are there any identified risks associated with OptumServe Health Services' performance on this contract?
No specific performance risks are detailed in the provided data. However, general risks for such contracts include potential delays in referrals, issues with provider network access, or challenges in managing patient information securely, which require diligent oversight.
How does the pricing of this contract compare to industry benchmarks for similar services?
Without specific line-item details or access to comparable federal or commercial contracts, a precise benchmark comparison is difficult. The contract's total value and duration suggest a per-diem or per-service cost structure that would need to be evaluated against market rates for medical referral coordination.
Industry Classification
NAICS: Health Care and Social Assistance › Offices of Physicians › Offices of Physicians (except Mental Health Specialists)
Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Unitedhealth Group Incorporated
Address: 328 FRONT ST S, LA CROSSE, WI, 54601
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $14,977,217
Exercised Options: $14,977,217
Current Obligation: $14,977,217
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W81K0424D0011
IDV Type: IDC
Timeline
Start Date: 2025-06-28
Current End Date: 2026-06-27
Potential End Date: 2026-06-27 00:00:00
Last Modified: 2025-09-11
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