Q201--CCN R2 Contract Extension

The Department of Veterans Affairs has awarded contract 36C79119D0005 to Optum Public Sector Solutions, Inc. for a one-year extension of the CCN Region 2 IDIQ contract, valued at $22.49 billion, on a sole-source basis under an unusual and compelling urgency justification.

The extension runs October 1, 2026, through September 30, 2027, and is authorized under 41 U.S.C. 3304(a)(2). The Veterans Health Administration Office of Veteran Community Care cited a projected service gap from October 2026 through July 2028 if the extension were not approved, resulting from delays in the CCN-Next Generation competitive procurements. The Medical IDIQ RFP issued December 2025 has a projected award date of January 2027, and the Dental IDIQ RFP is projected to award September 2026, each requiring approximately 12 months for implementation.

The contract covers 13 states and territories—Ohio, Kentucky, Indiana, Illinois, Missouri, Kansas, Nebraska, Iowa, Wisconsin, Michigan, Minnesota, North Dakota, and South Dakota—and requires the Third-Party Administrator to maintain networks of licensed healthcare providers offering medical, surgical, complementary and integrative health services, durable medical equipment, pharmacy, and dental services. Two additional one-year option periods (October 1, 2027, through September 30, 2029) may be established and exercised only with head-of-agency approval if necessary to complete competitive follow-on acquisitions. Anticipated costs are determined fair and reasonable based on the Independent Government Cost Estimate, with prices subject to renegotiation. Market research from 2021 through June 2025 included industry days, RFI postings, and site visits; a May 2025 RFI received 17 responses. The justification will be posted publicly within 30 days after contract award in accordance with FAR 6.301(b)(1).