TRICARE Third Generation T3 Managed Care Support West Region

UnitedHealth Military & Veterans Services, Minnetonka, MN, was awarded a cost-plus-fixed-fee contract to provide managed care support to the Department of Defense TRICARE program.  The West Region contractor will assist the Military Health System in operating an integrated health care delivery system combining the resources of the contractor and the military's direct medical care system to provide healthcare, plus medical and administrative support services to eligible beneficiaries in the West Region. The West Region includes the states of Alaska, Arizona, California, Colorado, Hawaii, Idaho, Iowa (except the Rock Island Arsenal area), Kansas, Minnesota, Missouri (except the St. Louis area), Montana, Nebraska, Nevada, New Mexico, North Dakota, Oregon, South Dakota, Texas (areas of Western Texas only), Utah, Washington, and Wyoming. The work to be performed includes management of provider networks and referrals, medical management, enrollment, claims processing, customer service and access to data, among other requirements, while providing beneficiary satisfaction at the highest level possible through the delivery of world-class health care. This contract was competitively procured using the Best Value Tradeoff Source Selection process with two initial offers received. The TRICARE Management Activity, Aurora, Colorado is the contracting activity (HT9402-12-C-0001).

The total potential contract value, including the approximate 10-month base period and five (5) one-year option periods for health care delivery, plus a transition-out period, is estimated at $20,462,202,594.

The competitive contract action contains multiple contract types, but predominately cost plus fixed fee.  It is appropriate to utilize the cost reimbursement contract type due to the uncertainties involved in contract performance that do not permit costs to be estimated with sufficient accurancy to use any type of fixed price.