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Contracts


No: 614-03
August 21, 2003

CONTRACTS

TRICARE MANAGEMENT ACTIVITY

Health Net Federal Services, Rancho Cordova, Calif., is the awardee for the TRICARE North Region (MDA906-03-C-0011). The cumulative face value of the contract is $2,298,237,901 for the base and all option periods. This excludes the target health care costs for option periods two through five, which will be negotiated prior to exercising each option. The contract provides essential support and health care services in Connecticut, the District of Columbia, Delaware, Illinois, Indiana, Kentucky, Massachusetts, Maryland, Maine, Michigan, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, Vermont, Virginia, West Virginia and Wisconsin.

Humana Military Healthcare Services, Louisville, Ky., is the awardee for the TRICARE South Region (MDA906-03-C-0010). The cumulative face value of the contract is $2,058,582,137 for the base and all option periods. This excludes the target health care costs for option periods two through five, which will be negotiated prior to exercising each option. The contract provides essential support and health care services for Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, Oklahoma, South Carolina, Tennessee and the eastern portion of Texas.

TriWest Healthcare Alliance Corp., Phoenix, Ariz., is the awardee for the TRICARE West Region (MDA906-03-C-0009). The cumulative face value of the contract is $2,116,560,286 for the base and all option periods. This excludes the target health care costs for option periods two through five, which will be negotiated prior to exercising each option. The contract provides essential support and health care services for Alaska, Arizona, California, Colorado, Hawaii, Iowa, Idaho, Kansas, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oregon, South Dakota, the western portion of Texas, Utah, Washington and Wyoming.

Each contract listed above includes at least a 9-month transition, plus five 1-year option periods for services and support. The transition begins on September 1st. The turnover of responsibility for services in the newly aligned TRICARE North, South and West Regions will be phased in starting with areas in the West Region on June 1, 2004, and will be complete by November 2004. These contracts were competitively procured with seven offers received. The Department of Defense, TRICARE Management Activity, is the contracting activity.

NAVY

Raytheon Co., Electronic Systems, Missile Systems Division, Tucson, Ariz., was awarded a $21,899,968 firm-fixed-price modification to previously awarded contract (N00024-02-C-5312) on Aug, 19, 2003, to add a requirement for 290 MK 104 dual thrust rocket motors (DTRM) to the production contract for the Standard Missile 2. The MK 104 DTRM provides propulsion for the Standard Missile 2. This modification provides combined requirements for U.S. Navy (75%) and the governments of Japan (14%), The Netherlands (6%) and Canada (5%) under the Foreign Military Sales Program. Work will be performed in Camden, Ariz. (96%), and Tucson, Ariz. (4%), and is expected to be completed by December 2005. Contract funds will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.

McDonnell Douglas Corp., a wholly owned subsidiary of The Boeing Co., St. Louis, Mo., is being awarded a $6,434,901 firm-fixed-priced Stage II commercial operations and support savings initiative contract for 18 Ai7 Consolidated Automated Support System (CASS) Block II wiring kits, 2 CASS Block III wiring kits, 20 instrumentation kits, retrofit of 10 pre-production kits, 20 site installations, license fees and technical data. Work will be performed in St. Louis, Mo., and is expected to be completed in December 2004. Contract funds will not expire at the end of the current fiscal year. Stage I was competitively procured, and one offer was received. The Naval Air Systems Command Aircraft Division, Lakehurst, N.J., is the contracting activity (N68335-03-C-0131).

United Defense LP, Armament Systems Division, Minneapolis, Minn., is being awarded a $5,310,795 cost-plus-award-fee modification to a previously awarded contract (N00024-02-C-5406) to exercise an option for technical and engineering services relative to the upgrade of 122 MK 14 MOD 0 to MK 14 MOD 2 (Tactical Tomahawk) canisters and associated award-fee costs. The contractor will provide engineering, technical services, repair, requisition processing, procurement, and materials in support of logistics, system integration, product improvement and production for the upgrade. Work will be performed in Minneapolis, Minn., and is expected to be completed by March 2005. Contract funds will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.