The race has started for contractors envisioning to snag two of the Defense Department's most lucrative military contracts: Tricare East and Tricare West, which provides health services to more than nine million service members, retirees and their families. DoD released a draft request for proposal (RFP) on Aug. 28 for Tricare's fifth generation (T-5) of contracts, which combined may be worth up to more than $58B. The contracts are expected to be awarded in 2021. Currently, the Tricare East Region is held by Humana Military Healthcare Services. Tricare West contract is managed by Health Net Federal Services. Those were awarded in July 2016 - worth up to $57.7B combined. Humana's contract ends in April 2022. Health Net's contract ends in December 2023. The contract timing is off-kilter because of a disastrous contract turnover in 2017 between the company that previously managed the Tricare West region, UnitedHealthcare and Health Net and Humana, which shared parts of the region before it was reconfigured to its current area. Pentagon officials have said they have implemented changes, including updating policy manuals and streamlining processes to ensure a smooth transition for the T-5 contracts. As part of the bidding process, companies will be allowed to bid for both regions, but can only win one contract. The contracts are expected to begin in January 2024, and, if all options are executed, will end December 2031. According to Bloomberg Government, DoD will hold industry days for interested bidders Sept. 14-15. Responses to the draft RFP are due by Sept. 18. (Military.com 09/02/20) https://www.military.com/daily-news/2020/09/02/two-of-dods-biggest-military-contracts-are-now-grabs.html
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