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Pentagon Issues Draft RFP for T-5 TRICARE Managed Care Support Contracts

The Department of Defense has issued a draft solicitation for two fifth-generation TRICARE managed care support contracts that could be worth more than $58B combined, Bloomberg Government reported Monday.

DoD wants the T-5 contracts to provide health care services for about 9M service members, veterans and their dependents enrolled in the country’s TRICARE system and plans to carry out a full and open competition for two contracts to support the delivery of services in TRICARE West and East regions.

A draft request for proposals notice posted Friday says the Defense Health Agency is asking industry to provide feedback on the draft RFP to help inform managed care support requirements.

Centene’s (NYSE: CNC) Health Net subsidiary is the incumbent on the potential $17.5B TRICARE West contract, which will expire in December 2023. Humana’s military healthcare services subsidiary holds the potential $39.9B TRICARE East contract, which will end in April 2022.

The Pentagon will accept responses to the draft solicitation by Sept. 18 and intends to hold virtual industry days on Sept. 14 and 15.

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