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COMMERCE BUSINESS DAILY ISSUE OF NOVEMBER 26,1996 PSA#1729

Defense Supply Service-Washington, 5200 Army Pentagon, Washington, DC 20310-5200

Q -- HEALTH CARE SERVICES - UNIFORMED SERVICES TREATMENT FACILITIES Contact Point, Ms. Diane Harler, 703/681-9534, Contracting Officer, Ms. Christine Thompson, 703/681-1116. Defense Supply Service-Washington, on behalf of the Department of Defense and in accordance with Congressional Mandate P.L. 104-102, intends to issue a sole source contract to Sisters of Charity of the Incarnate Word of Houston, TX who shall act as a designated provider to provide managed health care services as a commercial item to reliant uniformed services beneficiaries that choose to enroll. The services provided will replicate the services provided under the TRICARE Prime benefit and cost share structure, which is a health maintenance organization (HMO) like option. Payment of the services will be through a capitation methodology based on the experience of the offeror and market rates of other health care entities providing similar services. All categories of beneficiaries will be eligible to enroll in the program, except active duty personnel. It is the Government's intent to negotiate a 12-month contract with three 12-month option periods. The total estimated cost is $329,649,864. This announcement is for information purposes only and is not a request for proposals. See Numbered Note 22. (327)

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