CCN R2 Contract Extension   2

Background
The Department of Veterans Affairs (VA), specifically the Veterans Health Administration (VHA) Office of Veteran Community Care (VCC), is seeking approval for a sole-source contract extension for the Community Care Network (CCN) Region 2. This justification is necessary due to unusual and compelling urgency, allowing the current contractor to continue providing essential healthcare services to Veterans in Region 2, which includes states such as Ohio, Kentucky, Indiana, Illinois, Missouri, Kansas, Nebraska, Iowa, Wisconsin, Michigan, Minnesota, North Dakota, and South Dakota.

The current contract is set to expire on September 30, 2026.

Work Details
The CCN Region 2 contract requires the Third-Party Administrator (TPA) to maintain a network of licensed healthcare providers and deliver a variety of services including medical, surgical, complementary and integrative health services (CIHS), durable medical equipment (DME), pharmacy services, and dental services. The contractor must ensure coordinated and timely access to high-quality care for Veterans when VA Medical Centers cannot provide necessary care within specified timeframes or geographic distances.

This extension will cover performance from October 1, 2026, through September 30, 2027.

Period of Performance
The contract extension will be performed from October 1, 2026, through September 30, 2027. There are provisions for two additional one-year option periods if necessary.

Place of Performance
The services will be performed across Region 2 which includes Ohio, Kentucky, Indiana, Illinois, Missouri, Kansas, Nebraska, Iowa, Wisconsin, Michigan, Minnesota, North Dakota, and South Dakota.

Bidder Requirements
The justification indicates that only the current CCN Region 2 contractor possesses the unique qualifications and established infrastructure necessary to meet the immediate needs of the VHA-VCC without interruption. New contractors would require a minimum of 12-18 months for implementation before they could deliver healthcare services.

Incumbent Analysis (see Incumbents section for more detail)
The prior awards for CCN Region 2 indicate a confirmed incumbent, with Optum Public Sector Solutions awarded contract 36C79119D0005 (01/18/19–09/30/27) valued at $90,935,722,045, and a related Region 2 option-year task order (36C79119D0005-36C10G26F0002) valued at $5,473,414,108 for 10/01/25–09/30/26. The described work—operating the CCN provider network and administering out-of-network and urgent care services, including credentialing/accreditation updates and claims processing—aligns closely with the current extension’s requirement to maintain access to community providers across Region 2 through similar third-party administrator functions.