VA awards $58.3M contract for Actuary Support Services to Milliman, Inc

Contract Overview

Contract Amount: $58,339,781 ($58.3M)

Contractor: Milliman, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-10-01

End Date: 2025-03-31

Contract Duration: 2,008 days

Daily Burn Rate: $29.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: Other

Official Description: ACTUARY SUPPORT SERVICES

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98101

State: Washington Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $58.3 million to MILLIMAN, INC. for work described as: ACTUARY SUPPORT SERVICES Key points: 1. Contract awarded to Milliman, Inc. for actuarial support. 2. The Department of Veterans Affairs is the contracting agency. 3. The contract has a duration of 2008 days. 4. This contract falls under 'All Other Insurance Related Activities'. 5. The total award amount is $58,339,780.62.

Value Assessment

Rating: good

The award amount of $58.3M over approximately 5.5 years suggests a reasonable annual spend for specialized actuarial services. Benchmarking against similar contracts for actuarial consulting would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method is generally expected to yield fair market prices and good value for the government.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary actuarial support services.

Public Impact

Ensures continued actuarial analysis for VA programs. Supports financial planning and risk management for the VA. Impacts beneficiaries through sound financial management of insurance-related activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Full and open competition
Long-term contract providing stability

Sector Analysis

Actuarial services are crucial for insurance providers, including government agencies like the VA, to manage risk, set premiums, and ensure financial solvency. Spending in this sector is driven by regulatory requirements and the complexity of insurance products.

Small Business Impact

There is no indication that small businesses were involved in this contract award, as it was awarded to a single large entity. Further analysis would be needed to determine if subcontracting opportunities exist.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract to ensure the quality and timeliness of actuarial support services provided by Milliman, Inc.

Related Government Programs

All Other Insurance Related Activities
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $58.3 million to MILLIMAN, INC.. ACTUARY SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is MILLIMAN, INC..

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $58.3 million.

What is the period of performance?

Start: 2019-10-01. End: 2025-03-31.

What specific actuarial services are included in this contract?

The contract details are limited in the provided data. However, 'Actuary Support Services' typically encompass a range of activities such as financial modeling, risk assessment, premium setting analysis, reserve calculations, and compliance with regulatory requirements for insurance and benefits programs.

Are there any identified risks associated with Milliman, Inc. or the scope of work?

No specific risks are detailed in the provided data. However, general risks for such contracts could include potential cost overruns if the scope expands, reliance on a single vendor for critical expertise, or challenges in adapting to evolving regulatory landscapes.

How does this contract contribute to the VA's overall mission effectiveness?

This contract is vital for the VA's financial health and operational effectiveness by ensuring accurate actuarial analysis. This supports sound financial planning, appropriate resource allocation, and the sustainable management of VA's insurance and benefits programs, ultimately benefiting veterans.

Industry Classification

NAICS: Finance and Insurance › Agencies, Brokerages, and Other Insurance Related Activities › All Other Insurance Related Activities

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C10G19R0041

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 1301 5TH AVE STE 3800, SEATTLE, WA, 98101

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $65,570,326

Exercised Options: $58,339,781

Current Obligation: $58,339,781

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline