VA awards $20M Actuarial Support Services contract to Milliman, Inc. for 486 days

Contract Overview

Contract Amount: $20,041,777 ($20.0M)

Contractor: Milliman, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-04-01

End Date: 2026-07-31

Contract Duration: 486 days

Daily Burn Rate: $41.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ACTUARIAL SUPPORT SERVICES.

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98101

State: Washington Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $20.0 million to MILLIMAN, INC. for work described as: ACTUARIAL SUPPORT SERVICES. Key points: 1. Contract awarded to Milliman, Inc. for actuarial support. 2. The contract value is approximately $20 million. 3. The period of performance is 486 days. 4. The contract was not competed. 5. The awarding agency is the Department of Veterans Affairs.

Value Assessment

Rating: fair

The contract value of $20M over 486 days suggests a significant investment in actuarial services. Benchmarking against similar contracts is difficult without more specific service details, but the cost appears substantial for the duration.

Cost Per Unit: $41,238 per day (estimated)

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive bidding process.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these actuarial services.

Public Impact

Veterans' benefits and healthcare planning may be impacted by the quality of actuarial support. The Department of Veterans Affairs relies on accurate actuarial data for financial planning and resource allocation. Transparency in sole-source contract awards is crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High per-day cost
Sole-source award

Positive Signals

Definitive contract type
Firm fixed price

Sector Analysis

Actuarial support services are critical for insurance and financial planning within government agencies. This contract falls under 'All Other Insurance Related Activities,' a sector that requires specialized expertise to manage risk and forecast financial needs accurately.

Small Business Impact

There is no indication that small businesses were involved in this contract, as it was awarded solely to Milliman, Inc. Further analysis would be needed to determine if subcontracting opportunities were explored.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the services provided are necessary and the pricing is reasonable. The VA should document the justification for not competing this requirement.

Related Government Programs

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

Risk Flags

Lack of competition
Sole-source award
Potential for overpayment due to no competitive bidding
High estimated daily cost

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $20.0 million to MILLIMAN, INC.. ACTUARIAL 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 $20.0 million.

What is the period of performance?

Start: 2025-04-01. End: 2026-07-31.

What specific actuarial services are being provided under this contract, and how do they directly support the VA's mission?

The contract is for 'Actuarial Support Services.' While the specific services are not detailed, they likely involve complex financial modeling, risk assessment, and forecasting related to veterans' benefits, healthcare programs, and insurance liabilities. These services are crucial for the VA's ability to manage its financial obligations and plan for future healthcare needs and benefit payouts.

What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair pricing?

The justification for a sole-source award is not provided in the data. Typically, this occurs when only one vendor possesses the unique capabilities or expertise required. Without competition, the VA must rely on robust internal cost analysis or independent government cost estimates to ensure fair and reasonable pricing, which is a critical oversight function.

How does the estimated daily cost of $41,238 compare to industry benchmarks for similar actuarial support services?

The estimated daily cost of $41,238 is substantial. Benchmarking against industry standards for highly specialized actuarial consulting is challenging without more granular data on the specific services rendered. However, given the lack of competition, it is imperative that the VA has validated this rate against comparable government or commercial contracts to ensure it represents good value for taxpayer dollars.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C10G25R0027

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $20,041,777

Exercised Options: $20,041,777

Current Obligation: $20,041,777

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline