FEMA awards $37.8M contract for NFIP Direct Transition and Steady State Support to Torrent Technologies, Inc
Contract Overview
Contract Amount: $37,794,763 ($37.8M)
Contractor: Torrent Technologies, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2021-03-26
End Date: 2022-09-29
Contract Duration: 552 days
Daily Burn Rate: $68.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: NFIP DIRECT TRANSITION AND STEADY STATE SUPPORT
Place of Performance
Location: KALISPELL, FLATHEAD County, MONTANA, 59901
State: Montana Government Spending
Plain-Language Summary
Department of Homeland Security obligated $37.8 million to TORRENT TECHNOLOGIES, INC. for work described as: NFIP DIRECT TRANSITION AND STEADY STATE SUPPORT Key points: 1. Contract value of $37.8 million for NFIP transition and steady state support. 2. Torrent Technologies, Inc. is the sole awardee. 3. The contract duration is 552 days. 4. The contract falls under Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds.
Value Assessment
Rating: fair
The contract value of $37.8 million for a 552-day period appears reasonable given the scope of supporting the NFIP transition and steady state operations. Benchmarking against similar PBM/third-party administration contracts 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, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially more favorable pricing for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential services like the NFIP.
Public Impact
Ensures continuity of National Flood Insurance Program (NFIP) operations. Supports the transition to a new system or phase for the NFIP. Provides essential administrative and potentially pharmacy benefit management services. Impacts policyholders and stakeholders of the NFIP.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for vendor lock-in if transition is complex.
Positive Signals
- Awarded under full and open competition.
- Supports a critical government program (NFIP).
Sector Analysis
This contract falls within the broader administrative and financial services sector, specifically related to insurance and benefits administration. Spending benchmarks for similar third-party administration contracts for large federal programs can vary significantly based on scope and complexity.
Small Business Impact
The provided data does not indicate any specific set-asides for small businesses. Further analysis would be needed to determine the extent of small business participation, if any, in the subcontracting plan.
Oversight & Accountability
Oversight would typically be managed by the Federal Emergency Management Agency (FEMA) to ensure Torrent Technologies, Inc. meets contract requirements and delivers services effectively. Performance reviews and regular reporting are standard accountability mechanisms.
Related Government Programs
- Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds
- Department of Homeland Security Contracting
- Federal Emergency Management Agency Programs
Risk Flags
- Contract duration is relatively short (552 days).
- Specific details on 'Pharmacy Benefit Management' component are unclear.
- No indication of small business participation.
- Potential risks associated with system transitions.
- Reliance on a single vendor for critical support.
Tags
pharmacy-benefit-management-and-other-th, department-of-homeland-security, mt, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $37.8 million to TORRENT TECHNOLOGIES, INC.. NFIP DIRECT TRANSITION AND STEADY STATE SUPPORT
Who is the contractor on this award?
The obligated recipient is TORRENT TECHNOLOGIES, INC..
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).
What is the total obligated amount?
The obligated amount is $37.8 million.
What is the period of performance?
Start: 2021-03-26. End: 2022-09-29.
What specific services are included under 'Pharmacy Benefit Management and Other Third Party Administration' for the NFIP?
The 'Pharmacy Benefit Management and Other Third Party Administration' likely encompasses a range of services critical to the NFIP's operational continuity. This could include claims processing, policyholder support, data management, financial reconciliation, and potentially the administration of prescription drug benefits for eligible individuals or specific program components. The exact scope would be detailed in the contract's statement of work.
What are the key performance indicators (KPIs) for this contract to ensure effective service delivery?
Key performance indicators for this contract would likely focus on operational efficiency, accuracy, and timeliness. Examples could include claim processing times, customer satisfaction ratings, data integrity metrics, system uptime for transition support, and adherence to regulatory compliance. Specific KPIs are crucial for measuring the contractor's performance against contract objectives and ensuring the smooth functioning of the NFIP.
How does this contract contribute to the long-term stability and modernization of the NFIP?
This contract plays a vital role in ensuring the NFIP's operational stability during a critical transition period and into its steady state. By providing expert third-party administration, it allows FEMA to focus on strategic program management and modernization efforts. The contractor's expertise in PBM and administration can streamline processes, improve efficiency, and potentially support the implementation of new technologies or policy changes, ultimately contributing to the program's long-term viability.
Industry Classification
NAICS: Finance and Insurance › Agencies, Brokerages, and Other Insurance Related Activities › Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds
Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HSFE60-16-R-0004
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1935 3RD AVE E # 100, KALISPELL, MT, 59901
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $55,368,489
Exercised Options: $37,794,763
Current Obligation: $37,794,763
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HSFE6016D0201
IDV Type: IDC
Timeline
Start Date: 2021-03-26
Current End Date: 2022-09-29
Potential End Date: 2022-09-29 00:00:00
Last Modified: 2025-05-30
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