FEMA awards $19.9M contract for insurance-related services to Insurance Services Office, Inc

Contract Overview

Contract Amount: $19,910,398 ($19.9M)

Contractor: Insurance Services Office, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-03-19

End Date: 2026-03-04

Contract Duration: 715 days

Daily Burn Rate: $27.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE CONTRACTOR SHALL FURNISH ALL PERSONNEL, SUPERVISION, EQUIPMENT, SUPPLIES, FACILITIES, MATERIALS, AND SERVICES (EXCEPT AS MAY BE EXPRESSLY SET FORTH IN THE CONTRACT AS FURNISHED BY THE GOVERNMENT) TO FULFILL THE REQUIREMENTS OF THIS PWS DATED 10/0

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $19.9 million to INSURANCE SERVICES OFFICE, INC. for work described as: THE CONTRACTOR SHALL FURNISH ALL PERSONNEL, SUPERVISION, EQUIPMENT, SUPPLIES, FACILITIES, MATERIALS, AND SERVICES (EXCEPT AS MAY BE EXPRESSLY SET FORTH IN THE CONTRACT AS FURNISHED BY THE GOVERNMENT) TO FULFILL THE REQUIREMENTS OF THIS PWS DATED 10/0 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a firm fixed-price definitive contract, providing cost certainty for the government. 3. The duration of the contract is 715 days, indicating a medium-term service requirement. 4. The contractor, Insurance Services Office, Inc., has a unique entity identifier of 524298. 5. The contract falls under 'All Other Insurance Related Activities' within the broader insurance sector. 6. The contract is managed by the Federal Emergency Management Agency (FEMA) under the Department of Homeland Security. 7. The contract value of $19.9M is spread over approximately two years.

Value Assessment

Rating: good

The contract value of $19.9 million for insurance-related services over approximately two years appears reasonable given the scope of services typically required by FEMA. Without specific details on the exact services rendered, a direct comparison to similar contracts is challenging. However, the firm fixed-price nature of the award suggests that the pricing was determined to be acceptable and predictable at the time of award. Benchmarking against market rates for specialized insurance services would provide further insight into the value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 3 bids suggests a moderate level of competition for this requirement. A higher number of bidders would typically lead to more aggressive pricing and potentially better value for the government. However, the fact that it was competed openly is a positive sign for price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation, leading to better utilization of public funds.

Public Impact

The primary beneficiaries are likely the Federal Emergency Management Agency (FEMA) and the Department of Homeland Security, who will receive essential insurance-related services. The services delivered are expected to support FEMA's mission in disaster preparedness, response, and recovery, potentially impacting policyholders and communities affected by disasters. The geographic impact is national, as FEMA operates across the United States and its territories. Workforce implications may include the need for specialized insurance expertise within the contractor's organization to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's past performance or potential future effectiveness.
The broad category of 'All Other Insurance Related Activities' could encompass a wide range of services, making it challenging to pinpoint specific areas of risk without further detail.
The contract duration of 715 days (approx. 2 years) is substantial, and any performance issues could have a prolonged impact.

Positive Signals

Awarded through full and open competition, indicating a structured and transparent procurement process.
The firm fixed-price contract type provides cost certainty for the government, mitigating budget risks.
The contractor, Insurance Services Office, Inc., is likely experienced in insurance-related activities, given the nature of the contract.
The contract is managed by a major federal agency (FEMA), suggesting a level of oversight and importance.

Sector Analysis

The insurance industry is a vast and critical sector, encompassing a wide range of services from risk assessment and underwriting to claims processing and actuarial analysis. Federal spending in this area often supports government functions related to disaster insurance, healthcare, and financial regulation. Comparable spending benchmarks are difficult to establish without knowing the precise nature of the insurance services required, but FEMA's overall budget for disaster-related programs runs into billions of dollars annually, making this contract a component of a much larger federal insurance ecosystem.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The impact on the broader small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses as subcontractors for specialized services not covered by their core capabilities.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Emergency Management Agency (FEMA) contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract structure, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated by the contract award being made under full and open competition, with details typically available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

National Flood Insurance Program
Disaster Relief Fund
Federal Insurance and Mitigation Administration Programs
Department of Homeland Security Procurement

Risk Flags

Contract awarded under full and open competition, but only 3 bids received, potentially indicating limited market interest or high barriers to entry.
The specific nature of 'All Other Insurance Related Activities' is broad, requiring careful monitoring to ensure services align with FEMA's needs and deliver value.
Firm fixed-price contracts can sometimes lead to scope creep if not managed tightly, although the fixed price itself caps government liability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $19.9 million to INSURANCE SERVICES OFFICE, INC.. THE CONTRACTOR SHALL FURNISH ALL PERSONNEL, SUPERVISION, EQUIPMENT, SUPPLIES, FACILITIES, MATERIALS, AND SERVICES (EXCEPT AS MAY BE EXPRESSLY SET FORTH IN THE CONTRACT AS FURNISHED BY THE GOVERNMENT) TO FULFILL THE REQUIREMENTS OF THIS PWS DATED 10/0

Who is the contractor on this award?

The obligated recipient is INSURANCE SERVICES OFFICE, 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 $19.9 million.

What is the period of performance?

Start: 2024-03-19. End: 2026-03-04.

What specific insurance-related services are being procured under this contract?

The provided data categorizes the contract under 'All Other Insurance Related Activities' (nd: 'All Other Insurance Related Activities') and identifies the contractor as 'INSURANCE SERVICES OFFICE, INC.' (co: 'INSURANCE SERVICES OFFICE, INC.'). While the specific services are not detailed in the provided snippet, the contractor's name suggests expertise in insurance data, analytics, or consulting. These services could range from actuarial support, risk modeling, policy analysis, claims data management, or advisory services related to insurance programs. The Federal Emergency Management Agency (FEMA) often requires specialized expertise to manage its complex insurance-related programs, such as the National Flood Insurance Program, and to assess risks associated with natural disasters. Further details on the Performance Work Statement (PWS) would be necessary to fully understand the scope of services.

How does the contract value of $19.9 million compare to historical spending on similar services by FEMA?

The contract value of $19.9 million is for a period of 715 days (approximately 1.96 years), making the annual value approximately $10.15 million. Without historical data specific to 'All Other Insurance Related Activities' procured by FEMA, a direct comparison is difficult. FEMA's overall budget fluctuates significantly based on disaster activity. However, for context, FEMA's annual budget can range from tens to hundreds of billions of dollars, with a substantial portion allocated to disaster relief and insurance programs. If this contract supports a critical, ongoing function rather than a specific disaster response, its value might be more stable year-over-year. Benchmarking against similar service contracts awarded to other federal agencies or even private sector entities for comparable insurance consulting or data services would provide a better understanding of its relative cost-effectiveness.

What are the key performance indicators (KPIs) for this contract, and how will performance be measured?

The provided data does not include specific Key Performance Indicators (KPIs) or details on how performance will be measured for this contract. Typically, for a firm fixed-price contract, performance is assessed against the requirements outlined in the Performance Work Statement (PWS). This would likely include metrics related to the quality, timeliness, and accuracy of the insurance-related services delivered. For example, if the contract involves data analysis, KPIs might include data accuracy rates or report delivery deadlines. If it involves consulting, KPIs could relate to the quality of advice provided or adherence to project milestones. The contracting officer's representative (COR) at FEMA would be responsible for monitoring performance and ensuring the contractor meets all contractual obligations.

What is the track record of Insurance Services Office, Inc. with federal government contracts, particularly with FEMA?

The provided data identifies 'INSURANCE SERVICES OFFICE, INC.' (co: 'INSURANCE SERVICES OFFICE, INC.') with a Unique Entity Identifier (UEI) of '524298'. While this confirms the contractor's identity, it does not provide details on their specific track record with federal contracts, including past performance ratings, previous contract values, or any history of disputes or awards with FEMA or other agencies. A comprehensive assessment of the contractor's track record would require accessing federal procurement databases like SAM.gov or FPDS, which contain historical contract data, including past performance information and any reported issues. Given the nature of the contract, it is reasonable to assume that Insurance Services Office, Inc. possesses relevant expertise in the insurance domain.

What are the potential risks associated with this contract, and what mitigation strategies are in place?

Potential risks for this contract could include the contractor failing to deliver the required insurance-related services with the expected quality or timeliness, potential cost overruns if the scope is not well-defined (though mitigated by firm fixed-price), or reliance on a single contractor for critical functions. Given the contract is for 'All Other Insurance Related Activities,' a risk could also be a misalignment between the services provided and FEMA's evolving needs, especially in the dynamic field of disaster management and insurance. Mitigation strategies typically involve robust contract oversight by FEMA, clear PWS requirements, regular performance reviews, and potentially contingency planning for service disruptions. The firm fixed-price nature itself is a risk mitigation strategy against cost escalation for the government.

How does this contract align with FEMA's broader mission and strategic objectives?

This contract, valued at $19.9 million and awarded to Insurance Services Office, Inc. for insurance-related activities, directly supports FEMA's core mission of helping people before, during, and after disasters. Insurance is a critical component of disaster recovery and mitigation. Services procured under this contract could aid FEMA in understanding risk exposure, developing insurance-related policies, managing data for insurance programs (like the National Flood Insurance Program), or providing actuarial support for disaster funding. By ensuring access to specialized insurance expertise, FEMA can more effectively manage its financial exposure, promote resilience, and facilitate recovery efforts, thereby aligning with its strategic objectives of reducing the impact of disasters on communities and the nation.

Industry Classification

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

Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 70FA6023R00000011

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Verisk Analytics, Inc.

Address: 545 WASHINGTON BLVD FL 14-22, JERSEY CITY, NJ, 07310

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

Financial Breakdown

Contract Ceiling: $72,459,717

Exercised Options: $20,854,562

Current Obligation: $19,910,398

Actual Outlays: $15,279,611

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline