Agriculture Dept. Spends $110M on Insurance Services with Proctor Financial Inc. Over 4 Years

Contract Overview

Contract Amount: $110,489,400 ($110.5M)

Contractor: Proctor Financial Inc.

Awarding Agency: Department of Agriculture

Start Date: 2009-07-31

End Date: 2013-08-31

Contract Duration: 1,492 days

Daily Burn Rate: $74.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: INSURANCE SERVICES

Place of Performance

Location: SAINT LOUIS, ST. LOUIS (CITY) County, MISSOURI, 63103

State: Missouri Government Spending

Plain-Language Summary

Department of Agriculture obligated $110.5 million to PROCTOR FINANCIAL INC. for work described as: INSURANCE SERVICES Key points: 1. The contract awarded to Proctor Financial Inc. represents a significant investment in insurance services. 2. Competition was full and open, suggesting a potentially competitive bidding process. 3. The contract duration of over 4 years warrants scrutiny for potential price escalation. 4. Spending in the Insurance Agencies and Brokerages sector can vary widely based on specific needs.

Value Assessment

Rating: fair

The total award amount of $110.49 million over approximately 4 years suggests a substantial contract. Benchmarking against similar large-scale insurance service contracts would be necessary to definitively assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically allows for the widest range of potential bidders. This method aims to foster price discovery and potentially secure better pricing.

Taxpayer Impact: The $110.49 million expenditure represents taxpayer funds allocated to securing necessary insurance services for the Department of Agriculture.

Public Impact

Taxpayers funded over $110 million for insurance services, impacting the Department of Agriculture's operations. The contract duration of over 4 years means sustained financial commitment. The specific nature of the insurance services impacts rural housing programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration
Potential for price creep over time

Positive Signals

Full and open competition
Clear contract end date

Sector Analysis

This contract falls within the Insurance Agencies and Brokerages sector. Spending in this sector is highly dependent on the specific risks being insured and the scale of operations requiring coverage.

Small Business Impact

Information on small business participation is not provided in the data. Further analysis would be needed to determine if small businesses were involved or had opportunities to participate.

Oversight & Accountability

The contract was awarded by the Department of Agriculture, specifically the Rural Housing Service. Oversight would involve monitoring contract performance and adherence to terms by both the agency and Proctor Financial Inc.

Related Government Programs

Insurance Agencies and Brokerages
Department of Agriculture Contracting
Rural Housing Service Programs

Risk Flags

Long contract duration
Lack of specific service details
Potential for price escalation over time
No small business participation data

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $110.5 million to PROCTOR FINANCIAL INC.. INSURANCE SERVICES

Who is the contractor on this award?

The obligated recipient is PROCTOR FINANCIAL INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Rural Housing Service).

What is the total obligated amount?

The obligated amount is $110.5 million.

What is the period of performance?

Start: 2009-07-31. End: 2013-08-31.

What specific insurance coverage was procured, and how does it align with the Rural Housing Service's mission?

The data indicates the contract is for 'INSURANCE SERVICES' with NAICS code 524210 (Insurance Agencies and Brokerages). While the exact coverage isn't detailed, it's reasonable to infer it supports the Rural Housing Service's mandate to ensure the stability and availability of housing in rural areas, potentially covering risks associated with housing stock, loans, or related assets.

Given the $110.49 million award over 4 years, what is the estimated annual cost, and how does it compare to industry benchmarks for similar services?

The estimated annual cost is approximately $27.6 million ($110,489,400 / 4 years). Without specific details on the type and scope of insurance, direct benchmarking is difficult. However, this figure represents a substantial allocation, and comparison with government or private sector contracts for large-scale property, liability, or specialized insurance would be needed to assess its competitiveness.

What mechanisms were in place to ensure fair pricing and prevent overpayment throughout the contract's 4-year duration?

The contract utilized 'FULL AND OPEN COMPETITION,' which is a primary mechanism for achieving fair pricing through market forces. The 'FIRM FIXED PRICE' contract type also helps by establishing a set price, limiting the government's exposure to cost overruns. However, ongoing monitoring for potential scope creep or market shifts affecting the initial price justification would be prudent.

Industry Classification

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

Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Brown & Brown Inc. (UEI: 004429478)

Address: 200 KIRTS BLVD STE 100, TROY, MI, 11

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

Financial Breakdown

Contract Ceiling: $535,867,048

Exercised Options: $141,274,100

Current Obligation: $110,489,400

Contract Characteristics

Multi-Year Contract: Yes

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline