DOT's FAA Spends $23.8M on Aviation Liability Insurance Program with Alliant Insurance Services
Contract Overview
Contract Amount: $23,768,478 ($23.8M)
Contractor: Alliant Insurance Services, Inc.
Awarding Agency: Department of Transportation
Start Date: 2015-02-09
End Date: 2020-07-01
Contract Duration: 1,969 days
Daily Burn Rate: $12.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: THE CONTRACTOR SHALL PROVIDE TECHNICAL ASSISTANCE TO THE FCT PROGRAM OFFICE IN ALL ASPECTS OF AN AVIATION LIABILITY INSURANCE PROGRAM. THE PROGRAM SHALL PROVIDE FOR A STRUCTURED APPROACH FOR ACQUIRING IGF::CT::IGF
Place of Performance
Location: WALNUT CREEK, CONTRA COSTA County, CALIFORNIA, 94595
Plain-Language Summary
Department of Transportation obligated $23.8 million to ALLIANT INSURANCE SERVICES, INC. for work described as: THE CONTRACTOR SHALL PROVIDE TECHNICAL ASSISTANCE TO THE FCT PROGRAM OFFICE IN ALL ASPECTS OF AN AVIATION LIABILITY INSURANCE PROGRAM. THE PROGRAM SHALL PROVIDE FOR A STRUCTURED APPROACH FOR ACQUIRING IGF::CT::IGF Key points: 1. Contract awarded through full and open competition, indicating a competitive bidding process. 2. The contract value of $23.8 million covers a significant period for aviation liability insurance. 3. Focus on technical assistance for an aviation liability insurance program suggests a specialized need. 4. The insurance sector is critical for managing risks in aviation, a high-stakes industry.
Value Assessment
Rating: good
The contract value of $23.8 million for aviation liability insurance appears reasonable given the scope and duration. Benchmarking against similar large-scale insurance programs would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair value.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely led to a more cost-effective solution for the aviation liability insurance program.
Public Impact
Ensures continued operation and risk management for the Federal Aviation Administration's aviation programs. Supports the safety and stability of the aviation industry by providing essential insurance coverage. The technical assistance component ensures the program is well-managed and effective. Impacts airlines, airports, and other aviation stakeholders who rely on the FAA's oversight.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if technical assistance needs exceed initial estimates.
- Risk of vendor lock-in if specialized knowledge is not adequately transferred.
- Dependence on a single contractor for critical insurance program management.
Positive Signals
- Awarded through full and open competition, maximizing potential for competitive pricing.
- Firm Fixed Price contract type helps control costs and provides budget certainty.
- Long contract duration suggests a stable, ongoing need for these services.
Sector Analysis
The insurance sector, particularly for specialized areas like aviation liability, is crucial for risk mitigation. Government spending in this area reflects the need to protect public assets and ensure operational continuity in critical industries.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'sb' is false. Further analysis would be needed to determine if small businesses were excluded or if the contract's scope inherently favored larger, specialized firms.
Oversight & Accountability
The contract was awarded by the Department of Transportation's Federal Aviation Administration, suggesting oversight from relevant federal agencies. The firm fixed price structure provides some level of cost control, but ongoing monitoring of technical assistance is crucial.
Related Government Programs
- Insurance Agencies and Brokerages
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Lack of specific performance metrics for technical assistance.
- Potential for vendor lock-in due to specialized knowledge.
- No indication of small business participation.
- Contract duration is long, requiring sustained oversight.
Tags
insurance-agencies-and-brokerages, department-of-transportation, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $23.8 million to ALLIANT INSURANCE SERVICES, INC.. THE CONTRACTOR SHALL PROVIDE TECHNICAL ASSISTANCE TO THE FCT PROGRAM OFFICE IN ALL ASPECTS OF AN AVIATION LIABILITY INSURANCE PROGRAM. THE PROGRAM SHALL PROVIDE FOR A STRUCTURED APPROACH FOR ACQUIRING IGF::CT::IGF
Who is the contractor on this award?
The obligated recipient is ALLIANT INSURANCE SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $23.8 million.
What is the period of performance?
Start: 2015-02-09. End: 2020-07-01.
What specific metrics are used to evaluate the effectiveness of the technical assistance provided under this contract?
The contract details do not specify performance metrics for the technical assistance. Effective oversight would require the FAA to establish clear deliverables, key performance indicators (KPIs), and regular reviews to assess the quality and impact of the contractor's support in managing the aviation liability insurance program.
How does the $23.8 million expenditure compare to historical spending on similar aviation insurance programs?
Without historical data or benchmarks for comparable aviation liability insurance programs, it is difficult to definitively assess if $23.8 million is high or low. A comparative analysis with similar contracts, considering scope, duration, and market conditions, would be necessary to determine cost-effectiveness.
What are the potential risks associated with relying on a single contractor for technical assistance in managing a complex insurance program?
Relying on a single contractor for technical assistance can create risks such as knowledge silos, reduced bargaining power in future negotiations, and potential disruption if the contractor faces financial or operational issues. Mitigating these risks requires robust contract management, knowledge transfer clauses, and contingency planning.
Industry Classification
NAICS: Finance and Insurance › Agencies, Brokerages, and Other Insurance Related Activities › Insurance Agencies and Brokerages
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 8
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1301 DOVE ST STE 200, NEWPORT BEACH, CA, 92660
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $23,768,478
Exercised Options: $23,768,478
Current Obligation: $23,768,478
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-02-09
Current End Date: 2020-07-01
Potential End Date: 2020-07-01 00:00:00
Last Modified: 2020-04-28
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