NFIP Task Order Funds Servicing Agent for 2003-2005, Totaling $24.4M

Contract Overview

Contract Amount: $24,410,885 ($24.4M)

Contractor: CSC Covansys Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2013-03-11

End Date: 2014-02-28

Contract Duration: 354 days

Daily Burn Rate: $69.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF NATIONAL FLOOD INSURANCE PROGRAM. DIRECT SERVICING AGENT- TASK ORDER TO FUND CLIN 2003, 2004, 2005.

Place of Performance

Location: FARMINGTON HILLS, OAKLAND County, MICHIGAN, 48334, UNITED STATES OF AMERICA

State: Michigan Government Spending

Plain-Language Summary

Department of Homeland Security obligated $24.4 million to CSC COVANSYS CORPORATION for work described as: IGF::CT::IGF NATIONAL FLOOD INSURANCE PROGRAM. DIRECT SERVICING AGENT- TASK ORDER TO FUND CLIN 2003, 2004, 2005. Key points: 1. The National Flood Insurance Program (NFIP) utilized a task order to fund its direct servicing agent for policy years 2003-2005. 2. CSC Covansys Corporation was awarded the contract, indicating a specific vendor was chosen for these services. 3. The contract was awarded under a full and open competition, suggesting a competitive bidding process. 4. The total award amount was $24.4 million, providing a clear financial scope for the services rendered.

Value Assessment

Rating: fair

The contract value of $24.4 million for a 354-day period appears reasonable for servicing agent tasks within the NFIP. Benchmarking against similar large-scale insurance servicing contracts would provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which typically allows for the widest range of potential bidders and can lead to better price discovery. The specific details of the bidding process and the number of bids received would further clarify the effectiveness of the competition.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for contract awards.

Public Impact

Ensures continued operation of the National Flood Insurance Program's direct servicing agent functions. Supports policyholders by maintaining essential insurance-related activities. Provides a significant contract award to a specific vendor, impacting the insurance services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is relatively short (354 days).
Specific details on performance metrics are not provided.
Potential for vendor lock-in if not managed carefully.

Positive Signals

Awarded under full and open competition.
Clear total award amount provided.
Task order structure allows for focused service delivery.

Sector Analysis

This contract falls within the 'All Other Insurance Related Activities' sector. Spending in this area is crucial for government functions that support private sector insurance operations, particularly for specialized programs like flood insurance.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The task order structure suggests a defined scope of work. Oversight would focus on ensuring CSC Covansys Corporation met the terms of the contract and delivered services effectively within the specified timeframe and budget.

Related Government Programs

All Other Insurance Related Activities
Department of Homeland Security Contracting
Federal Emergency Management Agency Programs

Risk Flags

Lack of detailed performance metrics.
Short contract duration may indicate a stop-gap measure.
Potential for limited vendor innovation due to task order structure.
No explicit mention of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $24.4 million to CSC COVANSYS CORPORATION. IGF::CT::IGF NATIONAL FLOOD INSURANCE PROGRAM. DIRECT SERVICING AGENT- TASK ORDER TO FUND CLIN 2003, 2004, 2005.

Who is the contractor on this award?

The obligated recipient is CSC COVANSYS CORPORATION.

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 $24.4 million.

What is the period of performance?

Start: 2013-03-11. End: 2014-02-28.

What specific services were included under this task order for the NFIP direct servicing agent?

The task order was to fund the direct servicing agent for the National Flood Insurance Program for policy years 2003, 2004, and 2005. This likely encompassed a range of administrative and operational support functions essential for managing flood insurance policies, such as policy issuance, claims processing support, customer service, and data management, ensuring the program's continuity.

How did the full and open competition impact the final price paid for these servicing agent services?

Full and open competition is designed to solicit bids from all interested and qualified sources, theoretically driving down prices through market forces. While the $24.4 million award suggests a significant investment, the competitive process likely ensured that the price was justifiable relative to the services provided, preventing potential overpayment that might occur with less competitive procurement methods.

What is the long-term effectiveness of using task orders for ongoing servicing agent needs within the NFIP?

Task orders can be effective for addressing specific, time-bound needs within a larger program like the NFIP. However, for ongoing, recurring needs like servicing agent functions, a series of short-term task orders might lead to inefficiencies or missed opportunities for longer-term strategic partnerships and cost savings. A more comprehensive contract strategy might be beneficial.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

Address: 32605 W 12 MILE RD STE 250, FARMINGTON HILLS, MI, 48334

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

Financial Breakdown

Contract Ceiling: $24,410,885

Exercised Options: $24,410,885

Current Obligation: $24,410,885

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSFEHQ11D0279

IDV Type: IDC

Timeline