NFIP Direct Servicing Agent Contract Modified for Option Period II, Valued at $22.45M
Contract Overview
Contract Amount: $22,449,212 ($22.4M)
Contractor: National Flood Services LLC
Awarding Agency: Department of Homeland Security
Start Date: 2014-03-01
End Date: 2015-02-28
Contract Duration: 364 days
Daily Burn Rate: $61.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::CL::IGF NATIONAL FLOOD INSURANCE PROGRAM. DIRECT SERVICING AGENT- MODIFICATION TO EXERCISE OPTION PERIOD II
Place of Performance
Location: FARMINGTON HILLS, OAKLAND County, MICHIGAN, 48334
State: Michigan Government Spending
Plain-Language Summary
Department of Homeland Security obligated $22.4 million to NATIONAL FLOOD SERVICES LLC for work described as: IGF::CL::IGF NATIONAL FLOOD INSURANCE PROGRAM. DIRECT SERVICING AGENT- MODIFICATION TO EXERCISE OPTION PERIOD II Key points: 1. Contract value of $22.45M for Option Period II. 2. National Flood Services LLC is the incumbent agent. 3. Risk of service disruption if contract is not managed effectively. 4. Spending falls within the 'All Other Insurance Related Activities' sector.
Value Assessment
Rating: good
The contract value of $22.45M for a 12-month period appears reasonable given the specialized nature of flood insurance servicing. Benchmarking against similar government contracts for agent services would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive pricing process. The modification to exercise an option period indicates the initial competition was successful in selecting a capable provider.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential flood insurance services.
Public Impact
Ensures continued operation of the National Flood Insurance Program's direct servicing functions. Impacts policyholders through uninterrupted service for flood insurance. Supports the government's role in managing flood risk and providing insurance.
Waste & Efficiency Indicators
Waste Risk Score: 100 / 10
Warning Flags
- Potential for vendor lock-in if competition is not re-established for future periods.
- Reliance on a single vendor for critical program operations.
Positive Signals
- Successful exercise of an option period indicates satisfactory performance.
- Competitive award process promotes value for money.
Sector Analysis
This contract falls under 'All Other Insurance Related Activities,' a broad category. Benchmarking against other government insurance servicing contracts is difficult due to the specificity of flood insurance.
Small Business Impact
The data does not indicate any specific provisions or participation by small businesses in this contract.
Oversight & Accountability
The Federal Emergency Management Agency (FEMA) oversees this contract. Oversight would involve monitoring performance, ensuring compliance with terms, and managing the option period effectively.
Related Government Programs
- All Other Insurance Related Activities
- Department of Homeland Security Contracting
- Federal Emergency Management Agency Programs
Risk Flags
- Vendor Lock-in
- Service Disruption Risk
- Reliance on Single Provider
Tags
all-other-insurance-related-activities, department-of-homeland-security, mi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $22.4 million to NATIONAL FLOOD SERVICES LLC. IGF::CL::IGF NATIONAL FLOOD INSURANCE PROGRAM. DIRECT SERVICING AGENT- MODIFICATION TO EXERCISE OPTION PERIOD II
Who is the contractor on this award?
The obligated recipient is NATIONAL FLOOD SERVICES LLC.
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 $22.4 million.
What is the period of performance?
Start: 2014-03-01. End: 2015-02-28.
What is the total value of the NFIP servicing contract across all option periods exercised to date?
The provided data only details the value for Option Period II ($22.45M). To determine the total value across all exercised option periods, a comprehensive review of the contract's history, including all modifications and exercised options, would be necessary. This would require access to the full contract file.
What are the key performance indicators (KPIs) used to evaluate National Flood Services LLC's performance under this contract?
The provided data does not specify the key performance indicators (KPIs) for this contract. Typically, KPIs for servicing agents would include metrics such as policy processing times, customer service response rates, accuracy of data entry, and adherence to program guidelines. FEMA would have established these KPIs in the contract.
How does the cost of this contract compare to the estimated cost of performing these services in-house by FEMA?
The provided data does not include information on the cost of performing these services in-house. A cost-benefit analysis comparing the contract price to the potential cost of government in-house operations would be needed to assess this. Factors like specialized systems, personnel, and economies of scale would influence such a comparison.
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: AON Global Limited (UEI: 218140345)
Address: 555 CORPORATE DR, 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: $22,449,212
Exercised Options: $22,449,212
Current Obligation: $22,449,212
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HSFEHQ11D0279
IDV Type: IDC
Timeline
Start Date: 2014-03-01
Current End Date: 2015-02-28
Potential End Date: 2015-02-28 00:00:00
Last Modified: 2016-03-22
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