FEMA Obligates $36.3M for NFIP Option IV, Extending National Flood Services Contract
Contract Overview
Contract Amount: $36,261,926 ($36.3M)
Contractor: National Flood Services LLC
Awarding Agency: Department of Homeland Security
Start Date: 2015-03-01
End Date: 2016-08-31
Contract Duration: 549 days
Daily Burn Rate: $66.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::CL::IGF THE PURPOSE OF THIS TASK ORDER IS TO OBLIGATE FUNDING FOR OPTION PERIOD IV FOR THE NATIONAL FLOOD INSURANCE PROGRAM DIRECT SERVICING AGENT CONTRACT.
Place of Performance
Location: FARMINGTON HILLS, OAKLAND County, MICHIGAN, 48334
State: Michigan Government Spending
Plain-Language Summary
Department of Homeland Security obligated $36.3 million to NATIONAL FLOOD SERVICES LLC for work described as: IGF::CL::IGF THE PURPOSE OF THIS TASK ORDER IS TO OBLIGATE FUNDING FOR OPTION PERIOD IV FOR THE NATIONAL FLOOD INSURANCE PROGRAM DIRECT SERVICING AGENT CONTRACT. Key points: 1. Contract Value: $36.3 million for Option Period IV. 2. Incumbent: National Flood Services LLC has held the contract. 3. Risk: Potential for increased costs due to lack of new competition. 4. Sector: Insurance and Financial Services.
Value Assessment
Rating: fair
The $36.3 million obligation for Option IV appears to be a continuation of an existing contract. Without benchmark data for similar direct servicing agent contracts, assessing its pricing against the market is difficult. However, the firm fixed-price structure provides some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition. However, this specific task order is for an option period, suggesting the incumbent, National Flood Services LLC, is continuing services. The initial competition likely established a competitive price, but subsequent option periods may not undergo the same rigorous price discovery.
Taxpayer Impact: Taxpayer funds are being used to maintain essential services for the National Flood Insurance Program. The cost-effectiveness depends on the initial competitive pricing and the necessity of continuing with the incumbent provider.
Public Impact
Ensures continued operation of the National Flood Insurance Program's direct servicing agent functions. Impacts policyholders through uninterrupted service for flood insurance. Supports FEMA's mission in managing flood-related risks and insurance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for complacency with incumbent provider.
- Limited transparency on cost drivers for option periods.
Positive Signals
- Continuation of established, critical program services.
- Firm fixed-price contract limits cost overruns.
Sector Analysis
This contract falls within the 'All Other Insurance Related Activities' sector, specifically supporting the National Flood Insurance Program. Spending benchmarks for direct servicing agent contracts are not readily available, but the scale of this obligation suggests a significant operational component.
Small Business Impact
The data does not indicate any specific involvement or set-aside for small businesses in this particular task order. The primary contractor, National Flood Services LLC, is not identified as a small business.
Oversight & Accountability
The Federal Emergency Management Agency (FEMA) is responsible for overseeing this contract. Standard oversight mechanisms should be in place to ensure performance and adherence to the contract terms. Further details on specific oversight activities are not provided.
Related Government Programs
- All Other Insurance Related Activities
- Department of Homeland Security Contracting
- Federal Emergency Management Agency Programs
Risk Flags
- Incumbent reliance
- Lack of current competitive pricing data
- Potential for cost creep in option periods
- Limited transparency on performance metrics
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 $36.3 million to NATIONAL FLOOD SERVICES LLC. IGF::CL::IGF THE PURPOSE OF THIS TASK ORDER IS TO OBLIGATE FUNDING FOR OPTION PERIOD IV FOR THE NATIONAL FLOOD INSURANCE PROGRAM DIRECT SERVICING AGENT CONTRACT.
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 $36.3 million.
What is the period of performance?
Start: 2015-03-01. End: 2016-08-31.
What was the original contract value and competition strategy that led to the incumbent being selected?
The provided data focuses on a specific option period obligation. Information regarding the original contract's total value, the initial solicitation details, and the competitive landscape during its award is not included. Understanding the initial competition is crucial for assessing the long-term value and potential risks associated with subsequent option periods.
How does the per-unit cost of servicing policies under this contract compare to industry benchmarks or previous periods?
The data does not provide per-unit cost metrics or allow for direct comparison to industry benchmarks. While the contract is firm fixed-price, the overall obligation amount doesn't break down into specific service costs per policy. A detailed cost analysis would be needed to evaluate the efficiency and competitiveness of the per-unit servicing costs.
What is the risk of service disruption or degradation if the contract is not renewed or re-competed effectively in the future?
There is a moderate risk of service disruption or degradation if the contract is not re-competed effectively. National Flood Services LLC has been the incumbent, implying established processes and infrastructure. A transition to a new provider could introduce challenges, and a lack of robust competition in future procurements might lead to less favorable terms or service quality.
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
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: $130,429,690
Exercised Options: $36,902,896
Current Obligation: $36,261,926
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HSFEHQ11D0279
IDV Type: IDC
Timeline
Start Date: 2015-03-01
Current End Date: 2016-08-31
Potential End Date: 2016-08-31 00:00:00
Last Modified: 2021-02-18
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