NFIP Direct Servicing Agent Contract Facilitates Policy Transfer Amidst Transitional Phase-Out
Contract Overview
Contract Amount: $25,996,603 ($26.0M)
Contractor: National Flood Services LLC
Awarding Agency: Department of Homeland Security
Start Date: 2016-09-30
End Date: 2017-12-31
Contract Duration: 457 days
Daily Burn Rate: $56.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::CT::IGF NATIONAL FLOOD INSURANCE PROGRAM (NFIP) DIRECT SERVICING AGENT (DSA) - TRANSITIONAL PHASE-OUT TASK ORDER. THE CONTRACT SHALL ADMINISTER THE NFIP POLICIES UNTIL THEY CAN BE TRANSFERRED TO THE NEW DSA AWARDEE. THE CONTRACTOR SHALL FACILITATE THE TRANSFER OF THE DSA PROGRAM.
Place of Performance
Location: LAKEPORT, LAKE County, CALIFORNIA, 95453
Plain-Language Summary
Department of Homeland Security obligated $26.0 million to NATIONAL FLOOD SERVICES LLC for work described as: IGF::CT::IGF NATIONAL FLOOD INSURANCE PROGRAM (NFIP) DIRECT SERVICING AGENT (DSA) - TRANSITIONAL PHASE-OUT TASK ORDER. THE CONTRACT SHALL ADMINISTER THE NFIP POLICIES UNTIL THEY CAN BE TRANSFERRED TO THE NEW DSA AWARDEE. THE CONTRACTOR SHALL FACILITATE THE TRANSFER OF THE DSA … Key points: 1. Contract value of $26M supports the transition of NFIP policies. 2. National Flood Services LLC is the incumbent contractor. 3. Potential risk of service disruption during the transfer process. 4. Insurance sector spending focused on program administration.
Value Assessment
Rating: fair
The contract value of $25.99M for a 15-month period appears reasonable for administering and facilitating the transfer of the NFIP policies. Benchmarking against similar administrative contracts is difficult without more specific service details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, as a transitional task order, the pricing may reflect urgency and the specific needs of program continuity rather than pure market-driven price discovery.
Taxpayer Impact: Taxpayer funds are used to ensure the continuity of the National Flood Insurance Program during a critical transition, aiming to prevent service gaps for policyholders.
Public Impact
Ensures continued flood insurance coverage for policyholders during a program transition. Facilitates a smooth handover of administrative responsibilities to a new awardee. Maintains operational stability for a critical federal insurance program.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Risk of service interruption during transfer
- Potential for increased costs if transition is prolonged
Positive Signals
- Ensures program continuity
- Facilitates orderly transition
Sector Analysis
This contract falls within the 'All Other Insurance Related Activities' sector, specifically supporting the National Flood Insurance Program. Spending in this area is driven by federal mandates and disaster preparedness.
Small Business Impact
The data does not indicate any specific set-aside for small businesses. The primary contractor, National Flood Services LLC, is not identified as a small business in this context.
Oversight & Accountability
Oversight is provided by the Federal Emergency Management Agency (FEMA) under the Department of Homeland Security. The task order structure suggests a defined scope, but the transitional nature requires close monitoring to ensure efficient policy transfer.
Related Government Programs
- All Other Insurance Related Activities
- Department of Homeland Security Contracting
- Federal Emergency Management Agency Programs
Risk Flags
- Transition risk
- Potential for cost overruns
- Service continuity concerns
Tags
all-other-insurance-related-activities, department-of-homeland-security, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $26.0 million to NATIONAL FLOOD SERVICES LLC. IGF::CT::IGF NATIONAL FLOOD INSURANCE PROGRAM (NFIP) DIRECT SERVICING AGENT (DSA) - TRANSITIONAL PHASE-OUT TASK ORDER. THE CONTRACT SHALL ADMINISTER THE NFIP POLICIES UNTIL THEY CAN BE TRANSFERRED TO THE NEW DSA AWARDEE. THE CONTRACTOR SHALL FACILITATE THE TRANSFER OF THE DSA PROGRAM.
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 $26.0 million.
What is the period of performance?
Start: 2016-09-30. End: 2017-12-31.
What is the primary objective of this transitional task order?
The primary objective is to ensure the continuity of services for the National Flood Insurance Program (NFIP) by administering existing policies during the phase-out of the current Direct Servicing Agent (DSA) and facilitating the transfer of these responsibilities to a newly awarded DSA.
What are the key risks associated with this transitional contract?
Key risks include potential disruptions to policyholder services during the transfer, the possibility of extended transition timelines leading to increased costs, and ensuring data integrity and security throughout the handover process from the incumbent to the new DSA.
How does this contract contribute to the overall effectiveness of the NFIP?
This contract is crucial for maintaining the operational effectiveness of the NFIP during a significant program change. By ensuring uninterrupted policy administration and facilitating a smooth transition, it safeguards policyholder access to flood insurance and upholds the program's stability.
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
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: $25,996,603
Exercised Options: $25,996,603
Current Obligation: $25,996,603
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HSFEHQ11D0279
IDV Type: IDC
Timeline
Start Date: 2016-09-30
Current End Date: 2017-12-31
Potential End Date: 2017-12-31 00:00:00
Last Modified: 2025-05-20
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