State Department awards $47.9K health insurance contract for May 2026, a short-term delivery order

Contract Overview

Contract Amount: $47,856 ($47.9K)

Contractor: Sigal Insurance Group SH.A.

Awarding Agency: Department of State

Start Date: 2026-04-01

End Date: 2026-05-01

Contract Duration: 30 days

Daily Burn Rate: $1.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Healthcare

Official Description: 1. HEALTH INS TASK ORDER 1 APRIL - 2 MAY 2026

Plain-Language Summary

Department of State obligated $47,856.02 to SIGAL INSURANCE GROUP SH.A. for work described as: 1. HEALTH INS TASK ORDER 1 APRIL - 2 MAY 2026 Key points: 1. Contract value is modest, suggesting a focused scope for health insurance services. 2. The contract was awarded under full and open competition, indicating a broad search for qualified vendors. 3. Short duration (30 days) may limit long-term performance assessment but ensures immediate needs are met. 4. Fixed Price with Economic Price Adjustment (FPEPA) contract type aims to manage cost fluctuations. 5. No small business set-aside was utilized, suggesting the competition was not specifically targeted to small businesses. 6. The North American Industry Classification System (NAICS) code 524114 points to direct health and medical insurance carriers.

Value Assessment

Rating: good

The contract value of approximately $47.9K for a 30-day period is relatively small, making direct comparison to larger, multi-year health insurance contracts challenging. However, for a short-term, specific need, the pricing appears reasonable given the nature of health insurance services. Benchmarking against similar short-duration health insurance task orders would provide a more precise value assessment, but the amount does not immediately suggest overpricing for the limited scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning the solicitation was made available to all responsible sources. The data does not specify the number of bids received, but the chosen procurement method suggests a deliberate effort to find the best value from a wide pool of potential contractors. This approach generally fosters competitive pricing and encourages a broad range of solutions.

Taxpayer Impact: A full and open competition allows taxpayers to benefit from potentially lower prices due to a wider range of vendors vying for the contract, ensuring government funds are used efficiently.

Public Impact

Beneficiaries include individuals requiring health insurance coverage during the specified period. Services delivered are direct health and medical insurance. Geographic impact is likely limited to the population served by the Department of State during April-May 2026. Workforce implications are minimal, primarily affecting administrative and claims processing roles within the insurance provider.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short contract duration may lead to continuity concerns for ongoing health needs.
Economic price adjustment clause could lead to unforeseen cost increases if market conditions fluctuate significantly.

Positive Signals

Awarded under full and open competition, indicating a robust vetting process.
Fixed Price contract type provides some cost certainty, despite the economic adjustment clause.
Clear start and end dates ensure defined service period.

Sector Analysis

The health insurance industry is a large and complex sector. This contract falls under the 'Direct Health and Medical Insurance Carriers' sub-sector, identified by NAICS code 524114. While the contract value is modest, it represents a small component of the overall federal spending on health services and insurance, which often involves much larger, long-term contracts for broader populations or specific healthcare programs. This specific award appears to be for a short-term, defined need rather than a large-scale program.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements for small businesses. This suggests that the competition was open to all eligible firms, and the primary contractor, SIGAL INSURANCE GROUP SH.A., is likely a larger entity or the set-aside was not deemed appropriate for this specific requirement. The impact on the small business ecosystem is therefore likely negligible for this particular award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting and program management offices. As a delivery order under a larger contract (implied by 'TASK ORDER'), existing oversight mechanisms for the parent contract would likely apply. Transparency is facilitated by public contract databases, but detailed performance monitoring and specific accountability measures are typically internal to the agency unless significant issues arise, which might then involve an Inspector General.

Related Government Programs

Federal Employee Health Benefits Program
TRICARE
Department of State Medical Services

Risk Flags

Short contract duration may impact service continuity.
Economic price adjustment introduces potential for cost overruns.
Limited data on contractor's past performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $47,856.02 to SIGAL INSURANCE GROUP SH.A.. 1. HEALTH INS TASK ORDER 1 APRIL - 2 MAY 2026

Who is the contractor on this award?

The obligated recipient is SIGAL INSURANCE GROUP SH.A..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $47,856.02.

What is the period of performance?

Start: 2026-04-01. End: 2026-05-01.

What is the track record of SIGAL INSURANCE GROUP SH.A. with the federal government?

Information regarding SIGAL INSURANCE GROUP SH.A.'s specific track record with the federal government is not detailed in the provided data. To assess their performance, one would need to review historical contract awards, past performance evaluations, and any reported issues or disputes. A deeper dive into federal procurement databases like SAM.gov or FPDS would be necessary to ascertain their experience, reliability, and history of successful contract completion for similar services. Without this historical data, it is difficult to gauge their suitability beyond the current award.

How does the pricing of this contract compare to similar short-term health insurance provisions?

The provided data offers a contract value of $47,856.02 for a 30-day period. Benchmarking this against similar short-term health insurance task orders or contracts issued by federal agencies for comparable populations or services would be necessary for a precise comparison. Given the limited duration, the cost per day is approximately $1,595. This figure needs to be evaluated against market rates for short-term group health insurance, considering factors like coverage levels, deductibles, and co-pays. Without specific comparative data, it's challenging to definitively state if this represents excellent or questionable value, but it appears to be within a reasonable range for a specialized, short-term need.

What are the primary risks associated with this contract?

The primary risks associated with this contract include the short duration, which could lead to continuity issues if the need extends beyond May 1, 2026, or if a new contract is not in place promptly. The 'Fixed Price with Economic Price Adjustment' (FPEPA) clause introduces a risk of cost escalation if market conditions for health insurance premiums change unfavorably during the contract period. Additionally, if the competition was limited in scope or if the contractor has a poor performance history (which is not detailed here), there could be risks related to service quality or administrative efficiency. Ensuring adequate coverage and claims processing within the tight timeframe is also a potential operational risk.

What is the expected effectiveness of the services provided under this contract?

The expected effectiveness of the services hinges on the contractor's ability to provide adequate health insurance coverage and efficient claims processing for the intended beneficiaries during the specified 30-day period. Given that it's a direct health and medical insurance carrier (NAICS 524114) awarded under full and open competition, the expectation is that the chosen provider meets the necessary standards for service delivery. Effectiveness will be measured by the beneficiaries' access to care, the responsiveness of the insurance provider to claims, and the overall satisfaction with the coverage provided. The short duration suggests a focused, perhaps temporary, need, implying that the effectiveness is measured over a limited timeframe.

How does this contract's spending compare to historical patterns for similar services?

This contract's spending of approximately $47.9K for a 30-day period is relatively small compared to typical large-scale federal health insurance contracts, such as those for the Federal Employee Health Benefits (FEHB) program or military health services (TRICARE), which involve billions of dollars annually. This specific award appears to be a task order for a very specific, short-term requirement, possibly for a small group or a transitional period. Historical spending patterns for similar short-duration, localized health insurance needs would be the most relevant comparison. Without more context on the specific population or purpose, it's difficult to place within broader historical trends, but it represents a minor expenditure.

Industry Classification

NAICS: Finance and Insurance › Insurance Carriers › Direct Health and Medical Insurance Carriers

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: BULEVARDI ZOGU I, NR. 1, TIRANE

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $47,856

Exercised Options: $47,856

Current Obligation: $47,856

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AL6021D0002

IDV Type: IDC

Timeline