Department of State awards $3M contract for payroll and health/dental insurance services to Bradesco Saude S/A

Contract Overview

Contract Amount: $3,039,706 ($3.0M)

Contractor: Bradesco Saude S/A

Awarding Agency: Department of State

Start Date: 2025-12-10

End Date: 2026-05-31

Contract Duration: 172 days

Daily Burn Rate: $17.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BSB|HR| PAYROLL-HEALTH/DENTAL IDIQ - JAN-FEB/2026

Plain-Language Summary

Department of State obligated $3.0 million to BRADESCO SAUDE S/A for work described as: BSB|HR| PAYROLL-HEALTH/DENTAL IDIQ - JAN-FEB/2026 Key points: 1. Contract value appears reasonable given the short duration and scope of services. 2. Full and open competition suggests a competitive pricing environment. 3. No immediate risk indicators are apparent from the contract details. 4. Performance period is limited, suggesting a need for potential future procurements. 5. This contract falls within the broader category of administrative and support services. 6. The award is a delivery order under an existing IDIQ, indicating a pre-established framework.

Value Assessment

Rating: good

The contract value of approximately $3 million for a duration of roughly 172 days (January to February 2026) for payroll and health/dental insurance services seems within a reasonable range for the scope. Without specific benchmarks for similar, short-term, comprehensive benefits administration contracts for a federal agency of this size, a direct comparison is difficult. However, the firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government. The pricing appears to be a result of a competitive bidding process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data does not specify the number of bidders, but the 'full and open' designation implies a robust competitive process. This level of competition is generally expected to drive down prices and ensure the government receives fair market value for the services procured. The agency likely sought multiple proposals to identify the most advantageous offer.

Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, as it increases the likelihood of securing services at the most cost-effective rates. Full and open competition helps prevent inflated pricing that might occur in less competitive scenarios.

Public Impact

Federal employees within the Department of State will benefit from continued payroll processing and health/dental insurance coverage. The services delivered ensure the smooth operation of employee compensation and benefits administration. The geographic impact is primarily within the Department of State's operational footprint, likely domestic and potentially some overseas posts. Workforce implications are minimal as this is a service contract, not a direct hiring action.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short contract duration may necessitate frequent re-competition, leading to administrative burden and potential service disruption if not managed proactively.
Reliance on a single vendor for critical payroll and benefits functions carries inherent operational risk.
Limited data on specific performance metrics makes it difficult to assess the quality of service beyond the award itself.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment and a thorough vetting of potential contractors.
Firm-fixed-price contract structure shifts cost overrun risk to the contractor, which is favorable for the government.
The contract is a delivery order against an IDIQ, implying that the contractor has already been vetted and deemed capable under a broader contract vehicle.

Sector Analysis

The insurance industry, particularly for employee benefits and administrative services, is a significant sector supporting government operations. Federal agencies frequently procure such services to manage their workforce effectively. The market for these services is competitive, with numerous providers offering a range of solutions. This contract fits within the broader administrative and financial services sector, where agencies rely on specialized firms to handle complex functions like payroll and benefits administration.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from this particular award. The primary focus of this procurement was on securing comprehensive benefits administration services, likely favoring larger, established providers with the capacity to handle such requirements.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of State's contracting officer and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified services by the deadline. Transparency is generally maintained through contract award databases, though detailed performance reviews are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Employee Health Benefits Program
Federal Employee Dental and Vision Insurance Program
Office of Personnel Management (OPM) Services
Department of State HR and Payroll Systems

Risk Flags

Short contract duration requires proactive re-competition planning.
Reliance on a single vendor for critical HR functions.
Lack of detailed performance metrics in award data.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $3.0 million to BRADESCO SAUDE S/A. BSB|HR| PAYROLL-HEALTH/DENTAL IDIQ - JAN-FEB/2026

Who is the contractor on this award?

The obligated recipient is BRADESCO SAUDE S/A.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.0 million.

What is the period of performance?

Start: 2025-12-10. End: 2026-05-31.

What is the track record of Bradesco Saude S/A with federal government contracts?

Information regarding Bradesco Saude S/A's specific track record with federal government contracts is not directly provided in the data. However, the fact that they were awarded this delivery order under an IDIQ suggests they have likely met pre-qualification criteria for that larger contract vehicle. To fully assess their track record, a review of their past performance on similar federal contracts, including any reported issues, contract terminations, or performance deficiencies, would be necessary. This would typically involve searching federal procurement databases like SAM.gov or FPDS for historical awards and performance evaluations.

How does the value of this contract compare to similar federal procurements for payroll and benefits administration?

Direct comparison of this contract's value ($3.04 million) to similar federal procurements is challenging without more specific data points. The contract duration is relatively short (approximately 172 days, covering Jan-Feb 2026), and the scope includes both payroll and health/dental insurance administration. Federal contracts for these services can vary significantly based on the size of the agency, the number of employees covered, the complexity of the payroll system, and the specific benefits offered. A $3 million award for a ~6-month period for a department like the State Department suggests a potentially competitive rate, especially given the firm-fixed-price nature. Benchmarking would require identifying contracts with similar employee counts and service scopes over comparable timeframes.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential service disruptions if the contractor fails to perform adequately, especially concerning critical functions like payroll and health insurance claims. Another risk is the short duration, which necessitates timely re-competition to ensure continuity of services. Mitigation strategies are embedded in the contract structure: the firm-fixed-price (FFP) nature shifts financial risk to the contractor, incentivizing them to manage costs and deliver services efficiently. The 'full and open competition' process aims to select a capable and reliable vendor. Furthermore, the Department of State's contracting officer and program managers provide oversight, and contract terms likely include performance standards and remedies for non-performance.

How effective is the 'full and open competition' strategy in ensuring value for this type of service?

The 'full and open competition' strategy is generally considered highly effective in ensuring value for services like payroll and benefits administration. By allowing all responsible sources to bid, the government maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. This process encourages vendors to offer their best terms and pricing to win the contract. For the Department of State, this approach likely resulted in a more cost-effective solution compared to a sole-source or limited competition award. The agency's ability to select the 'most advantageous offer' based on price and other factors further enhances the value derived from this competitive approach.

What are the historical spending patterns for payroll and benefits administration services at the Department of State?

Historical spending patterns for payroll and benefits administration at the Department of State are not detailed in the provided data. However, it is reasonable to infer that the agency has consistently required such services to manage its workforce. The award of a delivery order under an IDIQ suggests a pre-existing contract vehicle that has likely been used for similar procurements. Analyzing past spending on these services would involve examining historical contract awards for payroll processing, health insurance brokerage, and benefits administration within the Department of State over several fiscal years. This would reveal trends in contract values, durations, and the types of services procured, providing context for the current award.

Industry Classification

NAICS: Finance and Insurance › Agencies, Brokerages, and Other Insurance Related Activities › Insurance Agencies and Brokerages

Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: AV RIO DE JANEIRO 555 SAL 801 SAL 901, RIO DE JANEIRO

Business Categories: Category Business, Foreign Government, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $3,039,706

Exercised Options: $3,039,706

Current Obligation: $3,039,706

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19BR2524D0005

IDV Type: IDC

Timeline