State Department awards $17M auto insurance contract to NFP Canada Corp. for 22 months

Contract Overview

Contract Amount: $16,994 ($17.0K)

Contractor: NFP Canada Corp.

Awarding Agency: Department of State

Start Date: 2026-03-18

End Date: 2026-04-09

Contract Duration: 22 days

Daily Burn Rate: $772/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AUTOMOBILE INSURANCE

Plain-Language Summary

Department of State obligated $16,994.25 to NFP CANADA CORP. for work described as: AUTOMOBILE INSURANCE Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. No immediate risk indicators are apparent from the provided data. 4. This contract supports essential operational needs for the agency. 5. The procurement falls within the standard range for government insurance services. 6. NFP Canada Corp. is the sole awardee for this specific delivery order.

Value Assessment

Rating: good

The contract value of $16.99 million over 22 months for automobile insurance appears to be within a reasonable range for government-wide needs. Benchmarking against similar large-scale government insurance contracts would provide a more precise value-for-money assessment. However, the fixed-price nature of the contract helps control costs for the agency. The absence of specific performance metrics in the provided data makes a detailed assessment of service quality challenging, but the pricing itself does not immediately suggest overpayment.

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 offers. This method typically fosters a competitive environment, driving down prices and encouraging innovation. The data does not specify the number of bidders, but the chosen procurement method suggests that multiple entities likely vied for this contract, leading to a more robust price discovery process.

Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, as it increases the likelihood of securing insurance services at a fair market price, preventing potential overspending.

Public Impact

Federal employees and government vehicles operating domestically and potentially abroad will be insured. Ensures continuous coverage for the Department of State's automotive fleet. Supports the operational continuity of diplomatic and official travel. The contract indirectly supports the workforce by mitigating risks associated with vehicle use.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Fixed-price contract type helps manage and predict costs.
Contract duration of 22 months provides stability for service provision.

Sector Analysis

The automobile insurance sector for government entities involves specialized risk management and underwriting. This contract fits within the broader category of professional services and insurance, a significant market for federal agencies. Comparable spending benchmarks for government auto insurance can vary widely based on fleet size, geographic coverage, and risk profiles. The North American Industry Classification System (NAICS) code 524126 for Direct Property and Casualty Insurance Carriers indicates the specific industry segment.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (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 focus was likely on securing the most competitive offer from entities capable of meeting the government's requirements.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of State's contracting officer and program managers. Accountability measures are inherent in the fixed-price contract structure, requiring the contractor to deliver services as agreed. Transparency is generally maintained through contract databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Government Vehicle Insurance
Fleet Management Services
Federal Insurance Procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $16,994.25 to NFP CANADA CORP.. AUTOMOBILE INSURANCE

Who is the contractor on this award?

The obligated recipient is NFP CANADA CORP..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $16,994.25.

What is the period of performance?

Start: 2026-03-18. End: 2026-04-09.

What is the track record of NFP Canada Corp. in providing similar insurance services to government entities?

Information regarding NFP Canada Corp.'s specific track record with government entities is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history with federal agencies, and any reported issues or successes. Typically, agencies conduct pre-award reviews of contractor past performance to gauge reliability and capability. Without this specific data, it's difficult to definitively assess their experience in serving government clients, though their selection implies they met the agency's initial vetting criteria.

How does the awarded price compare to market rates for similar government auto insurance policies?

The provided data does not include specific market rate benchmarks for comparable government auto insurance policies. To assess value for money, this contract's total value ($16.99 million over 22 months) would need to be compared against industry data for similar fleet sizes, coverage levels, and geographic scope. Factors such as the number of vehicles insured, types of vehicles, geographical distribution of risk, and specific coverage limits (liability, collision, comprehensive) are crucial for an accurate comparison. The fixed-price nature suggests cost control, but the absolute price relative to market requires external benchmarking.

Are there any identified risks associated with this contract or the selected contractor?

Based solely on the provided data points, no significant risk flags are immediately apparent. The contract was awarded through full and open competition, which generally mitigates risks related to price and contractor selection. The fixed-price contract type helps manage cost uncertainty. However, potential risks could include contractor performance issues, unforeseen increases in claims frequency or severity beyond what was anticipated in the pricing, or changes in regulatory requirements affecting insurance. A thorough risk assessment would involve reviewing the contractor's financial stability, operational capacity, and historical performance.

What is the expected effectiveness of this contract in meeting the Department of State's automotive insurance needs?

The contract is expected to be effective in providing the Department of State with necessary automotive insurance coverage for its fleet, ensuring financial protection against accidents and liabilities. The fixed-price structure provides budget certainty. Its effectiveness will ultimately depend on the contractor's ability to manage claims efficiently, provide responsive customer service, and maintain competitive pricing over the contract term. The 22-month duration suggests a need for continuity in these services, implying a baseline level of expected effectiveness.

How does this contract's value compare to historical spending on automobile insurance by the Department of State?

The provided data does not include historical spending figures for the Department of State's automobile insurance. To make a comparison, one would need to access historical contract awards for similar services from the agency. Analyzing past expenditures would reveal whether this $16.99 million award represents an increase, decrease, or stable level of spending for this category. Such a comparison is essential for understanding spending trends and identifying potential efficiencies or cost escalations over time.

Industry Classification

NAICS: Finance and Insurance › Insurance Carriers › Direct Property and Casualty Insurance Carriers

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: 100 KING STREET WEST, SUITE 5140, TORONTO

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

Financial Breakdown

Contract Ceiling: $16,994

Exercised Options: $16,994

Current Obligation: $16,994

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19CA5226D0007

IDV Type: IDC

Timeline