State Dept. Spends $2.65M on Employee Health/Life Insurance with AIA Life Insurance Company Limited
Contract Overview
Contract Amount: $2,655,016 ($2.7M)
Contractor: AIA Life Insurance Company Limited Beijing Branch
Awarding Agency: Department of State
Start Date: 2026-01-21
End Date: 2026-02-01
Contract Duration: 11 days
Daily Burn Rate: $241.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: EMPLOYEES HEALTH/LIFE INSURANCE
Plain-Language Summary
Department of State obligated $2.7 million to AIA LIFE INSURANCE COMPANY LIMITED BEIJING BRANCH for work described as: EMPLOYEES HEALTH/LIFE INSURANCE Key points: 1. Significant contract value of $2.65 million for employee benefits. 2. AIA Life Insurance Company Limited is the sole awardee. 3. Contract duration is 11 days, suggesting a short-term need or bridge. 4. The sector is primarily administrative services supporting employee welfare.
Value Assessment
Rating: fair
The contract value of $2.65 million for an 11-day period appears high. Benchmarking against similar short-term group insurance policies is difficult without more data on coverage scope and employee numbers.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple vendors could have bid. However, the specific award mechanism (Delivery Order) and short duration might limit the practical competitive impact.
Taxpayer Impact: Taxpayer funds are used for employee benefits, which is standard. The efficiency of this specific expenditure depends on the negotiated price relative to market rates for similar coverage.
Public Impact
Ensures health and life insurance coverage for Department of State employees. Supports employee morale and retention through essential benefits. Potential for cost savings if competitive bidding yielded favorable rates.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Short contract duration (11 days) raises questions about the procurement process and potential for emergency or sole-source justification.
- Lack of detailed scope of work for the insurance coverage.
- No indication of small business participation.
Positive Signals
- Contract awarded under full and open competition.
- Provides essential employee benefits.
Sector Analysis
This contract falls under administrative and support services, specifically employee benefits. Spending benchmarks for group health and life insurance vary widely based on employee demographics, coverage levels, and geographic location.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine if opportunities were missed.
Oversight & Accountability
The Department of State is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should apply to ensure proper execution and accountability.
Related Government Programs
- Direct Health and Medical Insurance Carriers
- Department of State Contracting
- Department of State Programs
Risk Flags
- Unusually short contract duration (11 days).
- High cost relative to contract duration.
- Lack of detailed scope of work.
- No clear indication of small business participation.
Tags
direct-health-and-medical-insurance-carr, department-of-state, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $2.7 million to AIA LIFE INSURANCE COMPANY LIMITED BEIJING BRANCH. EMPLOYEES HEALTH/LIFE INSURANCE
Who is the contractor on this award?
The obligated recipient is AIA LIFE INSURANCE COMPANY LIMITED BEIJING BRANCH.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $2.7 million.
What is the period of performance?
Start: 2026-01-21. End: 2026-02-01.
What is the specific scope of health and life insurance coverage provided under this contract, and how does it compare to standard federal employee benefits?
The provided data lacks specifics on the insurance coverage details. Typically, federal employee benefits include comprehensive health plans with varying deductibles and networks, and life insurance policies with coverage multiples of salary. Without the Statement of Work, a direct comparison to standard benefits or market offerings is not possible, making a true value assessment challenging.
Given the short 11-day duration, what led to this specific contract award and why was full and open competition utilized for such a brief period?
The short duration suggests this might be a bridge contract to cover a gap in existing insurance or a specific, short-term need. While 'full and open competition' is listed, the award mechanism (Delivery Order) implies it might be against a pre-existing contract or schedule. Further investigation into the justification for the short period and the specific award vehicle is warranted to understand the procurement strategy.
How does the $2.65 million expenditure for 11 days of insurance coverage benchmark against similar short-term group insurance contracts for federal employees?
Benchmarking this expenditure is difficult due to the extremely short duration. Standard group insurance contracts are typically annual. A prorated annual cost would be exceptionally high, suggesting either a very high per-employee cost or a misunderstanding of the contract's purpose. Without details on the number of employees covered and the specific benefits, a meaningful comparison to other contracts, even short-term ones, is not feasible.
Industry Classification
NAICS: Finance and Insurance › Insurance Carriers › Direct Health and Medical Insurance Carriers
Product/Service Code: SOCIAL SERVICES › SOCIAL 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: NO.12 JIANWAI STREET, BEIJING
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $2,655,016
Exercised Options: $2,655,016
Current Obligation: $2,655,016
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 19CH5024D2001
IDV Type: IDC
Timeline
Start Date: 2026-01-21
Current End Date: 2026-02-01
Potential End Date: 2026-07-31 00:00:00
Last Modified: 2026-01-28
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