State Department awards $2.15M for health insurance, with a focus on direct carrier services

Contract Overview

Contract Amount: $2,153,632 ($2.2M)

Contractor: Britam - Companhia DE Seguros DE Mocambique, S.A

Awarding Agency: Department of State

Start Date: 2024-07-01

End Date: 2025-06-30

Contract Duration: 364 days

Daily Burn Rate: $5.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: HEALTH INSURANCE

Plain-Language Summary

Department of State obligated $2.2 million to BRITAM - COMPANHIA DE SEGUROS DE MOCAMBIQUE, S.A for work described as: HEALTH INSURANCE Key points: 1. The contract value of $2.15 million appears reasonable for specialized health insurance services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a firm fixed-price delivery order, providing cost certainty. 4. The duration of 364 days aligns with typical annual insurance policy terms. 5. The North American Industry Classification System (NAICS) code 524114 indicates a focus on direct health insurance carriers. 6. The awardee, BRITAM - COMPANHIA DE SEGUROS DE MOCAMBIQUE, S.A, is noted, though its specific track record for this type of federal contract requires further investigation.

Value Assessment

Rating: good

The contract value of $2.15 million for health insurance services is within a typical range for government contracts of this nature. Benchmarking against similar health insurance contracts awarded by the Department of State or other agencies would provide a more precise value-for-money assessment. The firm fixed-price nature of the award suggests that pricing was determined upfront and is not expected to fluctuate significantly, which is a positive indicator for cost control.

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 a bid. This method generally promotes a competitive environment, which can lead to better pricing and service offerings for the government. The number of bidders is not specified, but the use of this procurement method suggests a healthy level of interest from the market.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a competitive bidding process, ensuring the government receives the best value.

Public Impact

Beneficiaries include Department of State personnel and potentially their dependents requiring health insurance coverage. The service delivered is direct health and medical insurance. The geographic impact is likely tied to the locations where Department of State personnel are stationed. Workforce implications are minimal, as this contract primarily procures an existing service rather than creating new direct federal jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders in the full and open competition.
The specific track record and experience of BRITAM - COMPANHIA DE SEGUROS DE MOCAMBIQUE, S.A. with federal health insurance contracts is not detailed.
Geographic scope of coverage and service delivery points are not explicitly defined.

Positive Signals

Awarded under firm fixed-price terms, providing cost predictability.
Utilized full and open competition, suggesting a robust market engagement.
The contract duration is aligned with standard insurance policy cycles.

Sector Analysis

The health insurance industry is a significant sector within the broader healthcare market. This contract falls under the category of direct health and medical insurance carriers, as indicated by NAICS code 524114. Federal agencies procure health insurance to cover their employees and contractors, often through large-scale contracts that leverage the government's purchasing power. The market for federal health insurance is competitive, with various providers vying for these contracts.

Small Business Impact

There is no indication that this contract included a small business set-aside. The awardee is a company, and further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this health insurance policy.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of State. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver the specified services within the agreed-upon price. Transparency is generally maintained through contract databases, though specific performance metrics and detailed oversight reports may not always be publicly accessible.

Related Government Programs

Federal Employee Health Benefits (FEHB) Program
TRICARE
Department of Veterans Affairs Health Care

Risk Flags

Contractor performance history unknown
Potential for cost overruns if utilization is higher than projected
Dependence on contractor's administrative capacity and network adequacy

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $2.2 million to BRITAM - COMPANHIA DE SEGUROS DE MOCAMBIQUE, S.A. HEALTH INSURANCE

Who is the contractor on this award?

The obligated recipient is BRITAM - COMPANHIA DE SEGUROS DE MOCAMBIQUE, 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 $2.2 million.

What is the period of performance?

Start: 2024-07-01. End: 2025-06-30.

What is the specific track record of BRITAM - COMPANHIA DE SEGUROS DE MOCAMBIQUE, S.A. in providing health insurance services to U.S. federal agencies?

Information regarding the specific track record of BRITAM - COMPANHIA DE SEGUROS DE MOCAMBIQUE, S.A. in providing health insurance services to U.S. federal agencies is not readily available in the provided data. Federal procurement databases often contain award histories, but a detailed performance review or past performance evaluation for this specific contractor in the federal space would require deeper research into contract award databases and potentially agency performance reports. Understanding their experience with similar contract scopes, durations, and compliance requirements is crucial for assessing future performance risk.

How does the awarded amount of $2.15 million compare to similar health insurance contracts for federal employees or contractors?

The awarded amount of $2.15 million for health insurance services over approximately one year is a significant sum, but its comparability depends heavily on the number of individuals covered, the scope of benefits, and the geographic locations served. For instance, large-scale federal employee health insurance programs like the Federal Employee Health Benefits (FEHB) program involve billions of dollars annually, covering millions of individuals. However, this contract appears to be for a more specific group, possibly a subset of State Department personnel or contractors in a particular region. Benchmarking against contracts for similar-sized groups or specific regional needs would be necessary for a precise value comparison. Without more context on the covered population and benefit levels, it's difficult to definitively state if $2.15 million represents excellent, fair, or questionable value.

What are the primary risks associated with this firm fixed-price delivery order for health insurance?

The primary risks associated with a firm fixed-price delivery order for health insurance, while generally offering cost certainty, can include potential underpricing by the contractor if benefit utilization or healthcare costs are higher than anticipated. This could lead to the contractor seeking to reduce service quality or benefits to maintain profitability, or potentially facing financial strain. Conversely, if the contractor significantly overestimates costs, the government might be paying a premium. Another risk is the contractor's ability to manage the administrative complexities and compliance requirements of federal health insurance provision. Ensuring the contractor has robust claims processing, provider networks, and customer service capabilities is vital to mitigate risks to the covered individuals.

What is the expected effectiveness of this contract in providing adequate health coverage to the intended beneficiaries?

The effectiveness of this contract in providing adequate health coverage hinges on several factors not detailed in the summary data. Key determinants include the comprehensiveness of the health benefits package offered, the adequacy of the provider network accessible to beneficiaries, and the efficiency of the claims processing and customer service provided by BRITAM - COMPANHIA DE SEGUROS DE MOCAMBIQUE, S.A. The firm fixed-price nature suggests a defined scope of services, but the quality and accessibility of care are paramount. The Department of State's oversight and performance monitoring will be critical in ensuring that the contracted insurance meets the health needs of its personnel effectively and that beneficiaries have timely access to necessary medical services.

How does historical spending on health insurance by the Department of State compare to this award?

Historical spending data on health insurance by the Department of State is not provided in the summary. To assess this award in context, one would need to examine past contracts for similar health insurance services awarded by the State Department. This would involve looking at the total dollar amounts, contract durations, number of individuals covered, and the types of insurance provided in previous years. Comparing the current $2.15 million award to historical averages or trends would help determine if this represents an increase, decrease, or stable level of spending for such services. Understanding these patterns can reveal changes in policy, beneficiary numbers, or market pricing over time.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 19GE5021R0052

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: AVENIDA MARGINAL, NO 4067, MAPUTO

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

Financial Breakdown

Contract Ceiling: $2,153,632

Exercised Options: $2,153,632

Current Obligation: $2,153,632

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19GE5022D0026

IDV Type: IDC

Timeline