State Dept. Spends $15.6B on Health Insurance via Raynal Assurances, Full Competition
Contract Overview
Contract Amount: $15,604 ($15.6K)
Contractor: Raynal Assurances Iard
Awarding Agency: Department of State
Start Date: 2025-04-01
End Date: 2026-03-31
Contract Duration: 364 days
Daily Burn Rate: $43/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: HEALTH INSURABCE
Plain-Language Summary
Department of State obligated $15,604.29 to RAYNAL ASSURANCES IARD for work described as: HEALTH INSURABCE Key points: 1. Significant spending on health insurance services. 2. Raynal Assurances is the primary contractor. 3. Full and open competition was utilized. 4. Contract duration is one year.
Value Assessment
Rating: questionable
The contract value of $15.6 billion is exceptionally high for a one-year health insurance contract. Without detailed service breakdowns and benchmarks for similar government health insurance procurements, it's difficult to assess if this pricing is reasonable or if it represents a potential overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is a positive indicator for price discovery. However, the sheer magnitude of the award suggests a need to scrutinize the bidding process and the final negotiated price to ensure value for taxpayer money.
Taxpayer Impact: The substantial $15.6 billion price tag necessitates careful oversight to ensure that taxpayer funds are being used efficiently and effectively for essential health insurance services.
Public Impact
Ensures health and medical insurance coverage for Department of State personnel. The large contract value may indicate a significant number of beneficiaries or comprehensive coverage plans. Transparency in the bidding process is crucial given the scale of the expenditure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Extremely high contract value for a one-year term.
- Lack of detailed service scope for the high price.
- Potential for price escalation in future renewals.
Positive Signals
- Awarded under full and open competition.
- Clear contract start and end dates.
Sector Analysis
This contract falls within the Healthcare sector, specifically for health insurance carriers. Government spending on health insurance for employees and beneficiaries is a significant portion of federal expenditures, often involving large, complex contracts.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The large contract value and nature of the service may typically favor larger, established insurance providers.
Oversight & Accountability
While awarded under full and open competition, the high value warrants robust oversight from the Department of State to ensure contract performance and cost-effectiveness throughout its duration.
Related Government Programs
- Direct Health and Medical Insurance Carriers
- Department of State Contracting
- Department of State Programs
Risk Flags
- Excessive contract value for the duration.
- Lack of detailed service scope.
- Potential for vendor lock-in if not managed carefully.
- High reliance on a single provider for essential services.
Tags
direct-health-and-medical-insurance-carr, department-of-state, delivery-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $15,604.29 to RAYNAL ASSURANCES IARD. HEALTH INSURABCE
Who is the contractor on this award?
The obligated recipient is RAYNAL ASSURANCES IARD.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $15,604.29.
What is the period of performance?
Start: 2025-04-01. End: 2026-03-31.
What specific health and medical services are covered under this $15.6 billion contract to justify the high cost for a one-year period?
The provided data lacks specific details on the scope of services covered. A comprehensive breakdown of benefits, including medical, dental, vision, and prescription drug coverage, along with the number of covered individuals, is necessary to understand the justification for the $15.6 billion expenditure. Without this, it's challenging to assess value for money.
Given the substantial contract value, what measures are in place to mitigate risks associated with potential overpricing or inadequate service delivery by Raynal Assurances?
The contract's full and open competition is a primary risk mitigation factor. However, additional measures should include performance metrics, regular audits, and clear termination clauses. The Department of State should actively monitor service quality and cost-effectiveness to ensure Raynal Assurances meets its obligations and that the pricing remains competitive.
How does the Department of State ensure the effectiveness of the health insurance provided by Raynal Assurances in meeting the healthcare needs of its personnel?
Effectiveness is typically measured through beneficiary satisfaction surveys, healthcare utilization data, and health outcome metrics. The Department of State should have established processes for collecting and analyzing this data to ensure the insurance plan is meeting the needs of its employees and dependents. Regular reviews of the contract's performance against these metrics are essential.
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
Solicitation ID: 19GE5024R0003
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: AVENUE DU DOCTEUR KWAME NKRUMAH, OUAGADOUGOU
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $15,604
Exercised Options: $15,604
Current Obligation: $15,604
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 19GE5024D0009
IDV Type: IDC
Timeline
Start Date: 2025-04-01
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2026-04-02
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