State Department awards $86.7K contract for health and life insurance agent services to SEGUROS UNIVERSALES

Contract Overview

Contract Amount: $86,675 ($86.7K)

Contractor: Seguros Universales

Awarding Agency: Department of State

Start Date: 2024-12-31

End Date: 2025-01-22

Contract Duration: 22 days

Daily Burn Rate: $3.9K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HEALTH AND LIFE INSURANCE PNC AGENTS

Plain-Language Summary

Department of State obligated $86,675.08 to SEGUROS UNIVERSALES for work described as: HEALTH AND LIFE INSURANCE PNC AGENTS Key points: 1. Contract value appears reasonable for specialized insurance brokerage services. 2. Competition dynamics indicate a potentially limited market for this specific service. 3. Contract duration is short, suggesting a need for ongoing procurement. 4. Performance is tied to a fixed-price delivery order, aligning costs with services. 5. This contract falls within the professional services sector, specifically insurance. 6. Small business participation is not explicitly mandated but could be explored.

Value Assessment

Rating: good

The contract value of approximately $86.7K for insurance agent services over a short period seems within a reasonable range for specialized brokerage. Benchmarking against similar contracts for health and life insurance administration or brokerage services would provide a more precise value-for-money assessment. Given the limited duration and specific nature of the services, the pricing appears to be a fair reflection of market rates for such expertise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), suggesting it was likely solicited from a limited pool of pre-qualified vendors or through a streamlined process for smaller dollar amounts. The specific number of bidders is not provided, but the use of SAP often implies less extensive competition than full and open solicitations. This can sometimes lead to less aggressive pricing.

Taxpayer Impact: For taxpayers, limited competition under SAP may mean that the government does not achieve the lowest possible price compared to a broad, open competition. However, it can also expedite the acquisition process for necessary services.

Public Impact

Employees and personnel of the Department of State are the primary beneficiaries, receiving access to health and life insurance guidance. The services delivered include insurance agency and brokerage functions, facilitating enrollment and policy management. The geographic impact is likely focused on the locations where Department of State personnel are stationed or require these services. Workforce implications are minimal, as this contract supports administrative functions rather than direct program delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition to impact cost-effectiveness.
Lack of detailed performance metrics in the provided data.
Short contract duration may necessitate frequent re-procurement, increasing administrative burden.

Positive Signals

Fixed-price contract type provides cost certainty.
Services are essential for employee welfare and retention.
Procurement under SAP can lead to faster service delivery.

Sector Analysis

This contract falls within the broader financial services sector, specifically the insurance agencies and brokerages sub-sector (NAICS 524210). The market for government insurance brokerage services is competitive, with numerous firms capable of providing these specialized functions. Government spending in this area typically supports employee benefits and personnel management across various agencies. Comparable spending benchmarks would depend on the specific types and volume of insurance policies managed.

Small Business Impact

The provided data indicates that small business set-aside was not utilized for this contract (ss: false, sb: false). While this contract is relatively small, there is always an opportunity for small businesses to participate in government contracting, particularly in specialized service areas. Future solicitations could explore subcontracting opportunities for small businesses to enhance their participation in the federal marketplace.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program officials within the Department of State. Accountability is ensured through the firm fixed-price delivery order, requiring the contractor to provide the specified services within the agreed-upon terms. Transparency is facilitated by the public availability of contract data, allowing for scrutiny of spending.

Related Government Programs

Federal Employee Health Benefits Program
Federal Employees Group Life Insurance Program
Department of State Personnel Management

Risk Flags

Potential for limited competition impacting value.
Short contract duration requires ongoing procurement management.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $86,675.08 to SEGUROS UNIVERSALES. HEALTH AND LIFE INSURANCE PNC AGENTS

Who is the contractor on this award?

The obligated recipient is SEGUROS UNIVERSALES.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $86,675.08.

What is the period of performance?

Start: 2024-12-31. End: 2025-01-22.

What is the track record of SEGUROS UNIVERSALES with the federal government?

Information regarding the specific track record of SEGUROS UNIVERSALES with the federal government is not detailed in the provided data. To assess their performance, one would need to review past federal contracts awarded to this entity, including their value, duration, and any performance reviews or past performance questionnaires. A lack of extensive federal contract history might indicate a newer entrant or a focus on non-federal clients. Further investigation into federal procurement databases like SAM.gov or FPDS would be necessary to ascertain their history and reliability as a government contractor.

How does the value of this contract compare to similar insurance brokerage services for federal agencies?

The contract value of approximately $86.7K for insurance agent services is relatively modest, especially considering it covers a period extending into early 2025. Benchmarking this against similar contracts requires identifying procurements for health and life insurance brokerage or administrative services for federal employees or specific agency programs. Factors such as the number of individuals covered, the complexity of the insurance plans, and the scope of services (e.g., enrollment, claims assistance, policy advising) significantly influence pricing. Without more specific details on the scope of services and the population served by this contract, a precise comparison is difficult, but the amount suggests a focused scope or a limited duration of support.

What are the primary risks associated with this contract?

Key risks for this contract include potential service disruptions if the contractor fails to perform adequately, leading to gaps in insurance support for personnel. There's also a risk related to the limited competition under SAP, which might mean the government did not secure the most cost-effective solution. Furthermore, the short duration (22 days) presents a risk of administrative burden for frequent re-procurement and potential instability in service continuity if follow-on contracts are delayed. Ensuring the contractor's compliance with all federal regulations and data privacy requirements is also a critical risk area.

How effective is the current procurement method (SAP) for acquiring these types of insurance services?

Simplified Acquisition Procedures (SAP) are designed for purchases below the threshold for full and open competition (currently $250,000). For a contract valued at $86.7K, SAP is an appropriate and efficient method. Its effectiveness lies in reducing administrative burden and expediting the acquisition process, allowing agencies to obtain necessary goods and services quickly. However, the effectiveness in terms of achieving the best value for taxpayers is contingent on the level of competition generated. If SAP leads to fewer bidders, the potential for cost savings might be reduced compared to a broader solicitation. For routine or specialized services like insurance brokerage, SAP can be highly effective if managed well.

What is the historical spending pattern for insurance brokerage services by the Department of State?

Analyzing historical spending patterns for insurance brokerage services by the Department of State would require access to comprehensive federal procurement data over several fiscal years. This would involve querying databases to identify all contracts awarded for similar services, noting the total expenditure, the types of insurance covered, the contractors involved, and the duration of these contracts. Understanding these patterns can reveal trends in agency needs, identify key service providers, and establish benchmarks for future procurements. Without this historical data, it's difficult to contextualize the current $86.7K award within the agency's broader spending on such services.

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: COMPETED UNDER SAP

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4A. CALLE 7-73, ZONA 9, GUATEMALA CITY

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

Financial Breakdown

Contract Ceiling: $86,675

Exercised Options: $86,675

Current Obligation: $86,675

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19GT5024D0002

IDV Type: IDC

Timeline