State Department's $22.9M life insurance contract awarded to Bankers Assurance, with option year two extending to April 2026

Contract Overview

Contract Amount: $22,886 ($22.9K)

Contractor: Bankers Assurance SAL

Awarding Agency: Department of State

Start Date: 2026-03-05

End Date: 2026-04-04

Contract Duration: 30 days

Daily Burn Rate: $763/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LIFE INSURANCE SERVICES - OPTION YEAR TWO - TASK ORDER # 2

Plain-Language Summary

Department of State obligated $22,886.28 to BANKERS ASSURANCE SAL for work described as: LIFE INSURANCE SERVICES - OPTION YEAR TWO - TASK ORDER # 2 Key points: 1. Value for money appears reasonable given the specialized nature of life insurance services for federal employees. 2. Competition dynamics indicate a full and open competition, suggesting a competitive bidding process. 3. Risk indicators are low, with a firm fixed-price contract type and a clear performance period. 4. Performance context shows this is an option year, implying prior successful execution. 5. Sector positioning is within insurance brokerages, a standard service category for government agencies.

Value Assessment

Rating: good

The contract value of approximately $22.9 million for one year of life insurance services seems aligned with market rates for group life insurance policies covering federal employees. Benchmarking against similar government-wide contracts for life insurance would provide a more precise value assessment, but the price appears competitive given the scope and the number of individuals covered. The firm fixed-price structure helps control costs for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the designation suggests a robust competitive environment. This approach generally leads to better price discovery and ensures the government receives the most advantageous offer.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it drives down costs through market forces and encourages innovation among potential providers, ultimately leading to more efficient use of public funds.

Public Impact

Federal employees and their dependents are the primary beneficiaries, receiving essential life insurance coverage. The services delivered include the administration and provision of group life insurance policies. The geographic impact is likely nationwide, covering State Department personnel regardless of their duty station. Workforce implications are minimal, as this contract supports existing employee benefits rather than creating new jobs directly.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Firm fixed-price contract type helps manage cost certainty.
Option year structure suggests successful prior performance.
Contract duration is clearly defined, reducing ambiguity.
NAICS code 524210 aligns with the service provided.

Sector Analysis

The insurance brokerage sector (NAICS 524210) is a mature market where government contracts represent a stable source of revenue. Federal spending in this area typically focuses on employee benefits and specialized insurance needs. Comparable spending benchmarks would involve analyzing other large federal agencies' group life insurance contracts to assess cost-effectiveness and service scope.

Small Business Impact

There is no indication that this contract was set aside for small businesses, nor is there information on subcontracting plans. Given the specialized nature and potential scale of federal life insurance programs, larger, established insurance providers are typically awarded these contracts. Further analysis would be needed to determine if small businesses have opportunities in subcontracting roles.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. Accountability is ensured through the firm fixed-price contract terms and the defined performance period. Transparency is facilitated by the contract award data being publicly available, though detailed performance metrics are not typically disclosed.

Related Government Programs

Federal Employee Group Life Insurance (FEGLI)
Department of Defense Life Insurance Programs
Other Agency-Specific Employee Benefit Contracts

Risk Flags

Lack of detailed bidder information for full and open competition.
Absence of specific performance metrics and SLAs in award data.
Limited insight into contractor's broader federal performance history.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $22,886.28 to BANKERS ASSURANCE SAL. LIFE INSURANCE SERVICES - OPTION YEAR TWO - TASK ORDER # 2

Who is the contractor on this award?

The obligated recipient is BANKERS ASSURANCE SAL.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $22,886.28.

What is the period of performance?

Start: 2026-03-05. End: 2026-04-04.

What is the historical spending trend for life insurance services at the Department of State?

Analyzing historical spending for life insurance services at the Department of State would require access to detailed contract databases beyond this single award. However, typical trends for such services involve multi-year contracts with potential for annual increases tied to inflation or benefit adjustments. Option years, like the one exercised here, suggest a consistent need and satisfaction with the incumbent provider. Without prior award data for Bankers Assurance or other providers at the State Department, a precise trend cannot be established, but it's reasonable to assume a steady demand for employee life insurance benefits.

How does the per-member cost of this contract compare to the Federal Employees Group Life Insurance (FEGLI) program?

Directly comparing the per-member cost of this contract to the FEGLI program is challenging without knowing the exact number of covered individuals and the specific benefit levels offered under this State Department contract. FEGLI is a government-wide program with its own rate structure. This contract with Bankers Assurance likely covers a specific subset of State Department employees and may offer different coverage options or administrative services. To make a meaningful comparison, one would need to calculate the average cost per covered employee for this contract and benchmark it against the average per-member cost within the comparable coverage tiers of FEGLI, considering any differences in administrative fees or supplemental benefits.

What are the specific performance metrics and service level agreements (SLAs) associated with this contract?

The provided data does not detail the specific performance metrics or service level agreements (SLAs) for this contract. Typically, contracts for insurance services include SLAs related to claims processing times, customer service response rates, accuracy of policy administration, and timely communication of benefit information. The Department of State's contracting officers would monitor adherence to these SLAs. Failure to meet agreed-upon performance standards could lead to penalties or contract termination, although the firm fixed-price nature of this award suggests the primary focus is on delivering the defined insurance coverage.

What is the track record of Bankers Assurance in fulfilling federal contracts, particularly for life insurance?

Information regarding Bankers Assurance's specific track record in fulfilling federal contracts, especially for life insurance, is not detailed in the provided data. A comprehensive assessment would involve reviewing their past performance ratings on federal contract databases, such as the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS). This would reveal their history of on-time delivery, quality of service, and compliance with contract terms on previous government engagements. Given this is an option year, it implies a degree of satisfactory past performance, but a deeper dive into their broader federal contracting history is recommended for a complete picture.

Are there any known risks or challenges associated with providing life insurance services to federal employees?

Key risks and challenges in providing life insurance services to federal employees often revolve around managing a large and diverse population with varying needs and locations. Ensuring compliance with federal regulations and reporting requirements can be complex. Administrative challenges include maintaining accurate enrollment data, processing claims efficiently, and providing responsive customer support across different time zones and communication channels. Market fluctuations in mortality rates and healthcare costs can also impact the long-term financial sustainability of such policies. Furthermore, cybersecurity risks associated with handling sensitive personal and financial data are a constant concern.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: ASSEILY BUILDING, 4TH FLOOR, BEIRUT

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

Financial Breakdown

Contract Ceiling: $22,886

Exercised Options: $22,886

Current Obligation: $22,886

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19LE2024D0002

IDV Type: IDC

Timeline