State Department awards $101.9M contract for health insurance, highlighting direct carrier services

Contract Overview

Contract Amount: $101,951 ($102.0K)

Contractor: Companhia DE Seguros Allianz Portugal, S.A.

Awarding Agency: Department of State

Start Date: 2026-04-09

End Date: 2026-04-17

Contract Duration: 8 days

Daily Burn Rate: $12.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GMC 4TH QTR ALL AGENCIES EXCEPT FCS 04-01-26-06-30-2026

Plain-Language Summary

Department of State obligated $101,951.42 to COMPANHIA DE SEGUROS ALLIANZ PORTUGAL, S.A. for work described as: GMC 4TH QTR ALL AGENCIES EXCEPT FCS 04-01-26-06-30-2026 Key points: 1. Contract value appears reasonable for specialized health insurance services. 2. Full and open competition suggests a competitive bidding process. 3. Short duration of the contract may indicate a need for immediate or specific coverage. 4. Fixed-price contract type helps manage cost certainty for the agency. 5. Focus on direct health and medical insurance carriers points to specialized provider networks.

Value Assessment

Rating: good

The contract value of approximately $101.9 million for an 8-day period is substantial, suggesting comprehensive coverage is required. Benchmarking against similar large-scale health insurance contracts for federal employees or specific agencies would provide further context on value for money. The firm fixed-price nature of the award indicates that the contractor, COMPANHIA DE SEGUROS ALLIANZ PORTUGAL, S.A., has assumed the risk for cost overruns, which is generally favorable for the government.

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 bids. This approach typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and terms. The specific number of bidders is not provided, but the method of competition suggests a robust process aimed at achieving fair market value.

Taxpayer Impact: Full and open competition is the most taxpayer-friendly method, as it maximizes the potential for cost savings by encouraging a wide range of providers to compete for the contract.

Public Impact

Beneficiaries include Department of State personnel and potentially their dependents requiring health insurance. Services delivered are direct health and medical insurance coverage. Geographic impact is likely global, given the nature of the Department of State's operations. Workforce implications are minimal, as this contract procures an existing service rather than directly impacting federal employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short contract duration (8 days) may indicate a gap-filling or emergency procurement, raising questions about long-term planning.
Lack of detail on specific services covered within the broad 'Direct Health and Medical Insurance Carriers' category.
Potential for high per-member-per-month costs given the fixed price and short term, if not carefully managed.

Positive Signals

Awarded under full and open competition, suggesting a fair and transparent procurement process.
Firm fixed-price contract type provides cost certainty for the government.
Contractor is a known entity in the insurance sector, implying established capabilities.

Sector Analysis

This contract falls within the Financial Services sector, specifically focusing on insurance carriers. The market for health insurance, particularly for government entities, is large and competitive, with numerous providers offering a range of plans. The Department of State's need for direct health insurance services aligns with specialized offerings often provided by large, established insurance companies capable of managing complex, global health networks.

Small Business Impact

The provided data does not indicate any small business set-aside or subcontracting requirements. As this is a direct health and medical insurance carrier contract, it is likely that large, specialized insurance companies are the primary participants, potentially limiting opportunities for small businesses unless they are part of a larger prime contractor's offering.

Oversight & Accountability

Oversight for this contract would typically reside with the Department of State's contracting officers and program managers. Accountability is ensured through the firm fixed-price terms, requiring the contractor to deliver specified services within the agreed budget. Transparency is facilitated by the contract award notice, though further details on performance metrics and oversight mechanisms would require access to the full contract documentation.

Related Government Programs

Federal Employee Health Benefits (FEHB) Program
TRICARE
Department of State Medical Services

Risk Flags

Short contract duration
High contract value for short period
Limited public information on specific services

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $101,951.42 to COMPANHIA DE SEGUROS ALLIANZ PORTUGAL, S.A.. GMC 4TH QTR ALL AGENCIES EXCEPT FCS 04-01-26-06-30-2026

Who is the contractor on this award?

The obligated recipient is COMPANHIA DE SEGUROS ALLIANZ PORTUGAL, 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 $101,951.42.

What is the period of performance?

Start: 2026-04-09. End: 2026-04-17.

What specific health benefits and services are covered under this contract?

The provided data classifies the contract under NAICS code 524114, 'Direct Health and Medical Insurance Carriers.' This suggests the contract covers the provision of health insurance policies and related medical services directly from an insurance carrier. However, the exact scope of benefits, such as medical, dental, vision, prescription drug coverage, and any specific limitations or exclusions, is not detailed in the summary data. Further examination of the contract's statement of work would be necessary to ascertain the precise coverage details and service level agreements.

How does the contract value compare to similar health insurance contracts for federal agencies?

The contract value of $101.9 million for an 8-day period is exceptionally high on a per-day basis, suggesting it might be an interim or specialized coverage solution rather than a full annual plan. For context, annual premiums for federal employee health plans can range from a few thousand dollars per individual to tens of thousands for families, depending on the plan and coverage level. A more appropriate comparison would be to identify if this contract is for a specific, short-term event, a unique population, or a bridge to a longer-term solution. Without more information on the number of individuals covered and the duration of the actual service period intended, direct value comparison is difficult.

What is the track record of COMPANHIA DE SEGUROS ALLIANZ PORTUGAL, S.A. with the Department of State or other federal agencies?

COMPANHIA DE SEGUROS ALLIANZ PORTUGAL, S.A. is a subsidiary of Allianz SE, a global financial services company. While the provided data does not detail their specific contract history with the Department of State or other U.S. federal agencies, Allianz is a major international insurer. Federal procurement databases would need to be consulted to determine the extent of their prior federal contracting experience, including performance history, past issues, and overall reliability in fulfilling government contracts. Their global presence suggests experience with diverse regulatory environments and large-scale insurance operations.

What are the potential risks associated with this contract, given its short duration?

The primary risk associated with the 8-day duration is the potential for it to be a stop-gap measure, indicating a possible lapse in planning or an unforeseen need. This could lead to higher costs if it's an emergency procurement or if it doesn't align with a sustainable long-term strategy. There's also a risk that the short timeframe might not allow for adequate vetting of the provider's ability to deliver comprehensive services globally, or that the fixed price, while offering certainty, might not be cost-effective if the actual utilization is low. Ensuring continuity of care and seamless transition to a subsequent contract, if needed, will be critical.

How does the 'Direct Health and Medical Insurance Carriers' classification impact the services provided?

Classifying the contract under NAICS 524114, 'Direct Health and Medical Insurance Carriers,' signifies that the selected vendor is an insurance company directly providing health coverage, rather than a third-party administrator or a broker. This means the contractor is responsible for underwriting the risk, managing claims, and potentially operating its own network of healthcare providers or contracting with them. For the Department of State, this direct relationship could offer more control over policy terms and potentially streamline the claims process, but it also places the full burden of service delivery and network adequacy on the insurer.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: RUA ANDRADE CORVO, 32, LISBOA

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

Financial Breakdown

Contract Ceiling: $101,951

Exercised Options: $101,951

Current Obligation: $101,951

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19P05021D0005

IDV Type: IDC

Timeline