State Department awards $907K fleet insurance contract to 52ND Holdings via full and open competition

Contract Overview

Contract Amount: $90,709 ($90.7K)

Contractor: 52ND Holdings (PTY) Ltd

Awarding Agency: Department of State

Start Date: 2024-03-01

End Date: 2026-03-31

Contract Duration: 760 days

Daily Burn Rate: $119/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FLEET MOTOR INSURANCE 2024 - STATE

Plain-Language Summary

Department of State obligated $90,709.34 to 52ND HOLDINGS (PTY) LTD for work described as: FLEET MOTOR INSURANCE 2024 - STATE Key points: 1. The contract value appears reasonable given the duration and scope of fleet insurance. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The fixed-price nature of the contract helps mitigate cost overrun risks for the government. 4. This contract supports the operational readiness of the State Department's vehicle fleet. 5. The insurance sector for government fleets is specialized, with established providers. 6. Performance will be key to ensuring adequate coverage and claims processing efficiency.

Value Assessment

Rating: good

The contract value of approximately $907,000 over two years for fleet motor insurance for the Department of State seems within a reasonable range. Benchmarking against similar government fleet insurance contracts would provide a more precise value-for-money assessment. The fixed-price structure is a positive indicator for cost control. However, without specific details on the size and type of the fleet insured, a definitive comparison is challenging.

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. The presence of 3 bids suggests a moderate level of competition for this specialized service. While more bidders could potentially drive prices lower, three offers generally provide a basis for price discovery and selection of a competitive offer.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and services, maximizing the potential for a cost-effective outcome.

Public Impact

The primary beneficiaries are the employees and operations of the Department of State, ensuring their vehicle fleet is adequately insured. The services delivered include comprehensive motor insurance coverage for the State Department's vehicles. The geographic impact is likely nationwide, covering vehicles used in various domestic operations. This contract ensures the continuity of essential government functions by protecting a key operational asset.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased premiums in future renewals if competition diminishes.
Dependence on a single provider for claims processing could lead to service disruptions if not managed well.

Positive Signals

Awarded through full and open competition, suggesting a competitive market.
Fixed-price contract provides cost certainty for the government.
Contract duration of two years allows for stable planning and service delivery.

Sector Analysis

The market for government fleet insurance is a specialized segment within the broader insurance industry. It requires providers to understand the unique risks and regulatory environments associated with public sector operations. While specific market size data for federal fleet insurance is not readily available, it is a significant component of overall government vehicle management. This contract fits within the broader category of professional services and risk management for government agencies.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. The award to 52ND Holdings (PTY) LTD, without further details on its size, makes it difficult to assess the direct impact on the small business ecosystem. Future analysis could explore if small businesses are participating as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of State's contracting and financial management offices. Accountability measures are embedded in the contract terms, including performance standards and the fixed-price structure. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Fleet Management
Government Vehicle Insurance
Department of State Operations
Risk Management Services

Risk Flags

Lack of detailed fleet information hinders precise value assessment.
Limited insight into contractor's specific government performance history.
Absence of explicit KPIs/SLAs makes performance monitoring less transparent.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $90,709.34 to 52ND HOLDINGS (PTY) LTD. FLEET MOTOR INSURANCE 2024 - STATE

Who is the contractor on this award?

The obligated recipient is 52ND HOLDINGS (PTY) LTD.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $90,709.34.

What is the period of performance?

Start: 2024-03-01. End: 2026-03-31.

What is the specific fleet size and composition covered by this insurance policy?

The provided data does not specify the exact number or types of vehicles covered under this fleet motor insurance contract. This information is crucial for a detailed assessment of the contract's value and risk. A larger or more diverse fleet (e.g., including specialized vehicles) would typically command a higher premium and potentially involve different risk factors compared to a smaller, standard passenger vehicle fleet. Understanding the fleet's composition would allow for a more accurate comparison against industry benchmarks and an evaluation of the appropriateness of the fixed price.

How does the per-vehicle insurance cost compare to industry averages for similar government fleets?

Calculating a precise per-vehicle cost requires knowing the total number of vehicles insured. With a total contract value of $907,093.40 over approximately 26 months (760 days / ~30 days/month), and assuming a hypothetical fleet size (e.g., 500 vehicles), the average annual cost per vehicle would be around $725. This figure needs to be benchmarked against industry data for government fleets, which can vary significantly based on vehicle type, usage, geographic location, and coverage levels. Without the specific fleet size, a direct comparison to industry averages is speculative but necessary for a thorough value assessment.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this fleet motor insurance contract. Typically, such contracts would include metrics related to claims processing time, customer service responsiveness, claims accuracy, and policy administration efficiency. The Department of State would monitor these KPIs to ensure 52ND Holdings (PTY) LTD is meeting its contractual obligations. The effectiveness of the oversight mechanisms and the contractor's performance heavily rely on the clarity and enforceability of these unstated SLAs.

What is the historical spending pattern for fleet motor insurance at the Department of State?

Historical spending data for fleet motor insurance at the Department of State is not provided in the current data extract. To assess trends and value, it would be beneficial to review spending over the past several years. This would help identify any significant fluctuations in cost, changes in awarded contractors, or shifts in competition levels. Understanding historical spending provides context for the current award amount and can highlight potential areas for cost savings or efficiency improvements in future procurement cycles.

What is the track record of 52ND Holdings (PTY) LTD in providing government insurance services?

Information regarding the specific track record of 52ND Holdings (PTY) LTD in providing government insurance services is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, any reported contract disputes or awards, and the company's experience with similar federal contracts. Understanding their history with government clients, particularly in fleet insurance, is essential for evaluating the reliability and quality of service expected under this new contract.

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

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 337 SURREY AVENUE, JOHANNESBURG

Business Categories: Category Business, Foreign Owned, International Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $90,709

Exercised Options: $90,709

Current Obligation: $90,709

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline