Treasury's $11.3M Group Life Insurance Contract Awarded to MetLife Under Full Competition
Contract Overview
Contract Amount: $11,294,680 ($11.3M)
Contractor: Metropolitan Life Insurance CO
Awarding Agency: Department of the Treasury
Start Date: 2021-08-01
End Date: 2025-12-31
Contract Duration: 1,613 days
Daily Burn Rate: $7.0K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: GROUP LIFE INSURANCE SERVICES
Place of Performance
Location: BRIDGEWATER, SOMERSET County, NEW JERSEY, 08807
Plain-Language Summary
Department of the Treasury obligated $11.3 million to METROPOLITAN LIFE INSURANCE CO for work described as: GROUP LIFE INSURANCE SERVICES Key points: 1. Contract Value: $11.3 million over its period of performance. 2. Competition: Awarded through full competition under Simplified Acquisition Procedures (SAP). 3. Risk: Low risk identified due to firm fixed-price contract and established carrier. 4. Sector: Financial services, specifically direct life insurance carriers.
Value Assessment
Rating: good
The contract value appears reasonable for group life insurance services for a federal agency. Benchmarking against similar large-group policies would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was competed under Simplified Acquisition Procedures (SAP), indicating a competitive process for awards below certain thresholds. This method generally promotes price discovery and value for the government.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving a fair price for the group life insurance coverage.
Public Impact
Provides essential life insurance benefits to federal employees, enhancing recruitment and retention. Supports the financial security of federal employee families in the event of an employee's death. The contract ensures continuity of services for a significant employee population within the Treasury Department.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Full and open competition utilized.
- Firm fixed-price contract type.
- Award to a well-established insurance provider.
Sector Analysis
This contract falls within the financial services sector, specifically direct life insurance carriers. Spending in this area is crucial for employee benefits programs across government agencies.
Small Business Impact
The data does not indicate any specific set-aside for small businesses. The award to a large, established carrier like MetLife suggests small businesses were likely not primary participants in this specific procurement.
Oversight & Accountability
The contract was awarded by the Office of the Comptroller of the Currency, a bureau within the Department of the Treasury, indicating internal agency oversight. Further review of performance reports would be needed to assess ongoing accountability.
Related Government Programs
- Direct Life Insurance Carriers
- Department of the Treasury Contracting
- Office of the Comptroller of the Currency Programs
Risk Flags
- Potential for price increases in future contract renewals if market conditions change significantly.
- Lack of explicit small business participation noted.
- Dependence on a single large provider for essential employee benefits.
Tags
direct-life-insurance-carriers, department-of-the-treasury, nj, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $11.3 million to METROPOLITAN LIFE INSURANCE CO. GROUP LIFE INSURANCE SERVICES
Who is the contractor on this award?
The obligated recipient is METROPOLITAN LIFE INSURANCE CO.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Office of the Comptroller of the Currency).
What is the total obligated amount?
The obligated amount is $11.3 million.
What is the period of performance?
Start: 2021-08-01. End: 2025-12-31.
What is the benchmark cost per employee for group life insurance in the federal sector?
Benchmarking the cost per employee for group life insurance in the federal sector requires access to detailed actuarial data and specific plan designs. While this contract's total value is $11.3 million, the number of covered employees is not provided. A typical range can vary significantly based on age demographics, coverage levels, and plan features, but a rough estimate might fall between $200-$600 per employee annually for comprehensive federal group life plans.
What are the key performance indicators (KPIs) for this contract, and how is MetLife's performance being measured?
Specific Key Performance Indicators (KPIs) for this group life insurance contract are not detailed in the provided data. Typically, KPIs would include claims processing timeliness, accuracy rates, customer satisfaction scores for beneficiaries and enrollees, and adherence to policy terms. The Office of the Comptroller of the Currency would be responsible for monitoring these KPIs through contract performance reports and regular reviews.
Are there any provisions for contract termination or renegotiation based on market changes in insurance premiums?
The provided data does not specify termination or renegotiation clauses related to market changes. However, firm fixed-price contracts generally offer less flexibility for price adjustments due to market fluctuations. Termination for convenience or cause clauses are standard and would allow the government to exit the contract under specific conditions, potentially allowing for renegotiation or re-competition if market conditions significantly shift.
Industry Classification
NAICS: Finance and Insurance › Insurance Carriers › Direct Life Insurance Carriers
Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 2031JW21Q00092
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 501 US HWY 22, BRIDGEWATER, NJ, 08807
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $11,294,680
Exercised Options: $11,294,680
Current Obligation: $11,294,680
Actual Outlays: $10,876,444
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2021-08-01
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-10-14
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