Treasury's Office of the Comptroller of the Currency awards $4.9M contract for life insurance services to Metropolitan Life Insurance Co

Contract Overview

Contract Amount: $4,919,771 ($4.9M)

Contractor: Metropolitan Life Insurance CO

Awarding Agency: Department of the Treasury

Start Date: 2025-12-01

End Date: 2026-12-31

Contract Duration: 395 days

Daily Burn Rate: $12.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SERVICES TO UNDERWRITE AND ADMINISTER GROUP LIFE INSURANCE FOR OCC'S ACTIVE AND RETIRED EMPLOYEES AND THEIR ELIGIBLE DEPENDENTS, AS WELL AS THE ACTIVE EMPLOYEES AND ELIGIBLE DEPENDENTS OF THE OFR.

Place of Performance

Location: BRIDGEWATER, SOMERSET County, NEW JERSEY, 08807

State: New Jersey Government Spending

Plain-Language Summary

Department of the Treasury obligated $4.9 million to METROPOLITAN LIFE INSURANCE CO for work described as: SERVICES TO UNDERWRITE AND ADMINISTER GROUP LIFE INSURANCE FOR OCC'S ACTIVE AND RETIRED EMPLOYEES AND THEIR ELIGIBLE DEPENDENTS, AS WELL AS THE ACTIVE EMPLOYEES AND ELIGIBLE DEPENDENTS OF THE OFR. Key points: 1. The contract aims to provide group life insurance for active and retired employees and their dependents. 2. The selected contractor, Metropolitan Life Insurance Co., is a well-established provider in the insurance sector. 3. The contract is structured as a Firm Fixed Price, which helps in cost predictability. 4. The duration of the contract is approximately 1.3 years, suggesting a need for ongoing service provision. 5. The procurement was conducted under full and open competition, indicating a broad market search. 6. The contract value is $4.9 million, which needs to be benchmarked against similar government life insurance contracts.

Value Assessment

Rating: good

The contract value of $4.9 million for underwriting and administering group life insurance for approximately 395 days appears reasonable given the scope of services. Benchmarking against similar federal group life insurance contracts would provide a more precise value-for-money assessment. The firm fixed-price structure helps control costs for the government. However, without detailed service level agreements and enrollment numbers, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of two bids indicates a competitive process, which generally leads to better pricing and service options for the government. The agency's approach to competition appears robust, allowing for market forces to influence the final award.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of providers to offer their services, potentially leading to lower costs and higher quality insurance products.

Public Impact

Active and retired employees of the Office of the Comptroller of the Currency (OCC) and the Office of Financial Regulation (OFR) will benefit from life insurance coverage. The services delivered include underwriting and administration of group life insurance policies. The contract is geographically focused within New Jersey, where the services are likely administered. The contract supports the benefits and well-being of federal employees and their families.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased premiums in future contract renewals if competition is not sustained.
Dependence on a single contractor for a critical employee benefit.

Positive Signals

Award to an established and reputable insurance provider.
Firm fixed-price contract provides cost certainty.
Procured through full and open competition, suggesting market validation.

Sector Analysis

The federal government procures a wide range of insurance services to support its employees and operations. This contract falls within the broader financial services and insurance sector, which is a significant area of government spending. Comparable spending benchmarks for federal employee group life insurance programs can be found across various agencies, often managed through large-scale contracts. The market for group life insurance is mature, with several large providers capable of servicing federal contracts.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature of the services and the size of the contract, it is unlikely that small businesses would be primary bidders for underwriting and administering large-scale group life insurance. Subcontracting opportunities for small businesses are not explicitly mentioned but could potentially arise in administrative support roles if the prime contractor utilizes them.

Oversight & Accountability

Oversight for this contract will likely be managed by the Office of the Comptroller of the Currency's contracting and program management officials. Accountability measures are typically embedded within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally maintained through contract award databases and public reporting mechanisms. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Employee Group Life Insurance (FEGLI)
Office of Personnel Management (OPM) Insurance Programs
Department of Veterans Affairs Life Insurance

Risk Flags

Contract duration is relatively short, requiring timely renewal or re-competition.
Performance metrics and service level agreements need close monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $4.9 million to METROPOLITAN LIFE INSURANCE CO. SERVICES TO UNDERWRITE AND ADMINISTER GROUP LIFE INSURANCE FOR OCC'S ACTIVE AND RETIRED EMPLOYEES AND THEIR ELIGIBLE DEPENDENTS, AS WELL AS THE ACTIVE EMPLOYEES AND ELIGIBLE DEPENDENTS OF THE OFR.

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 $4.9 million.

What is the period of performance?

Start: 2025-12-01. End: 2026-12-31.

What is the historical spending pattern for life insurance services by the Office of the Comptroller of the Currency?

Historical spending data for life insurance services specifically by the Office of the Comptroller of the Currency (OCC) is not readily available in the provided data. However, federal agencies typically procure such services through established programs like the Federal Employees Group Life Insurance (FEGLI) program, administered by the Office of Personnel Management (OPM), or through individual agency contracts. The current contract, valued at approximately $4.9 million over its term, suggests a dedicated procurement for OCC and OFR employees. To understand historical patterns, one would need to examine past contract awards for similar services by the OCC or related Treasury bureaus, looking at contract values, durations, and incumbent contractors to identify trends in spending and provider relationships.

How does the per-unit cost of this contract compare to similar federal life insurance contracts?

A precise per-unit cost comparison is challenging without knowing the exact number of covered lives (active employees, retirees, and dependents) and the specific benefits included in the policy. The total contract value is $4,919,770.54, with a duration of 395 days. If we assume a rough estimate of covered lives, for instance, if there were 1,000 covered individuals, the average annual cost per life would be approximately $4.9M / (1000 lives * (395/365) years) which is roughly $4,500 per life per year. This figure needs to be benchmarked against the average cost per life for similar federal group life insurance contracts, which can vary significantly based on age demographics, benefit levels, and the competitive landscape of the bidding market. Contracts awarded under full and open competition, like this one, generally aim for competitive pricing.

What is the track record of Metropolitan Life Insurance Co. with federal government contracts, particularly for life insurance?

Metropolitan Life Insurance Co. (MetLife) has a significant track record of serving the federal government. As a major player in the insurance industry, MetLife has historically been involved in providing group life insurance and other benefits to federal employees, often through large-scale contracts or as a subcontractor. They are a known provider within the Federal Employees Group Life Insurance (FEGLI) program, which is the largest group life insurance program in the world, administered by the Office of Personnel Management (OPM). Their experience with such a large and complex program indicates a strong capability to manage federal contracts, including underwriting, administration, claims processing, and customer service for a large and diverse population. This background suggests a low risk associated with their performance on this specific contract.

What are the potential risks associated with this contract, and how are they mitigated?

Potential risks include service disruptions, inadequate claims processing, or cost overruns if the fixed-price model does not adequately account for unforeseen circumstances. Mitigation strategies are typically embedded in the contract's performance standards, service level agreements (SLAs), and reporting requirements. The government will monitor MetLife's performance against these metrics. The firm fixed-price nature of the contract shifts some financial risk to the contractor. Furthermore, the contract's duration (395 days) is relatively short, allowing for reassessment and potential re-competition or modification if performance issues arise. The presence of two bidders also suggests a competitive environment that encourages good performance.

How does the competition level for this contract (2 bidders) impact price discovery and value for taxpayers?

Having two bidders for this contract indicates a moderate level of competition. While more bidders generally lead to more robust price discovery and potentially lower prices for taxpayers, two bidders still provide a basis for comparison and negotiation. It suggests that the market has at least two capable providers interested in this type of service. This level of competition is likely sufficient to prevent excessively high pricing compared to a sole-source award. However, to ensure optimal value, the agency would have evaluated the proposals not just on price but also on technical merit and past performance, ensuring the chosen bid represents the best overall value, not just the lowest price.

Industry Classification

NAICS: Finance and Insurance › Insurance Carriers › Direct Life Insurance Carriers

Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 2031JW26R00001

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 200 PARK AVE, NEW YORK, NY, 10166

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,261,953

Exercised Options: $4,919,771

Current Obligation: $4,919,771

Actual Outlays: $252,783

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline