SEC Spends $40M on Supplemental Benefits Plan with Metropolitan Life Insurance Co

Contract Overview

Contract Amount: $40,002,388 ($40.0M)

Contractor: Metropolitan Life Insurance CO

Awarding Agency: Securities and Exchange Commission

Start Date: 2021-01-01

End Date: 2025-12-31

Contract Duration: 1,825 days

Daily Burn Rate: $21.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SEC SUPPLEMENTAL BENEFITS PLAN (SBP)

Place of Performance

Location: BRIDGEWATER, SOMERSET County, NEW JERSEY, 08807

State: New Jersey Government Spending

Plain-Language Summary

Securities and Exchange Commission obligated $40.0 million to METROPOLITAN LIFE INSURANCE CO for work described as: SEC SUPPLEMENTAL BENEFITS PLAN (SBP) Key points: 1. Contract Value: $40M over 5 years. 2. Incumbent: Metropolitan Life Insurance Co. 3. Competition: Full and open competition. 4. Sector: Healthcare (Direct Health and Medical Insurance Carriers).

Value Assessment

Rating: good

The contract value of $40M over five years for health insurance benefits appears reasonable given the scope and duration. Benchmarking against similar government health insurance contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple bidders vie for the contract.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best possible price for the benefits provided.

Public Impact

Provides essential health and medical insurance benefits to SEC employees. Ensures continuity of services through a 5-year contract term. Supports employee well-being and retention within the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Full and open competition utilized.
Long-term contract provides stability.
Experienced incumbent provider.

Sector Analysis

This contract falls within the healthcare sector, specifically for direct health and medical insurance carriers. Government spending in this area is substantial, focusing on providing comprehensive benefits to federal employees.

Small Business Impact

The data does not indicate specific participation or set-asides for small businesses in this contract. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The Securities and Exchange Commission is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should be in place to ensure compliance and value.

Related Government Programs

Direct Health and Medical Insurance Carriers
Securities and Exchange Commission Contracting
Securities and Exchange Commission Programs

Risk Flags

Lack of detailed cost breakdown.
Absence of specific performance metrics.
Potential for price increases in future contract periods.
Dependence on a single provider for essential benefits.

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $40.0 million to METROPOLITAN LIFE INSURANCE CO. SEC SUPPLEMENTAL BENEFITS PLAN (SBP)

Who is the contractor on this award?

The obligated recipient is METROPOLITAN LIFE INSURANCE CO.

Which agency awarded this contract?

Awarding agency: Securities and Exchange Commission (Securities and Exchange Commission).

What is the total obligated amount?

The obligated amount is $40.0 million.

What is the period of performance?

Start: 2021-01-01. End: 2025-12-31.

What is the per-member, per-month cost compared to industry benchmarks?

A detailed per-member, per-month cost analysis is not available in the provided data. However, comparing this metric against industry benchmarks for similar group health insurance plans would be crucial for a thorough value assessment. This would help determine if the SEC is receiving competitive rates relative to the private sector and other government entities.

What were the key evaluation criteria used during the full and open competition?

The specific evaluation criteria for the full and open competition are not detailed in the provided data. Typically, such criteria would include factors like price, technical approach, past performance, and management capabilities. Understanding these criteria is essential to assess how the agency ensured the best value was selected beyond just the lowest price.

Are there any performance metrics or service level agreements (SLAs) tied to this contract?

The provided data does not specify performance metrics or service level agreements (SLAs) for this contract. SLAs are critical for ensuring the quality of services delivered by Metropolitan Life Insurance Co. and for holding the contractor accountable. Their absence or inclusion would significantly impact the assessment of contract effectiveness and oversight.

Industry Classification

NAICS: Finance and Insurance › Insurance Carriers › Direct Health and Medical Insurance Carriers

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $40,002,388

Exercised Options: $40,002,388

Current Obligation: $40,002,388

Actual Outlays: $38,572,080

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline