FEMA awards $24.7M for NFIP communications, highlighting advertising agency support for flood insurance program

Contract Overview

Contract Amount: $24,753,190 ($24.8M)

Contractor: YES& Federal, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-09-30

End Date: 2023-09-29

Contract Duration: 364 days

Daily Burn Rate: $68.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: NFIP COMMUNICATIONS TASK ORDER 4. THE PURPOSE OF THIS TASK ORDER AWARD AGAINST FEMA NATIONAL FLOOD INSURANCE PROGRAM (NFIP) CUSTOMER COMMUNICATIONS BPA NO. 70FA6020A00000002 TO PROVIDE EXPERT SUPPORT IN ALL ASPECTS OF COMMUNICATIONS, MARKETING, OUT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20472

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $24.8 million to YES& FEDERAL, LLC for work described as: NFIP COMMUNICATIONS TASK ORDER 4. THE PURPOSE OF THIS TASK ORDER AWARD AGAINST FEMA NATIONAL FLOOD INSURANCE PROGRAM (NFIP) CUSTOMER COMMUNICATIONS BPA NO. 70FA6020A00000002 TO PROVIDE EXPERT SUPPORT IN ALL ASPECTS OF COMMUNICATIONS, MARKETING, OUT Key points: 1. Contract focuses on expert support for marketing and communications related to the National Flood Insurance Program. 2. Awarded to YES& FEDERAL, LLC, indicating a specific contractor chosen for their expertise. 3. The contract duration is one year, suggesting a defined scope of work for the period. 4. Competition was full and open, implying a broad solicitation process. 5. The contract type is Time and Materials, which can pose cost control challenges if not managed closely. 6. This task order falls under a broader BPA, suggesting a framework for ongoing support needs. 7. The primary service is advertising and marketing, aligning with the NAICS code 541810.

Value Assessment

Rating: fair

The total award amount is $24.7 million for a one-year period. Benchmarking this against similar large-scale communications contracts is difficult without more granular data on the specific deliverables. However, the Time and Materials pricing structure warrants careful monitoring to ensure value for money, as costs can escalate if not managed effectively. The absence of a fixed price or cost-plus-fixed-fee structure suggests potential for cost overruns if the scope of work expands or becomes less defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This suggests a robust bidding process. However, the specific number of bids received is not provided, which would offer further insight into the actual level of competition. A high number of bids generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages a wider range of offers, potentially leading to more competitive pricing and innovative solutions.

Public Impact

The primary beneficiaries are the public, through improved communication and understanding of the National Flood Insurance Program. Services delivered include expert support in all aspects of communications and marketing for NFIP. The geographic impact is national, as the NFIP serves flood-prone areas across the United States. Workforce implications may include the utilization of specialized communication and marketing professionals by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
Lack of specific details on the number of bidders limits full assessment of competition's impact on price.
The broad nature of 'expert support in all aspects of communications' could lead to scope creep if not well-defined.

Positive Signals

Awarded under full and open competition, suggesting a fair and broad solicitation process.
Contractor YES& FEDERAL, LLC is selected, implying they meet specific qualifications for the task.
The task order is part of a larger BPA, indicating a strategic approach to managing ongoing communication needs.

Sector Analysis

This contract falls within the Advertising Agencies sector (NAICS 541810). The market for government advertising and public relations services is substantial, with agencies frequently seeking specialized support for public awareness campaigns and program outreach. FEMA's reliance on such services for the NFIP is critical for educating the public about flood risks and insurance options. Comparable spending benchmarks would typically involve analyzing other large federal contracts for similar communication and marketing support across various agencies.

Small Business Impact

The data indicates that small business participation (sb) is false for this specific task order. This means there was no explicit small business set-aside. It is unclear if subcontracting opportunities for small businesses are mandated or encouraged within this contract. Further analysis would be needed to determine the extent to which small businesses might be involved in fulfilling parts of this large contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security and the Federal Emergency Management Agency. As a Time and Materials contract, rigorous oversight of labor hours, rates, and direct costs is crucial to ensure accountability and prevent overspending. Transparency is facilitated by the contract being publicly awarded, but detailed performance metrics and expenditure reports would be necessary for a full assessment. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

National Flood Insurance Program (NFIP)
FEMA Communications Contracts
Federal Advertising and Marketing Services
Department of Homeland Security Task Orders
Broad Agency Announcements (BPA) Call Awards

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Scope creep risk if 'expert support' is not clearly defined.
Effectiveness of communication strategy dependent on contractor performance and FEMA's direction.
Limited insight into the actual level of competition without the number of bids.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $24.8 million to YES& FEDERAL, LLC. NFIP COMMUNICATIONS TASK ORDER 4. THE PURPOSE OF THIS TASK ORDER AWARD AGAINST FEMA NATIONAL FLOOD INSURANCE PROGRAM (NFIP) CUSTOMER COMMUNICATIONS BPA NO. 70FA6020A00000002 TO PROVIDE EXPERT SUPPORT IN ALL ASPECTS OF COMMUNICATIONS, MARKETING, OUT

Who is the contractor on this award?

The obligated recipient is YES& FEDERAL, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $24.8 million.

What is the period of performance?

Start: 2022-09-30. End: 2023-09-29.

What is the track record of YES& FEDERAL, LLC with federal contracts, particularly in communications and marketing?

Information regarding the specific track record of YES& FEDERAL, LLC with federal contracts, especially in communications and marketing, is not detailed in the provided data. A comprehensive analysis would require accessing federal procurement databases (like SAM.gov or FPDS) to review their past performance, contract values, agencies served, and any performance ratings or past performance questionnaires. Understanding their history with similar large-scale public awareness campaigns or insurance-related communications would be crucial for assessing their capability and reliability for this NFIP task order. Without this specific data, it's difficult to definitively evaluate their past performance.

How does the $24.7 million cost compare to similar FEMA or DHS communication contracts?

Directly comparing the $24.7 million cost of this one-year task order to similar FEMA or DHS communication contracts requires access to a broader dataset of federal procurement information. The provided data lacks specific details on the scope of work and deliverables, making a precise benchmark challenging. However, large federal agencies like FEMA and DHS often award multi-million dollar contracts for public outreach, marketing, and crisis communications. The cost is significant, reflecting the complexity and national reach of the NFIP. To assess value, one would need to compare it against contracts for similar services (e.g., advertising campaigns, public relations, stakeholder engagement) awarded over comparable periods and to similarly qualified contractors, considering factors like the target audience size and communication channels utilized.

What are the primary risks associated with a Time and Materials contract for a communications task order of this magnitude?

The primary risk associated with a Time and Materials (T&M) contract, especially for a $24.7 million, one-year communications task order, is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials. If the scope of work is not tightly defined, or if project management is weak, the contractor may incur more hours or use more resources than initially anticipated, leading to costs exceeding the ceiling. For communications, this could manifest as extended campaign durations, additional creative iterations, or unforeseen research needs. Robust oversight, clear task definitions, and diligent monitoring of labor hours and expenses are critical to mitigate these risks and ensure the government receives good value.

How effective is the current communication strategy for the NFIP, and how will this contract contribute to its improvement?

The provided data does not contain information on the current effectiveness of the NFIP's communication strategy. This task order is specifically aimed at providing 'expert support in all aspects of communications, marketing, [and] customer outreach' for the NFIP. Therefore, its contribution is intended to be significant, likely focusing on enhancing public awareness, improving engagement with policyholders, and potentially driving enrollment or retention. The effectiveness of this contract's contribution will depend on the quality of the services provided by YES& FEDERAL, LLC, the clarity of the objectives set by FEMA, and the metrics used to measure success (e.g., campaign reach, public understanding, policyholder satisfaction). A post-award evaluation would be necessary to determine its actual impact.

What is the historical spending trend for NFIP communications support by FEMA?

The provided data only details a single task order award of $24.7 million for NFIP communications. It does not offer historical spending trends. To understand FEMA's historical spending on NFIP communications, one would need to analyze procurement data over multiple fiscal years. This would involve identifying all contracts, task orders, and BPA calls related to NFIP communications, marketing, and public outreach, and summing their values annually. Such an analysis would reveal whether this $24.7 million award represents an increase, decrease, or consistent level of investment in these services compared to previous years, and identify any trends in contractor selection or contract types used.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Advertising, Public Relations, and Related Services › Advertising Agencies

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1700 DIAGONAL RD STE 450, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,753,190

Exercised Options: $24,753,190

Current Obligation: $24,753,190

Actual Outlays: $6,793,974

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70FA6020A00000002

IDV Type: BPA

Timeline