DOT's FAA Spent $17M on Aviation Insurance Brokerage via Full & Open Competition
Contract Overview
Contract Amount: $16,972,559 ($17.0M)
Contractor: Marsh USA Inc
Awarding Agency: Department of Transportation
Start Date: 2009-08-25
End Date: 2015-09-02
Contract Duration: 2,199 days
Daily Burn Rate: $7.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FUNDING FOR AVIATION INSURANCE BROKERAGE SERVICES UNDER SIR DTFAWA-R-00021 NSURANCE CONTRACT #DTFAWA-09-C-00080 REGIS # 28644258
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20037
Plain-Language Summary
Department of Transportation obligated $17.0 million to MARSH USA INC for work described as: FUNDING FOR AVIATION INSURANCE BROKERAGE SERVICES UNDER SIR DTFAWA-R-00021 NSURANCE CONTRACT #DTFAWA-09-C-00080 REGIS # 28644258 Key points: 1. Contract awarded to Marsh USA Inc. for aviation insurance brokerage. 2. The contract spanned nearly 6 years, from August 2009 to September 2015. 3. A firm fixed price contract type was utilized. 4. The total value of the contract was $16,972,559.29. 5. The NAICS code 524210 indicates the sector is Insurance Agencies and Brokerages.
Value Assessment
Rating: fair
The contract value of $16.97M over 6 years appears reasonable for specialized aviation insurance brokerage services. Benchmarking against similar government contracts for insurance brokerage is difficult without more specific service details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.
Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it allows multiple vendors to bid, driving down costs.
Public Impact
Ensures continuous aviation insurance coverage for FAA operations. Supports the complex risk management needs of the Federal Aviation Administration. Provides access to specialized brokerage expertise for aviation-related insurance policies. The long duration suggests a stable, ongoing need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics or outcomes.
- Limited insight into the actual services provided beyond brokerage.
- No indication of small business participation.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type limits cost overruns.
- Long contract duration indicates sustained need and potential for stable service.
Sector Analysis
The sector is Insurance Agencies and Brokerages (NAICS 524210). Government spending in this area typically supports risk management and procurement of specialized insurance for federal assets and operations.
Small Business Impact
The data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). Further analysis would be needed to determine if opportunities were missed or if the nature of the service precluded small business involvement.
Oversight & Accountability
The contract was awarded by the Department of Transportation's Federal Aviation Administration. Oversight would typically involve contract management reviews and performance monitoring by the contracting agency to ensure services meet requirements.
Related Government Programs
- Insurance Agencies and Brokerages
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Lack of detailed performance metrics.
- No information on specific risks managed.
- No small business participation noted.
- Limited insight into service effectiveness.
- Difficulty in benchmarking against similar contracts.
Tags
insurance-agencies-and-brokerages, department-of-transportation, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $17.0 million to MARSH USA INC. FUNDING FOR AVIATION INSURANCE BROKERAGE SERVICES UNDER SIR DTFAWA-R-00021 NSURANCE CONTRACT #DTFAWA-09-C-00080 REGIS # 28644258
Who is the contractor on this award?
The obligated recipient is MARSH USA INC.
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $17.0 million.
What is the period of performance?
Start: 2009-08-25. End: 2015-09-02.
What specific aviation risks were covered by this brokerage contract, and how did the broker's services mitigate these risks effectively?
The provided data does not detail the specific aviation risks covered or the effectiveness of the brokerage services. A comprehensive review would require access to the contract's statement of work, performance reports, and any post-award evaluations to assess how Marsh USA Inc. managed the FAA's insurance needs and mitigated identified risks.
How does the $16.97M contract value compare to industry benchmarks for similar aviation insurance brokerage services for an agency of the FAA's size and complexity?
Benchmarking this contract's value is challenging without detailed service scope and market data. However, considering the FAA's extensive operations and the specialized nature of aviation insurance, $16.97M over six years might be within a reasonable range. A thorough analysis would involve comparing it to private sector contracts of similar scale and scope, adjusted for government procurement nuances.
Were there any performance issues or disputes during the contract's 6-year duration that impacted service delivery or cost-effectiveness?
The provided data does not contain information regarding performance issues or disputes. Typically, such information would be found in contract performance reports, modification histories, or agency inspection records. Without these, it's presumed the contract was executed without significant, reportable problems affecting its overall effectiveness or taxpayer value.
Industry Classification
NAICS: Finance and Insurance › Agencies, Brokerages, and Other Insurance Related Activities › Insurance Agencies and Brokerages
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING 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
Parent Company: Marsh & Mclennan Companies Inc (UEI: 041564378)
Address: 1255 23RD ST NW STE 400, WASHINGTON, DC, 20037
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $16,975,020
Exercised Options: $16,972,559
Current Obligation: $16,972,559
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2009-08-25
Current End Date: 2015-09-02
Potential End Date: 2015-09-02 00:00:00
Last Modified: 2020-08-13
Other Department of Transportation Contracts
- Dafis UDO Reconstruct W/O Advance — $3.8B (Lockheed Martin Services, LLC)
- THE Purpose of This Delivery Order Award IS to ADD Funding for FTI Telecommunications Services — $1.9B (Harris Corporation)
- Provide Funding for Clin 302 for Pre-Flight and In-Flight Services. Contract Number Dtfawa-05-C-00031, Lockheed Martin. POP 01/16/08-03/31/08 — $1.9B (Leidos, Inc.)
- Center for Advanced Aviation Development (caasd) Ffrdc Mitre — $1.7B (THE Mitre Corporation)
- Dafis UDO Reconstruct W/O Advance — $1.5B (Harris Corporation)