FEMA's NFIP training contract awarded to H2O Partners Inc. for over $39 million

Contract Overview

Contract Amount: $39,118,797 ($39.1M)

Contractor: H2O Partners Inc

Awarding Agency: Department of Homeland Security

Start Date: 2017-09-28

End Date: 2023-06-29

Contract Duration: 2,100 days

Daily Burn Rate: $18.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF NATIONAL FLOOD INSURANCE PROGRAM (NFIP) - STAKEHOLDER TRAINING DEVELOPMENT AND DELIVERY. CONTRACTOR SHALL PROVIDE TECHNICAL EXPERTISE TO DEVELOP CLASSROOM, WEBINAR AND ONLINE TRAINING MATERIALS, CONDUCTION TRAINING IN CLASSROOM AND ONLINE ENVIRONMENT, AND DEVELOP&MAINTAIN WEB BASED TOOL-KITS TO FACILITATED EDUCATION AND COLLABORATION OF NFIP AGENTS AND ADJUSTERS.

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78746

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $39.1 million to H2O PARTNERS INC for work described as: IGF::CT::IGF NATIONAL FLOOD INSURANCE PROGRAM (NFIP) - STAKEHOLDER TRAINING DEVELOPMENT AND DELIVERY. CONTRACTOR SHALL PROVIDE TECHNICAL EXPERTISE TO DEVELOP CLASSROOM, WEBINAR AND ONLINE TRAINING MATERIALS, CONDUCTION TRAINING IN CLASSROOM AND ONLINE ENVIRONMENT, AND DEVELOP&M… Key points: 1. Contract focuses on developing and delivering training for National Flood Insurance Program (NFIP) agents and adjusters. 2. Training modalities include classroom, webinar, and online formats, indicating a flexible approach to education. 3. The contract duration of 2100 days (approximately 5.75 years) suggests a long-term need for these services. 4. The award was made under full and open competition, implying a robust bidding process. 5. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 6. The geographic scope appears national, given the nature of the NFIP. 7. The professional and management development training NAICS code suggests a focus on skill enhancement and operational efficiency.

Value Assessment

Rating: fair

The total contract value of approximately $39.1 million over nearly six years averages to about $6.7 million annually. Benchmarking this against similar government training contracts is challenging without more specific service details. However, the firm-fixed-price structure suggests that the government has negotiated a set price for the defined scope of work. The value proposition hinges on the effectiveness and reach of the training provided to NFIP agents and adjusters, which is not directly quantifiable from the award data alone. Further analysis would require understanding the cost per trainee or per training module.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of two bidders (no: 2) suggests a moderate level of competition for this specific requirement. While two bidders is better than a sole-source award, a higher number of competitors could potentially drive prices down further and foster greater innovation. The agency's decision to pursue full and open competition is generally a positive sign for market engagement.

Taxpayer Impact: Full and open competition, even with a limited number of bidders, generally benefits taxpayers by encouraging competitive pricing and a wider pool of potential service providers. This approach helps ensure that the government is not overpaying for services.

Public Impact

NFIP agents and adjusters nationwide will benefit from enhanced training, leading to improved program administration and customer service. The delivery of classroom, webinar, and online training materials will equip participants with essential knowledge and skills for flood insurance. The development of web-based tool-kits will facilitate ongoing education and collaboration among NFIP stakeholders. The contract supports the operational capacity of the Federal Emergency Management Agency (FEMA) in managing the NFIP. Workforce implications include the training and professional development of a critical segment of the disaster response and insurance sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if training requirements evolve significantly beyond initial specifications.
Dependence on contractor's ability to deliver high-quality, engaging training across multiple formats.
Risk of outdated training materials if not continuously updated to reflect program changes or best practices.

Positive Signals

Firm-fixed-price contract structure provides cost certainty for the government.
Full and open competition suggests a deliberate effort to secure competitive pricing.
Long contract duration allows for sustained development and delivery of training, fostering expertise.
Multiple training modalities (classroom, webinar, online) cater to diverse learning needs and accessibility.

Sector Analysis

This contract falls within the professional and management development training sector, a segment of the broader professional, scientific, and technical services industry. The National Flood Insurance Program (NFIP) is a critical component of the U.S. disaster management infrastructure, and effective training for its personnel is essential for its operation. Comparable spending benchmarks for government-wide training services are vast, but this specific contract's focus on a specialized program like NFIP makes direct comparisons difficult. The market for specialized government training is often characterized by a mix of large, established firms and smaller, niche providers.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). The prime contractor, H2O Partners Inc., is likely a small business based on its name and the contract value, but without specific size standard data, this cannot be confirmed. There is no explicit information regarding subcontracting plans for small businesses within this award notice. The lack of a small business set-aside means that larger businesses could have competed, and it does not guarantee opportunities for small businesses to participate as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Emergency Management Agency (FEMA), a component of the Department of Homeland Security. As a firm-fixed-price contract, oversight would focus on ensuring the contractor meets the defined scope of work, quality standards, and delivery schedules. Performance metrics and regular reporting would be key accountability measures. Transparency is facilitated through contract award databases, but detailed performance reports are typically internal. The Inspector General for the Department of Homeland Security would have jurisdiction over potential fraud, waste, or abuse related to this contract.

Related Government Programs

National Flood Insurance Program (NFIP)
Federal Emergency Management Agency (FEMA) Operations
Disaster Preparedness and Response Training
Insurance Agent and Adjuster Certification Programs
Government Employee Professional Development

Risk Flags

Contract Duration
Competition Level
Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $39.1 million to H2O PARTNERS INC. IGF::CT::IGF NATIONAL FLOOD INSURANCE PROGRAM (NFIP) - STAKEHOLDER TRAINING DEVELOPMENT AND DELIVERY. CONTRACTOR SHALL PROVIDE TECHNICAL EXPERTISE TO DEVELOP CLASSROOM, WEBINAR AND ONLINE TRAINING MATERIALS, CONDUCTION TRAINING IN CLASSROOM AND ONLINE ENVIRONMENT, AND DEVELOP&MAINTAIN WEB BASED TOOL-KITS TO FACILITATED EDUCATION AND COLLABORATION OF NFIP AGENTS AND ADJUSTERS.

Who is the contractor on this award?

The obligated recipient is H2O PARTNERS INC.

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 $39.1 million.

What is the period of performance?

Start: 2017-09-28. End: 2023-06-29.

What is the track record of H2O Partners Inc. in delivering government training contracts, particularly for specialized programs?

Information on H2O Partners Inc.'s specific track record for government training contracts is not detailed in the provided award data. A comprehensive assessment would require reviewing past performance evaluations, contract history with federal agencies, and any reported issues or successes. Given the nature of the NFIP, which deals with complex insurance and disaster management regulations, the agency likely vetted the contractor's experience in similar domains. Further research into the contractor's portfolio and client testimonials, if available, would provide a clearer picture of their capabilities and reliability in delivering specialized training.

How does the per-year cost of this training contract compare to similar government-wide professional development initiatives?

The annual cost for this contract averages approximately $6.7 million ($39.1 million / 5.75 years). Direct comparison to 'similar' government-wide professional development initiatives is difficult without a standardized definition of 'similar' and access to detailed cost breakdowns per training module or per trainee. Government training costs can vary widely based on subject matter complexity, delivery method (online vs. in-person), duration, and the number of participants. While $6.7 million annually for a national program's training development and delivery is substantial, its value is contingent on the effectiveness and reach of the training provided to NFIP agents and adjusters, which is not quantifiable from this data alone.

What are the key performance indicators (KPIs) used to measure the success of the NFIP training developed under this contract?

The provided award data does not specify the key performance indicators (KPIs) used to measure the success of the NFIP training. Typically, for such contracts, KPIs might include trainee satisfaction scores, knowledge retention rates (measured through post-training assessments), completion rates of training modules, the number of agents/adjusters trained, and potentially, improvements in claim processing efficiency or compliance adherence. The Federal Emergency Management Agency (FEMA) would be responsible for establishing and monitoring these KPIs throughout the contract's performance period to ensure the training meets its objectives.

What is the historical spending trend for NFIP training services by FEMA over the past five years?

The provided data only pertains to a single contract award and does not offer historical spending trends for NFIP training services by FEMA. To analyze historical spending, one would need to access FEMA's procurement data for previous years, identifying contracts specifically for NFIP training development and delivery. This would involve looking at contract databases and financial reports to aggregate spending on similar services. Without this broader dataset, it's impossible to determine if the $39.1 million award represents an increase, decrease, or stable level of investment in NFIP training compared to prior periods.

What are the potential risks associated with a long-term (2100 days) training contract, and how are they mitigated?

Long-term training contracts like this one (2100 days) carry risks such as the potential for training content to become outdated, shifts in program requirements that necessitate contract modifications, and contractor performance degradation over time. Mitigation strategies typically employed by agencies include robust contract management, regular performance reviews, incorporating flexibility clauses for content updates, and establishing clear communication channels. The firm-fixed-price nature helps mitigate cost overruns, but ensuring the training remains relevant and effective throughout the contract's life requires proactive oversight from FEMA to adapt to evolving NFIP needs and best practices in adult education.

Industry Classification

NAICS: Educational Services › Business Schools and Computer and Management Training › Professional and Management Development Training

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HSFE60-17-Q-0004

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 260 ADDIE ROY RD, AUSTIN, TX, 78746

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $43,754,622

Exercised Options: $39,118,797

Current Obligation: $39,118,797

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS02F0087U

IDV Type: FSS

Timeline