FEMA's $16.75M contract for NFIP direct service agents awarded to CSC Covansys Corporation

Contract Overview

Contract Amount: $16,753,950 ($16.8M)

Contractor: CSC Covansys Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2010-05-28

End Date: 2011-05-31

Contract Duration: 368 days

Daily Burn Rate: $45.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NFIP DIRECT SERVICE AGENT

Place of Performance

Location: FARMINGTON HILLS, OAKLAND County, MICHIGAN, 48334

State: Michigan Government Spending

Plain-Language Summary

Department of Homeland Security obligated $16.8 million to CSC COVANSYS CORPORATION for work described as: NFIP DIRECT SERVICE AGENT Key points: 1. Contract value appears reasonable given the scope of insurance-related activities. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Contract duration of approximately one year aligns with service delivery needs. 5. The contract falls under 'All Other Insurance Related Activities,' a niche sector. 6. Awarded to CSC Covansys Corporation, indicating a specific capability match.

Value Assessment

Rating: good

The contract value of $16.75 million for insurance-related services seems within a reasonable range for a one-year period. Benchmarking against similar contracts for direct service agents in the National Flood Insurance Program (NFIP) would provide a more precise value-for-money assessment. However, the fixed-price nature of the contract suggests that the government secured a defined cost for the services, which is generally favorable.

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 suggests a moderate level of competition for this specific service. While more bidders could potentially drive prices lower, two bidders still provide a basis for price comparison and selection.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple companies to offer their best pricing and services, leading to potentially lower costs and better quality outcomes.

Public Impact

The primary beneficiaries are policyholders of the National Flood Insurance Program (NFIP) who receive direct service agent support. Services delivered likely include policy administration, claims processing assistance, and customer support for flood insurance. The contract's geographic impact is focused on Michigan, as indicated by the 'MI' state code. Workforce implications include employment opportunities within CSC Covansys Corporation for individuals performing these insurance-related tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition if only two bidders participated.
Dependence on a single contractor for critical NFIP services in Michigan.

Positive Signals

Fixed-price contract limits cost escalation.
Full and open competition promotes market fairness.
Clear contract duration reduces uncertainty.

Sector Analysis

This contract operates within the broader insurance services sector, specifically focusing on activities related to the National Flood Insurance Program. The market for specialized insurance administration and support services can be competitive, with various firms offering expertise in policy management and claims handling. The contract's value of $16.75 million is moderate for a government service contract of this nature, fitting within the typical spending for niche insurance support functions.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless CSC Covansys Corporation voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Emergency Management Agency (FEMA), a component of the Department of Homeland Security. Accountability measures are inherent in the fixed-price contract structure, requiring the contractor to deliver specified services within the agreed budget. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and oversight activities may not be publicly detailed.

Related Government Programs

National Flood Insurance Program
Federal Insurance and Mitigation Administration
Department of Homeland Security Contracts
Insurance Services Contracts

Risk Flags

Potential for limited competition
Contract performance monitoring required

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $16.8 million to CSC COVANSYS CORPORATION. NFIP DIRECT SERVICE AGENT

Who is the contractor on this award?

The obligated recipient is CSC COVANSYS CORPORATION.

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 $16.8 million.

What is the period of performance?

Start: 2010-05-28. End: 2011-05-31.

What is the track record of CSC Covansys Corporation with federal contracts, particularly those related to insurance services?

CSC Covansys Corporation, the awardee of this $16.75 million contract, has a history of federal contracting. While specific details on their track record for NFIP-related services require deeper investigation into contract performance databases, their selection suggests they met the government's requirements. Analyzing past performance on similar contracts, including adherence to schedules, quality of service, and financial stability, would provide a more comprehensive understanding of their capabilities and reliability. It's important to note that 'CSC Covansys Corporation' may represent a specific entity or a merged company, and its contracting history should be traced accordingly.

How does the $16.75 million contract value compare to similar NFIP direct service agent contracts awarded in the past or concurrently?

Benchmarking the $16.75 million contract value against similar NFIP direct service agent contracts is crucial for assessing value for money. Without access to a comprehensive database of comparable contracts, a precise comparison is difficult. However, considering the contract duration of approximately one year and the scope of 'All Other Insurance Related Activities,' this value appears moderate. Factors influencing price include the specific services required (e.g., policy issuance, claims support, customer service), geographic coverage, and the level of technical expertise needed. A detailed analysis would involve comparing contract values adjusted for inflation, contract length, and the specific deliverables outlined in the statement of work for this and other relevant contracts.

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

Key risks for this contract include potential service disruptions if the contractor fails to perform adequately, leading to issues for NFIP policyholders. Another risk is the possibility of cost inefficiencies, although the fixed-price contract type mitigates this by capping the government's expenditure. Performance risk is managed through contract oversight by FEMA, which would monitor service delivery against agreed-upon metrics. Mitigation strategies likely involve clear performance standards in the contract, regular reporting from the contractor, and defined remedies for non-performance. The limited competition (two bidders) could also be seen as a risk, potentially reducing leverage in future negotiations.

How effective has CSC Covansys Corporation been in fulfilling its obligations under this specific contract?

Assessing the effectiveness of CSC Covansys Corporation in fulfilling its obligations under this specific $16.75 million contract requires access to performance reports, customer feedback, and potentially Inspector General reviews. As the contract was awarded on May 28, 2010, and ended on May 31, 2011, its performance period has concluded. To evaluate effectiveness, one would need to examine metrics related to policy processing times, claims handling accuracy, customer satisfaction levels, and adherence to program guidelines. Without specific performance data, it's presumed that the contract was completed satisfactorily, given its award, but a definitive judgment on effectiveness cannot be made solely from the provided summary data.

What are the historical spending patterns for NFIP direct service agent contracts, and how does this contract fit within that trend?

Analyzing historical spending patterns for NFIP direct service agent contracts is essential for contextualizing this $16.75 million award. The National Flood Insurance Program has a long history, and its operational needs, including the requirement for direct service agents, have evolved. Spending in this area can fluctuate based on legislative changes, program reforms, and the overall volume of flood insurance policies. This contract, awarded in 2010 for a one-year term, represents a specific investment in maintaining NFIP operations in Michigan. Understanding whether this amount is typical, higher, or lower than previous or subsequent contracts for similar services in other regions would reveal trends in program costs and resource allocation.

Industry Classification

NAICS: Finance and Insurance › Agencies, Brokerages, and Other Insurance Related Activities › All Other Insurance Related Activities

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

Address: 32605 W 12 MILE RD, FARMINGTON HILLS, MI, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $16,753,950

Exercised Options: $16,753,950

Current Obligation: $16,753,950

Parent Contract

Parent Award PIID: EMW2003CO0458

IDV Type: IDC

Timeline