MetLife awarded $31M contract for supplemental health benefits, serving SEC employees

Contract Overview

Contract Amount: $30,973,694 ($31.0M)

Contractor: Metropolitan Life Insurance CO

Awarding Agency: Securities and Exchange Commission

Start Date: 2015-11-12

End Date: 2022-01-20

Contract Duration: 2,261 days

Daily Burn Rate: $13.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF SUPPLEMENTAL HEALTH BENEFIT PLAN

Place of Performance

Location: LONG ISLAND CITY, QUEENS County, NEW YORK, 11101

State: New York Government Spending

Plain-Language Summary

Securities and Exchange Commission obligated $31.0 million to METROPOLITAN LIFE INSURANCE CO for work described as: IGF::OT::IGF SUPPLEMENTAL HEALTH BENEFIT PLAN Key points: 1. Contract provides supplemental health benefits, indicating a focus on employee welfare. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. A single award was made, which can sometimes limit price negotiation. 4. The contract duration of over 2200 days points to a long-term need for these services. 5. The fixed-price nature of the contract shifts some risk to the contractor. 6. The value of the contract is moderate within the context of federal employee benefits.

Value Assessment

Rating: good

The contract value of approximately $31 million over its term appears reasonable for providing supplemental health benefits to federal employees. Benchmarking against similar contracts for employee benefits across federal agencies would provide a more precise value-for-money assessment. However, the fixed-price structure suggests that the government has a clear understanding of the costs involved, and the contractor bears the risk of cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple interested parties had the opportunity to bid. The fact that there was a single award suggests that MetLife was deemed the most advantageous offer. While full and open competition is generally positive for price discovery, a single award might imply that the market for this specific type of supplemental benefit is concentrated.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality. It ensures that the government is not unduly limited in its options and can secure the best value.

Public Impact

Employees of the Securities and Exchange Commission (SEC) are the primary beneficiaries of this supplemental health benefit plan. The contract ensures the provision of health-related benefits beyond standard federal employee health insurance. The services are delivered to SEC employees located in New York. This contract supports the SEC's human capital management by providing competitive employee benefits.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition if specialized supplemental benefits are required.
Long contract duration could lead to price stagnation if market rates decrease.

Positive Signals

Awarded through full and open competition, maximizing potential bidder pool.
Fixed-price contract provides cost certainty for the government.
MetLife is a large, established insurance provider with significant experience.

Sector Analysis

The insurance industry, particularly group health and supplemental benefits, is a significant sector within the federal procurement landscape. Federal agencies procure a wide range of insurance products and services to support their employees and operations. This contract falls within the 'Insurance Agencies and Brokerages' NAICS code, representing a segment focused on intermediary services for insurance products. Comparable spending benchmarks would involve looking at other large federal contracts for employee health and welfare programs.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature of supplemental health benefits and the scale of the award, it is likely that larger, established insurance providers were the primary bidders. Subcontracting opportunities for small businesses are not explicitly detailed but could potentially arise if MetLife engages specialized service providers.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer at the Securities and Exchange Commission. Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is generally maintained through federal procurement databases where contract awards are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Employee Health Benefits Program
Federal Employee Group Life Insurance Program
Other Federal Employee Welfare and Benefit Programs

Risk Flags

Long contract duration may limit flexibility to adapt to changing market conditions or employee needs.

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $31.0 million to METROPOLITAN LIFE INSURANCE CO. IGF::OT::IGF SUPPLEMENTAL HEALTH BENEFIT PLAN

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 $31.0 million.

What is the period of performance?

Start: 2015-11-12. End: 2022-01-20.

What is the historical spending pattern for supplemental health benefits at the SEC?

Historical spending data for supplemental health benefits at the SEC prior to this $31 million contract is not directly available in the provided data. However, the duration of this contract (2015-2022) suggests a consistent need for such benefits. To understand the historical pattern, one would need to examine prior contracts for similar services awarded by the SEC or other agencies. Analyzing trends in federal employee benefits spending over time, including the growth in premium costs and the expansion of benefit offerings, would provide further context on the SEC's spending trajectory in this area.

How does the per-member cost of this MetLife contract compare to other federal supplemental health benefit plans?

Determining the precise per-member cost requires knowing the total number of SEC employees covered by this supplemental health benefit plan. Without that denominator, a direct per-member cost comparison is not feasible. However, the total award of $31 million over approximately 7 years suggests an average annual expenditure of roughly $4.4 million. To benchmark this, one would need to compare this annual figure against the average annual cost per employee for similar supplemental plans across other federal agencies, considering variations in benefit levels, plan design, and geographic location of the covered population.

What specific types of supplemental health benefits are included in this contract?

The provided data indicates this contract is for 'SUPPLEMENTAL HEALTH BENEFIT PLAN' but does not detail the specific benefits covered. Typically, supplemental health benefits can include services such as dental, vision, short-term disability, critical illness insurance, or accident insurance, which are offered in addition to the standard Federal Employees Health Benefits (FEHB) program. To understand the exact scope, one would need to review the contract's statement of work or associated documentation, which would outline the precise coverage provided by Metropolitan Life Insurance Company.

What is Metropolitan Life Insurance Co.'s track record with federal government contracts, particularly in health benefits?

Metropolitan Life Insurance Company (MetLife) is a major player in the insurance industry and has a significant track record of holding federal government contracts. They are a long-standing provider of various federal employee benefit programs, including life insurance and health benefits. Their experience with large-scale federal contracts suggests a familiarity with government procurement processes, compliance requirements, and the complexities of serving a federal workforce. A deeper analysis would involve reviewing MetLife's contract history for performance ratings, any past disputes, and the breadth of services they provide to other federal agencies.

What are the potential risks associated with a sole-source or limited competition award for employee benefits?

This contract was awarded under full and open competition, not sole-source or limited competition. Therefore, the risks typically associated with those less competitive award types are mitigated. Risks in sole-source or limited competition scenarios can include higher costs due to lack of price pressure, potentially lower service quality, and reduced innovation. For this specific contract, the risks are more general to long-term benefit contracts, such as the potential for the chosen provider's offerings to become less competitive over time if market alternatives improve significantly, or if the government's needs evolve beyond the scope of the original contract.

Industry Classification

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

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

Parent Company: Metlife, Inc. (UEI: 112158568)

Address: 2701 QUEENS PLZ N STE 1, LONG ISLAND CITY, NY, 11101

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,973,694

Exercised Options: $30,973,694

Current Obligation: $30,973,694

Actual Outlays: $8,297,950

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline