El Segundo, Calif. -- Computer Sciences Corp. has been awarded a contract by the Federal Emergency Management Agency (FEMA), a branch of the Department of Homeland Security, to continue supporting the U.S. federal government's National Flood Insurance Program (NFIP). CSC estimates the value of the contract, which has a three-month base period and two one-year options, to be approximately $35 million if all options are exercised.This new agreement follows and is incremental to a contract signed with FEMA in 1999 under which CSC provides training, consultation and analytical support services.
As the NFIP's bureau and statistical agent, CSC will continue to serve as the liaison between the government and more than 90 independent property and casualty insurance companies that issue federally guaranteed NFIP policies. CSC will provide the government with actuarial, financial and statistical analyses, and deliver flood-related training, consultation, support materials and information clearinghouse services. The company processed more than $2 billion in flood insurance transactions for the NFIP last year.
Congress established the NFIP in 1968 to reduce the cost of federal disaster relief payments after major floods. The program employs a successful two-part strategy by offering affordable flood insurance to homeowners, renters and business owners in participating communities who must adopt and enforce sound flood plain management practices to reduce future flood damage.
Today, 4.6 million NFIP policies are in effect in nearly 20,000 participating communities throughout the United States, Puerto Rico, the Virgin Islands and Guam. Flood damage is reduced by nearly $1 billion a year through partnerships with communities, the insurance industry and the lending industry. Further, buildings constructed in compliance with NFIP building standards suffer approximately 80 percent less damage annually than those not built in compliance.
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