PBGC awards $17M for audit and program management services to Deloitte & Touche LLP

Contract Overview

Contract Amount: $17,054,525 ($17.1M)

Contractor: Deloitte & Touche LLP

Awarding Agency: Pension Benefit Guaranty Corporation

Start Date: 2019-09-25

End Date: 2025-03-24

Contract Duration: 2,007 days

Daily Burn Rate: $8.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AUDIT AND PROGRAM MANAGEMENT SERVICES FOR SINGLE EMPLOYER AND MULTI EMPLOYER STANDER TERMINATION COMPLIANCE REVIEWS.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Pension Benefit Guaranty Corporation obligated $17.1 million to DELOITTE & TOUCHE LLP for work described as: AUDIT AND PROGRAM MANAGEMENT SERVICES FOR SINGLE EMPLOYER AND MULTI EMPLOYER STANDER TERMINATION COMPLIANCE REVIEWS. Key points: 1. Contract awarded to Deloitte & Touche LLP for specialized audit and program management. 2. The contract focuses on single-employer and multi-employer plan termination compliance reviews. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract duration extends over multiple years, indicating ongoing program needs. 5. The total value is approximately $17 million.

Value Assessment

Rating: good

The contract value of $17 million over approximately 5.5 years appears reasonable for specialized audit and program management services. Benchmarking against similar large-scale compliance review contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing and allows for the selection of the best value offeror. This method is expected to lead to a fair market price.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing competitive pricing for essential services.

Public Impact

Ensures compliance with regulations for pension plan terminations, protecting beneficiaries. Supports the Pension Benefit Guaranty Corporation's mission to safeguard retirement security. Provides critical audit and management services for complex financial and legal processes. The contract's duration suggests a long-term commitment to these oversight functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the complexity of compliance reviews.
Reliance on a single contractor for critical compliance functions.
Ensuring continued cost-effectiveness throughout the contract's extended period.

Positive Signals

Awarded through full and open competition.
Contractor has a strong reputation in audit and financial services.
Clear definition of services for compliance reviews.
Long-term contract provides stability for program execution.

Sector Analysis

This contract falls under professional services, specifically audit and program management, within the financial services sector. Spending benchmarks for similar government audit and compliance contracts vary widely based on scope and duration, but $17 million over 5.5 years suggests a significant, ongoing program.

Small Business Impact

The data indicates this contract was awarded to Deloitte & Touche LLP, a large business. There is no specific indication of small business participation or subcontracting in the provided data.

Oversight & Accountability

The Pension Benefit Guaranty Corporation is responsible for overseeing this contract. Standard government oversight mechanisms, including performance reviews and audits, would be expected to ensure contractor performance and proper use of funds.

Related Government Programs

Other Computer Related Services
Pension Benefit Guaranty Corporation Contracting
Pension Benefit Guaranty Corporation Programs

Risk Flags

Contract duration is substantial (over 5 years).
Services are critical for regulatory compliance.
Awarded to a single large entity.
No explicit mention of small business subcontracting.
Potential for high cost if not managed effectively.

Frequently Asked Questions

What is this federal contract paying for?

Pension Benefit Guaranty Corporation awarded $17.1 million to DELOITTE & TOUCHE LLP. AUDIT AND PROGRAM MANAGEMENT SERVICES FOR SINGLE EMPLOYER AND MULTI EMPLOYER STANDER TERMINATION COMPLIANCE REVIEWS.

Who is the contractor on this award?

The obligated recipient is DELOITTE & TOUCHE LLP.

Which agency awarded this contract?

Awarding agency: Pension Benefit Guaranty Corporation (Pension Benefit Guaranty Corporation).

What is the total obligated amount?

The obligated amount is $17.1 million.

What is the period of performance?

Start: 2019-09-25. End: 2025-03-24.

What is the specific methodology used by Deloitte & Touche LLP to ensure compliance and what are the key performance indicators (KPIs) for this contract?

The specific methodology and KPIs are not detailed in the provided data. Typically, such contracts would involve detailed audit plans, risk assessments, and regular reporting on compliance metrics. The Pension Benefit Guaranty Corporation would establish these KPIs to measure the effectiveness of the contractor's services in ensuring accurate and timely compliance reviews for pension plan terminations.

How does the Pension Benefit Guaranty Corporation ensure that the $17 million awarded is a cost-effective solution compared to alternative approaches or in-house capabilities?

The contract's award through full and open competition suggests that the PBGC sought competitive bids to ensure cost-effectiveness. The agency likely evaluated proposals based on both technical merit and price. Ongoing performance monitoring and potential future re-competitions would further ensure long-term value for taxpayer money.

What are the potential risks associated with relying on a single large firm like Deloitte & Touche LLP for critical compliance reviews, and how are these mitigated?

Risks include potential over-reliance, lack of competitive pressure during the contract term, and contractor performance issues. Mitigation strategies typically involve robust contract management, clear performance standards, regular reviews, and contingency planning. The PBGC would monitor performance closely and have mechanisms to address any deficiencies.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte Consulting LLP

Address: 1919 N LYNN ST, ARLINGTON, VA, 22209

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,371,292

Exercised Options: $19,371,292

Current Obligation: $17,054,525

Actual Outlays: $12,869,552

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F029DA

IDV Type: FSS

Timeline