PBGC awards $141M for Field Office Support Services to Serco Inc. under full and open competition
Contract Overview
Contract Amount: $141,010,187 ($141.0M)
Contractor: Serco Inc
Awarding Agency: Pension Benefit Guaranty Corporation
Start Date: 2019-03-04
End Date: 2024-07-03
Contract Duration: 1,948 days
Daily Burn Rate: $72.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: LABOR HOURS
Sector: Other
Official Description: FIELD OFFICE SUPPORT SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005
Plain-Language Summary
Pension Benefit Guaranty Corporation obligated $141.0 million to SERCO INC for work described as: FIELD OFFICE SUPPORT SERVICES Key points: 1. Contract value of $141M over 5 years indicates significant long-term support needs. 2. Serco Inc. is a major government contractor, suggesting established capabilities. 3. Full and open competition aims to ensure competitive pricing and best value. 4. The contract falls under Pharmacy Benefit Management and Third Party Administration, a critical sector.
Value Assessment
Rating: good
The contract value of $141M for 5 years suggests a competitive pricing strategy was likely employed. Benchmarking against similar large-scale support service contracts would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, allowing multiple vendors to bid. This method is expected to drive competitive pricing and ensure the government receives the best value for these essential support services.
Taxpayer Impact: The competitive nature of the award is designed to optimize taxpayer dollars by securing services at a fair market price.
Public Impact
Ensures continued operational support for the Pension Benefit Guaranty Corporation's field offices. Supports critical functions related to pension fund administration and beneficiary services. Potential impact on beneficiaries through efficient and effective service delivery.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for cost overruns if labor hours exceed projections.
- Dependence on a single contractor for critical support functions.
Positive Signals
- Awarded under full and open competition.
- Long-term contract provides stability for service delivery.
- Serco Inc. has a history of government contracting.
Sector Analysis
This contract falls under professional services, specifically related to administrative and support functions for a government agency. Benchmarks for similar contracts would focus on labor hour rates and overall contract value relative to agency size and mission complexity.
Small Business Impact
The data indicates that small businesses were not primary awardees, as the contract was awarded to Serco Inc. Further analysis would be needed to determine if small business subcontracting opportunities exist within this award.
Oversight & Accountability
The Pension Benefit Guaranty Corporation is responsible for overseeing this contract. Standard oversight mechanisms, including performance reviews and audits, should be in place to ensure contractor compliance and service quality.
Related Government Programs
- Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds
- Pension Benefit Guaranty Corporation Contracting
- Pension Benefit Guaranty Corporation Programs
Risk Flags
- Potential for cost overruns due to labor hour pricing.
- Dependence on a single large contractor.
- Lack of detailed performance metrics in the provided summary.
- Scope creep risk if not managed tightly.
Tags
pharmacy-benefit-management-and-other-th, pension-benefit-guaranty-corporation, dc, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Pension Benefit Guaranty Corporation awarded $141.0 million to SERCO INC. FIELD OFFICE SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is SERCO INC.
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 $141.0 million.
What is the period of performance?
Start: 2019-03-04. End: 2024-07-03.
What is the projected cost per labor hour, and how does it compare to industry benchmarks?
The provided data does not specify the cost per labor hour. However, with a total award of $141M over 1948 days (approximately 5.3 years), the average daily cost is roughly $72,387. To benchmark, one would need to divide this by the estimated daily labor hours to derive an hourly rate and compare it against government or industry standards for similar support services.
What are the key performance indicators (KPIs) for this contract, and what are the penalties for non-performance?
The provided data does not detail the specific Key Performance Indicators (KPIs) or associated penalties for non-performance. Effective oversight would require clearly defined KPIs related to service delivery, response times, and accuracy, along with contractual clauses addressing remedies for failure to meet these standards.
How does the pricing structure (labor hours) ensure cost-effectiveness compared to fixed-price contracts for similar services?
A labor hour contract offers flexibility, allowing the PBGC to adjust service levels based on actual needs, potentially saving costs if demand is lower than anticipated. However, it carries a risk of cost overruns if labor hours are underestimated or inefficiently utilized. Fixed-price contracts offer more budget certainty but may lead to paying for unused capacity or require extensive scope definition upfront.
Industry Classification
NAICS: Finance and Insurance › Agencies, Brokerages, and Other Insurance Related Activities › Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Address: 12930 WORLDGATE DR STE 600, HERNDON, VA, 20170
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $145,076,605
Exercised Options: $145,076,605
Current Obligation: $141,010,187
Actual Outlays: $118,681,369
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $23,974,734
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 16PBGC19D0009
IDV Type: IDC
Timeline
Start Date: 2019-03-04
Current End Date: 2024-07-03
Potential End Date: 2024-07-03 00:00:00
Last Modified: 2024-11-20
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