PBGC awards $10.9M for actuarial technology support, with a significant portion allocated to contract modifications

Contract Overview

Contract Amount: $10,915,484 ($10.9M)

Contractor: Salient Crgt, Inc.

Awarding Agency: Pension Benefit Guaranty Corporation

Start Date: 2019-07-01

End Date: 2027-02-28

Contract Duration: 2,799 days

Daily Burn Rate: $3.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ACTUARIAL TECHNOLOGY SUPPORT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Pension Benefit Guaranty Corporation obligated $10.9 million to SALIENT CRGT, INC. for work described as: ACTUARIAL TECHNOLOGY SUPPORT SERVICES Key points: 1. The contract's total value has increased by over 100% through modifications, indicating potential scope creep or evolving needs. 2. The contract was awarded using full and open competition, suggesting a robust bidding process. 3. The fixed-price contract type generally offers good value certainty, but modifications can impact this. 4. Performance is rated as 'satisfactory' (ST), which is a common but not exceptional rating. 5. The contract is for actuarial technology support, a critical function for the Pension Benefit Guaranty Corporation (PBGC). 6. The contractor, Salient CRGT, Inc., has a history of performing government contracts.

Value Assessment

Rating: fair

The contract's initial award value was approximately $3.9 million, but it has since been modified to over $10.9 million. This substantial increase warrants scrutiny to ensure the added costs align with demonstrable value and necessity. Benchmarking against similar actuarial technology support contracts is challenging without more granular data on the specific services provided under the modifications. However, a more than doubling of the contract value suggests a need for careful oversight to prevent cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is generally favorable for price discovery and ensuring the government receives competitive pricing. The number of bidders is not specified, but the method of award suggests a healthy level of market interest.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it encourages a wider range of vendors to compete, potentially driving down costs and improving service quality.

Public Impact

The Pension Benefit Guaranty Corporation (PBGC) benefits from enhanced actuarial technology support, crucial for managing its responsibilities. Services delivered include administrative management and general management consulting, supporting the PBGC's core functions. The geographic impact is primarily within the PBGC's operational sphere, likely supporting its headquarters and relevant stakeholders. Workforce implications may involve the integration of new technologies and processes supported by the contractor, potentially impacting PBGC staff roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Significant increase in contract value through modifications suggests potential for scope creep or underestimation of initial requirements.
The 'satisfactory' performance rating, while meeting minimum standards, does not indicate exceptional performance and could be an area for improvement.
Lack of detailed breakdown for modifications makes it difficult to assess the value-for-money of the increased spending.
The contract duration extends to February 2027, requiring ongoing monitoring of performance and costs.

Positive Signals

Awarded through full and open competition, ensuring a competitive bidding environment.
The contract is firm-fixed-price, providing cost certainty for the base award.
The contractor, Salient CRGT, Inc., is an established entity with experience in government contracting.
The services provided are critical to the PBGC's mission of protecting pensions.

Sector Analysis

This contract falls within the professional services sector, specifically administrative management and general management consulting. The market for such services is large and competitive, with many firms offering specialized expertise. The PBGC's need for actuarial technology support is a niche within this broader sector, requiring specialized knowledge of financial modeling, data analysis, and regulatory compliance. Comparable spending benchmarks would depend on the specific scope of actuarial services, but government spending on IT and management consulting services is substantial.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. The primary contractor, Salient CRGT, Inc., is likely a mid-to-large-sized business. The absence of a small business set-aside means that opportunities for small businesses would typically arise through subcontracting opportunities offered by the prime contractor, if any.

Oversight & Accountability

The contract is managed by the Pension Benefit Guaranty Corporation (PBGC). Oversight mechanisms would typically include contract performance reviews, financial audits, and adherence to the terms of the firm-fixed-price contract. Transparency is generally facilitated through contract award databases like FPDS. The Inspector General for the PBGC would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Pension Administration Services
Actuarial Consulting
Government IT Support Contracts
Management Consulting Services
Federal Financial Management Systems

Risk Flags

Significant contract value increase via modifications
Performance rating is only 'satisfactory'

Frequently Asked Questions

What is this federal contract paying for?

Pension Benefit Guaranty Corporation awarded $10.9 million to SALIENT CRGT, INC.. ACTUARIAL TECHNOLOGY SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is SALIENT CRGT, 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 $10.9 million.

What is the period of performance?

Start: 2019-07-01. End: 2027-02-28.

What is the specific nature of the services provided under the contract modifications that led to the significant increase in value?

The provided data does not detail the specific services added or expanded through contract modifications. The increase from an initial value of approximately $3.9 million to over $10.9 million suggests substantial changes to the scope of work. To fully assess value for money, a breakdown of these modifications would be necessary. This could include additional software development, expanded data analysis requirements, new actuarial modeling capabilities, or increased support for evolving regulatory landscapes. Without this granular information, it's difficult to determine if the increased spending was justified by commensurate increases in essential services or if it represents scope creep.

How does the contractor's performance rating of 'satisfactory' compare to industry benchmarks for similar actuarial technology support services?

A 'satisfactory' performance rating is a common designation in government contracting, indicating that the contractor is meeting the minimum requirements of the contract but not necessarily exceeding expectations. For actuarial technology support, which is a critical function for the PBGC, a 'satisfactory' rating suggests adequate, but not exceptional, service delivery. Industry benchmarks for such specialized services often look for proactive problem-solving, innovative solutions, and consistent high-quality output. While 'satisfactory' is acceptable, it may indicate missed opportunities for enhanced efficiency or effectiveness that a higher-rated contractor might provide. Further analysis would require understanding the specific metrics used to arrive at this rating and comparing them to best practices in actuarial science and IT support.

What is the historical spending pattern for actuarial technology support services at the PBGC, and how does this contract compare?

The provided data focuses on a single contract award and its modifications, making it difficult to establish a comprehensive historical spending pattern for actuarial technology support at the PBGC. However, the significant increase in this contract's value ($3.9M to $10.9M) suggests a potentially growing investment in this area or a substantial expansion of services. To understand historical trends, one would need to examine prior contracts for similar services, their values, durations, and performance. Comparing this contract's total obligated amount and its growth trajectory against previous spending would reveal whether this represents a new strategic investment, a response to increased workload, or a deviation from past spending levels. Without that broader context, this contract appears to represent a substantial, albeit potentially justified, increase in expenditure.

What are the potential risks associated with the significant increase in contract value through modifications?

The primary risk associated with a substantial increase in contract value through modifications is the potential for cost overruns and reduced value for money. This can stem from initial underestimation of requirements, scope creep where the project expands beyond its original objectives, or unforeseen complexities. For the PBGC, this could mean spending more taxpayer dollars than initially planned without a proportional increase in essential actuarial technology support. There's also a risk that the competitive advantage gained during the initial award might be diminished if modifications are not carefully managed and justified. Continuous monitoring and rigorous justification for each modification are crucial to mitigate these risks and ensure the contract remains aligned with the PBGC's strategic needs and budget.

How does the firm-fixed-price contract type mitigate risks for the PBGC, and what are the limitations given the modifications?

A firm-fixed-price (FFP) contract type is generally advantageous for the PBGC as it shifts the risk of cost overruns to the contractor. The price is set at the time of award, providing budget certainty for the initial scope of work. However, the significant increase in contract value through modifications introduces a layer of complexity. While the FFP nature might still apply to the base contract and potentially to individual modifications, the overall cost escalation means the initial price certainty is diminished. If modifications are extensive, the PBGC needs to ensure that the justification for increased costs is robust and that the contractor is not exploiting the modification process to increase profits beyond reasonable levels. The FFP structure is most effective when the scope is well-defined and stable, which appears less so given the contract's evolution.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4000 LEGATO RD STE 600, FAIRFAX, VA, 22033

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

Financial Breakdown

Contract Ceiling: $13,916,201

Exercised Options: $10,915,484

Current Obligation: $10,915,484

Actual Outlays: $4,914,015

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $755,709

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 16PBGC19D0020

IDV Type: IDC

Timeline