PBGC awards $26.2M task order to Deloitte for Risk Management, full and open competition

Contract Overview

Contract Amount: $26,212,028 ($26.2M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Pension Benefit Guaranty Corporation

Start Date: 2019-06-07

End Date: 2027-02-06

Contract Duration: 2,801 days

Daily Burn Rate: $9.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: RISK MANAGEMENT EARLY WARNING TASK ORDER 1

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20554

State: District of Columbia Government Spending

Plain-Language Summary

Pension Benefit Guaranty Corporation obligated $26.2 million to DELOITTE CONSULTING LLP for work described as: RISK MANAGEMENT EARLY WARNING TASK ORDER 1 Key points: 1. Significant contract value of $26.2 million. 2. Awarded to a single, well-known vendor, Deloitte Consulting LLP. 3. Competition method was 'Full and Open', suggesting broad market access. 4. Service category is Administrative Management and General Management Consulting Services.

Value Assessment

Rating: good

The contract value of $26.2 million for a period of nearly 8 years (2019-2027) suggests a moderate annual spend. Without specific deliverables or benchmarks for 'Risk Management Early Warning Task Order 1', a precise pricing assessment is difficult, but the duration implies a sustained need.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition', indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the agency to select the best value offering from a wide pool of qualified contractors.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it aims to secure competitive pricing and the most effective service provider for the government's needs.

Public Impact

Task order focuses on risk management, a critical function for government agencies. Long-term contract (nearly 8 years) indicates a sustained need for these services. Award to Deloitte, a major consulting firm, suggests reliance on established expertise. The specific nature of 'Early Warning' implies proactive risk identification and mitigation efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or KPIs makes it hard to gauge effectiveness.
Long duration could lead to potential cost overruns if not managed tightly.
Reliance on a single vendor for a critical function like risk management.

Positive Signals

Awarded under full and open competition, maximizing potential vendor pool.
Focus on risk management is a positive step for agency stability.
Long contract duration may offer cost stability and predictable service delivery.

Sector Analysis

The Administrative Management and General Management Consulting Services sector (NAICS 541611) is a broad category encompassing strategic planning, organizational design, and operational improvement. Spending in this sector can vary widely based on agency needs, with benchmarks often tied to specific project scopes and durations.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The award to Deloitte Consulting LLP, a large firm, suggests that small businesses were likely not the primary focus or were not awarded this specific task order.

Oversight & Accountability

The 'Early Warning Task Order' implies a proactive approach to oversight by the PBGC. However, further details on performance monitoring, reporting requirements, and accountability mechanisms would be needed to fully assess the oversight framework.

Related Government Programs

Administrative Management and General Management Consulting Services
Pension Benefit Guaranty Corporation Contracting
Pension Benefit Guaranty Corporation Programs

Risk Flags

Long contract duration may increase risk of scope creep or vendor lock-in.
Lack of specific performance metrics makes it difficult to assess value for money.
Potential for cost overruns if not closely monitored.
Reliance on a single vendor for critical risk management functions.

Frequently Asked Questions

What is this federal contract paying for?

Pension Benefit Guaranty Corporation awarded $26.2 million to DELOITTE CONSULTING LLP. RISK MANAGEMENT EARLY WARNING TASK ORDER 1

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING 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 $26.2 million.

What is the period of performance?

Start: 2019-06-07. End: 2027-02-06.

What specific risk management capabilities does this task order aim to enhance for the PBGC, and how will success be measured?

This task order likely focuses on developing or enhancing systems and processes for identifying, assessing, and mitigating potential risks to the Pension Benefit Guaranty Corporation's operations and financial stability. Success measurement would typically involve predefined metrics related to the timeliness and accuracy of risk identification, the effectiveness of mitigation strategies implemented, and the overall reduction in identified risk exposure. Specific KPIs would be detailed in the contract's statement of work.

Given the 'Full and Open Competition' award, what was the competitive landscape, and how did Deloitte's proposal demonstrate superior value?

While 'Full and Open Competition' indicates a broad solicitation, the specific number of bids received and the details of Deloitte's winning proposal are not provided. Typically, a winning proposal demonstrates superior technical approach, relevant past performance, key personnel qualifications, and a competitive price. The PBGC would have evaluated these factors to determine the best overall value, not necessarily the lowest price alone.

How does the $26.2 million expenditure over nearly 8 years align with industry benchmarks for similar risk management consulting services?

Benchmarking this expenditure requires detailed comparison against similar contracts for risk management consulting, considering the specific scope, deliverables, and the complexity of the agency's risk profile. An average annual spend of approximately $3.3 million ($26.2M / ~8 years) for specialized risk management consulting is substantial but could be reasonable for a large federal agency like the PBGC, depending on the criticality and breadth of the services provided.

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

Solicitation ID: 16PBGC19R0005

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

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: $32,980,676

Exercised Options: $26,414,302

Current Obligation: $26,212,028

Actual Outlays: $14,044,228

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $2,114,880

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 16PBGC19D0021

IDV Type: IDC

Timeline