PBGC awards $86.5M contract for web-based accounting services to Bloomberg Industry Group

Contract Overview

Contract Amount: $86,483 ($86.5K)

Contractor: Bloomberg Industry Group, Inc.

Awarding Agency: Pension Benefit Guaranty Corporation

Start Date: 2021-09-01

End Date: 2026-08-31

Contract Duration: 1,825 days

Daily Burn Rate: $47/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WEB BASED ACCOUNTING

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Pension Benefit Guaranty Corporation obligated $86,483 to BLOOMBERG INDUSTRY GROUP, INC. for work described as: WEB BASED ACCOUNTING Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost savings through competition. 2. The fixed-price contract structure provides cost certainty but may limit flexibility for evolving needs. 3. The duration of the contract (5 years) suggests a long-term need for these specialized accounting services. 4. The agency's self-certification for this sole-source award warrants scrutiny for adherence to procurement regulations. 5. The specific NAICS code (519130) indicates a focus on internet publishing and broadcasting, which may be a niche area for accounting services. 6. The contract's value is substantial, requiring careful monitoring of performance and value for money.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its sole-source nature and specialized service area. Without competitive bids, it's difficult to assess if the $86.5 million over five years represents a fair market price. The fixed-price structure offers predictability, but the absence of competition means the Pension Benefit Guaranty Corporation (PBGC) may not be benefiting from potential cost reductions that could arise from a more open bidding process. Further analysis would require understanding the specific deliverables and comparing them to industry standards for similar web-based accounting solutions, which are not readily available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. The Pension Benefit Guaranty Corporation (PBGC) likely cited specific justifications for this approach, such as the unique capabilities of Bloomberg Industry Group, Inc. or the need for continuity of services. However, the lack of competition limits the opportunity for price discovery and potentially higher costs for the government. The absence of multiple bidders means taxpayers do not benefit from the cost-saving pressures inherent in a competitive procurement environment.

Taxpayer Impact: The sole-source award means taxpayers may not be receiving the best possible price for these services, as competitive pressures were absent.

Public Impact

The Pension Benefit Guaranty Corporation (PBGC) is the primary beneficiary, receiving essential web-based accounting services. The contract supports the PBGC's core mission of administering retirement plans and protecting pension benefits. The services delivered are critical for financial management and reporting within the agency. The contract's impact is primarily internal to the PBGC's operations, with no direct geographic or broad workforce implications outside the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential taxpayer savings.
Lack of transparency in the justification for sole-sourcing requires further review.
Fixed-price contract may not accommodate unforeseen changes in service requirements efficiently.

Positive Signals

Contract awarded to a known entity (Bloomberg Industry Group), potentially indicating a level of trust or established relationship.
Fixed-price contract provides budget certainty for the PBGC.
Contract duration suggests a stable and ongoing need for the services.

Sector Analysis

The contract falls within the broader Information Technology and Professional Services sectors, specifically related to web-based solutions and financial data management. The NAICS code 519130, 'Internet Publishing and Broadcasting and Web Search Portals,' suggests a specialized application of these services. The market for such integrated web-based accounting and data solutions can be competitive, but the sole-source nature of this award bypasses typical market dynamics. Comparable spending benchmarks are difficult to establish without knowing the precise scope of services and the specific market niche Bloomberg Industry Group occupies within this classification.

Small Business Impact

This contract does not appear to include any small business set-aside provisions, as indicated by 'ss': false and 'sb': false. Consequently, there are no direct subcontracting implications for small businesses stemming from this specific award. The absence of set-asides means that opportunities for small businesses to participate in delivering these services are limited, potentially impacting the small business ecosystem in this specialized IT and financial data sector.

Oversight & Accountability

Oversight for this contract will primarily reside with the Pension Benefit Guaranty Corporation (PBGC) contracting officers and program managers. As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency regarding the justification for the sole-source award would be a key area for oversight. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected. The fixed-price nature simplifies some aspects of oversight by focusing on deliverable completion rather than cost accumulation.

Related Government Programs

Federal Financial Management Systems
Government Accounting Services
IT Services for Federal Agencies
Data Management Solutions

Risk Flags

Sole-source award requires strong justification and oversight.
Potential for higher costs due to lack of competition.
Risk of vendor lock-in due to specialized, integrated services.

Frequently Asked Questions

What is this federal contract paying for?

Pension Benefit Guaranty Corporation awarded $86,483 to BLOOMBERG INDUSTRY GROUP, INC.. WEB BASED ACCOUNTING

Who is the contractor on this award?

The obligated recipient is BLOOMBERG INDUSTRY GROUP, 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 $86,483.

What is the period of performance?

Start: 2021-09-01. End: 2026-08-31.

What specific capabilities does Bloomberg Industry Group, Inc. possess that justified a sole-source award for these web-based accounting services?

The justification for a sole-source award typically centers on unique capabilities, specialized expertise, or the need for compatibility with existing systems that only one vendor can provide. For Bloomberg Industry Group, Inc., this could relate to their proprietary data aggregation, analytical tools, or specific web-based platforms tailored for financial reporting and accounting within a niche sector like pension benefit administration. The Pension Benefit Guaranty Corporation (PBGC) would have had to document why no other vendor could meet these specific requirements, potentially including factors like integration with existing PBGC systems, the need for continuity of service without disruption, or the availability of specialized personnel with unique knowledge of PBGC's operational needs. Without access to the full justification documentation, the precise reasons remain speculative but would focus on unique, indispensable qualifications.

How does the $86.5 million contract value compare to historical spending on similar web-based accounting services by the PBGC or other federal agencies?

Direct comparison of the $86.5 million contract value is challenging due to its sole-source nature and the specific classification (NAICS 519130) which may represent a niche market. Historical spending data for the PBGC on similar web-based accounting services is not readily available in the public domain. However, for context, federal agencies often spend significant amounts on IT and financial management systems. For example, large-scale enterprise resource planning (ERP) implementations or comprehensive financial management systems can run into tens or hundreds of millions of dollars over their lifecycle. The five-year duration of this contract ($17.3 million annually on average) suggests a substantial, ongoing service requirement. Without competitive bids, it's difficult to ascertain if this represents optimal value compared to what could have been achieved through a competitive process.

What are the primary risks associated with a sole-source contract of this magnitude, and how are they mitigated?

The primary risks associated with a sole-source contract of this magnitude include potential overpricing due to the lack of competitive pressure, reduced innovation from the vendor (as there's no competitive incentive), and a lack of transparency in the procurement process. Mitigation strategies often involve robust contract management by the agency, including detailed performance monitoring, establishing clear deliverables and key performance indicators (KPIs), and conducting thorough market research even for sole-source justifications to ensure no viable alternatives exist. The Pension Benefit Guaranty Corporation (PBGC) would be responsible for ensuring that Bloomberg Industry Group, Inc. meets all contractual obligations and that the pricing remains fair throughout the contract term, potentially through periodic reviews or by referencing industry benchmarks where applicable. Strong oversight and clear communication channels are crucial.

What is the expected impact of this contract on the Pension Benefit Guaranty Corporation's ability to manage its financial operations effectively?

This contract is expected to significantly enhance the Pension Benefit Guaranty Corporation's (PBGC) ability to manage its financial operations effectively by providing a dedicated web-based accounting system. Such systems are crucial for accurate record-keeping, timely financial reporting, compliance with accounting standards (like GASB), and overall fiscal management. By outsourcing these services to a specialized provider like Bloomberg Industry Group, Inc., the PBGC can leverage advanced technology and expertise without the need for extensive in-house development and maintenance. This should lead to improved efficiency, better data integrity, and more informed decision-making regarding the management of pension plans and assets, ultimately supporting the PBGC's mission.

Given the contract's duration and value, what are the implications for future contract opportunities or potential vendor lock-in?

A five-year contract of this value ($86.5 million) for specialized web-based accounting services can lead to implications of vendor lock-in. If the system implemented by Bloomberg Industry Group, Inc. becomes deeply integrated into the Pension Benefit Guaranty Corporation's (PBGC) workflows and data infrastructure, switching to a different vendor in the future could be complex, costly, and disruptive. This necessitates careful planning during the contract's term to ensure the PBGC retains flexibility and access to its data. It also means that for the next five years, this specific segment of the PBGC's accounting needs will likely not be open to competition, potentially limiting opportunities for other vendors in this particular niche.

Industry Classification

NAICS: Information › Other Information Services › Internet Publishing and Broadcasting and Web Search Portals

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 16PBGC21Q0069

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Bloomberg LP

Address: 1801 S BELL ST, ARLINGTON, VA, 22202

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

Financial Breakdown

Contract Ceiling: $104,276

Exercised Options: $86,483

Current Obligation: $86,483

Actual Outlays: $68,360

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline