PBGC Spends $22.3M on PMTS Operations & Maintenance with Salient CRGT, Inc
Contract Overview
Contract Amount: $22,310,291 ($22.3M)
Contractor: Salient Crgt, Inc.
Awarding Agency: Pension Benefit Guaranty Corporation
Start Date: 2022-02-21
End Date: 2025-05-13
Contract Duration: 1,177 days
Daily Burn Rate: $19.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: PMTS OPERATIONS & MAINTENANCE
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024
Plain-Language Summary
Pension Benefit Guaranty Corporation obligated $22.3 million to SALIENT CRGT, INC. for work described as: PMTS OPERATIONS & MAINTENANCE Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for Administrative Management and General Management Consulting Services. 3. Salient CRGT, Inc. is the prime contractor for this significant spending. 4. The contract duration is 1177 days, ending in May 2025. 5. The contract type is Time and Materials, which can pose cost control challenges.
Value Assessment
Rating: fair
The Time and Materials contract type for consulting services raises concerns about cost predictability. Without a fixed ceiling or clear deliverables tied to specific costs, the final expenditure could exceed initial estimates. Benchmarking against similar consulting contracts is difficult without more detailed cost breakdowns.
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 price discovery and competitive pricing, although the Time and Materials structure may limit its effectiveness in controlling final costs.
Taxpayer Impact: Taxpayer funds are being used for management consulting services. The effectiveness of the spending will depend on the value delivered by Salient CRGT, Inc. and the agency's ability to manage the Time and Materials contract to prevent cost overruns.
Public Impact
Taxpayers fund essential operational support for the Pension Benefit Guaranty Corporation. The contract supports administrative and management consulting services, impacting agency efficiency. The duration and value suggest a substantial commitment of federal resources. The Time and Materials pricing model warrants close monitoring for cost control.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type
- Lack of specific performance metrics tied to cost
- Potential for cost overruns
Positive Signals
- Awarded under full and open competition
- Supports critical agency operations
Sector Analysis
This contract falls under administrative management and general management consulting services, a common area of federal spending. Benchmarks for this sector vary widely based on the specific services provided and the complexity of the agency's needs. The $22.3 million value over nearly three years is significant for this type of service.
Small Business Impact
There is no indication that small businesses are involved as subcontractors on this contract, as the 'sb' field is false. This suggests the prime contract is likely held by a larger entity, potentially limiting opportunities for small business participation.
Oversight & Accountability
The Pension Benefit Guaranty Corporation is responsible for overseeing this contract. Given the Time and Materials structure, robust oversight and diligent contract management are crucial to ensure that the services provided are necessary, effective, and that costs remain within reasonable bounds.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Pension Benefit Guaranty Corporation Contracting
- Pension Benefit Guaranty Corporation Programs
Risk Flags
- Time and Materials contract type
- Potential for cost overruns
- Lack of specific performance metrics
- Limited visibility into small business participation
Tags
administrative-management-and-general-ma, pension-benefit-guaranty-corporation, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Pension Benefit Guaranty Corporation awarded $22.3 million to SALIENT CRGT, INC.. PMTS OPERATIONS & MAINTENANCE
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 $22.3 million.
What is the period of performance?
Start: 2022-02-21. End: 2025-05-13.
What specific deliverables or outcomes are expected from Salient CRGT, Inc. under this Time and Materials contract to ensure value for the $22.3 million expenditure?
The contract details should specify key performance indicators (KPIs) and expected outcomes for the administrative and management consulting services. Without clearly defined deliverables and milestones, it is challenging to assess the value derived from the Time and Materials expenditure. The agency must actively manage the scope of work and monitor hours billed to ensure alignment with strategic objectives and prevent scope creep.
What measures are in place to mitigate the inherent risks of cost overruns associated with a Time and Materials contract of this magnitude?
Effective mitigation requires stringent oversight, including regular reviews of timesheets, labor categories, and direct costs. Establishing a clear ceiling price, implementing strict change control processes, and requiring detailed justifications for all hours billed are essential. The agency should also conduct periodic cost-benefit analyses to ensure the ongoing necessity and efficiency of the services being procured.
How does the Pension Benefit Guaranty Corporation ensure that the consulting services provided by Salient CRGT, Inc. are essential for its core mission and not duplicative of internal capabilities?
The agency should have a clear procurement justification process that outlines why external consulting is necessary and how it complements internal resources. Regular performance reviews should assess the impact of these services on PBGC's operational efficiency and mission accomplishment. Ensuring transparency in the scope of work and outcomes can help verify that the services are indeed essential and add unique value.
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: 16PBGC22R0002
Pricing Type: TIME AND MATERIALS (Y)
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: $37,790,595
Exercised Options: $22,310,291
Current Obligation: $22,310,291
Actual Outlays: $16,234,175
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $2,666,699
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 16PBGC19D0018
IDV Type: IDC
Timeline
Start Date: 2022-02-21
Current End Date: 2025-05-13
Potential End Date: 2025-05-13 00:00:00
Last Modified: 2025-11-18
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