PBGC awards $536M contract for Network Packet Broker Modernization to FOUR LLC

Contract Overview

Contract Amount: $536,319 ($536.3K)

Contractor: Four LLC

Awarding Agency: Pension Benefit Guaranty Corporation

Start Date: 2023-05-12

End Date: 2026-05-11

Contract Duration: 1,095 days

Daily Burn Rate: $490/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NETWORK PACKET BROKER MODERNIZATION

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Pension Benefit Guaranty Corporation obligated $536,319.27 to FOUR LLC for work described as: NETWORK PACKET BROKER MODERNIZATION Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1095 days (3 years) indicates a significant, long-term need. 3. The firm fixed-price contract type aims to control costs and provide budget certainty. 4. The award to FOUR LLC for 'Other Computer Related Services' aligns with IT modernization efforts. 5. The Pension Benefit Guaranty Corporation is the awarding and servicing agency, indicating internal IT infrastructure focus.

Value Assessment

Rating: good

The total contract value of $536.3 million over three years suggests a substantial investment in network infrastructure. Benchmarking this against similar large-scale IT modernization projects is difficult without more specific details on the scope of 'Network Packet Broker Modernization.' However, the firm fixed-price nature of the contract provides cost predictability for the PBGC. The number of bids received (5) indicates a healthy level of interest, which can contribute to achieving a fair market price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was open, specific sources may have been excluded for defined reasons. Five bids were received, indicating a reasonable level of competition for this significant IT modernization effort. The open competition structure generally promotes price discovery and allows the agency to select the best value offering.

Taxpayer Impact: The open competition structure is beneficial for taxpayers as it encourages multiple vendors to submit proposals, driving down costs and ensuring the PBGC receives competitive pricing for essential network services.

Public Impact

The primary beneficiary is the Pension Benefit Guaranty Corporation (PBGC), which will receive modernized network infrastructure. The services delivered will enhance the security, performance, and manageability of the PBGC's network. The geographic impact is primarily within the PBGC's operational locations, likely concentrated in Virginia where the contract is managed. Workforce implications may include the need for specialized IT personnel to implement and manage the new network packet broker systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the chosen solution is proprietary and difficult to integrate with other systems.
Risk of cost overruns if the scope of 'modernization' expands beyond initial projections, despite fixed-price terms.
Dependence on FOUR LLC's technical expertise for successful implementation and ongoing support.

Positive Signals

The firm fixed-price contract provides cost certainty for the PBGC.
Awarding under full and open competition suggests a thorough evaluation process and potential for best value.
The long-term duration allows for sustained focus on network modernization goals.

Sector Analysis

The IT services sector, particularly network infrastructure and cybersecurity, is a critical area for government operations. Modernizing network packet brokers is essential for enhancing network visibility, security monitoring, and traffic management. This contract fits within the broader trend of federal agencies upgrading legacy IT systems to improve efficiency and security. Comparable spending benchmarks for such large-scale network modernization projects can vary widely based on scope and specific technologies deployed.

Small Business Impact

The contract details do not indicate any specific small business set-aside provisions. Given the large dollar value and specialized nature of network modernization, it is likely that the prime contractor, FOUR LLC, will manage the contract. Subcontracting opportunities for small businesses may exist, but this would depend on FOUR LLC's subcontracting plan and the specific technical requirements of the project.

Oversight & Accountability

The Pension Benefit Guaranty Corporation (PBGC) is responsible for overseeing this contract. As a federal agency, it is subject to various oversight mechanisms, including internal audits and potentially reviews by the Government Accountability Office (GAO) or the PBGC's Office of Inspector General (OIG). Transparency is generally maintained through contract award databases like FPDS. The firm fixed-price nature of the contract provides a degree of accountability for cost control.

Related Government Programs

Network Infrastructure Modernization Programs
Cybersecurity Enhancement Initiatives
IT Service Management Contracts
Federal Network Security Spending

Risk Flags

Potential for scope creep despite fixed-price terms.
Dependence on contractor's technical expertise for successful modernization.
Risk of technology obsolescence during the contract period.

Frequently Asked Questions

What is this federal contract paying for?

Pension Benefit Guaranty Corporation awarded $536,319.27 to FOUR LLC. NETWORK PACKET BROKER MODERNIZATION

Who is the contractor on this award?

The obligated recipient is FOUR LLC.

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 $536,319.27.

What is the period of performance?

Start: 2023-05-12. End: 2026-05-11.

What specific technologies or solutions are encompassed by 'Network Packet Broker Modernization' in this contract?

The term 'Network Packet Broker Modernization' typically refers to upgrading or replacing existing systems that capture, filter, and distribute network traffic data to various monitoring and security tools. This could involve deploying advanced hardware or software solutions that offer higher throughput, more sophisticated filtering capabilities, improved scalability, and enhanced integration with modern security analytics platforms. The specific technologies are not detailed in the provided data but would likely include next-generation packet brokers capable of handling high-speed network traffic and providing granular visibility into network flows for analysis by intrusion detection systems, performance monitoring tools, and other security applications.

How does the $536.3 million contract value compare to typical spending on similar network modernization projects within the federal government?

A contract value of $536.3 million over three years for network modernization is substantial and indicates a significant undertaking. Federal spending on IT infrastructure, including network upgrades, can range widely. Large-scale projects involving comprehensive modernization of core network components, security enhancements, and integration across multiple systems can easily reach hundreds of millions of dollars. For agencies like the Pension Benefit Guaranty Corporation (PBGC), which handle sensitive data and require robust operational continuity, such investments are critical. Without knowing the exact scope, specific technologies, and number of locations involved, a direct comparison is challenging, but this award falls within the upper range for major federal network infrastructure modernization efforts.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a 'Network Packet Broker Modernization' contract, typical KPIs and SLAs would likely focus on network uptime, packet loss rates, data capture accuracy, latency introduced by the packet brokers, throughput capacity, and the responsiveness of the contractor in addressing any performance issues or outages. The firm fixed-price nature suggests that meeting defined performance standards would be crucial for the contractor to achieve full payment and avoid penalties.

What is the track record of FOUR LLC in delivering large-scale federal IT modernization contracts?

Information regarding the specific track record of FOUR LLC in delivering large-scale federal IT modernization contracts is not provided in the abbreviated data. To assess their capabilities, one would typically review their past performance on similar government contracts, including their success in meeting deadlines, staying within budget, and delivering quality services. Examining contract databases and past performance evaluations would be necessary to determine their experience and reliability for a project of this magnitude and complexity.

What are the potential risks associated with a 3-year firm fixed-price contract for complex IT modernization?

A 3-year firm fixed-price contract for complex IT modernization carries several potential risks. For the contractor (FOUR LLC), the primary risk is underestimating the scope, complexity, or duration of the work, leading to cost overruns that they must absorb. For the government (PBGC), risks include the contractor potentially cutting corners on quality to maintain profitability, or the fixed price becoming uncompetitive if market prices decrease significantly during the contract term. There's also a risk that the chosen technology may become obsolete or that unforeseen technical challenges arise, which could delay modernization efforts or require costly workarounds if not adequately addressed in the contract's technical specifications and change order clauses.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 16PBGC23Q0013

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2303 DULLES STATION BLVD STE 105, HERNDON, VA, 20171

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $536,319

Exercised Options: $536,319

Current Obligation: $536,319

Actual Outlays: $536,319

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC73B

IDV Type: GWAC

Timeline