PBGC awards $371.9M contract for IT services to Intact Technology Inc

Contract Overview

Contract Amount: $371,907 ($371.9K)

Contractor: Intact Technology Inc

Awarding Agency: Pension Benefit Guaranty Corporation

Start Date: 2023-05-01

End Date: 2026-04-30

Contract Duration: 1,095 days

Daily Burn Rate: $340/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MICROFOCUS

Place of Performance

Location: GREENBELT, PRINCE GEORGES County, MARYLAND, 20770

State: Maryland Government Spending

Plain-Language Summary

Pension Benefit Guaranty Corporation obligated $371,907.41 to INTACT TECHNOLOGY INC for work described as: MICROFOCUS Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for IT services, specifically 'Other Computer Related Services'. 3. The duration of the contract is 1095 days (3 years). 4. The contract type is Firm Fixed Price, which shifts risk to the contractor. 5. The award was made by the Pension Benefit Guaranty Corporation (PBGC). 6. The North American Industry Classification System (NAICS) code is 541519, indicating a broad range of computer-related services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or detailed service descriptions. The firm fixed-price nature provides cost certainty for the PBGC, but the total value of $371.9 million over three years suggests a significant investment in IT services. Further analysis would require comparing the scope of services to similar contracts awarded by other federal agencies or within the private sector to assess if the pricing is competitive for the level of service provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 8 bidders suggests a healthy level of competition for these IT services. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently by fostering a competitive environment that drives down costs and encourages innovation from multiple vendors.

Public Impact

The Pension Benefit Guaranty Corporation (PBGC) is the primary beneficiary, receiving IT services to support its operations. The contract will ensure the continued delivery of essential IT services, likely supporting PBGC's mission of protecting retirement security. The geographic impact is primarily within Maryland, where the contract is managed or services are delivered. The contract supports the IT workforce, potentially creating or sustaining jobs within the technology sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the true value for money.
The broad NAICS code (541519) could encompass a wide range of services, making it hard to pinpoint specific cost drivers.
The significant contract value warrants close monitoring of performance and deliverables to ensure objectives are met.

Positive Signals

Awarded under full and open competition with 8 bidders, indicating a competitive market.
Firm Fixed Price contract type shifts cost overrun risk to the contractor.
The contract duration of three years allows for stable IT service delivery.

Sector Analysis

The IT services sector is a critical component of federal operations, with agencies increasingly relying on technology for efficiency and data management. This contract falls under the broad category of computer-related services, which includes areas like IT consulting, system integration, and managed services. The market for these services is highly competitive, with numerous large and small businesses vying for government contracts. The value of this award is substantial, reflecting the ongoing need for robust IT infrastructure and support within government agencies.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans for small businesses. Given the large contract value, it is possible that larger prime contractors may engage small businesses for specialized services, but this is not explicitly stated. Further review of the contract details and any associated subcontracting goals would be necessary to determine the impact on the small business ecosystem.

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 reviews by the Government Accountability Office (GAO) and the Office of Inspector General (OIG). The firm fixed-price nature of the contract provides a degree of financial oversight by establishing a set cost. Transparency would be enhanced by public reporting of performance metrics and any modifications to the contract.

Related Government Programs

IT Professional Services
Cloud Computing Services
Cybersecurity Services
Software Development
IT Consulting

Risk Flags

Potential for scope creep if SOW is not tightly managed.
Risk of contractor underperformance impacting critical IT services.
Need for strong contract oversight to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Pension Benefit Guaranty Corporation awarded $371,907.41 to INTACT TECHNOLOGY INC. MICROFOCUS

Who is the contractor on this award?

The obligated recipient is INTACT TECHNOLOGY 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 $371,907.41.

What is the period of performance?

Start: 2023-05-01. End: 2026-04-30.

What is the specific scope of 'Other Computer Related Services' covered under this contract?

The contract falls under NAICS code 541519, which broadly covers 'Other Computer Related Services'. This typically includes services such as IT consulting, custom software development, system integration, IT support, and potentially data management or analytics. Without the detailed Statement of Work (SOW), the precise services are not fully defined. However, given the agency (PBGC) and the contract value, it likely encompasses a wide range of IT support and modernization efforts critical to the agency's operations, ensuring the stability and security of its IT infrastructure and systems.

How does the $371.9 million award compare to historical IT spending by the PBGC?

To accurately compare, historical IT spending data for the Pension Benefit Guaranty Corporation (PBGC) would be needed. However, a $371.9 million award over three years represents a significant annual IT expenditure, averaging over $120 million per year. This suggests a substantial commitment to IT services, potentially indicating a period of IT modernization, increased operational demands, or a consolidation of previously fragmented IT contracts. A detailed analysis of PBGC's budget and IT procurement history would reveal whether this award represents an increase, decrease, or stable level of IT investment compared to previous years.

What are the key performance indicators (KPIs) for this contract, and how will performance be measured?

The provided data does not specify the key performance indicators (KPIs) or the performance measurement plan for this contract. In a Firm Fixed Price contract, performance is typically measured against the deliverables outlined in the Statement of Work (SOW). The PBGC would likely have established metrics related to system uptime, response times for IT support, project completion rates, and adherence to security protocols. The effectiveness of performance measurement relies heavily on the clarity of the SOW and the rigor of the PBGC's contract management team in monitoring and evaluating the contractor's output against these defined standards.

What is the risk profile associated with a Firm Fixed Price contract of this magnitude?

A Firm Fixed Price (FFP) contract of this magnitude ($371.9 million) shifts the primary cost risk to the contractor, Intact Technology Inc. This means the contractor is obligated to complete the work for the agreed-upon price, regardless of unforeseen cost increases. The main risks for the government (PBGC) revolve around potential contractor underperformance or failure to deliver the required quality or scope of services within the fixed price. If the contractor underestimates costs or encounters significant challenges, they might cut corners, impacting service quality. Conversely, the government benefits from cost certainty. Robust contract oversight is crucial to mitigate performance risks.

How does the competition level (8 bidders) influence the value and pricing for the PBGC?

The fact that this contract attracted 8 bidders under full and open competition is a strong positive signal for the Pension Benefit Guaranty Corporation (PBGC). A higher number of bidders generally indicates a more competitive marketplace for the services required. This increased competition typically drives down prices as contractors vie to win the award, potentially leading to more favorable terms and better value for the government. It also suggests that the PBGC's requirements were clearly defined and accessible, encouraging a broad range of potential providers to participate, ultimately benefiting taxpayers through potentially lower costs and higher quality service.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 16PBGC23Q0023

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12700 SUNRISE VALLEY DR STE 410, RESTON, VA, 20191

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

Financial Breakdown

Contract Ceiling: $371,910

Exercised Options: $371,910

Current Obligation: $371,907

Actual Outlays: $371,907

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA22D00B2

IDV Type: FSS

Timeline