Grant Thornton LLP awarded $6.98M contract for administrative management and general management consulting services by Pension Benefit Guaranty Corporation

Contract Overview

Contract Amount: $6,977,861 ($7.0M)

Contractor: Grant Thornton LLP

Awarding Agency: Pension Benefit Guaranty Corporation

Start Date: 2023-09-29

End Date: 2026-09-28

Contract Duration: 1,095 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: THEN PURPOSE OF THIS TASK ORDER IS TO PROVIDE ALL PERSONNEL, SUPERVISION, AND NON-PERSONAL SERVICES NECESSARY TO PERFORM PAE RD. 9 SUPPORT SERVICES FOR OBA.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Pension Benefit Guaranty Corporation obligated $7.0 million to GRANT THORNTON LLP for work described as: THEN PURPOSE OF THIS TASK ORDER IS TO PROVIDE ALL PERSONNEL, SUPERVISION, AND NON-PERSONAL SERVICES NECESSARY TO PERFORM PAE RD. 9 SUPPORT SERVICES FOR OBA. Key points: 1. Contract provides essential support services for the Office of Benefits Administration. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of 1095 days (3 years) indicates a need for sustained support. 4. The contract type is Time and Materials, which can pose cost control challenges if not managed closely. 5. The North American Industry Classification System (NAICS) code 541611 points to a focus on management consulting. 6. The award is a BPA Call, indicating it's part of a larger pre-competed agreement. 7. The contract is managed by the Pension Benefit Guaranty Corporation itself, suggesting direct oversight.

Value Assessment

Rating: good

The contract value of $6.98 million over three years for administrative management and general management consulting services appears reasonable for the scope of support required by the Pension Benefit Guaranty Corporation. Benchmarking against similar contracts for management consulting services within federal agencies suggests this pricing is within an expected range, especially considering the specialized nature of supporting benefits administration. The Time and Materials pricing structure, while common, necessitates diligent oversight to ensure cost-effectiveness and prevent scope creep.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The Pension Benefit Guaranty Corporation likely sought multiple proposals to ensure they received the best value. The fact that it was competed openly suggests a healthy market for these types of services, allowing for price discovery and potentially driving down costs compared to a sole-source award.

Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, as it increases the likelihood of securing services at a fair market price and reduces the risk of overpayment.

Public Impact

The primary beneficiaries are the Pension Benefit Guaranty Corporation and its stakeholders, who will receive improved administrative and management support for benefits operations. The services delivered will enhance the efficiency and effectiveness of the Office of Benefits Administration. The geographic impact is primarily within the operational sphere of the Pension Benefit Guaranty Corporation, likely supporting its administrative functions. Workforce implications may include the utilization of Grant Thornton's personnel to augment or support existing PBGC staff in administrative and management roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored for hours and rates.
Reliance on external consultants for core administrative functions may raise questions about long-term internal capacity building.
The specific performance metrics and deliverables need rigorous tracking to ensure value for money.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process and potential for competitive pricing.
The contract duration suggests a stable, long-term need for these specialized services.
The contractor, Grant Thornton LLP, is a well-established firm with experience in government contracting.

Sector Analysis

The administrative management and general management consulting services sector is a significant part of the federal contracting landscape, supporting a wide array of agency functions. This contract, valued at approximately $7 million over three years, falls within the typical range for specialized consulting engagements. The Pension Benefit Guaranty Corporation's need for these services highlights the ongoing demand for expert advice in managing complex administrative processes, particularly within agencies dealing with financial and benefits administration. Comparable spending benchmarks for similar consulting services often range from hundreds of thousands to millions of dollars annually, depending on the scope and duration.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the primary award is to Grant Thornton LLP, a large business, there is no explicit information provided regarding subcontracting plans for small businesses. The impact on the small business ecosystem is therefore not directly measurable from this data, but large prime contractors are often encouraged or required to meet small business subcontracting goals on such awards.

Oversight & Accountability

Oversight for this contract will primarily reside with the Pension Benefit Guaranty Corporation's contracting officers and program managers. Accountability measures will be defined by the contract's terms, including performance standards, reporting requirements, and payment schedules tied to deliverables. Transparency is facilitated by the contract's public award notice. While specific Inspector General jurisdiction isn't detailed, the PBGC Office of Inspector General typically has oversight over agency spending and operations.

Related Government Programs

Management and Financial Consulting, Acquisition and Grants of Advisory Services
Professional Services - Management and Scientific
Administrative Management and General Management Consulting Services

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Need for robust oversight to manage scope and ensure value for money.
Reliance on external contractor for critical administrative functions.

Frequently Asked Questions

What is this federal contract paying for?

Pension Benefit Guaranty Corporation awarded $7.0 million to GRANT THORNTON LLP. THEN PURPOSE OF THIS TASK ORDER IS TO PROVIDE ALL PERSONNEL, SUPERVISION, AND NON-PERSONAL SERVICES NECESSARY TO PERFORM PAE RD. 9 SUPPORT SERVICES FOR OBA.

Who is the contractor on this award?

The obligated recipient is GRANT THORNTON 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 $7.0 million.

What is the period of performance?

Start: 2023-09-29. End: 2026-09-28.

What is the specific nature of the 'OBA Support Services' provided under this task order?

The purpose of this task order is to provide all personnel, supervision, and non-personal services necessary to perform support services for the Pension Benefit Guaranty Corporation's (PBGC) Office of Benefits Administration (OBA). While the data does not detail the exact functions, OBA is typically responsible for managing retirement benefits, processing claims, and ensuring the accurate and timely distribution of benefits to participants and beneficiaries. Therefore, the support services likely encompass a range of administrative, analytical, and potentially technical functions crucial to the smooth operation of the benefits programs administered by PBGC.

How does the Time and Materials (T&M) contract type compare to other contract types for similar consulting services?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change. For consulting services, T&M can offer flexibility, allowing the government to adjust the level of effort as needed. However, it carries a higher risk of cost overruns compared to fixed-price contracts, as the government pays for the actual labor hours and materials used. Agencies often prefer fixed-price contracts for well-defined scopes to ensure cost certainty. The PBGC's choice of T&M suggests they anticipate a need for adaptable support, but it necessitates robust monitoring of hours, rates, and overall expenditure to remain within the $6.98 million ceiling.

What is Grant Thornton LLP's track record with the Pension Benefit Guaranty Corporation and similar federal agencies?

Grant Thornton LLP is a large, well-established professional services firm with extensive experience in government contracting across various federal agencies. While this specific data point doesn't detail their past performance with PBGC, their presence in the federal contracting space suggests a history of successfully delivering services. A deeper dive into contract databases like FPDS or SAM.gov would reveal the extent and nature of their previous work with PBGC and other agencies, including performance ratings and any past issues. Their ability to win this 'full and open competition' award indicates they met the agency's requirements and were deemed a capable provider.

What are the potential risks associated with a 3-year Time and Materials contract for administrative support?

The primary risk with a 3-year Time and Materials contract for administrative support is cost escalation. Without strict oversight and well-defined task orders, the contractor could bill for excessive hours or at higher-than-expected rates, potentially exceeding the $6.98 million ceiling. Another risk is scope creep, where the services provided expand beyond the original intent without a corresponding increase in funding or contract modification. There's also a potential risk of reduced efficiency if the contractor is incentivized by billable hours rather than efficient task completion. Ensuring clear performance metrics and diligent contract management by PBGC is crucial to mitigate these risks.

How does this contract's value compare to historical spending on administrative consulting by the Pension Benefit Guaranty Corporation?

This contract, valued at $6.98 million over three years, represents a significant but not necessarily unusual investment for the Pension Benefit Guaranty Corporation (PBGC) in specialized administrative support. Without access to PBGC's historical spending data on consulting services, a direct comparison is difficult. However, agencies of PBGC's size and mission often engage external consultants for specific projects or ongoing support in areas like benefits administration, actuarial services, or IT modernization. The value suggests a sustained need for expertise that may not be fully available internally or requires specialized external knowledge. Annual spending on such services can fluctuate based on agency priorities and project needs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 171 N CLARK ST, CHICAGO, IL, 60601

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,977,861

Exercised Options: $6,977,861

Current Obligation: $6,977,861

Actual Outlays: $2,728,635

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 16PBGC22A0006

IDV Type: BPA

Timeline