PBGC awards $2.18M contract for Benefit Connect licenses and support to Willis Towers Watson
Contract Overview
Contract Amount: $218,000 ($218.0K)
Contractor: Willis Towers Watson US LLC
Awarding Agency: Pension Benefit Guaranty Corporation
Start Date: 2025-09-29
End Date: 2026-09-28
Contract Duration: 364 days
Daily Burn Rate: $599/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: BENEFIT CONNECT (BC) LICENSES ALONG WITH THE REQUIRED SYSTEM SUPPORT, WILL ENABLE PBGC STAFF TO UTILIZE THE BENEFIT ADMINISTRATION SUPPORT SYSTEM. THIS SYSTEM MUST GRANT PBGC PERSONNEL ACCESS TO ESSENTIAL DATA IN BC FOR CONDUCTING RESEARCH, EXECUTING
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203
State: Virginia Government Spending
Plain-Language Summary
Pension Benefit Guaranty Corporation obligated $218,000 to WILLIS TOWERS WATSON US LLC for work described as: BENEFIT CONNECT (BC) LICENSES ALONG WITH THE REQUIRED SYSTEM SUPPORT, WILL ENABLE PBGC STAFF TO UTILIZE THE BENEFIT ADMINISTRATION SUPPORT SYSTEM. THIS SYSTEM MUST GRANT PBGC PERSONNEL ACCESS TO ESSENTIAL DATA IN BC FOR CONDUCTING RESEARCH, EXECUTING Key points: 1. Contract value of $2.18M for essential system access and support. 2. Willis Towers Watson US LLC is the sole awardee. 3. Risk of vendor lock-in due to sole-source nature. 4. Sector focus on Pension Funds administration.
Value Assessment
Rating: fair
The contract value of $2.18M for 364 days of service appears reasonable for specialized software licenses and support. Benchmarking against similar IT support contracts for government agencies is needed for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if the contract had been awarded through a competitive bidding process.
Public Impact
Ensures PBGC staff can access critical data for research and execution of benefit administration. Supports the Pension Benefit Guaranty Corporation's mission to protect retirement benefits. Potential for increased efficiency in benefit processing and management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Potential for cost overruns without competitive pressure.
Positive Signals
- Provides essential system access for PBGC staff.
- Supports critical pension administration functions.
Sector Analysis
This contract falls within the IT sector, specifically supporting administrative functions for pension funds. Spending benchmarks for similar government IT support contracts vary widely based on scope and complexity.
Small Business Impact
This contract does not appear to involve small business participation, as it is a sole-source award to a large corporation.
Oversight & Accountability
Oversight will be crucial to ensure the vendor delivers the contracted services effectively and that the pricing remains justified throughout the contract period, especially given the sole-source nature.
Related Government Programs
- Pension Funds
- Pension Benefit Guaranty Corporation Contracting
- Pension Benefit Guaranty Corporation Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for vendor lock-in
- Limited price discovery
Tags
pension-funds, pension-benefit-guaranty-corporation, va, definitive-contract, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Pension Benefit Guaranty Corporation awarded $218,000 to WILLIS TOWERS WATSON US LLC. BENEFIT CONNECT (BC) LICENSES ALONG WITH THE REQUIRED SYSTEM SUPPORT, WILL ENABLE PBGC STAFF TO UTILIZE THE BENEFIT ADMINISTRATION SUPPORT SYSTEM. THIS SYSTEM MUST GRANT PBGC PERSONNEL ACCESS TO ESSENTIAL DATA IN BC FOR CONDUCTING RESEARCH, EXECUTING
Who is the contractor on this award?
The obligated recipient is WILLIS TOWERS WATSON US 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 $218,000.
What is the period of performance?
Start: 2025-09-29. End: 2026-09-28.
What is the justification for the sole-source award and why was competition not feasible?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can meet the requirements. Without further details on the 'Benefit Connect' system and its specific support needs, it's difficult to assess the validity of foregoing competition. A thorough review of the justification documentation is essential to understand why competitive procurement was not pursued.
How will the PBGC ensure fair pricing and value for money given the sole-source nature of this contract?
The PBGC can ensure fair pricing through rigorous contract management, including detailed performance metrics, regular cost reviews, and potentially seeking independent cost estimates if feasible. Establishing clear deliverables and milestones tied to payment will also help. Furthermore, maintaining open communication with the vendor and documenting all changes or additional requirements will be critical for accountability and preventing scope creep.
What are the potential risks associated with relying on a single vendor for critical system support, and how are they being mitigated?
The primary risks include vendor lock-in, potential price increases upon renewal, and service disruptions if the vendor faces financial or operational issues. Mitigation strategies could involve negotiating favorable terms for future renewals, building in exit clauses, and ensuring knowledge transfer to internal staff or alternative vendors over time. The PBGC should also monitor the vendor's financial health and performance closely.
Industry Classification
NAICS: Finance and Insurance › Insurance and Employee Benefit Funds › Pension Funds
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 16PBGC25Q0057
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 800 N GLEBE RD, ARLINGTON, VA, 22203
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $402,500
Exercised Options: $218,000
Current Obligation: $218,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2025-09-29
Current End Date: 2026-09-28
Potential End Date: 2027-09-28 00:00:00
Last Modified: 2026-04-10
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