PBGC awards $7.1M contract to Deloitte for audit and compliance services
Contract Overview
Contract Amount: $7,125,143 ($7.1M)
Contractor: Deloitte & Touche LLP
Awarding Agency: Pension Benefit Guaranty Corporation
Start Date: 2025-03-24
End Date: 2027-03-23
Contract Duration: 729 days
Daily Burn Rate: $9.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: THIS IS A NEW REQUIREMENT WITH THE PURPOSE TO PROVIDE PLAN COMPLIANCE DEPARTMENT (PCD) AUDIT & COMPLIANCE REVIEW SERVICES (ACRS).
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209
State: Virginia Government Spending
Plain-Language Summary
Pension Benefit Guaranty Corporation obligated $7.1 million to DELOITTE & TOUCHE LLP for work described as: THIS IS A NEW REQUIREMENT WITH THE PURPOSE TO PROVIDE PLAN COMPLIANCE DEPARTMENT (PCD) AUDIT & COMPLIANCE REVIEW SERVICES (ACRS). Key points: 1. Contract awarded to a single, well-known vendor. 2. Focus on audit and compliance services for plan data. 3. Potential for long-term engagement based on contract duration. 4. No small business participation noted.
Value Assessment
Rating: fair
The contract value of $7.1M over two years for audit and compliance services appears reasonable given the specialized nature of the work and the vendor's reputation. Benchmarking against similar government contracts for audit and compliance support would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the specific vendor chosen for this delivery order warrants scrutiny to ensure the best value was obtained.
Taxpayer Impact: Taxpayer funds are being used for essential audit and compliance functions to ensure the integrity of pension benefit plans.
Public Impact
Ensures integrity of pension benefit plans through audits. Supports the Pension Benefit Guaranty Corporation's mission. Potential impact on beneficiaries if compliance is not maintained.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Single vendor award for delivery order.
Positive Signals
- Full and open competition.
- Specialized audit and compliance services.
Sector Analysis
This contract falls under professional services, specifically IT-related services (NAICS 541519). Government spending in this sector is substantial, focusing on areas like cybersecurity, data management, and compliance. Benchmarks for similar audit and compliance contracts are often high due to expertise required.
Small Business Impact
The contract explicitly states no small business participation. This is a missed opportunity to support small businesses in the government contracting space, especially in specialized IT and professional services.
Oversight & Accountability
The Pension Benefit Guaranty Corporation is responsible for overseeing this contract. Standard oversight mechanisms should be in place to ensure performance, adherence to terms, and proper use of funds.
Related Government Programs
- Other Computer Related Services
- Pension Benefit Guaranty Corporation Contracting
- Pension Benefit Guaranty Corporation Programs
Risk Flags
- Potential for vendor lock-in due to specialized services.
- Lack of small business involvement.
- Reliance on a single vendor for critical audit functions.
- Contract duration extends beyond the current fiscal year.
Tags
other-computer-related-services, pension-benefit-guaranty-corporation, va, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Pension Benefit Guaranty Corporation awarded $7.1 million to DELOITTE & TOUCHE LLP. THIS IS A NEW REQUIREMENT WITH THE PURPOSE TO PROVIDE PLAN COMPLIANCE DEPARTMENT (PCD) AUDIT & COMPLIANCE REVIEW SERVICES (ACRS).
Who is the contractor on this award?
The obligated recipient is DELOITTE & TOUCHE 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 $7.1 million.
What is the period of performance?
Start: 2025-03-24. End: 2027-03-23.
What is the specific scope of 'audit & compliance review services' and how does it align with PBGC's core mission?
The services likely encompass reviewing financial records, operational procedures, and compliance with regulations related to pension plans. This directly supports PBGC's mission to protect retirement security by ensuring the solvency and proper administration of defined benefit pension plans, thereby safeguarding beneficiary interests.
What are the key performance indicators (KPIs) for this contract, and how will Deloitte's performance be measured?
Key performance indicators would likely include timeliness of audits, accuracy of findings, adherence to compliance standards, and the effectiveness of recommendations. Performance measurement would involve regular reviews by PBGC, quality assessments of deliverables, and potentially feedback from internal stakeholders impacted by the audits.
Given the firm-fixed-price structure, what mechanisms are in place to manage scope creep and ensure cost control if unforeseen issues arise?
A firm-fixed-price contract generally places the risk of cost overruns on the contractor. However, robust change management procedures are crucial. PBGC would need to carefully define the scope and implement strict controls for any proposed changes, requiring formal modification and potentially re-negotiation if the scope significantly deviates from the original agreement.
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) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 16PBGC25Q0051
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Deloitte Consulting LLP
Address: 1919 N LYNN ST, ARLINGTON, VA, 22209
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,967,433
Exercised Options: $7,125,143
Current Obligation: $7,125,143
Actual Outlays: $1,553,048
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS00F029DA
IDV Type: FSS
Timeline
Start Date: 2025-03-24
Current End Date: 2027-03-23
Potential End Date: 2030-03-23 00:00:00
Last Modified: 2026-03-19
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