Pension Benefit Guaranty Corporation awards $19.3M contract for financial transaction processing to Benefit Services Unlimited Inc

Contract Overview

Contract Amount: $19,289,932 ($19.3M)

Contractor: Benefit Services Unlimited Inc

Awarding Agency: Pension Benefit Guaranty Corporation

Start Date: 2001-11-02

End Date: 2008-09-30

Contract Duration: 2,524 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: Other

Official Description: OTHER PROFESSIONAL SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005

State: District of Columbia Government Spending

Plain-Language Summary

Pension Benefit Guaranty Corporation obligated $19.3 million to BENEFIT SERVICES UNLIMITED INC for work described as: OTHER PROFESSIONAL SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 2524 days (approximately 7 years) indicates a long-term need for these services. 3. The North American Industry Classification System (NAICS) code 522320 points to financial transaction processing, reserve, and clearinghouse activities. 4. The contract was awarded by the Pension Benefit Guaranty Corporation (PBGC), an independent agency of the U.S. government. 5. The contract type is 'Labor Hours', which typically means payment is based on the hours worked by specific individuals. 6. The contract was awarded in 2001 and completed in 2008, indicating historical spending.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the services provided and market rates at the time of award (2001). The total value of $19.3 million over approximately seven years averages to about $2.75 million per year. Given the nature of financial transaction processing, this annual figure might be within a reasonable range, but a direct comparison to similar contracts from that era would be necessary for a definitive assessment of value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition', indicating that all responsible sources were permitted to submit a bid. The presence of two bids suggests a moderate level of competition for this requirement. While two bidders is better than one, a higher number of bids would typically lead to more robust price discovery and potentially better pricing for the government.

Taxpayer Impact: A competitive bidding process, even with two bidders, generally benefits taxpayers by encouraging more favorable pricing and service offerings compared to sole-source or limited competition scenarios.

Public Impact

The primary beneficiary of this contract is the Pension Benefit Guaranty Corporation (PBGC), which relies on these services for its financial operations. The services delivered include financial transaction processing, reserve management, and clearinghouse activities, crucial for managing pension plan assets and liabilities. The geographic impact is likely national, as the PBGC operates nationwide to protect private-sector pension plans. Workforce implications are primarily within the contractor's organization, Benefit Services Unlimited Inc., and potentially within the PBGC for oversight and integration of services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the contractor's effectiveness.
The 'Labor Hours' contract type can sometimes lead to cost overruns if not managed carefully.
The long duration of the contract might indicate a lack of flexibility to adapt to changing needs or technologies.

Positive Signals

Awarded through full and open competition, suggesting a fair process.
The contractor, Benefit Services Unlimited Inc., was selected for a significant financial service role, implying a level of trust and capability.
The contract was successfully completed, indicating that the services were delivered as per the agreement.

Sector Analysis

The financial services sector, particularly within government contracting, involves a wide range of activities from transaction processing to advisory services. The NAICS code 522320 specifically points to the operational backbone of financial institutions. Contracts in this area often require robust security, compliance, and efficiency. The PBGC's need for these services aligns with its mission to administer the nation's pension insurance system, which involves complex financial management. Comparable spending benchmarks would depend on the specific volume and complexity of transactions processed.

Small Business Impact

There is no indication from the provided data that this contract involved small business set-asides or significant subcontracting opportunities for small businesses. The contract was awarded to Benefit Services Unlimited Inc., and the 'ss' and 'sb' fields are marked as false, suggesting it was not specifically targeted towards small businesses.

Oversight & Accountability

Oversight mechanisms for this contract would have been managed by the Pension Benefit Guaranty Corporation. As a government contract, it would be subject to standard federal procurement regulations and oversight. Transparency would be facilitated through contract award databases like FPDS. Specific accountability measures would be detailed in the contract itself, including performance standards and remedies for non-performance. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Financial Services
Pension Administration
Government Financial Management
Transaction Processing Services

Risk Flags

Contract Duration
Contract Type (Labor Hours)
Limited Competition (2 bidders)

Frequently Asked Questions

What is this federal contract paying for?

Pension Benefit Guaranty Corporation awarded $19.3 million to BENEFIT SERVICES UNLIMITED INC. OTHER PROFESSIONAL SERVICES

Who is the contractor on this award?

The obligated recipient is BENEFIT SERVICES UNLIMITED 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 $19.3 million.

What is the period of performance?

Start: 2001-11-02. End: 2008-09-30.

What was the specific nature of the financial transactions processed under this contract?

The provided data indicates the contract falls under NAICS code 522320, 'Financial Transactions Processing, Reserve, and Clearinghouse Activities'. This suggests the services involved the handling, recording, and movement of financial data, potentially related to pension plan contributions, benefit payments, or investment transactions. It could encompass activities like data entry, reconciliation, payment processing, and maintaining financial records. Without more granular details from the contract itself, the exact scope remains general, but it clearly relates to the core financial operations of the Pension Benefit Guaranty Corporation in managing its insurance programs.

How does the per-contractor spending of $19.3 million compare to other PBGC contracts for similar services?

Directly comparing the $19.3 million total award to other PBGC contracts for similar services is difficult without access to historical PBGC procurement data and specific service definitions. However, considering the contract spanned approximately seven years (from 2001 to 2008), the average annual spend was roughly $2.75 million. This figure needs to be contextualized by the volume and complexity of transactions handled. If the PBGC manages a large portfolio of pension plans, this annual expenditure might be considered moderate. A comprehensive analysis would require benchmarking against contracts for financial transaction processing awarded to other agencies or even within the PBGC during similar timeframes, accounting for inflation and evolving service requirements.

What were the key performance indicators (KPIs) used to evaluate Benefit Services Unlimited Inc.'s performance?

The provided summary data does not include specific Key Performance Indicators (KPIs) that were used to evaluate Benefit Services Unlimited Inc.'s performance under this contract. Typically, for 'Labor Hours' contracts involving financial transactions, KPIs might include metrics such as accuracy rates in data processing, timeliness of transaction completion, system uptime, adherence to security protocols, and compliance with financial regulations. The Pension Benefit Guaranty Corporation would have established these KPIs within the contract's statement of work and monitored the contractor's adherence to them throughout the contract period. Successful completion suggests these metrics were likely met.

What is the historical spending trend for financial transaction processing services at the PBGC?

This specific contract represents a historical spending instance of $19.3 million for financial transaction processing services by the Pension Benefit Guaranty Corporation between 2001 and 2008. To understand the broader historical spending trend, one would need to analyze PBGC's procurement data over a longer period, looking at multiple contracts for similar services. This would involve identifying all contracts categorized under financial transaction processing, reserve, and clearinghouse activities (NAICS 522320) or related codes, and examining their award values, durations, and agencies. Such an analysis would reveal whether spending in this area has increased, decreased, or remained relatively stable over time, and whether competition levels have changed.

Were there any identified risks or challenges associated with this contract, and how were they mitigated?

The provided data does not explicitly detail specific risks or challenges encountered during the execution of this contract. However, general risks associated with financial transaction processing contracts include data security breaches, processing errors, system failures, and contractor performance issues. Given the 'Labor Hours' contract type, a potential risk is cost escalation if work hours exceed initial estimates without a corresponding increase in value. Mitigation strategies typically involve robust contract oversight by the agency, clearly defined performance standards, regular reporting requirements, and contingency planning. The successful completion of the contract suggests that any identified risks were effectively managed by the PBGC and Benefit Services Unlimited Inc.

Industry Classification

NAICS: Finance and Insurance › Activities Related to Credit Intermediation › Financial Transactions Processing, Reserve, and Clearinghouse Activities

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 2500 GRUBB RD STE 140, WILMINGTON, DE, 00

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

Financial Breakdown

Contract Ceiling: $19,814,553

Exercised Options: $19,814,553

Current Obligation: $19,289,932

Timeline