PBGC Spends $26.2M on Employment Placement Services via Randstad, Full & Open Competition
Contract Overview
Contract Amount: $26,210,620 ($26.2M)
Contractor: Randstad North America, Inc.
Awarding Agency: Pension Benefit Guaranty Corporation
Start Date: 2002-01-09
End Date: 2009-09-30
Contract Duration: 2,821 days
Daily Burn Rate: $9.3K/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
Plain-Language Summary
Pension Benefit Guaranty Corporation obligated $26.2 million to RANDSTAD NORTH AMERICA, INC. for work described as: OTHER PROFESSIONAL SERVICES Key points: 1. Significant expenditure on professional services highlights reliance on external staffing. 2. Randstad North America, Inc. secured a substantial contract, indicating strong market presence. 3. Full and open competition suggests a robust price discovery process. 4. The contract duration of over 7 years indicates a long-term need for these services.
Value Assessment
Rating: fair
The contract value of $26.2M over nearly 8 years for employment placement services appears substantial. Benchmarking against similar government contracts for staffing agencies is difficult without more granular data on the specific roles and duration of placements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. The number of bids received and the final negotiated price would be key indicators of effective price discovery.
Taxpayer Impact: Taxpayer funds were utilized through a competitive process, aiming for cost-effectiveness in securing necessary staffing services.
Public Impact
Ensures access to specialized talent for government agencies. Supports workforce needs, potentially filling critical roles. Competition can lead to cost savings for taxpayers. Transparency in government contracting is maintained through open competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics.
- Potential for cost overruns if not managed closely.
- Dependence on a single vendor for extended periods.
Positive Signals
- Utilized full and open competition.
- Contract awarded to a reputable firm.
- Long-term duration suggests consistent need and potential for stable service.
Sector Analysis
The 'Other Professional Services' category, specifically NAICS code 561310 (Employment Placement Agencies), represents a significant segment of government contracting. Spending benchmarks vary widely based on agency size and specific needs, but $26.2M over 8 years for staffing is a notable investment.
Small Business Impact
While the contract was awarded under full and open competition, there is no explicit indication of small business participation or subcontracting within the provided data. Further analysis would be needed to determine if small businesses were involved.
Oversight & Accountability
The contract was awarded by the Pension Benefit Guaranty Corporation (PBGC). Oversight would involve monitoring performance, adherence to contract terms, and financial expenditures to ensure value for money and accountability.
Related Government Programs
- Employment Placement Agencies
- Pension Benefit Guaranty Corporation Contracting
- Pension Benefit Guaranty Corporation Programs
Risk Flags
- Lack of detailed performance metrics.
- Extended contract duration without clear exit strategy.
- Potential for vendor lock-in.
- Limited information on small business utilization.
Tags
employment-placement-agencies, pension-benefit-guaranty-corporation, dc, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Pension Benefit Guaranty Corporation awarded $26.2 million to RANDSTAD NORTH AMERICA, INC.. OTHER PROFESSIONAL SERVICES
Who is the contractor on this award?
The obligated recipient is RANDSTAD NORTH AMERICA, 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 $26.2 million.
What is the period of performance?
Start: 2002-01-09. End: 2009-09-30.
What was the average hourly or per-placement cost compared to market rates?
Without specific details on the types of positions filled, duration of placements, and the number of individuals hired, it's challenging to establish a precise per-placement or hourly cost benchmark. However, given the competitive nature of the award, the PBGC likely aimed for rates at or below prevailing market averages for similar professional staffing services.
What were the key performance indicators (KPIs) and how was Randstad's performance measured?
The provided data does not detail the specific Key Performance Indicators (KPIs) used to evaluate Randstad's performance. Effective oversight would typically involve metrics related to time-to-fill positions, quality of candidates, retention rates, and adherence to budget. The absence of this information raises a potential oversight concern.
Were there any sole-source or limited-competition awards within this larger contract for specialized roles?
The data explicitly states the contract was awarded under 'FULL AND OPEN COMPETITION'. This indicates that the initial award process was not sole-source or limited. However, it's possible that specific, highly specialized roles filled under this contract might have involved limited sourcing if no qualified candidates were found through the broader competition.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Employment Services › Employment Placement Agencies
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
Parent Company: Hart & Associates LLC (UEI: 413860701)
Address: 2015 S PARK PL SE, ATLANTA, GA, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $27,845,297
Exercised Options: $27,845,297
Current Obligation: $26,210,620
Timeline
Start Date: 2002-01-09
Current End Date: 2009-09-30
Potential End Date: 2009-09-30 00:00:00
Last Modified: 2012-11-14
More Contracts from Randstad North America, Inc.
- Benefit Administration — $56.5M (Pension Benefit Guaranty Corporation)
- COO- Bapd Miami, FL Field Benefit Administration Support — $17.4M (Pension Benefit Guaranty Corporation)
- COO Bapd — $16.6M (Pension Benefit Guaranty Corporation)
Other Pension Benefit Guaranty Corporation Contracts
- Field Office Support Services — $141.0M (Serco Inc)
- O&M and DM&E Work — $130.5M (Science Applications International Corporation)
- Portfolio Management Services — $117.6M (Pgim, Inc.)
- Portfolio Management Services — $112.4M (Pacific Investment Management Company LLC)
- This to IS to Improve Customer Service Scores Reported by a 3rd-Party Vendor WHO Completes a Quarterly Participant Caller Survey. PSD Seeks to Improve CX by Reducing the Number of Contacts & Paper Forms Customers Complete to Fulfill Requests — $95.8M (Serco Inc)