PBGC's $25.5M ADP Systems Development contract awarded to Advanced Technology Systems, Inc. for over 5 years

Contract Overview

Contract Amount: $25,532,240 ($25.5M)

Contractor: Advanced Technology Systems, Inc.

Awarding Agency: Pension Benefit Guaranty Corporation

Start Date: 2001-11-19

End Date: 2007-09-30

Contract Duration: 2,141 days

Daily Burn Rate: $11.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: ADP SYSTEMS DEVELOPMENT 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 $25.5 million to ADVANCED TECHNOLOGY SYSTEMS, INC. for work described as: ADP SYSTEMS DEVELOPMENT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type, Cost Plus Fixed Fee, can sometimes lead to cost overruns if not managed carefully. 3. The duration of the contract (2141 days) indicates a long-term need for these services. 4. The contract was awarded by the Pension Benefit Guaranty Corporation (PBGC), a federal agency. 5. The North American Industry Classification System (NAICS) code 541990 points to 'All Other Professional, Scientific, and Technical Services'. 6. The contract value of approximately $25.5 million over its term. 7. The contract was awarded in 2001 and completed in 2007, providing historical context.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data from the same period. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, can present risks if cost controls are not robust. The total value of $25.5 million over more than five years suggests a moderate investment for ADP systems development services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The presence of two bids (no: 2) suggests some level of competition, but the exact number of bidders and the nature of the competition are not detailed. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

The primary beneficiary is the Pension Benefit Guaranty Corporation (PBGC), which received ADP systems development services. These services likely supported the PBGC's mission of protecting the retirement security of millions of Americans. The geographic impact is primarily within the District of Columbia, where the PBGC is headquartered. The contract supported a workforce involved in developing and maintaining critical IT systems for the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize profit if not closely monitored.
Limited information on the number of bidders (only 2) raises questions about the intensity of competition.
The long duration of the contract could lead to scope creep or outdated technology if not managed proactively.

Positive Signals

Awarded through full and open competition, indicating an effort to achieve fair market pricing.
The contract was successfully completed, suggesting the contractor met the agency's requirements.
The services provided were essential for the operational needs of the PBGC.

Sector Analysis

The Information Technology (IT) services sector is vast, encompassing software development, system integration, and technical support. Contracts like this one for ADP systems development are crucial for government agencies to maintain and modernize their technological infrastructure. The market for such services is highly competitive, with numerous firms offering specialized expertise. Benchmarking this contract's value against similar IT development projects from the early 2000s would require access to historical government spending databases and detailed project scopes.

Small Business Impact

There is no indication that this contract included small business set-asides. The contract was awarded to Advanced Technology Systems, Inc., a company that may or may not be a small business itself. Further investigation would be needed to determine if subcontracting opportunities were made available to small businesses.

Oversight & Accountability

Oversight for this contract would have been provided by the Pension Benefit Guaranty Corporation's contracting officers and program managers. Accountability measures would be tied to the terms of the Cost Plus Fixed Fee contract, including performance milestones and reporting requirements. Transparency is generally facilitated through contract award databases, though detailed performance data may not be publicly available.

Related Government Programs

Federal IT Modernization Programs
Government Agency IT Infrastructure Support
ADP Systems Development Contracts
Pension Benefit Guaranty Corporation IT Spending

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring to prevent cost overruns.
Limited competition (2 bidders) may indicate potential for higher pricing than a more robustly competed contract.
Long contract duration increases the risk of scope creep and technological obsolescence if not actively managed.

Frequently Asked Questions

What is this federal contract paying for?

Pension Benefit Guaranty Corporation awarded $25.5 million to ADVANCED TECHNOLOGY SYSTEMS, INC.. ADP SYSTEMS DEVELOPMENT SERVICES

Who is the contractor on this award?

The obligated recipient is ADVANCED TECHNOLOGY SYSTEMS, 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 $25.5 million.

What is the period of performance?

Start: 2001-11-19. End: 2007-09-30.

What was the specific nature of the ADP systems developed or enhanced under this contract?

The provided data does not specify the exact nature of the ADP systems developed or enhanced. However, given the agency (Pension Benefit Guaranty Corporation - PBGC), it is likely these systems pertained to managing pension plan data, financial reporting, actuarial calculations, or administrative functions related to the PBGC's mission of protecting defined benefit pension plans. ADP (Automatic Data Processing) systems in this context would refer to the computer systems and software used to automate and manage these complex processes.

How did the final cost compare to the initial estimated cost for this contract?

The provided data does not include information on the initial estimated cost of the contract, nor does it detail the final incurred costs beyond the total award amount of $25,532,240.29. For Cost Plus Fixed Fee (CPFF) contracts, the fixed fee is determined at the outset, but the 'cost' portion can fluctuate. Without the initial estimate, it's impossible to determine if the final cost was within expectations or if there were significant cost variances.

What was the contractor's performance history with the PBGC or other federal agencies prior to this award?

The provided data does not include the contractor's performance history. Advanced Technology Systems, Inc. (ATS) would have undergone a pre-award survey or responsibility determination by the PBGC to assess their capability to perform the contract. A thorough review of past performance, including CPARS (Contractor Performance Assessment Reporting System) reports if available, would be necessary to fully evaluate their track record. However, the fact that the contract was awarded and completed suggests a baseline level of satisfactory performance.

Were there any significant challenges or disputes encountered during the life of this contract?

The provided data does not contain information regarding challenges or disputes during the contract's lifecycle. The successful completion of the contract (indicated by the end date) suggests that any potential issues were likely resolved. However, CPFF contracts can sometimes lead to disagreements over allowable costs or the scope of work, which would typically be documented in contract modification records or agency correspondence, none of which is available here.

How does the per-year spending on this contract compare to other IT development contracts of similar scope during that era?

The contract value of approximately $25.5 million over roughly 5.7 years (2141 days) averages to about $4.47 million per year. Comparing this to other IT development contracts from the early 2000s requires access to extensive historical federal procurement data. Without specific benchmarks for 'ADP Systems Development Services' for agencies of similar size and mission to the PBGC during that period, a precise comparison is difficult. However, this annual spending level appears moderate for a multi-year, complex IT development project.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Salient Federal Solutions, Inc. (UEI: 962686031)

Address: 7915 JONES BRANCH DR, MC LEAN, VA, 90

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

Financial Breakdown

Contract Ceiling: $25,532,240

Exercised Options: $25,532,240

Current Obligation: $25,532,240

Timeline