PBGC Spends $56.5M on Benefit Administration Services via Randstad
Contract Overview
Contract Amount: $56,483,861 ($56.5M)
Contractor: Randstad North America, Inc.
Awarding Agency: Pension Benefit Guaranty Corporation
Start Date: 2002-10-01
End Date: 2008-09-30
Contract Duration: 2,191 days
Daily Burn Rate: $25.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: LABOR HOURS
Sector: Other
Official Description: BENEFIT ADMINISTRATION
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005
Plain-Language Summary
Pension Benefit Guaranty Corporation obligated $56.5 million to RANDSTAD NORTH AMERICA, INC. for work described as: BENEFIT ADMINISTRATION Key points: 1. Contract awarded to Randstad North America, Inc. for benefit administration. 2. Total award value of $56.5 million over 6 years. 3. Full and open competition was utilized. 4. The contract falls under the Employment Placement Agencies sector.
Value Assessment
Rating: fair
The contract's total award value of $56.5 million over 2191 days suggests a significant investment in benefit administration services. Benchmarking against similar contracts for large-scale administrative support is necessary to fully assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently for essential benefit administration services.
Public Impact
Ensures timely and accurate processing of pension benefits for retirees. Supports the Pension Benefit Guaranty Corporation's mission to protect retirement security. Provides employment placement services, potentially aiding individuals in finding new opportunities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for cost overruns if not closely managed.
- Dependence on a single contractor for critical administrative functions.
Positive Signals
- Utilized full and open competition, promoting fairness.
- Long-term contract provides stability for benefit administration.
- Supports a vital government function for retirement security.
Sector Analysis
This contract falls within the Professional, Scientific, and Technical Services sector, specifically Employment Placement Agencies. Spending in this area supports government operations and administrative functions.
Small Business Impact
The provided data does not indicate any specific set-asides for small businesses. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Pension Benefit Guaranty Corporation is responsible for overseeing this contract. Regular performance reviews and audits are crucial to ensure accountability and effective service delivery.
Related Government Programs
- Employment Placement Agencies
- Pension Benefit Guaranty Corporation Contracting
- Pension Benefit Guaranty Corporation Programs
Risk Flags
- Potential for vendor lock-in if performance is satisfactory.
- Reliance on a single vendor for critical administrative functions.
- Scope creep could lead to cost overruns.
- Data security and privacy risks associated with sensitive participant information.
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 $56.5 million to RANDSTAD NORTH AMERICA, INC.. BENEFIT ADMINISTRATION
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 $56.5 million.
What is the period of performance?
Start: 2002-10-01. End: 2008-09-30.
What specific benefit administration tasks are covered under this contract, and how do they align with PBGC's core mission?
This contract likely covers a range of administrative tasks essential for managing pension plans, such as claims processing, participant outreach, data management, and payment distribution. These functions directly support the PBGC's mission of protecting retirement income for millions of Americans by ensuring the timely and accurate payment of earned pension benefits.
What are the key performance indicators (KPIs) used to measure Randstad's effectiveness in administering benefits, and what are the historical performance trends?
Key performance indicators would typically include metrics like claims processing time, accuracy rates, participant satisfaction scores, and compliance with regulatory requirements. Without access to the contract's SOW and performance reports, it's impossible to detail specific KPIs or historical trends, which are crucial for assessing effectiveness and value.
How does the $56.5 million award compare to industry benchmarks for similar benefit administration services, considering the contract's duration and scope?
A direct comparison requires detailed scope of work and service level agreements. However, $56.5 million over six years for comprehensive benefit administration for a federal agency suggests a substantial but potentially reasonable investment, assuming high volume and complexity. Benchmarking against private sector contracts of similar scale and service offerings would provide a clearer picture of cost-effectiveness.
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) › ADMINISTRATIVE SUPPORT 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: $56,568,379
Exercised Options: $56,568,379
Current Obligation: $56,483,861
Timeline
Start Date: 2002-10-01
Current End Date: 2008-09-30
Potential End Date: 2008-09-30 00:00:00
Last Modified: 2012-12-19
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