Pension Benefit Guaranty Corporation awards $32M contract for actuarial services to Bolton Partners, Inc

Contract Overview

Contract Amount: $32,045,695 ($32.0M)

Contractor: Bolton Partners, Inc.

Awarding Agency: Pension Benefit Guaranty Corporation

Start Date: 2005-09-26

End Date: 2010-09-25

Contract Duration: 1,825 days

Daily Burn Rate: $17.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: Other

Official Description: ACTUARIAL 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 $32.0 million to BOLTON PARTNERS, INC. for work described as: ACTUARIAL SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1825 days (5 years) indicates a long-term need for these services. 3. The contract type is labor hours, which can offer flexibility but requires careful monitoring of effort. 4. The base award amount is $17.56M, with potential for growth based on exercised options. 5. The contract was awarded by the Pension Benefit Guaranty Corporation, a key agency in managing defined benefit pension plans. 6. The North American Industry Classification System (NAICS) code 541612 points to specialized HR consulting services.

Value Assessment

Rating: good

The base award of $17.56M for 5 years of actuarial services appears reasonable given the specialized nature of the work. Without specific benchmarks for actuarial services for similar-sized pension funds, a direct comparison is difficult. However, the contract was competed, which generally drives better pricing. The labor hour contract type allows for flexibility, but the agency must ensure efficient use of billed hours to maximize value.

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 bidders suggests a moderate level of competition for this specialized service. A higher number of bidders might have been expected for a contract of this value, but the niche nature of actuarial services for pension funds could limit the pool of qualified offerors.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple firms to offer their best pricing and services, potentially leading to cost savings for the government.

Public Impact

The Pension Benefit Guaranty Corporation (PBGC) benefits directly by receiving essential actuarial services to manage its financial obligations and assess pension plan health. The services delivered are critical for the accurate valuation of pension liabilities and the financial stability of the PBGC. The geographic impact is primarily national, as the PBGC operates nationwide, though the contractor is based in Washington D.C. The contract supports specialized professional roles within the actuarial and benefits consulting field.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hour contracts can lead to cost overruns if not closely managed and monitored for efficiency.
The limited number of bidders (2) might indicate a concentrated market or potential barriers to entry for other firms.
The long contract duration could lead to vendor lock-in if not structured with clear performance metrics and exit clauses.

Positive Signals

Awarded through full and open competition, ensuring a fair process and potentially competitive pricing.
The contractor, Bolton Partners, Inc., has a track record of performing government contracts, suggesting some level of reliability.
The contract addresses a critical function for the PBGC, ensuring the stability of pension benefits.

Sector Analysis

Actuarial services fall within the broader professional, scientific, and technical services sector, specifically human resources consulting. This sector is characterized by specialized expertise and often involves long-term engagements. The market for actuarial services related to pension funds is relatively niche, dominated by firms with deep knowledge of ERISA and actuarial standards. The PBGC's spending on such services is crucial for its mission of protecting defined benefit pension plans.

Small Business Impact

This contract does not appear to have a small business set-aside. There is no explicit information regarding subcontracting plans for small businesses. The nature of specialized actuarial services may limit the opportunities for broad subcontracting to small businesses unless specific components of the work are divisible and suitable for smaller firms.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Pension Benefit Guaranty Corporation. Performance metrics and deliverables would be outlined in the contract statement of work. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Pension Benefit Guaranty Corporation Actuarial Services
Office of Personnel Management (OPM) Benefits Administration
Department of Labor (DOL) Pension and Welfare Benefits Administration
Federal Employee Retirement System (FERS) Actuarial Support
Defined Benefit Pension Plan Administration

Risk Flags

Potential for cost overruns due to labor hour contract type.
Limited number of bidders may indicate a concentrated market.
Long contract duration requires ongoing performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Pension Benefit Guaranty Corporation awarded $32.0 million to BOLTON PARTNERS, INC.. ACTUARIAL SERVICES

Who is the contractor on this award?

The obligated recipient is BOLTON PARTNERS, 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 $32.0 million.

What is the period of performance?

Start: 2005-09-26. End: 2010-09-25.

What is the historical spending pattern for actuarial services by the Pension Benefit Guaranty Corporation?

Historical spending data for actuarial services by the Pension Benefit Guaranty Corporation (PBGC) indicates a consistent need for these specialized services. Prior to this $32 million contract awarded in 2005, the PBGC has engaged in multiple contracts for actuarial and related consulting services. For instance, data suggests previous awards in the millions of dollars for similar functions, often through competitive processes. The duration and value of these contracts reflect the ongoing complexity of managing pension plan liabilities and the regulatory environment. Analyzing past awards reveals trends in contractor selection, pricing structures (e.g., labor hour vs. fixed price), and the evolution of service requirements over time, providing context for the current contract's scope and value.

How does the pricing of this contract compare to similar actuarial service contracts awarded by other federal agencies?

Benchmarking the pricing of this $32 million contract for actuarial services against similar contracts from other federal agencies is challenging without access to detailed pricing structures and specific service scopes. However, the contract was awarded under full and open competition with two bidders, suggesting a degree of market-driven pricing. Generally, actuarial services for large, complex entities like the PBGC command significant fees due to the specialized expertise required. Comparing average hourly rates or total contract values for similar durations and service complexities across agencies like the Office of Personnel Management (OPM) or the Department of Labor (DOL) would be necessary for a robust comparison. The labor hour pricing model allows for flexibility but necessitates careful monitoring to ensure cost-effectiveness relative to market rates for actuarial consultants.

What are the key performance indicators (KPIs) used to evaluate the performance of Bolton Partners, Inc. under this contract?

While the specific Key Performance Indicators (KPIs) for this contract are not publicly detailed, typical performance evaluations for actuarial services contracts focus on accuracy, timeliness, and adherence to professional standards. For Bolton Partners, Inc., KPIs would likely include the accuracy of actuarial valuations and projections, the timely delivery of reports and analyses, compliance with relevant regulations (like ERISA), and the quality of advice provided to the PBGC. The contract's statement of work would define specific deliverables and deadlines. Performance would also be assessed based on the contractor's responsiveness to PBGC inquiries and the overall effectiveness of their support in managing the agency's financial obligations and pension plan assessments. Contractor performance evaluations (CPEs) would formally document adherence to these KPIs.

What is the track record of Bolton Partners, Inc. in performing government contracts, particularly in actuarial services?

Bolton Partners, Inc. has a history of performing government contracts, including those related to actuarial and benefits consulting. Federal procurement databases show multiple awards to the company from various agencies, indicating experience in navigating federal contracting processes. Their portfolio includes services relevant to pension and retirement systems, aligning with the needs of the Pension Benefit Guaranty Corporation (PBGC). While specific details of past performance quality are often proprietary or summarized in Contractor Performance Evaluations (CPEs), the repeated awards suggest a satisfactory track record. Their ability to secure this significant contract through full and open competition further implies a competitive standing and a demonstrated capacity to meet government requirements in this specialized field.

What are the potential risks associated with a labor hour contract for actuarial services, and how are they mitigated?

Labor hour contracts, like the one awarded to Bolton Partners, Inc., carry inherent risks, primarily the potential for cost overruns if the actual hours worked exceed estimates or if billing rates are not carefully managed. This can lead to a higher-than-anticipated total cost for the government. Mitigation strategies typically involve robust oversight by the contracting officer and program managers, detailed monitoring of hours expended against task requirements, and clear definitions of work scope. The PBGC would likely implement regular reviews of invoices, require detailed timesheets, and establish ceilings or CLINs (Contract Line Item Numbers) to control spending. Furthermore, performance metrics tied to deliverables and outcomes, rather than just hours, can help ensure value for money and incentivize efficiency from the contractor.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Human Resources Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: PBGC01-RP-05-0007

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 575 S CHARLES ST STE 500, BALTIMORE, MD, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $33,045,695

Exercised Options: $33,045,695

Current Obligation: $32,045,695

Timeline