PBGC Spends $16.6M on Management Consulting, Lacking Small Business Participation
Contract Overview
Contract Amount: $16,584,344 ($16.6M)
Contractor: Randstad North America, Inc.
Awarding Agency: Pension Benefit Guaranty Corporation
Start Date: 2008-09-01
End Date: 2012-11-30
Contract Duration: 1,551 days
Daily Burn Rate: $10.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: COO BAPD
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005
Plain-Language Summary
Pension Benefit Guaranty Corporation obligated $16.6 million to RANDSTAD NORTH AMERICA, INC. for work described as: COO BAPD Key points: 1. Contract awarded to Randstad North America, Inc. for administrative and management consulting. 2. Significant spending of $16.6 million over nearly 4 years. 3. Full and open competition was utilized. 4. No small business participation was reported. 5. Contract duration was 1551 days.
Value Assessment
Rating: fair
The contract's cost-plus-fixed-fee structure can lead to cost overruns if not managed carefully. Benchmarking against similar administrative management consulting contracts is difficult without more detailed service descriptions.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was used, which theoretically allows for the best pricing. However, the cost-plus-fixed-fee pricing type introduces risk for the government if costs escalate beyond initial estimates.
Taxpayer Impact: Taxpayer funds were used for management consulting services. The effectiveness of the spending depends on the value derived from the consulting services provided.
Public Impact
Taxpayer funds allocated for essential government administrative functions. Contract awarded through a competitive process, suggesting potential for value. Lack of small business involvement may limit broader economic impact. Long contract duration raises questions about ongoing need and potential for cost efficiencies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- No small business participation
- Cost-plus-fixed-fee pricing structure
- Long contract duration
Positive Signals
- Full and open competition utilized
- Services provided to a key agency (PBGC)
Sector Analysis
Administrative Management and General Management Consulting Services are crucial for government efficiency. Benchmarks for this sector vary widely based on the specific services rendered and contract duration.
Small Business Impact
This contract did not involve small businesses, which represents a missed opportunity to support smaller enterprises. Future contracts could explore set-asides or subcontracting opportunities for small businesses.
Oversight & Accountability
The Pension Benefit Guaranty Corporation is responsible for overseeing this contract. Accountability relies on performance metrics and adherence to the fixed fee, though cost-plus elements require diligent monitoring.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Pension Benefit Guaranty Corporation Contracting
- Pension Benefit Guaranty Corporation Programs
Risk Flags
- Lack of small business participation
- Cost-plus-fixed-fee pricing structure
- Long contract duration (over 4 years)
- Limited detail on specific services provided
- Potential for cost overruns
Tags
administrative-management-and-general-ma, pension-benefit-guaranty-corporation, dc, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Pension Benefit Guaranty Corporation awarded $16.6 million to RANDSTAD NORTH AMERICA, INC.. COO BAPD
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 $16.6 million.
What is the period of performance?
Start: 2008-09-01. End: 2012-11-30.
What specific administrative management and general management consulting services were provided under this contract, and how did they contribute to the PBGC's mission?
The provided data lacks specifics on the exact services rendered. To assess value, a detailed breakdown of consulting tasks, deliverables, and their alignment with PBGC's objectives is needed. This would clarify if the $16.6 million investment yielded tangible improvements in operational efficiency, strategic planning, or risk management for the agency.
Given the cost-plus-fixed-fee structure and long duration, what mechanisms were in place to mitigate cost overruns and ensure continued necessity of services?
Cost-plus-fixed-fee contracts inherently carry risk of cost escalation. Robust oversight, clear performance metrics, and regular reviews by PBGC would be crucial to manage this. The long duration (over 4 years) necessitates justification for sustained need and exploration of potential cost savings or alternative solutions over time.
How effective was the full and open competition in achieving competitive pricing and selecting the most capable vendor for these consulting services?
While full and open competition is generally preferred for maximizing value, its effectiveness hinges on the bid evaluation process and the specific requirements defined. Without access to the bidding data and award rationale, it's difficult to definitively assess if the chosen pricing was truly competitive or if other vendors offered superior value propositions.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
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: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Hart & Associates LLC (UEI: 413860701)
Address: 2015 S PARK PL SE STE FRNT, ATLANTA, GA, 90
Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,299,115
Exercised Options: $21,299,115
Current Obligation: $16,584,344
Timeline
Start Date: 2008-09-01
Current End Date: 2012-11-30
Potential End Date: 2012-11-30 00:00:00
Last Modified: 2013-11-21
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