PBGC's $77.7M Investment Banking Contract with PGIM, Inc. Awarded via Full and Open Competition
Contract Overview
Contract Amount: $77,709,803 ($77.7M)
Contractor: Pgim, Inc.
Awarding Agency: Pension Benefit Guaranty Corporation
Start Date: 2008-10-01
End Date: 2016-03-31
Contract Duration: 2,738 days
Daily Burn Rate: $28.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CFO - FOD TREAS
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005
Plain-Language Summary
Pension Benefit Guaranty Corporation obligated $77.7 million to PGIM, INC. for work described as: CFO - FOD TREAS Key points: 1. Significant contract value of $77.7 million over its life. 2. PGIM, Inc. secured the award through full and open competition. 3. Contract duration spans nearly 8 years, indicating long-term service needs. 4. Fixed-price contract type suggests predictable costs for the agency.
Value Assessment
Rating: good
The contract's fixed-price nature provides cost certainty. Benchmarking against similar investment banking services is difficult without specific scope details, but the overall value suggests a substantial engagement.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, allowing multiple bidders to participate. This method generally promotes competitive pricing and ensures the government receives fair market value.
Taxpayer Impact: The competitive award process likely resulted in a fair price, minimizing potential overspending and maximizing taxpayer value for the investment banking services procured.
Public Impact
Ensures stable management of pension assets. Supports the financial health of retirement plans. Provides expert financial advice to the PBGC. Contributes to long-term fiscal stability of pension insurance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics.
- Potential for market volatility impacting investment returns.
- Reliance on a single contractor for critical financial services.
Positive Signals
- Competitive award process.
- Firm fixed-price contract.
- Long contract duration indicating sustained need.
- Experienced contractor (implied).
Sector Analysis
This contract falls under financial services, specifically investment banking and securities dealing, supporting the Pension Benefit Guaranty Corporation's mission. Spending in this sector is crucial for managing financial risks and ensuring the solvency of pension funds.
Small Business Impact
The data indicates this contract was not set aside for small businesses and does not specify small business participation. Large financial institutions typically dominate this type of specialized service.
Oversight & Accountability
The contract was awarded through full and open competition, suggesting a transparent procurement process. Oversight would focus on PGIM's adherence to the firm fixed-price terms and performance standards.
Related Government Programs
- Investment Banking and Securities Dealing
- Pension Benefit Guaranty Corporation Contracting
- Pension Benefit Guaranty Corporation Programs
Risk Flags
- Contract duration is lengthy.
- No explicit mention of performance metrics.
- Potential for market volatility.
- Reliance on a single provider.
- Small business participation not evident.
Tags
investment-banking-and-securities-dealin, pension-benefit-guaranty-corporation, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Pension Benefit Guaranty Corporation awarded $77.7 million to PGIM, INC.. CFO - FOD TREAS
Who is the contractor on this award?
The obligated recipient is PGIM, 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 $77.7 million.
What is the period of performance?
Start: 2008-10-01. End: 2016-03-31.
What specific investment strategies or services were included in this contract to justify the $77.7 million expenditure?
The contract likely encompassed a range of investment banking services such as portfolio management, risk assessment, securities trading, and financial advisory related to the PBGC's asset portfolio. The substantial value suggests complex financial operations and a long-term strategy for managing pension fund investments to ensure solvency and meet future obligations.
What were the key performance indicators (KPIs) used to evaluate PGIM, Inc.'s success under this contract?
While not explicitly stated, KPIs would likely revolve around investment return benchmarks, risk management adherence, compliance with fiduciary duties, and timely reporting. The PBGC would monitor whether PGIM met or exceeded market performance expectations while safeguarding the pension assets under its management.
How did the firm fixed-price structure impact the PBGC's ability to benefit from favorable market conditions or mitigate losses?
A firm fixed-price contract generally locks in costs for the PBGC, shielding it from cost overruns by the contractor. However, it also means the PBGC might not directly benefit from contractor efficiencies or cost savings. Conversely, the contractor assumes the risk of market volatility impacting their profit margins.
Industry Classification
NAICS: Finance and Insurance › Securities and Commodity Contracts Intermediation and Brokerage › Investment Banking and Securities Dealing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Prudential Financial, Inc. (UEI: 018300884)
Address: 751 BROAD ST 24TH FLR, NEWARK, NJ, 07102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $77,709,803
Exercised Options: $77,709,803
Current Obligation: $77,709,803
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Timeline
Start Date: 2008-10-01
Current End Date: 2016-03-31
Potential End Date: 2016-03-31 00:00:00
Last Modified: 2016-09-16
More Contracts from Pgim, Inc.
- Portfolio Management Services — $117.6M (Pension Benefit Guaranty Corporation)
- Financial Services — $17.9M (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)