PBGC's $20.8M contract for pharmacy benefit management awarded to Integrated Management Resources Group, Inc

Contract Overview

Contract Amount: $20,842,157 ($20.8M)

Contractor: Integrated Management Resources Group, Inc.

Awarding Agency: Pension Benefit Guaranty Corporation

Start Date: 2009-08-05

End Date: 2015-02-04

Contract Duration: 2,009 days

Daily Burn Rate: $10.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: LABOR HOURS

Sector: Healthcare

Official Description: COO - BAPD

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 $20.8 million to INTEGRATED MANAGEMENT RESOURCES GROUP, INC. for work described as: COO - BAPD Key points: 1. The contract's value of over $20 million suggests a significant need for pharmacy benefit management services. 2. Awarded through full and open competition, indicating a potentially competitive bidding process. 3. The contract duration spans several years, implying a long-term requirement for these services. 4. The services provided fall under 'Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds,' a specialized area. 5. The contract was awarded to a single entity, Integrated Management Resources Group, Inc. 6. The contract's performance period is substantial, suggesting a need for consistent and reliable service delivery.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. However, a $20.8 million award over its period suggests a substantial investment in pharmacy benefit management. The pricing structure, based on labor hours, can be variable and depends heavily on the efficiency and utilization of resources. Further analysis would require understanding the scope of services delivered and comparing the per-member-per-month costs to industry averages for similar benefit plans.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of 5 bids indicates a degree of market interest and potential competition. While full and open competition is generally favorable for price discovery, the specific number of bidders (5) is moderate and doesn't necessarily guarantee the most competitive pricing without further analysis of the bids received.

Taxpayer Impact: A full and open competition provides taxpayers with assurance that the government sought the best possible value by allowing all qualified vendors to participate, potentially leading to more cost-effective solutions.

Public Impact

The primary beneficiaries are participants and beneficiaries of pension plans administered by the Pension Benefit Guaranty Corporation (PBGC), who receive access to prescription drug benefits. The services delivered include the administration and management of pharmacy benefits, ensuring timely and cost-effective access to medications. The geographic impact is national, covering all eligible PBGC beneficiaries across the United States. Workforce implications are primarily within the contractor's organization, managing the pharmacy benefit program, and indirectly for PBGC staff overseeing the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if labor hours are not managed efficiently.
Dependence on a single contractor for a critical service could pose a risk if performance falters.
Ensuring consistent quality of service delivery over the contract's extended period.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The contract's duration indicates a stable and ongoing need, which can lead to economies of scale for the contractor.
The specialized nature of the service suggests the contractor possesses relevant expertise.

Sector Analysis

The contract falls within the broader healthcare and financial services sectors, specifically focusing on third-party administration of insurance and pension funds. The market for pharmacy benefit management (PBM) is substantial, with numerous large and specialized companies offering these services. This contract represents a portion of the PBGC's overall spending on administrative services to support its mission of protecting defined benefit pension plans.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited for this specific award. However, the prime contractor may engage small businesses as subcontractors, which would need to be tracked separately.

Oversight & Accountability

Oversight for this contract would typically be managed by the Pension Benefit Guaranty Corporation's contracting officers and program managers. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is generally facilitated through contract award databases and public reporting, though specific performance details may be proprietary. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Pension Benefit Guaranty Corporation Administrative Contracts
Pharmacy Benefit Management Services
Third-Party Administration of Insurance Funds
Federal Employee Health Benefits Program Administration

Risk Flags

Contract duration is substantial, requiring ongoing monitoring.
Labor hour contract type can lead to cost variability if not managed closely.

Frequently Asked Questions

What is this federal contract paying for?

Pension Benefit Guaranty Corporation awarded $20.8 million to INTEGRATED MANAGEMENT RESOURCES GROUP, INC.. COO - BAPD

Who is the contractor on this award?

The obligated recipient is INTEGRATED MANAGEMENT RESOURCES GROUP, 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 $20.8 million.

What is the period of performance?

Start: 2009-08-05. End: 2015-02-04.

What was the specific scope of pharmacy benefit management services provided under this contract?

The contract, awarded to Integrated Management Resources Group, Inc. by the Pension Benefit Guaranty Corporation (PBGC), covered 'Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds.' This typically includes services such as negotiating drug prices with manufacturers and pharmacies, processing prescription drug claims, developing formularies (lists of covered drugs), managing mail-order pharmacies, and implementing drug utilization review programs. The objective is to ensure that PBGC beneficiaries have access to necessary medications while controlling costs for the agency. The contract's labor hour pricing structure suggests that the extent and nature of these services could fluctuate based on demand and the specific tasks undertaken by the contractor.

How does the $20.8 million contract value compare to other PBGC administrative contracts or similar PBM contracts in the federal government?

Comparing the $20.8 million value of this contract requires context regarding the PBGC's overall budget and the specific nature of its administrative needs. As a government corporation, the PBGC relies on administrative contracts to manage its operations, which include protecting pension plans and administering benefits. While $20.8 million is a significant sum, its relative size depends on the total annual spending for PBGC's administrative functions. For similar Pharmacy Benefit Management (PBM) contracts across the federal government, this value appears moderate. Larger agencies like the Department of Veterans Affairs (VA) or the Department of Defense (DoD) often award much larger PBM contracts due to their extensive healthcare systems and beneficiary populations. Without direct comparative data on PBGC's historical PBM spending or specific benchmarks for similar-sized pension fund administrators, a precise comparison is difficult.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance?

While the specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data, typical KPIs for Pharmacy Benefit Management (PBM) contracts include metrics related to cost savings (e.g., formulary management effectiveness, rebate capture), access to medications (e.g., network pharmacy availability, turnaround times for mail-order prescriptions), quality of service (e.g., member satisfaction scores, accuracy of claims processing), and compliance with regulatory requirements. For a contract based on labor hours, efficiency in resource utilization and adherence to project timelines would also be critical. The Pension Benefit Guaranty Corporation (PBGC) would likely have established specific performance standards within the contract's Statement of Work (SOW) to monitor Integrated Management Resources Group, Inc.'s delivery of these services.

What is the track record of Integrated Management Resources Group, Inc. in managing federal contracts, particularly in the PBM sector?

Information regarding the specific track record of Integrated Management Resources Group, Inc. in managing federal contracts, especially within the Pharmacy Benefit Management (PBM) sector, is not detailed in the provided data snippet. To assess their track record, one would typically look at past performance evaluations, contract history (including any awards, modifications, or terminations), and any reported issues or successes on previous government engagements. Federal procurement data systems often contain past performance information. Without access to these detailed records, it's difficult to provide a comprehensive assessment of their experience and reliability in handling similar PBM contracts for federal agencies or other large organizations.

How has the PBGC's spending on pharmacy benefit management evolved over time, and what does this contract represent in that trend?

The provided data focuses on a single contract awarded in 2009 with an end date in 2015. To understand the evolution of PBGC's spending on pharmacy benefit management, a historical analysis of all related contracts would be necessary. This would involve examining contract awards, values, durations, and the contractors involved over a significant period. This specific $20.8 million contract represents a substantial, multi-year investment in PBM services during its performance period. Whether this spending has increased, decreased, or remained stable would depend on comparing it to prior and subsequent PBGC expenditures in this category. Factors influencing such spending could include changes in beneficiary population, healthcare costs, and PBGC's strategic approach to managing its administrative functions.

Industry Classification

NAICS: Finance and Insurance › Agencies, Brokerages, and Other Insurance Related Activities › Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 4640 FORBES BLVD STE 200, LANHAM, MD, 20706

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $26,494,247

Exercised Options: $21,228,806

Current Obligation: $20,842,157

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline