PBGC Spends $17.4M on Benefit Administration Support, Awarded to Randstad North America
Contract Overview
Contract Amount: $17,426,374 ($17.4M)
Contractor: Randstad North America, Inc.
Awarding Agency: Pension Benefit Guaranty Corporation
Start Date: 2009-08-19
End Date: 2014-09-28
Contract Duration: 1,866 days
Daily Burn Rate: $9.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: LABOR HOURS
Sector: Other
Official Description: COO- BAPD MIAMI, FL FIELD BENEFIT ADMINISTRATION SUPPORT
Place of Performance
Location: MIAMI SPRINGS, MIAMI-DADE County, FLORIDA, 33166
State: Florida Government Spending
Plain-Language Summary
Pension Benefit Guaranty Corporation obligated $17.4 million to RANDSTAD NORTH AMERICA, INC. for work described as: COO- BAPD MIAMI, FL FIELD BENEFIT ADMINISTRATION SUPPORT Key points: 1. Contract awarded to Randstad North America for $17.4M. 2. Service category is Pharmacy Benefit Management and Third Party Administration. 3. Contract duration was 1866 days. 4. Awarded under full and open competition. 5. No small business participation noted.
Value Assessment
Rating: fair
The contract value of $17.4M over approximately 5 years suggests a moderate annual spend. Benchmarking against similar contracts for benefit administration support would be necessary to fully assess value, but the duration and scope indicate a significant investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which generally promotes competitive pricing. The specific pricing mechanisms and the number of bids received would further inform the price discovery assessment.
Taxpayer Impact: Taxpayer funds were used for this contract. The effectiveness of the competition and the final price paid will determine the overall taxpayer impact.
Public Impact
Ensures continued administration of benefits for pension plans. Supports the Pension Benefit Guaranty Corporation's mission. Provides essential administrative services to beneficiaries. Potential impact on the efficiency of pension fund management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Long contract duration may lead to price escalation.
Positive Signals
- Awarded through full and open competition.
- Supports critical PBGC functions.
Sector Analysis
The Pension Benefit Guaranty Corporation operates in the financial services sector, specifically focusing on pension insurance. Spending on administrative support is crucial for its operational efficiency and ability to manage its obligations.
Small Business Impact
There is no indication of small business participation in this contract. This could represent a missed opportunity for small businesses to engage with the agency and may warrant further investigation into outreach efforts.
Oversight & Accountability
The Pension Benefit Guaranty Corporation is responsible for overseeing this contract. Standard oversight mechanisms would apply to ensure performance and adherence to contract terms, but specific details are not provided.
Related Government Programs
- Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds
- Pension Benefit Guaranty Corporation Contracting
- Pension Benefit Guaranty Corporation Programs
Risk Flags
- No small business participation.
- Long contract duration.
- Potential for cost overruns.
- Limited transparency on specific services provided.
Tags
pharmacy-benefit-management-and-other-th, pension-benefit-guaranty-corporation, fl, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Pension Benefit Guaranty Corporation awarded $17.4 million to RANDSTAD NORTH AMERICA, INC.. COO- BAPD MIAMI, FL FIELD BENEFIT ADMINISTRATION SUPPORT
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 $17.4 million.
What is the period of performance?
Start: 2009-08-19. End: 2014-09-28.
What was the specific scope of 'Benefit Administration Support' and how did it align with PBGC's core mission?
The 'Benefit Administration Support' likely encompassed a range of services critical to PBGC's function, such as processing claims, managing participant data, and communicating with beneficiaries. This aligns directly with the agency's mission to protect the retirement income of millions of Americans in private-sector defined benefit pension plans.
Were there any performance issues or contract modifications during the 5-year period that impacted the final cost?
Without access to contract performance reports or modification logs, it's difficult to assess performance issues. However, contracts of this duration and value often undergo modifications due to changing requirements or economic factors. Any significant changes could have impacted the final cost and the overall value proposition.
How does the cost of this contract compare to similar benefit administration support contracts in the public or private sector?
A direct comparison is challenging without detailed service scope and performance metrics. However, the $17.4M total award over nearly 5 years suggests an average annual cost of approximately $3.5M. This figure needs to be benchmarked against industry standards for similar third-party administration services, considering the specific complexities of pension benefit management.
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) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: PBGC01-RP-09-0017
Offers Received: 4
Pricing Type: LABOR HOURS (Z)
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: $27,736,272
Exercised Options: $22,650,676
Current Obligation: $17,426,374
Timeline
Start Date: 2009-08-19
Current End Date: 2014-09-28
Potential End Date: 2014-09-28 00:00:00
Last Modified: 2014-11-04
More Contracts from Randstad North America, Inc.
- Benefit Administration — $56.5M (Pension Benefit Guaranty Corporation)
- Other Professional Services — $26.2M (Pension Benefit Guaranty Corporation)
- COO Bapd — $16.6M (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)