Bolton Partners Inc. contract for actuarial services awarded $38.3M by Pension Benefit Guaranty Corporation

Contract Overview

Contract Amount: $38,338,403 ($38.3M)

Contractor: Bolton Partners, Inc.

Awarding Agency: Pension Benefit Guaranty Corporation

Start Date: 2010-09-26

End Date: 2016-03-25

Contract Duration: 2,007 days

Daily Burn Rate: $19.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: LABOR HOURS

Sector: Other

Official Description: ACTUARIAL SERVICES BAPD

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21201

State: Maryland Government Spending

Plain-Language Summary

Pension Benefit Guaranty Corporation obligated $38.3 million to BOLTON PARTNERS, INC. for work described as: ACTUARIAL SERVICES BAPD Key points: 1. Contract value of $38.3M over its period of performance suggests a significant need for actuarial expertise. 2. The contract was awarded through full and open competition, indicating a competitive bidding process. 3. The duration of the contract (over 2000 days) points to a long-term requirement for these services. 4. The use of labor hours as a contract type can sometimes lead to cost overruns if not managed carefully. 5. The contract was awarded to Bolton Partners, Inc., a single entity, suggesting specialized capabilities. 6. The contract's focus on actuarial services aligns with the core mission of the Pension Benefit Guaranty Corporation.

Value Assessment

Rating: good

The contract value of $38.3 million over approximately 5.5 years averages to about $6.9 million per year. Without specific benchmarks for actuarial services for pension funds of this scale, it's difficult to definitively assess value for money. However, the competitive award process suggests that pricing was likely scrutinized. The contract type (labor hours) necessitates close monitoring to ensure efficiency and prevent scope creep, which could impact overall value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The presence of 4 bids suggests a reasonable level of competition for these specialized actuarial services. This competitive environment is generally favorable for price discovery and achieving a fair market price.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The Pension Benefit Guaranty Corporation (PBGC) benefits from this contract by securing essential actuarial services to manage its responsibilities. The services delivered are critical for assessing the financial health of defined benefit pension plans and ensuring benefits are paid to retirees. The geographic impact is national, as the PBGC operates nationwide to protect private-sector pension plans. The contract supports specialized actuarial professionals, contributing to the workforce in this niche field.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hour contract type can lead to cost uncertainty if not managed with strict oversight.
Long contract duration may require adjustments for evolving actuarial standards or economic conditions.
Reliance on a single contractor for a significant period could limit exposure to newer methodologies or technologies.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Multiple bidders (4) suggest market interest and a degree of competition.
Contract addresses a core, long-term need for the agency's mission.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. The market for actuarial services is specialized, serving industries with significant long-term financial obligations like insurance and pensions. The PBGC's spending on actuarial services is a critical component of its operational budget, ensuring accurate financial assessments and risk management for pension plans it insures.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded through full and open competition, there may be opportunities for small businesses to participate as subcontractors, depending on the prime contractor's subcontracting plan. However, the primary award was not directed towards the small business sector.

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 embedded in the contract terms, including performance standards and reporting requirements. Transparency is generally maintained through contract award databases, though specific performance details might be proprietary. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Pension Plan Administration
Financial Risk Management Services
Government Actuarial Consulting
Employee Benefits Consulting

Risk Flags

Labor Hour Contract Type
Long Contract Duration
Potential for Cost Overruns

Frequently Asked Questions

What is this federal contract paying for?

Pension Benefit Guaranty Corporation awarded $38.3 million to BOLTON PARTNERS, INC.. ACTUARIAL SERVICES BAPD

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 $38.3 million.

What is the period of performance?

Start: 2010-09-26. End: 2016-03-25.

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

Analyzing historical spending on actuarial services by the PBGC is crucial for understanding budget allocation and identifying potential trends or anomalies. While this specific contract spans from 2010 to 2016 with a value of $38.3 million, a comprehensive review would involve examining all prior and subsequent contracts for similar services. This would reveal if the PBGC's reliance on external actuarial expertise has increased or decreased over time, and whether spending has kept pace with inflation or changes in the number of pension plans under its insurance. Understanding these patterns can help assess the efficiency of current spending and forecast future needs. Without access to a complete historical database of PBGC's procurement for actuarial services, a precise trend analysis is limited to the data provided for this single contract.

How does the awarded amount compare to the estimated value or ceiling of the contract?

The provided data indicates an 'awarded' amount of $38,338,403.23. However, it does not specify an estimated value or a contract ceiling. Definitive contracts, especially those using labor hours, often have a ceiling that represents the maximum amount the government is obligated to pay. If the awarded amount represents the total expenditure over the contract's life, it suggests the contract was utilized significantly. If there was a higher ceiling, it implies potential cost savings or underspending. Without knowing the ceiling, it's difficult to assess if the contract was fully leveraged or if there was room for further work within the authorized budget. This information is critical for a complete value assessment.

What specific actuarial methodologies or standards were required under this contract?

The contract details specify 'ACTUARIAL SERVICES BAPD' (likely meaning Benefits and Actuarial Data Processing or similar) and were awarded to Bolton Partners, Inc. However, the specific actuarial methodologies, standards (e.g., GAAP, GASB, FASB), or models required are not detailed in the provided summary data. These would typically be outlined in the Statement of Work (SOW) or Performance Work Statement (PWS) within the full contract documentation. Understanding these requirements is essential for evaluating the complexity of the work, the expertise needed, and for benchmarking against similar service requirements. The PBGC's mission involves assessing the solvency of pension plans, which necessitates adherence to rigorous and often complex actuarial principles.

What was the track record of Bolton Partners, Inc. prior to this award?

Assessing the track record of Bolton Partners, Inc. prior to this $38.3 million contract award is vital for understanding their capability and reliability. As a provider of actuarial services, their history would ideally include successful engagements with similar government agencies or large private pension funds. Key indicators would be past performance evaluations, any history of contract disputes or terminations, and the successful completion of projects within scope, schedule, and budget. While the PBGC selected them for this significant contract, implying a positive assessment at the time of award, a deeper dive into their performance on previous contracts, particularly those with the federal government, would provide a more robust picture of their capabilities and potential risks.

Were there any performance issues or contract modifications during the life of this contract?

The provided data summarizes the contract award and period of performance (2010-2016) but does not detail any contract modifications, change orders, or performance issues that may have arisen during its execution. Significant modifications could indicate evolving requirements, unforeseen challenges, or potential scope creep. Performance issues, conversely, might lead to corrective actions, penalties, or reduced funding. Without access to the contract's amendment history or performance reports, it's impossible to determine if the contract proceeded smoothly or encountered difficulties. This information is crucial for a comprehensive assessment of the contractor's performance and the overall management of the contract.

What is the typical duration and value range for similar actuarial service contracts in the federal government?

Actuarial service contracts within the federal government can vary widely in duration and value depending on the agency's needs and the scope of services. Contracts for ongoing support, like that provided to the PBGC, often span multiple years, with durations similar to this 5.5-year contract being common. Values can range from hundreds of thousands to tens of millions of dollars. For instance, agencies like the Office of Personnel Management (OPM) or the Department of Defense may require actuarial services for their own pension and healthcare liabilities, potentially leading to large, long-term contracts. Benchmarking this $38.3 million contract against others would require analyzing contracts with similar objectives (e.g., pension fund analysis, actuarial valuation) across different agencies to establish a reliable range for duration and cost.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 575 S CHARLES ST STE 500, BALTIMORE, MD, 21201

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $41,596,725

Exercised Options: $41,596,725

Current Obligation: $38,338,403

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline