PBGC Spends $27.3M on Actuarial Services with Milliman, Inc. via Full and Open Competition
Contract Overview
Contract Amount: $27,263,117 ($27.3M)
Contractor: Milliman, Inc.
Awarding Agency: Pension Benefit Guaranty Corporation
Start Date: 2010-09-15
End Date: 2016-03-25
Contract Duration: 2,018 days
Daily Burn Rate: $13.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ACTUARIAL SERVICES - BAPD
Place of Performance
Location: VIENNA, FAIRFAX County, VIRGINIA, 22182
State: Virginia Government Spending
Plain-Language Summary
Pension Benefit Guaranty Corporation obligated $27.3 million to MILLIMAN, INC. for work described as: ACTUARIAL SERVICES - BAPD Key points: 1. Milliman, Inc. secured a significant contract for actuarial services. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The total value of the contract is substantial at over $27 million. 4. The services provided fall under administrative management and general management consulting. 5. The contract duration spanned from 2010 to 2016.
Value Assessment
Rating: good
The contract value of $27.3 million over approximately 5.5 years appears reasonable for specialized actuarial services. Benchmarking against similar large-scale actuarial contracts would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded under full and open competition, this method likely fostered competitive pricing and ensured the government received the best value. The fixed-price structure further incentivized cost control by the contractor.
Taxpayer Impact: The competitive nature of the award suggests taxpayers benefited from a fair price for essential actuarial services.
Public Impact
Ensures the financial health and stability of pension plans. Supports the Pension Benefit Guaranty Corporation's mission to protect retirement benefits. Provides critical data for actuarial soundness assessments. Contributes to informed decision-making regarding pension plan management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is lengthy, potentially leading to price increases over time.
- Lack of specific performance metrics makes it difficult to assess effectiveness.
Positive Signals
- Awarded through full and open competition.
- Firm fixed-price contract provides cost certainty.
- Services are critical to PBGC's mission.
Sector Analysis
Actuarial services are crucial for financial institutions and government agencies managing pension liabilities. Spending in this sector is driven by regulatory requirements and the need for expert financial analysis to ensure solvency and compliance.
Small Business Impact
The data indicates this contract was awarded to a large firm, Milliman, Inc. There is no specific indication of small business participation or set-asides within this contract award.
Oversight & Accountability
The contract was awarded through full and open competition, which inherently provides a level of oversight. However, further details on performance monitoring and reporting would be needed for a comprehensive oversight assessment.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Pension Benefit Guaranty Corporation Contracting
- Pension Benefit Guaranty Corporation Programs
Risk Flags
- Contract duration is long (over 5 years).
- No specific performance metrics provided.
- Potential for price escalation over the contract term.
- Limited insight into specific deliverables and outcomes.
Tags
administrative-management-and-general-ma, pension-benefit-guaranty-corporation, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Pension Benefit Guaranty Corporation awarded $27.3 million to MILLIMAN, INC.. ACTUARIAL SERVICES - BAPD
Who is the contractor on this award?
The obligated recipient is MILLIMAN, 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 $27.3 million.
What is the period of performance?
Start: 2010-09-15. End: 2016-03-25.
What was the specific scope of actuarial services provided under this contract?
The contract focused on actuarial services for pension plans managed by the Pension Benefit Guaranty Corporation. This likely included services such as actuarial valuations, liability assessments, funding projections, and compliance reporting, all crucial for ensuring the solvency and proper administration of defined benefit pension plans.
How did the firm fixed-price contract structure impact the overall cost and risk for the PBGC?
A firm fixed-price contract shifts most of the cost risk to the contractor, Milliman, Inc. This provided the PBGC with significant cost certainty, as the price was set upfront. While it protected the PBGC from cost overruns, it also meant they might not benefit from potential cost savings if the contractor's actual costs were lower than anticipated.
What is the typical benchmark for actuarial services spending for an agency of the PBGC's size?
Benchmarking actuarial service spending is complex due to varying plan complexities and regulatory environments. For an agency like the PBGC, managing a large portfolio of pension plans, a contract of $27.3 million over several years is substantial but may be in line with industry norms, reflecting the scale and criticality of the services required.
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: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1921 GALLOWS RD, STE. 900, VIENNA, VA, 22182
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $39,584,000
Exercised Options: $39,584,000
Current Obligation: $27,263,117
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-09-15
Current End Date: 2016-03-25
Potential End Date: 2016-03-25 00:00:00
Last Modified: 2018-05-14
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