PBGC Spends $23.7M on Portfolio Management with Goldman Sachs, Awarded via Full and Open Competition

Contract Overview

Contract Amount: $23,710,450 ($23.7M)

Contractor: Goldman Sachs Asset Management, L.P

Awarding Agency: Pension Benefit Guaranty Corporation

Start Date: 2010-11-19

End Date: 2016-06-30

Contract Duration: 2,050 days

Daily Burn Rate: $11.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 15

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CFO/CID

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 $23.7 million to GOLDMAN SACHS ASSET MANAGEMENT, L.P for work described as: CFO/CID Key points: 1. Significant contract value of $23.7 million for portfolio management services. 2. Awarded to a major financial institution, Goldman Sachs Asset Management. 3. Utilized full and open competition, suggesting a competitive bidding process. 4. Contract duration spans over 7 years, indicating a long-term relationship.

Value Assessment

Rating: good

The contract value of $23.7 million for portfolio management over 7 years appears reasonable given the provider and scope. Benchmarking against similar large-scale asset management contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition suggests that multiple bidders were likely considered, which should have driven competitive pricing. The fixed-price nature of the contract further supports price certainty.

Taxpayer Impact: Taxpayer funds were utilized through a competitive process, aiming for value in managing pension benefits.

Public Impact

Ensures professional management of pension assets, safeguarding beneficiaries' interests. Supports the financial stability of the Pension Benefit Guaranty Corporation. Demonstrates government's ability to procure complex financial services competitively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in provided data.
Potential for market volatility impacting investment returns.
Concentration risk with a single large provider.

Positive Signals

Awarded through full and open competition.
Firm fixed-price contract provides cost certainty.
Long-term contract may indicate stable, reliable service.

Sector Analysis

This contract falls within the financial services sector, specifically asset and portfolio management. Government spending in this area is crucial for managing public funds and investments effectively, with benchmarks varying widely based on asset class and management complexity.

Small Business Impact

The data indicates this contract was awarded to Goldman Sachs Asset Management, L.P., a large, established firm. There is no indication of small business participation in this specific award.

Oversight & Accountability

The Pension Benefit Guaranty Corporation is responsible for overseeing this contract. Further review of PBGC's internal oversight mechanisms and any external audits would be necessary to assess accountability.

Related Government Programs

Portfolio Management
Pension Benefit Guaranty Corporation Contracting
Pension Benefit Guaranty Corporation Programs

Risk Flags

Lack of detailed performance metrics.
Potential for market risk impacting investment outcomes.
No explicit mention of small business subcontracting.
Data anomaly in contract duration field ('dur').

Frequently Asked Questions

What is this federal contract paying for?

Pension Benefit Guaranty Corporation awarded $23.7 million to GOLDMAN SACHS ASSET MANAGEMENT, L.P. CFO/CID

Who is the contractor on this award?

The obligated recipient is GOLDMAN SACHS ASSET MANAGEMENT, L.P.

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 $23.7 million.

What is the period of performance?

Start: 2010-11-19. End: 2016-06-30.

What were the key performance indicators (KPIs) used to evaluate Goldman Sachs' portfolio management services throughout the contract's duration?

The provided data does not specify the key performance indicators (KPIs) used to evaluate Goldman Sachs' services. Typically, such contracts would include metrics related to investment performance against benchmarks, risk management adherence, reporting timeliness, and compliance with fiduciary duties. A thorough review of the contract's statement of work and any subsequent performance reviews would be needed to identify these specific KPIs.

How did the actual investment performance compare to the contract's objectives and market benchmarks over the 7-year period?

The provided data does not include information on the actual investment performance achieved by Goldman Sachs. To assess this, one would need access to PBGC's performance reports, which would detail returns, volatility, and comparisons against relevant market indices and the contract's stated investment objectives. This information is crucial for determining the true value derived from the $23.7 million expenditure.

What was the rationale for the long contract duration (2050 end date, though award ended 2016), and were there provisions for early termination or renegotiation?

The data shows an award end date of 2016-06-30, with a 'dur' field of 2050, which is likely an error or refers to a different metric. Assuming the contract was intended for a significant period, the rationale would typically be to ensure continuity and stability in managing complex pension assets, reducing administrative burden and potential disruption from frequent re-procurement. Provisions for early termination or renegotiation are standard in government contracts and would likely exist, allowing for adjustments based on performance or changing agency needs.

Industry Classification

NAICS: Finance and Insurance › Other Financial Investment Activities › Portfolio Management

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: 15

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Goldman Sachs Group Inc (UEI: 059164314)

Address: 85 BROAD STREET, NEW YORK, NY, 10004

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

Financial Breakdown

Contract Ceiling: $23,710,450

Exercised Options: $23,710,450

Current Obligation: $23,710,450

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline