PBGC's $21M Pharmacy Benefit Management contract awarded to Integrated Management Resources Group, Inc

Contract Overview

Contract Amount: $21,074,421 ($21.1M)

Contractor: Integrated Management Resources Group, Inc.

Awarding Agency: Pension Benefit Guaranty Corporation

Start Date: 2015-01-28

End Date: 2019-06-30

Contract Duration: 1,614 days

Daily Burn Rate: $13.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::CL::IGF PVA RICHMOND HEIGHTS, OH

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 $21.1 million to INTEGRATED MANAGEMENT RESOURCES GROUP, INC. for work described as: IGF::CL::IGF PVA RICHMOND HEIGHTS, OH Key points: 1. Contract value of $21.07 million over its period of performance. 2. Awarded through full and open competition after exclusion of sources. 3. Contract type is Time and Materials, indicating potential for cost overruns. 4. The contract was awarded to a single vendor, Integrated Management Resources Group, Inc. 5. The North American Industry Classification System (NAICS) code is 524292 for Third Party Administration of Insurance Funds. 6. The contract duration was 1614 days, spanning from January 2015 to June 2019.

Value Assessment

Rating: fair

The contract's value of $21.07 million over approximately 4.4 years suggests a moderate annual spend. Benchmarking this against similar Pharmacy Benefit Management (PBM) contracts is challenging without more specific service details. However, the Time and Materials (T&M) pricing structure can sometimes lead to higher costs compared to fixed-price contracts if not managed closely, as it allows for reimbursement of direct labor and indirect costs plus a fee. The absence of a specific dollar amount for the base contract and the presence of a significant ceiling suggest flexibility but also potential for cost escalation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, certain sources were excluded prior to the solicitation. The specific reasons for this exclusion are not detailed, but it suggests a potentially narrower field of bidders than a truly unrestricted full and open competition. With only one awardee, it's difficult to ascertain the full extent of competition without knowing how many proposals were received and evaluated.

Taxpayer Impact: The 'exclusion of sources' aspect of the competition may have limited the number of potential bidders, potentially impacting the government's ability to secure the lowest possible price through robust competition.

Public Impact

The Pension Benefit Guaranty Corporation (PBGC) is the primary beneficiary, receiving pharmacy benefit management services. The contract supports the administration of insurance and pension funds, ensuring efficient management of prescription drug benefits for plan participants. The geographic impact is primarily within the District of Columbia, where the agency is headquartered, but services likely extend to plan participants nationwide. The contract supports administrative functions and potentially a specialized workforce within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
The 'exclusion of sources' in the competition may have limited competitive pressure on pricing.
Lack of detailed performance metrics makes it difficult to assess the effectiveness of the PBM services.
The contract period ended in June 2019, and current PBM arrangements are not detailed here.

Positive Signals

Awarded through a competitive process, even with exclusions, suggesting some level of market vetting.
The contract value indicates a significant need for these PBM services by the PBGC.
The duration of the contract suggests a stable, ongoing requirement for these services.

Sector Analysis

This contract falls within the Financial Services and Insurance sector, specifically focusing on third-party administration of insurance and pension funds. Pharmacy Benefit Management (PBM) is a specialized service within this domain, crucial for managing prescription drug costs and benefits for large organizations. The market for PBM services is substantial, with major players often competing for large government and private sector contracts. The PBGC's spending in this area reflects the ongoing need to manage healthcare-related liabilities for its pension plans.

Small Business Impact

There is no indication that this contract included small business set-asides, as the 'ss' and 'sb' fields are false. The contract was awarded to Integrated Management Resources Group, Inc., a single entity. Further analysis would be needed to determine if subcontracting opportunities were mandated or utilized for small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Pension Benefit Guaranty Corporation's internal contracting and program management offices. The Inspector General of the PBGC would have jurisdiction to investigate fraud, waste, and abuse related to this contract. Transparency is generally facilitated through contract award databases, but detailed performance reports or audits are not publicly available through this data.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Limited competition due to 'exclusion of sources' clause.
Lack of publicly available performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Pension Benefit Guaranty Corporation awarded $21.1 million to INTEGRATED MANAGEMENT RESOURCES GROUP, INC.. IGF::CL::IGF PVA RICHMOND HEIGHTS, OH

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 $21.1 million.

What is the period of performance?

Start: 2015-01-28. End: 2019-06-30.

What was the specific justification for excluding certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award?

The provided data does not specify the exact reasons for excluding certain sources. Typically, such exclusions might stem from requirements related to specific security clearances, unique technical capabilities, past performance issues with certain vendors, or statutory limitations. Without further documentation from the PBGC's procurement file, the precise rationale remains unknown. This type of competition, while aiming for openness, can limit the pool of potential offerors and potentially impact the final price achieved compared to an unrestricted competition where all qualified vendors could participate without prior exclusion.

How does the Time and Materials (T&M) pricing structure for this contract compare to industry benchmarks for PBM services?

Time and Materials (T&M) contracts are generally used when the extent or duration of the work cannot be predetermined. For Pharmacy Benefit Management (PBM) services, T&M can be less common than fixed-price or cost-plus-award-fee structures, which are often preferred for predictable service delivery. While T&M allows for flexibility, it places a significant burden on the government to closely monitor labor hours and rates to prevent cost overruns. Benchmarking T&M PBM costs is difficult without granular data on labor categories, hours, and overhead rates. Industry best practices often favor performance-based metrics and fixed pricing for services where outcomes can be clearly defined, suggesting that a T&M approach might indicate less defined service parameters or a higher risk tolerance for cost variability.

What was the total number of proposals received, and how many were considered technically acceptable?

The provided data indicates that the contract was awarded to a single entity, Integrated Management Resources Group, Inc. However, it does not specify the total number of proposals received or the number deemed technically acceptable. The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies that multiple entities were potentially solicited or considered, but the exact number of bidders and the evaluation outcomes are not detailed in this summary. Understanding the competitive landscape, including the number of proposals and the evaluation results, is crucial for assessing the effectiveness of the competition and the value obtained.

What were the key performance indicators (KPIs) for this contract, and did the contractor meet them?

The provided data does not include specific Key Performance Indicators (KPIs) or details on the contractor's performance against them. For a Pharmacy Benefit Management contract, typical KPIs might include metrics related to drug cost savings, formulary management effectiveness, member satisfaction, claims processing accuracy, and turnaround times. Without access to performance reports or contractually defined metrics, it is impossible to assess whether Integrated Management Resources Group, Inc. met the performance expectations set by the Pension Benefit Guaranty Corporation for this contract.

What is the historical spending trend for Pharmacy Benefit Management services by the PBGC?

This specific contract represents $21.07 million in spending for Pharmacy Benefit Management services by the PBGC between January 2015 and June 2019. To understand the historical trend, one would need to examine PBGC's spending on PBM services in the periods before and after this contract. This would involve analyzing prior contracts for similar services, as well as any subsequent contracts awarded after June 2019. Without this broader context, it's difficult to determine if this $21 million expenditure is indicative of increasing, decreasing, or stable spending patterns for PBM services within the agency.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: PBGC01-RP-15-0005

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

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, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $37,161,819

Exercised Options: $37,161,819

Current Obligation: $21,074,421

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline