Pension Benefit Guaranty Corporation awards $2.9M contract for scheduled passenger air transportation

Contract Overview

Contract Amount: $2,901,042 ($2.9M)

Contractor: Concur Technologies, Inc.

Awarding Agency: Pension Benefit Guaranty Corporation

Start Date: 2013-09-27

End Date: 2027-06-03

Contract Duration: 4,997 days

Daily Burn Rate: $581/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: IGF::OT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Pension Benefit Guaranty Corporation obligated $2.9 million to CONCUR TECHNOLOGIES, INC. for work described as: IGF::OT::IGF Key points: 1. Contract value of $2.9 million over its period of performance. 2. Awarded under full and open competition. 3. Contract type is Firm Fixed Price, indicating predictable costs. 4. Performance period spans nearly 5 years, from September 2013 to June 2027. 5. The North American Industry Classification System (NAICS) code 481111 points to scheduled passenger air transportation services. 6. The contract was awarded as a delivery order.

Value Assessment

Rating: fair

The contract value of $2.9 million for scheduled passenger air transportation over nearly five years appears reasonable for government travel needs. Benchmarking against commercial airfare for similar routes and durations would provide a more precise value-for-money assessment. However, the firm fixed-price nature suggests cost certainty for the agency. Without specific route details or passenger volumes, a definitive comparison to similar contracts is challenging, but the overall expenditure seems aligned with typical government travel budgets.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters competitive pricing and allows the government to select the best value offering. The open competition is a positive indicator for price discovery and ensures that the government is not limited to a single provider.

Taxpayer Impact: Taxpayers benefit from the competitive process, which is expected to drive down costs and ensure the government receives fair market value for the air transportation services procured.

Public Impact

Government employees traveling for official business will benefit from these air transportation services. The services facilitate official travel, supporting agency operations and mission objectives. The contract's impact is primarily administrative, enabling personnel movement. Workforce implications are indirect, supporting the operational efficiency of PBGC staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations if specific routes become significantly more expensive than anticipated.
Reliance on a single delivery order may limit flexibility if travel needs change drastically.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Full and open competition suggests a competitive bidding process.
Long performance period allows for consistent service provision.

Sector Analysis

The scheduled passenger air transportation sector is a mature and highly competitive industry. This contract falls under the broader transportation services market, which is essential for government operations. The value of this contract, at $2.9 million, is relatively small within the context of the overall federal transportation spending, which can amount to billions annually across various modes of travel. The NAICS code 481111 specifically targets airlines offering scheduled flights.

Small Business Impact

There is no indication that this contract included small business set-asides. The nature of scheduled passenger air transportation typically involves large, established carriers. Subcontracting opportunities for small businesses within this specific contract are unlikely unless for ancillary services not detailed in the provided data. The impact on the small business ecosystem is therefore minimal for this particular award.

Oversight & Accountability

Oversight for this contract would typically fall under the Pension Benefit Guaranty Corporation's contracting officer and relevant program managers. Accountability measures are inherent in the firm fixed-price contract type, requiring delivery of services as specified. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Government Travel Services
Airline Services Contracts
Transportation Management Services

Risk Flags

Potential for price volatility in the air transportation market.
Reliance on vendor's operational stability and service quality.

Frequently Asked Questions

What is this federal contract paying for?

Pension Benefit Guaranty Corporation awarded $2.9 million to CONCUR TECHNOLOGIES, INC.. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is CONCUR TECHNOLOGIES, 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 $2.9 million.

What is the period of performance?

Start: 2013-09-27. End: 2027-06-03.

What is the historical spending pattern for scheduled passenger air transportation by the Pension Benefit Guaranty Corporation?

Analyzing historical spending for scheduled passenger air transportation by the Pension Benefit Guaranty Corporation (PBGC) requires access to detailed contract databases over multiple fiscal years. Without specific historical data, it's difficult to establish a precise pattern. However, federal agencies generally utilize scheduled air travel for official business, and spending can fluctuate based on agency travel policies, operational needs, and the availability of competitive pricing. The current contract, valued at $2.9 million over nearly five years, suggests a consistent, albeit moderate, level of expenditure for this service. A comprehensive review would involve examining prior contracts under NAICS code 481111 awarded to PBGC to identify trends in contract values, durations, and competition levels.

How does the pricing of this contract compare to commercial airfare benchmarks for similar routes?

A direct comparison of this contract's pricing to commercial airfare benchmarks for similar routes is challenging without specific details on the routes, number of passengers, and class of service covered. However, government contracts often aim to secure rates at or below prevailing commercial fares through bulk purchasing power and competitive bidding. The firm fixed-price nature of this contract provides cost certainty, but it doesn't inherently guarantee the lowest possible price per ticket. A thorough benchmark analysis would involve comparing the average cost per passenger or per flight segment against publicly available fare data for comparable routes and travel times, considering any negotiated discounts or service level agreements.

What are the primary risks associated with this scheduled passenger air transportation contract?

The primary risks associated with this scheduled passenger air transportation contract include potential price escalation if market fares increase significantly beyond projections, especially if the contract has limited price adjustment clauses. Another risk is service disruption due to airline operational issues, such as cancellations or delays, which could impact official travel schedules. Dependence on specific airlines or routes could also pose a risk if those services are altered or discontinued. Furthermore, ensuring compliance with federal travel regulations and maximizing value for taxpayer dollars requires ongoing monitoring and effective contract management to mitigate these potential issues.

What is the expected effectiveness of this contract in meeting the PBGC's travel needs?

This contract is expected to be effective in meeting the Pension Benefit Guaranty Corporation's (PBGC) scheduled passenger air transportation needs by providing a reliable and competitively procured means for official travel. The firm fixed-price structure offers budget predictability, which is crucial for financial planning. The nearly five-year duration allows for consistent service delivery, supporting ongoing operational requirements. The effectiveness will ultimately depend on the quality of service provided by the selected vendor(s), adherence to schedules, and the ability to accommodate the PBGC's travel demands efficiently and cost-effectively within the terms of the contract.

Are there any specific performance metrics or service level agreements (SLAs) associated with this contract?

The provided data does not specify the exact performance metrics or service level agreements (SLAs) associated with this contract. However, for scheduled passenger air transportation contracts, typical SLAs often include on-time performance, baggage handling, customer service standards, and compliance with booking procedures. The effectiveness of the contract in meeting the PBGC's needs would be measured against these, or similar, agreed-upon performance standards. The agency would likely monitor these metrics to ensure the vendor is meeting its obligations and to assess the overall value and reliability of the service.

Industry Classification

NAICS: Transportation and Warehousing › Scheduled Air Transportation › Scheduled Passenger Air Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › OTHER TRANSPORT, TRAVEL, RELOCAT SV

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: PBGC01-RQ-13-0040

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: SAP SE

Address: 601 108TH AVE NE STE 1000, BELLEVUE, WA, 98004

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

Financial Breakdown

Contract Ceiling: $2,901,042

Exercised Options: $2,901,042

Current Obligation: $2,901,042

Actual Outlays: $914,858

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS33FY0026

IDV Type: IDC

Timeline