PBGC awards $11.3M for administrative management consulting, with a 5-year term

Contract Overview

Contract Amount: $11,337,724 ($11.3M)

Contractor: Lynchval Systems Worldwide, Inc.

Awarding Agency: Pension Benefit Guaranty Corporation

Start Date: 2020-09-01

End Date: 2025-08-31

Contract Duration: 1,825 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: SPECIAL STUDIES/ANALYSIS- OTHER

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 $11.3 million to LYNCHVAL SYSTEMS WORLDWIDE, INC. for work described as: SPECIAL STUDIES/ANALYSIS- OTHER Key points: 1. Contract value appears reasonable given the 5-year duration and scope of administrative management consulting. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract's duration of 5 years presents a moderate risk of scope creep or evolving needs. 4. Performance context is administrative management and general management consulting, a broad category. 5. This contract falls within the professional services sector, specifically management consulting. 6. The contract is a definitive contract awarded on labor hours, indicating flexibility in tasking.

Value Assessment

Rating: good

The contract value of $11.3 million over five years averages to approximately $2.26 million annually. This figure seems within a reasonable range for comprehensive administrative management and general management consulting services, especially for an agency like the Pension Benefit Guaranty Corporation (PBGC). Benchmarking against similar contracts for management consulting services would provide a more precise assessment, but the duration and scope suggest a fair valuation.

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 bids. This suggests a robust bidding process where multiple companies likely vied for the contract. The level of competition is a positive sign for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the services rendered, preventing inflated costs and encouraging efficiency from the awarded contractor.

Public Impact

The Pension Benefit Guaranty Corporation (PBGC) is the primary beneficiary, receiving administrative management and general management consulting services. These services are expected to support the agency's operations and potentially improve its efficiency. The contract is geographically focused on Washington D.C., where the PBGC is headquartered. The contract may indirectly impact the workforce by potentially streamlining administrative processes or requiring specialized consulting expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The broad nature of 'Administrative Management and General Management Consulting Services' could lead to scope creep if not clearly defined and managed.
A 5-year contract duration increases the risk of the services becoming outdated or misaligned with evolving agency needs over time.
Reliance on labor hours can sometimes lead to cost overruns if not meticulously tracked and controlled.

Positive Signals

Awarding under full and open competition suggests a thorough vetting of potential contractors and a competitive pricing environment.
The definitive contract award provides a clear framework for the services to be rendered.
The contract's duration allows for sustained support and the development of deeper expertise within the contractor.

Sector Analysis

This contract falls under the professional, scientific, and technical services sector, specifically management consulting. The market for management consulting services is vast and highly competitive, with numerous firms offering specialized expertise. The PBGC's spending on such services is likely aimed at enhancing operational efficiency, strategic planning, and administrative effectiveness. Comparable spending benchmarks would depend on the specific nature of the consulting services required and the size of the agency.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Therefore, there is no direct indication of small business subcontracting requirements or specific benefits to the small business ecosystem from this particular award. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Pension Benefit Guaranty Corporation's contracting officers and program managers. Accountability measures would be defined within the contract's statement of work and performance standards. Transparency is generally facilitated through contract award databases like FPDS, which provide public access to contract details. The Inspector General for the Department of Labor (which oversees PBGC) may have jurisdiction for audits and investigations.

Related Government Programs

Management and Consulting Services
Administrative Support Services
Professional Services Contracts
Government Consulting Engagements

Risk Flags

Contract Duration Risk
Scope Creep Potential
Over-reliance on Contractor

Frequently Asked Questions

What is this federal contract paying for?

Pension Benefit Guaranty Corporation awarded $11.3 million to LYNCHVAL SYSTEMS WORLDWIDE, INC.. SPECIAL STUDIES/ANALYSIS- OTHER

Who is the contractor on this award?

The obligated recipient is LYNCHVAL SYSTEMS WORLDWIDE, 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 $11.3 million.

What is the period of performance?

Start: 2020-09-01. End: 2025-08-31.

What is the specific nature of the administrative management and general management consulting services being provided under this contract?

The contract specifies "Administrative Management and General Management Consulting Services" (NAICS code 541611). This broad category typically encompasses services such as organizational structure analysis, process improvement, strategic planning, policy development, and general management advice. Without the detailed statement of work, the precise deliverables remain unspecified. However, for an agency like the PBGC, these services likely support efforts to manage pension plan administration, financial operations, and overall organizational effectiveness. The contract's labor hour type suggests flexibility in addressing various management challenges as they arise.

How does the $11.3 million contract value compare to similar consulting contracts awarded by federal agencies?

The contract value of $11.3 million over five years, averaging approximately $2.26 million annually, appears to be within a moderate range for comprehensive management consulting services for a federal agency. However, a precise comparison requires benchmarking against contracts with similar scope, duration, and complexity, as well as considering the specific agency's size and mission. Factors such as the level of expertise required, the number of consultants, and the specific tasks involved significantly influence pricing. Without access to detailed contract specifics and a broader market analysis of comparable engagements, it is difficult to definitively state if this represents a premium or a discount.

What are the potential risks associated with a 5-year contract for management consulting services?

A 5-year contract duration for management consulting presents several potential risks. Firstly, the rapidly evolving business and regulatory landscape means that the initial scope and objectives may become outdated or less relevant over time, potentially leading to inefficiencies or the need for costly modifications. Secondly, there's a risk of 'contractor lock-in,' where the agency becomes overly reliant on the incumbent contractor, potentially stifling internal development of expertise or limiting future competitive opportunities. Thirdly, maintaining consistent quality and performance over such an extended period can be challenging, requiring robust oversight and performance management. Finally, the longer duration increases the potential for scope creep if not managed diligently, leading to cost overruns.

What does 'full and open competition' imply for the Pension Benefit Guaranty Corporation and taxpayers in this instance?

Awarding the contract under 'full and open competition' signifies that the Pension Benefit Guaranty Corporation (PBGC) solicited bids from all responsible sources, allowing for a wide range of potential contractors to participate. This process is designed to foster a competitive environment, encouraging multiple companies to offer their best services and pricing to win the contract. For taxpayers, this generally translates to a higher likelihood of receiving cost-effective services, as competition tends to drive down prices and incentivize efficiency. It also ensures that the PBGC selects the contractor offering the best overall value, not just the lowest price, based on technical merit and other evaluation factors.

What is the historical spending pattern for administrative management and general management consulting services at the PBGC?

Analyzing historical spending patterns for administrative management and general management consulting services at the PBGC would require access to historical contract data. Without this specific data, it's impossible to provide a precise historical context. However, federal agencies often engage management consultants to address specific challenges, improve efficiency, or implement new strategies. The PBGC, responsible for administering defined benefit pension plans, may require such services for financial management, risk assessment, operational improvements, or policy analysis. Understanding past spending levels, contract durations, and the types of services procured would help determine if this $11.3 million, 5-year contract represents a significant increase, decrease, or continuation of previous investment in these areas.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 16PBGC20Q0036

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 13921 PARK CENTER RD STE 100, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $11,562,625

Exercised Options: $11,562,625

Current Obligation: $11,337,724

Actual Outlays: $6,541,971

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline