Deloitte Consulting LLP awarded $14.6M contract for actuarial support services by PBGC

Contract Overview

Contract Amount: $14,617,865 ($14.6M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Pension Benefit Guaranty Corporation

Start Date: 2022-02-01

End Date: 2027-01-31

Contract Duration: 1,825 days

Daily Burn Rate: $8.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: ASTD ACTUARIAL SUPPORT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Pension Benefit Guaranty Corporation obligated $14.6 million to DELOITTE CONSULTING LLP for work described as: ASTD ACTUARIAL SUPPORT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose cost control challenges. 3. The duration of 1825 days (5 years) indicates a long-term need for these services. 4. The contract is managed by the Pension Benefit Guaranty Corporation (PBGC). 5. The North American Industry Classification System (NAICS) code 541612 points to Human Resources Consulting Services. 6. The contractor, Deloitte Consulting LLP, is a large, established firm.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service delivery metrics and comparable contract data. The Time and Materials pricing structure requires careful monitoring to ensure cost-effectiveness over the five-year period. While the dollar amount is substantial, its appropriateness depends on the scope and complexity of the actuarial support required by the PBGC.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 6 bidders suggests a healthy level of interest and competition for these actuarial support services. This competitive environment is generally favorable for price discovery and potentially achieving better value.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure actuarial support services at a reasonable cost. The multiple bids received suggest that the government had options to choose from, potentially leading to a more cost-effective outcome than a sole-source award.

Public Impact

The primary beneficiary is the Pension Benefit Guaranty Corporation (PBGC), which relies on these services for its core mission. Services delivered include actuarial analysis and support crucial for pension plan solvency and administration. The geographic impact is primarily within the United States, supporting federal pension insurance operations. The contract supports a specialized workforce of actuaries and consultants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed.
Long contract duration (5 years) may not allow for flexibility if needs change significantly.
Reliance on a single large contractor for critical actuarial functions.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Contractor is a well-established firm with significant experience in consulting services.
The contract duration suggests a stable, ongoing need for these essential services.

Sector Analysis

This contract falls within the professional services sector, specifically human resources and financial consulting. The market for actuarial services is specialized, often dominated by a few large consulting firms. The PBGC's need for these services is critical for its role in protecting defined benefit pension plans, making this a significant, albeit niche, area of federal spending.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless Deloitte engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the PBGC. Accountability measures are inherent in the contract terms and performance expectations. Transparency is facilitated by the contract award notice, but detailed performance metrics and ongoing cost monitoring would be internal to the agency.

Related Government Programs

Actuarial Consulting Services
Human Resources Consulting
Financial Advisory Services
Pension Plan Administration Support

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Long contract duration may limit flexibility for evolving needs.
Need for strong oversight to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Pension Benefit Guaranty Corporation awarded $14.6 million to DELOITTE CONSULTING LLP. ASTD ACTUARIAL SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

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 $14.6 million.

What is the period of performance?

Start: 2022-02-01. End: 2027-01-31.

What is the historical spending pattern for actuarial support services by the PBGC?

Analyzing historical spending for actuarial support services by the PBGC is crucial for understanding trends and identifying potential cost efficiencies. Without access to specific historical PBGC contract data, a general observation can be made that agencies requiring actuarial expertise, particularly those managing complex financial obligations like pension plans, tend to have consistent, long-term needs. This often translates to recurring contracts, sometimes with multi-year durations, awarded through competitive processes. Fluctuations in spending can be influenced by legislative changes affecting pension regulations, economic conditions impacting plan solvency, and the overall complexity of the pension landscape the PBGC oversees. A detailed review of past solicitations and awards would reveal the typical contract values, durations, and the number of bidders over time, providing a clearer picture of PBGC's investment in these critical services.

How does the awarded amount compare to similar actuarial support contracts in the federal government?

Comparing the $14.6 million award for actuarial support services to similar federal contracts requires access to a comprehensive database of government procurements. However, for a five-year contract (1825 days), this equates to an average annual value of approximately $2.92 million. This figure can be benchmarked against contracts for actuarial, risk management, and financial consulting services awarded to other federal agencies. Factors influencing comparability include the scope of work (e.g., number of plans analyzed, complexity of actuarial models used), the specific expertise required, and the duration of the contract. Contracts with similar durations and service scopes awarded through full and open competition to large consulting firms would provide the most relevant comparison points. Without specific comparable contract data, it's difficult to definitively state if this award represents a premium or a discount, but the competitive nature of the award suggests it is within a reasonable market range.

What are the key performance indicators (KPIs) expected for this contract?

Key Performance Indicators (KPIs) for actuarial support services contracts typically focus on the accuracy, timeliness, and completeness of the actuarial analyses and reports provided. For this contract with Deloitte Consulting LLP, the PBGC would likely expect KPIs related to the adherence to actuarial standards of practice, the precision of financial projections and valuations, and the timely delivery of required reports and analyses. Specific metrics might include the accuracy of reserve calculations, the timeliness of submitting actuarial valuation reports, the quality of risk assessments, and the responsiveness to PBGC inquiries. The Time and Materials (T&M) nature of the contract also implies that KPIs related to efficient use of labor hours and adherence to estimated budgets for specific tasks would be important for cost control and value assessment.

What is Deloitte Consulting LLP's track record with the PBGC and similar federal agencies?

Deloitte Consulting LLP is a major global professional services firm with extensive experience providing consulting, audit, tax, and advisory services to both government and commercial clients. Their track record with the Pension Benefit Guaranty Corporation (PBGC) and other federal agencies is generally robust, often involving complex financial, actuarial, and management consulting engagements. While specific contract performance details are not publicly available in this summary, Deloitte's size and reputation suggest they possess the necessary expertise and capacity to handle significant federal contracts. Agencies typically award contracts to firms like Deloitte based on demonstrated capabilities, past performance evaluations, and competitive pricing. A deeper dive into federal procurement databases would reveal the full scope of Deloitte's past work with PBGC and other agencies, including contract values, performance ratings, and any documented issues or successes.

What are the potential risks associated with a Time and Materials (T&M) contract for actuarial services?

Time and Materials (T&M) contracts, like the one awarded to Deloitte Consulting LLP for actuarial support, carry inherent risks primarily related to cost control. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual labor hours and material costs incurred. This structure can lead to cost overruns if the scope of work expands unexpectedly, if contractor efficiency is low, or if the initial estimates of effort are inaccurate. For actuarial services, which can involve complex analyses and unforeseen challenges, the T&M model requires diligent oversight from the contracting agency to monitor labor hours, ensure reasonable rates, and manage the overall project scope effectively. The PBGC will need robust project management and financial tracking to ensure that the total cost remains within acceptable limits and provides good value for the services rendered.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Human Resources 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: 6

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1919 N LYNN ST, ARLINGTON, VA, 22209

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $46,115,707

Exercised Options: $14,617,865

Current Obligation: $14,617,865

Actual Outlays: $2,415,884

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline