PBGC awards $1.84M contract to Economic Systems Inc. for HR management systems

Contract Overview

Contract Amount: $184,573 ($184.6K)

Contractor: Economic Systems Inc

Awarding Agency: Pension Benefit Guaranty Corporation

Start Date: 2023-03-29

End Date: 2027-03-28

Contract Duration: 1,460 days

Daily Burn Rate: $126/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: HUMAN RESOURCES MANAGEMENT SYSTEMS

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 $184,573 to ECONOMIC SYSTEMS INC for work described as: HUMAN RESOURCES MANAGEMENT SYSTEMS Key points: 1. Contract value represents a significant investment in modernizing HR systems. 2. Economic Systems Inc. has a track record in providing IT solutions. 3. The contract duration suggests a long-term need for these HR services. 4. Fixed-price contract type aims to control costs and manage budget predictability. 5. The contract is a delivery order, indicating it's part of a larger framework agreement. 6. Focus on software publishing aligns with the need for robust HR management tools.

Value Assessment

Rating: good

The contract value of $1.84 million for a 4-year period for HR management systems appears reasonable. Benchmarking against similar government contracts for HR software and services suggests that this price point is within the expected range for a system of this scope. The firm fixed-price structure provides cost certainty for the Pension Benefit Guaranty Corporation (PBGC).

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is expected to drive fair pricing and ensure the government receives the best value. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services, maximizing the return on public funds.

Public Impact

Employees of the Pension Benefit Guaranty Corporation will benefit from improved HR services. The contract will deliver essential HR management system functionalities. The impact is primarily within the District of Columbia, where the PBGC is headquartered. Workforce implications include potential training needs for staff on the new system and support for the IT professionals managing it.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the system is highly customized and difficult to migrate from.
Dependence on Economic Systems Inc. for ongoing support and maintenance could pose risks if their service quality declines.

Positive Signals

Modernization of HR systems can lead to increased efficiency and better data management for the agency.
The use of a firm fixed-price contract provides budget predictability.
Awarding to a company in the software publishing sector suggests alignment with current technological capabilities.

Sector Analysis

The HR management systems sector within government IT spending is crucial for efficient operations. This contract falls under the broader category of software and IT services, a significant portion of federal procurement. Comparable spending benchmarks for HR systems vary widely based on agency size and complexity, but $1.84 million over four years for a system supporting an agency like the PBGC is a moderate investment.

Small Business Impact

There is no indication that this contract included a small business set-aside. As a full and open competition, it is unlikely that subcontracting opportunities for small businesses were mandated, though they may arise at the discretion of the prime contractor. Further analysis would be needed to determine if small businesses are involved in the supply chain for this contract.

Oversight & Accountability

The Pension Benefit Guaranty Corporation is responsible for overseeing this contract. Accountability measures are inherent in the firm fixed-price contract type, which ties payment to deliverables. Transparency is generally maintained through federal procurement databases where contract awards are published. Inspector General jurisdiction would apply if any fraud or mismanagement were suspected.

Related Government Programs

Federal Human Resources Management Systems
Government IT Modernization Programs
Pension Benefit Guaranty Corporation IT Procurement
Software and IT Services Contracts

Risk Flags

Potential for vendor lock-in
Data security and privacy concerns
User adoption challenges

Frequently Asked Questions

What is this federal contract paying for?

Pension Benefit Guaranty Corporation awarded $184,573 to ECONOMIC SYSTEMS INC. HUMAN RESOURCES MANAGEMENT SYSTEMS

Who is the contractor on this award?

The obligated recipient is ECONOMIC SYSTEMS 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 $184,573.

What is the period of performance?

Start: 2023-03-29. End: 2027-03-28.

What is the track record of Economic Systems Inc. with federal contracts, particularly in HR management systems?

Economic Systems Inc. has a history of federal contracting, primarily within the IT and software publishing domains. While specific details on their HR management system projects are not immediately available from this award alone, their classification under NAICS code 511210 (Software Publishers) suggests a core competency in developing and providing software solutions. A deeper dive into their contract history, including past performance reviews and contract values for similar systems, would be necessary to fully assess their track record and suitability for this specific HR management system requirement. Examining past performance evaluations from agencies they have served would provide further insight into their reliability and effectiveness.

How does the value of this contract compare to similar HR management system procurements by federal agencies of comparable size?

The $1.84 million contract value for Economic Systems Inc. over a four-year period (approximately $460,000 annually) for the Pension Benefit Guaranty Corporation (PBGC) appears to be within a reasonable range for an agency of its size and function. Federal HR system procurements can vary significantly based on the scope of modules required (e.g., payroll, benefits, talent management), the number of users, and the level of customization. For agencies with a few hundred to a couple of thousand employees, annual spending on HR IT solutions can range from tens of thousands to several hundred thousand dollars. Given the PBGC's mission and employee base, this contract value suggests a comprehensive but not excessively large-scale implementation, aligning with typical market rates for such services.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential implementation delays, cost overruns (though mitigated by the firm fixed-price structure), inadequate user adoption, and data security breaches. Mitigation strategies likely involve robust project management by the PBGC, clear performance metrics and milestones defined in the contract, and adherence to strict cybersecurity protocols. Economic Systems Inc.'s success will depend on their ability to deliver a user-friendly system and provide effective training and support. The PBGC's oversight will be critical in monitoring progress and addressing any issues proactively. The long-term risk of vendor lock-in also exists, which could be managed by ensuring data portability and interoperability standards are built into the system.

How effective is the Pension Benefit Guaranty Corporation likely to be in managing this contract to ensure optimal value for taxpayers?

The PBGC's effectiveness in managing this contract will hinge on its internal project management capabilities, the clarity of its requirements, and its oversight mechanisms. The use of a firm fixed-price contract provides a strong foundation for cost control. However, success also depends on the agency's ability to define clear performance standards, monitor progress diligently, and enforce contractual obligations. Active engagement from HR and IT departments, along with potential involvement of an independent technical advisor, can enhance oversight. Regular performance reviews and open communication channels with Economic Systems Inc. are crucial for identifying and resolving issues promptly, thereby maximizing the value derived from the $1.84 million investment.

What are the historical spending patterns of the PBGC on HR management systems, and how does this contract fit within that trend?

Without access to the PBGC's detailed historical spending data, it's challenging to provide a precise trend analysis. However, this $1.84 million contract awarded in March 2023 for a four-year term suggests a significant, planned investment in HR management systems. It likely represents either the procurement of a new, modern system to replace an outdated one, or a substantial upgrade and expansion of existing capabilities. Federal agencies typically undertake such procurements every 5-10 years as technology evolves and functional requirements change. This contract indicates a strategic decision by the PBGC to modernize its HR infrastructure, aligning with a broader government trend towards digital transformation and improved efficiency in administrative functions.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 16PBGC23Q0024

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8521 LEESBURG PIKE STE 450, VIENNA, VA, 22182

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

Financial Breakdown

Contract Ceiling: $382,173

Exercised Options: $184,573

Current Obligation: $184,573

Actual Outlays: $135,681

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F436DA

IDV Type: FSS

Timeline