PBGC awards $3M contract for portfolio management and investment advice to Pugh Capital Management Inc
Contract Overview
Contract Amount: $3,043,474 ($3.0M)
Contractor: Pugh Capital Management Inc
Awarding Agency: Pension Benefit Guaranty Corporation
Start Date: 2024-01-01
End Date: 2026-12-31
Contract Duration: 1,095 days
Daily Burn Rate: $2.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 26
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PORTFOLIO MANAGEMENT & INVESTMENT ADVICE
Place of Performance
Location: SEATTLE, KING County, WASHINGTON, 98101
Plain-Language Summary
Pension Benefit Guaranty Corporation obligated $3.0 million to PUGH CAPITAL MANAGEMENT INC for work described as: PORTFOLIO MANAGEMENT & INVESTMENT ADVICE Key points: 1. Contract value of $3.04 million over 3 years. 2. Awarded via full and open competition. 3. Risk of performance issues with investment advice. 4. Sector: Financial Services/Investment Management.
Value Assessment
Rating: fair
The contract value of $3.04 million for 3 years of portfolio management and investment advice appears reasonable given the specialized nature of the services. Benchmarking against similar contracts is difficult without more specific service details, but the price seems within a typical range for expert financial advisory services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method allows multiple qualified vendors to bid, driving competitive pricing and potentially better service quality.
Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it aims to secure the best value for government spending.
Public Impact
Ensures PBGC's investments are managed professionally. Supports the financial stability of pension plans. Potential for improved investment returns benefiting beneficiaries.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for underperformance of investments.
- Reliance on external expertise for critical financial decisions.
Positive Signals
- Competitive bidding process likely secured fair pricing.
- Experienced contractor selected for specialized services.
Sector Analysis
This contract falls within the financial services sector, specifically investment management. Spending in this area is crucial for government agencies managing large assets like pension funds to ensure long-term financial health and fiduciary responsibility.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. The focus appears to be on securing specialized expertise, which may favor larger, established firms.
Oversight & Accountability
The Pension Benefit Guaranty Corporation (PBGC) is responsible for overseeing this contract. Standard oversight mechanisms for financial advisory services would apply, including performance reviews and adherence to fiduciary standards.
Related Government Programs
- Portfolio Management and Investment Advice
- Pension Benefit Guaranty Corporation Contracting
- Pension Benefit Guaranty Corporation Programs
Risk Flags
- Potential for investment underperformance.
- Reliance on external expertise.
- Market volatility impacting investment returns.
- Contractor's ability to adapt to changing economic conditions.
Tags
portfolio-management-and-investment-advi, pension-benefit-guaranty-corporation, wa, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Pension Benefit Guaranty Corporation awarded $3.0 million to PUGH CAPITAL MANAGEMENT INC. PORTFOLIO MANAGEMENT & INVESTMENT ADVICE
Who is the contractor on this award?
The obligated recipient is PUGH CAPITAL MANAGEMENT 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 $3.0 million.
What is the period of performance?
Start: 2024-01-01. End: 2026-12-31.
What specific investment strategies will be employed, and how do they align with PBGC's risk tolerance and long-term objectives?
The contract likely outlines general objectives for investment strategy, such as capital preservation and growth, but specific tactical approaches would be detailed in subsequent performance work statements or operational plans. PBGC's risk tolerance and long-term objectives, crucial for fiduciary duty, would guide the selection and oversight of these strategies. The effectiveness of the chosen strategies will be a key performance indicator.
What are the key performance indicators (KPIs) for Pugh Capital Management Inc., and how will their performance be measured against market benchmarks?
Key performance indicators would likely include metrics such as investment return relative to appropriate benchmarks (e.g., S&P 500, bond indices), risk-adjusted returns (e.g., Sharpe ratio), and adherence to investment policy guidelines. Regular performance reports and periodic reviews by PBGC would assess the contractor's success in meeting these KPIs and achieving the contract's objectives.
What is the process for mitigating conflicts of interest for the investment advisor, and how is transparency ensured?
Mitigating conflicts of interest typically involves strict adherence to ethical guidelines, disclosure requirements, and independent oversight. The contract likely mandates that Pugh Capital Management Inc. operate under a code of conduct, disclose any potential conflicts, and recuse themselves from decisions where conflicts arise. PBGC's oversight would include verifying these disclosures and ensuring the advisor acts solely in the best interest of the agency.
Industry Classification
NAICS: Finance and Insurance › Other Financial Investment Activities › Portfolio Management and Investment Advice
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 16PBGC24R0001
Offers Received: 26
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 520 PIKE ST, SEATTLE, WA, 98101
Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $3,043,474
Exercised Options: $3,043,474
Current Obligation: $3,043,474
Actual Outlays: $1,937,457
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2024-01-01
Current End Date: 2026-12-31
Potential End Date: 2033-12-31 00:00:00
Last Modified: 2026-02-03
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