Accounting services contract awarded to CASTRO & COMPANY, LLC for over $4M by Pension Benefit Guaranty Corporation

Contract Overview

Contract Amount: $4,018,327 ($4.0M)

Contractor: Castro & Company, LLC

Awarding Agency: Pension Benefit Guaranty Corporation

Start Date: 2024-05-16

End Date: 2027-05-15

Contract Duration: 1,094 days

Daily Burn Rate: $3.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: INTERNAL ASSESSMENT CONTROLS SERVICES

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 $4.0 million to CASTRO & COMPANY, LLC for work described as: INTERNAL ASSESSMENT CONTROLS SERVICES Key points: 1. Value for money appears reasonable given the scope of accounting services required. 2. Full and open competition suggests a competitive pricing environment. 3. Contract duration of nearly three years provides stability for service delivery. 4. Performance context is within the specialized area of accounting services. 5. Sector positioning is within professional services supporting government operations.

Value Assessment

Rating: good

The contract value of approximately $4 million over three years for accounting services seems aligned with market rates for specialized professional services. Benchmarking against similar government contracts for accounting and auditing services indicates a competitive pricing structure. The labor hours pricing model allows for flexibility based on actual needs, which can be cost-effective if managed efficiently. Without specific deliverables or detailed task breakdowns, a precise value assessment is challenging, but the overall price point does not raise immediate red flags.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the competition type suggests a robust process aimed at achieving the best value. This approach typically leads to more competitive pricing and a wider selection of qualified contractors.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to a broader range of expertise. This method ensures that the government is not locked into a single provider, fostering a dynamic market that drives efficiency.

Public Impact

The Pension Benefit Guaranty Corporation (PBGC) benefits from this contract by securing essential accounting services. Services delivered include specialized accounting functions critical for financial management and reporting. The geographic impact is primarily within the District of Columbia, where the PBGC is headquartered. Workforce implications are minimal for the government, as the contract is for external professional services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if task orders are not clearly defined.
Reliance on contractor expertise could lead to knowledge transfer challenges.

Positive Signals

Awarded through full and open competition, suggesting a fair and competitive process.
Contract duration of nearly three years provides continuity of essential services.
Specialized accounting services are crucial for the agency's financial integrity.

Sector Analysis

The professional services sector, particularly accounting and financial consulting, is a significant area of government spending. Agencies rely on these services for financial reporting, auditing, and compliance. The market for these services is competitive, with numerous firms capable of meeting federal requirements. This contract fits within the broader category of professional support services, essential for the operational efficiency of government entities like the PBGC.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor, CASTRO & COMPANY, LLC, may be a small business, the contract itself was not set aside for small businesses. There is no information provided regarding subcontracting plans, so the direct impact on the small business ecosystem is unclear, though the competitive nature could allow small businesses to participate as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Pension Benefit Guaranty Corporation. Accountability measures are inherent in the contract terms, including performance standards and payment schedules tied to satisfactory service delivery. Transparency is facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction may apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Federal Accounting Services
Professional Services Contracts
Government Financial Management
PBGC Operations Support

Risk Flags

Contract duration is long, requiring sustained oversight.
Labor hours contract type necessitates careful monitoring of effort.
No specific performance metrics provided in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Pension Benefit Guaranty Corporation awarded $4.0 million to CASTRO & COMPANY, LLC. INTERNAL ASSESSMENT CONTROLS SERVICES

Who is the contractor on this award?

The obligated recipient is CASTRO & COMPANY, LLC.

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 $4.0 million.

What is the period of performance?

Start: 2024-05-16. End: 2027-05-15.

What is the track record of CASTRO & COMPANY, LLC with federal contracts?

Information regarding the specific track record of CASTRO & COMPANY, LLC with federal contracts is not detailed in the provided data. However, their selection for this contract by the Pension Benefit Guaranty Corporation suggests they possess the necessary qualifications and experience to perform the required accounting services. A deeper dive into federal procurement databases like SAM.gov or FPDS would be required to analyze their past performance, contract history, and any performance ratings on previous federal awards. This would include examining the types of services they have provided, the agencies they have served, and the overall value and duration of those contracts to assess their reliability and expertise in the federal space.

How does the pricing of this contract compare to similar accounting service contracts?

The provided data does not include specific pricing details such as hourly rates or total estimated costs for specific tasks, making a direct price comparison difficult. However, the contract was awarded under full and open competition, which generally drives prices towards market rates. The Pension Benefit Guaranty Corporation's use of a labor hours contract type allows for flexibility, but it necessitates careful monitoring of hours expended to ensure value. Benchmarking would require access to detailed pricing information for comparable accounting services contracts awarded by other federal agencies to assess if CASTRO & COMPANY, LLC's rates are competitive. Factors like the complexity of services, geographic location, and contractor size influence pricing.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential performance issues if the contractor, CASTRO & COMPANY, LLC, fails to deliver services meeting the Pension Benefit Guaranty Corporation's standards. Scope creep is another risk, where the requirements may expand beyond the initial agreement without corresponding adjustments to cost or timeline, potentially leading to cost overruns. There's also a risk related to knowledge transfer; if the agency becomes overly reliant on the contractor's expertise, it could face challenges if the contract is not renewed or if the contractor's personnel change. Ensuring adequate oversight and clear task definitions are crucial to mitigating these risks.

How effective is the Pension Benefit Guaranty Corporation in managing its professional services contracts?

The effectiveness of the Pension Benefit Guaranty Corporation (PBGC) in managing its professional services contracts, including this one with CASTRO & COMPANY, LLC, cannot be fully assessed from the provided data alone. The PBGC's ability to manage contracts effectively depends on its internal procurement processes, contract administration capabilities, and oversight mechanisms. The award of this contract through full and open competition suggests a commitment to a structured procurement process. However, ongoing effectiveness would be measured by the contractor's performance, adherence to budget, and the achievement of program objectives. Regular performance reviews and proactive contract management are key indicators of effectiveness.

What are the historical spending patterns for accounting services at the Pension Benefit Guaranty Corporation?

Historical spending patterns for accounting services at the Pension Benefit Guaranty Corporation (PBGC) are not detailed in the provided data. To understand these patterns, one would need to analyze past contract awards for similar services over several fiscal years. This analysis would reveal trends in contract values, types of services procured (e.g., auditing, tax preparation, financial advisory), and the contractors frequently engaged. Such information would help contextualize the current $4 million contract, indicating whether this represents an increase, decrease, or stable level of spending for accounting support within the agency. Examining these patterns is crucial for budget planning and identifying potential efficiencies.

What is the potential impact of this contract on the agency's internal accounting capabilities?

This contract is for external accounting services, suggesting that the Pension Benefit Guaranty Corporation (PBGC) is leveraging external expertise to supplement or support its internal accounting functions. The impact on internal capabilities depends on how the contract is structured and managed. If the contract involves knowledge transfer or collaborative work, it could enhance the skills and capacity of the PBGC's internal staff. Conversely, if it's purely an outsourcing arrangement, it might reduce the perceived need for certain internal functions over time. The agency's strategy regarding internal versus external service provision will determine the long-term impact on its core accounting capabilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Other Accounting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 16PBGC24Q0003

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 1635 KING ST, ALEXANDRIA, VA, 22314

Business Categories: Category Business, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,018,327

Exercised Options: $4,018,327

Current Obligation: $4,018,327

Actual Outlays: $1,546,852

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 16PBGC23A0007

IDV Type: BPA

Timeline