PBGC awards $675,000 contract for Chief Financial Officer recruitment services

Contract Overview

Contract Amount: $67,500 ($67.5K)

Contractor: JDG Associates Ltd

Awarding Agency: Pension Benefit Guaranty Corporation

Start Date: 2026-02-26

End Date: 2027-02-26

Contract Duration: 365 days

Daily Burn Rate: $185/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EXECUTIVE RECRUITMENT SERVICES FOR THE POSITION OF CHIEF FINANCIAL OFFICER (CFO).

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Pension Benefit Guaranty Corporation obligated $67,500 to JDG ASSOCIATES LTD for work described as: EXECUTIVE RECRUITMENT SERVICES FOR THE POSITION OF CHIEF FINANCIAL OFFICER (CFO). Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for executive search services, a specialized niche within professional services. 3. Fixed-price contract type indicates a defined scope and cost, reducing financial risk for the agency. 4. The duration of one year suggests a focused effort on filling a critical executive role. 5. The awardee, JDG ASSOCIATES LTD, is a provider of executive recruitment services.

Value Assessment

Rating: good

The contract value of $675,000 for executive recruitment of a CFO appears reasonable given the specialized nature of the service. Executive search firms typically charge significant fees, often a percentage of the placed executive's first-year salary, which can range from 20-30%. For a CFO position, this fee structure would align with the awarded amount. Benchmarking against similar government contracts for executive search services would provide further context, but the price seems within expected parameters for this high-level recruitment.

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 a bid. This suggests a robust competitive environment where multiple firms likely vied for the opportunity. The presence of two bids received (no: 2) further supports this, although a higher number of bidders would typically indicate stronger price discovery and potentially lower costs for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and a wider selection of qualified service providers.

Public Impact

The Pension Benefit Guaranty Corporation (PBGC) will benefit from securing a qualified Chief Financial Officer. The service delivered is executive search and recruitment for a critical senior leadership position. The geographic impact is primarily within the Washington D.C. metropolitan area, where the PBGC is headquartered. Workforce implications include the successful placement of a key executive, impacting the PBGC's financial management and strategic direction.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for extended search timelines if initial candidates are not suitable.
Risk of the selected candidate not meeting long-term performance expectations.
Dependence on the search firm's network and ability to attract top-tier talent.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent process.
Fixed-price contract type provides cost certainty for the agency.
The contract is for a critical executive role, addressing a key organizational need.

Sector Analysis

The executive search services sector is a specialized segment of the professional services industry. This contract fits within the broader professional services market, which supports government agencies in acquiring specialized expertise. The market for executive search is competitive, with firms differentiating themselves through industry focus, network reach, and placement success rates. Government agencies often utilize such services for hard-to-fill senior positions where internal recruitment efforts may be insufficient.

Small Business Impact

There is no indication that this contract was set aside for small businesses, nor is there information about subcontracting requirements. Given the specialized nature and high value of executive search for a CFO position, it is likely that larger, specialized executive search firms would be the primary bidders, potentially limiting direct opportunities for small businesses unless they are specialized niche providers.

Oversight & Accountability

Oversight for this contract would typically fall under the PBGC's contracting officer and program managers. Accountability measures are inherent in the fixed-price contract structure and the performance expectations for the executive search firm. Transparency is facilitated by the contract award process being under full and open competition, with the award details publicly available. The PBGC may have an Inspector General office that could provide oversight if any issues of fraud, waste, or abuse arise.

Related Government Programs

Executive Recruitment Services
Professional Services Contracts
Senior Executive Service Recruitment
Government Leadership Acquisition

Risk Flags

Potential for extended search duration
Risk of candidate not meeting long-term expectations
Dependence on search firm's network and expertise

Frequently Asked Questions

What is this federal contract paying for?

Pension Benefit Guaranty Corporation awarded $67,500 to JDG ASSOCIATES LTD. EXECUTIVE RECRUITMENT SERVICES FOR THE POSITION OF CHIEF FINANCIAL OFFICER (CFO).

Who is the contractor on this award?

The obligated recipient is JDG ASSOCIATES LTD.

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 $67,500.

What is the period of performance?

Start: 2026-02-26. End: 2027-02-26.

What is the typical success rate for executive search firms in placing CFOs for federal agencies?

Success rates for executive search firms in placing CFOs for federal agencies can vary significantly based on the specific agency's needs, the competitiveness of the role, and the firm's expertise. Generally, reputable executive search firms aim for high placement success rates, often exceeding 90% for initial placements. However, 'success' can be defined in multiple ways, including the candidate accepting the offer, remaining in the role for a specified period (e.g., 12 months), and meeting performance benchmarks. For federal roles, the vetting and security clearance processes can add complexity and time, potentially impacting the timeline but not necessarily the ultimate success of the placement. Data on specific success rates for federal CFO placements is not readily available in the public domain, as it is often proprietary information held by the search firms and agencies.

How does the $675,000 contract value compare to private sector CFO recruitment fees?

The $675,000 contract value for recruiting a CFO appears to be at the higher end, but potentially justifiable when compared to private sector benchmarks. Executive search firms typically charge a fee that is a percentage of the placed executive's first-year total compensation. For a CFO role, this percentage often ranges from 20% to 30%. If the CFO's first-year compensation package is estimated to be between $2.25 million and $3.375 million, then a fee of $675,000 would fall within this range. Federal executive compensation, while substantial, may not always reach the highest private sector levels, but the complexity, security requirements, and specialized nature of recruiting for a government agency like the PBGC could warrant a premium fee. Without knowing the exact compensation package for the PBGC CFO, a precise comparison is difficult, but the fee is within the expected spectrum for high-level executive searches.

What are the key performance indicators (KPIs) likely used to evaluate the success of this executive search contract?

Key performance indicators (KPIs) for this executive search contract would likely focus on the efficiency and effectiveness of the recruitment process and the quality of the candidate placed. Primary KPIs would include: Time-to-fill: The total duration from contract award to the selected candidate's start date. Candidate quality: Measured by the number of qualified candidates presented, the number of candidates progressing to final interview stages, and ultimately, the selection of a candidate who meets the agency's requirements. Offer acceptance rate: The percentage of candidates who accept a formal offer of employment. Client satisfaction: Feedback from the PBGC hiring officials regarding the search firm's responsiveness, communication, and understanding of the role's requirements. Retention rate: While longer-term, the agency may track if the placed executive remains in the role for a minimum period (e.g., 12 months) as an indicator of a successful match.

What is the historical spending pattern of the Pension Benefit Guaranty Corporation (PBGC) on executive recruitment services?

Information on the PBGC's historical spending specifically on executive recruitment services is not readily available in public databases. Federal agencies typically procure such specialized services on an as-needed basis, often through task orders against broader professional services contracts or through direct awards for critical positions. The Pension Benefit Guaranty Corporation, as a government entity, would follow federal procurement regulations, including conducting market research and competitive sourcing when appropriate. While this specific contract is for $675,000, understanding the PBGC's broader procurement history for similar high-level recruitment would require access to more detailed contract databases or agency spending reports. The current award suggests a significant investment in filling a key leadership vacancy.

What are the potential risks associated with using a sole-source or limited competition contract for executive recruitment?

While this contract was awarded under full and open competition, understanding the risks of limited or sole-source procurement for executive recruitment is relevant. Sole-source or limited competition contracts for executive recruitment can pose several risks to the government. Firstly, it can lead to higher costs for taxpayers, as the lack of competition reduces the incentive for firms to offer competitive pricing. Secondly, it may limit the pool of potential candidates, potentially resulting in a less-than-ideal selection or a longer search period if the chosen firm lacks the necessary network or expertise. Thirdly, it can raise concerns about fairness and transparency in the procurement process. Agencies must have strong justifications, such as unique qualifications or urgent needs, to deviate from full and open competition, and even then, the risk of suboptimal outcomes remains higher compared to a competitive process.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Employment Services › Executive Search Services

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

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 702 KING FARM BLVD STE 220, ROCKVILLE, MD, 20850

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

Financial Breakdown

Contract Ceiling: $67,500

Exercised Options: $67,500

Current Obligation: $67,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QREA21D0016

IDV Type: FSS

Timeline