Pension Benefit Guaranty Corporation contract for management consulting services awarded to General Employee Management Services Inc. for over $20 million

Contract Overview

Contract Amount: $20,245,934 ($20.2M)

Contractor: General Employee Management Services Inc.

Awarding Agency: Pension Benefit Guaranty Corporation

Start Date: 2001-11-06

End Date: 2009-09-30

Contract Duration: 2,885 days

Daily Burn Rate: $7.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: Other

Official Description: OTHER PROFESSIONAL SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005

State: District of Columbia Government Spending

Plain-Language Summary

Pension Benefit Guaranty Corporation obligated $20.2 million to GENERAL EMPLOYEE MANAGEMENT SERVICES INC. for work described as: OTHER PROFESSIONAL SERVICES Key points: 1. The contract value of over $20 million for administrative and management consulting services indicates a significant investment in specialized expertise. 2. The duration of the contract, spanning from 2001 to 2009, suggests a long-term need for these services. 3. The contract was awarded under 'full and open competition after exclusion of sources,' which warrants further investigation into the specific reasons for source exclusion. 4. The 'labor hours' contract type suggests that payment was based on the time and effort expended by the contractor's personnel. 5. The contract's focus on general employee management services aligns with the operational needs of a large federal agency like the PBGC. 6. The absence of small business set-aside flags suggests that this contract was not specifically targeted to support small businesses.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the services rendered and the market rates for similar consulting engagements during the 2001-2009 period. The total award of over $20 million over an eight-year period averages to approximately $2.5 million per year, which could be reasonable for comprehensive management consulting services for an agency like the Pension Benefit Guaranty Corporation. However, without comparative data on the specific deliverables and the efficiency of the services provided, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This procurement method implies that while the competition was intended to be broad, certain sources were intentionally excluded. The specific reasons for this exclusion are not detailed in the provided data, making it difficult to assess the true level of competition. A limited competition, even if initially open, can potentially lead to less competitive pricing and fewer innovative solutions compared to a truly unrestricted full and open competition.

Taxpayer Impact: The exclusion of sources, even if justified, may have limited the number of potential bidders, potentially increasing costs for taxpayers by reducing competitive pressure on pricing.

Public Impact

The Pension Benefit Guaranty Corporation (PBGC) is the primary beneficiary, receiving management and administrative consulting services to support its operations. The services delivered likely focused on improving employee management, operational efficiency, and administrative processes within the PBGC. The geographic impact is primarily within the District of Columbia, where the PBGC is headquartered. The contract supported the workforce by potentially enhancing management practices and administrative support systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in a 'full and open competition' raises questions about the breadth and fairness of the initial competition.
Lack of detailed performance metrics makes it difficult to assess the effectiveness and efficiency of the consulting services provided.
The long contract duration without clear re-competition points could indicate a lack of ongoing market testing for better value.

Positive Signals

The contract was awarded to General Employee Management Services Inc., suggesting a specialized provider for employee management services.
The contract spanned a significant period (2001-2009), indicating a sustained need and potentially a successful, long-term relationship.
The award was made by the Pension Benefit Guaranty Corporation, a federal agency with a specific mission, implying the services were relevant to its governmental functions.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically under administrative management and general management consulting services (NAICS code 541611). This sector is characterized by firms offering expertise in areas such as organizational planning, human resources management, and operational efficiency. The market size for government consulting services is substantial, with agencies frequently outsourcing specialized functions. This contract represents a portion of the broader federal spending on management consulting, which is often utilized to improve agency performance and address complex operational challenges.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the procurement process did not include specific provisions to encourage or mandate the participation of small businesses, either as prime contractors or subcontractors. Consequently, the direct impact on the small business ecosystem is likely minimal, and there is no explicit indication of subcontracting opportunities being prioritized for small businesses.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) at the Pension Benefit Guaranty Corporation, responsible for monitoring performance and ensuring compliance with contract terms. Accountability measures would be tied to the delivery of services as outlined in the contract statement of work. Transparency is facilitated through federal procurement databases like FPDS, where contract awards are recorded. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse related to the contract were to arise.

Related Government Programs

Administrative Management and General Management Consulting Services
Professional, Scientific, and Technical Services
Federal Employee Management Programs
Government Consulting Contracts
Pension Benefit Guaranty Corporation Operations

Risk Flags

Potential for limited competition due to source exclusion.
Lack of detailed performance metrics.
Long contract duration without clear evidence of re-competition.
Cost control risks inherent in labor-hour contracts.

Frequently Asked Questions

What is this federal contract paying for?

Pension Benefit Guaranty Corporation awarded $20.2 million to GENERAL EMPLOYEE MANAGEMENT SERVICES INC.. OTHER PROFESSIONAL SERVICES

Who is the contractor on this award?

The obligated recipient is GENERAL EMPLOYEE MANAGEMENT SERVICES 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 $20.2 million.

What is the period of performance?

Start: 2001-11-06. End: 2009-09-30.

What specific management and general consulting services were provided under this contract?

The provided data indicates the contract was for 'Administrative Management and General Management Consulting Services' (NAICS 541611) and the contractor was 'GENERAL EMPLOYEE MANAGEMENT SERVICES INC.'. While the specific details of the services rendered are not included in the abbreviated data, this category typically encompasses a wide range of activities. These could include organizational structure analysis, strategic planning, human capital management, process improvement, operational efficiency studies, and general management advice aimed at enhancing the effectiveness and efficiency of the Pension Benefit Guaranty Corporation's operations. The contract type 'LABOR HOURS' suggests that the services were delivered based on the time and effort of the contractor's personnel, implying a focus on direct service provision rather than fixed-price deliverables.

How does the total contract value of over $20 million compare to similar contracts for management consulting services within the federal government?

The total contract value of over $20 million awarded to General Employee Management Services Inc. by the Pension Benefit Guaranty Corporation between 2001 and 2009 is substantial. Federal spending on management and professional services is significant, often running into billions of dollars annually across various agencies. Contracts of this magnitude are not uncommon for long-term, comprehensive consulting engagements, especially for agencies with complex operational needs like the PBGC. However, a precise comparison requires benchmarking against contracts with similar scope, duration, and specific service offerings within the same time frame. Without such granular data, it's difficult to definitively state whether this represents a high, low, or average value, but it signifies a considerable investment in external expertise.

What are the potential risks associated with a 'full and open competition after exclusion of sources' procurement method?

The 'full and open competition after exclusion of sources' method presents a unique risk profile. While it aims for broad competition, the exclusion of specific sources, even if justified by regulations (e.g., national security, proprietary data), inherently limits the pool of potential offerors. This limitation can reduce the overall competitive pressure, potentially leading to higher prices or less optimal solutions than might be achieved in an unrestricted competition. There's also a risk that the justification for exclusion might be challenged or perceived as arbitrary, leading to protests or legal disputes. Furthermore, if the excluded sources were significant players in the market, the government might miss out on innovative approaches or cost savings they could have offered. Transparency regarding the reasons for exclusion is crucial to mitigate these risks and ensure fairness.

What does the contract's duration (2001-2009) imply about the Pension Benefit Guaranty Corporation's needs and the contractor's performance?

The contract's extensive duration, from November 2001 to September 2009 (over 8 years), suggests a sustained and significant need for the management and administrative consulting services provided by General Employee Management Services Inc. Such long-term engagements often indicate that the services were critical to the agency's core functions and that the contractor was able to consistently meet or exceed performance expectations. It implies a stable, ongoing requirement rather than a short-term project. This longevity could also point to a successful working relationship and a deep understanding of the PBGC's unique operational environment by the contractor. However, it also raises questions about whether periodic re-competition occurred to ensure continued value and access to evolving market solutions.

How does the 'labor hours' contract type (PT) affect cost control and performance monitoring compared to other contract types?

A 'labor hours' (LH) contract type, similar to 'labor, material, and time' (PT), is a type of cost-plus-fixed-fee contract where the price is based on direct labor hours at specified fixed hourly rates, plus the cost of materials. This type of contract is often used when the scope of work cannot be clearly defined at the outset or is expected to evolve. While it allows for flexibility, it shifts much of the cost risk to the government. Effective cost control relies heavily on robust monitoring of labor hours and rates, ensuring that the work performed is necessary and efficient. Performance monitoring is crucial to ensure that the contractor is delivering the required services, as the government pays for the time spent. This necessitates strong oversight from the contracting officer's representative (COR) to prevent cost overruns and ensure value for money.

What is the significance of the NAICS code 541611 (Administrative Management and General Management Consulting Services) in the context of federal spending?

The NAICS code 541611, 'Administrative Management and General Management Consulting Services,' represents a significant category within federal government contracting. Agencies across the government utilize these services to improve efficiency, effectiveness, and overall management of their operations. This includes areas like strategic planning, organizational design, human resources management, process improvement, and change management. Federal spending in this area reflects the government's reliance on external expertise to navigate complex challenges, implement reforms, and optimize resource allocation. Contracts under this code are common and represent a substantial portion of the professional services spending, indicating a consistent demand for specialized management advice within the public sector.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: TWO N TAMIAMI TRAIL STE 700, SARASOTA, FL, 17

Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $21,541,101

Exercised Options: $21,541,101

Current Obligation: $20,245,934

Timeline