PBGC awards $16M contract for computing infrastructure to Zimmerman Associates, Inc
Contract Overview
Contract Amount: $15,997,921 ($16.0M)
Contractor: Zimmerman Associates, Inc.
Awarding Agency: Pension Benefit Guaranty Corporation
Start Date: 2005-04-11
End Date: 2009-12-31
Contract Duration: 1,725 days
Daily Burn Rate: $9.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: DMC CONTRACT
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005
Plain-Language Summary
Pension Benefit Guaranty Corporation obligated $16.0 million to ZIMMERMAN ASSOCIATES, INC. for work described as: DMC CONTRACT Key points: 1. Contract value of $15.99M for computing infrastructure services. 2. Awarded to Zimmerman Associates, Inc. by the Pension Benefit Guaranty Corporation. 3. Contract duration spans over 1700 days. 4. Services fall under the Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services NAICS code.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The awarded amount of $15.99M needs to be benchmarked against similar contracts for computing infrastructure services to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if the contract had been awarded through a competitive bidding process.
Public Impact
Ensures continued operation of essential computing infrastructure for PBGC. Supports data processing and web hosting services critical for pension benefit administration. Potential for increased costs due to sole-source nature of the award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
- Long contract duration may not reflect current market pricing.
Positive Signals
- Provides essential computing infrastructure services.
- Awarded to a single vendor, potentially simplifying management.
Sector Analysis
This contract falls within the IT sector, specifically focusing on computing infrastructure and related services. Benchmarks for similar contracts would typically consider factors like data center operations, cloud services, and IT support.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to determine any small business participation.
Oversight & Accountability
The contract's sole-source nature warrants close oversight to ensure fair pricing and effective service delivery. Regular performance reviews and cost audits are crucial for accountability.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Pension Benefit Guaranty Corporation Contracting
- Pension Benefit Guaranty Corporation Programs
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of transparency in pricing justification
- Potential for cost overruns
- No indication of small business participation
Tags
computing-infrastructure-providers-data-, pension-benefit-guaranty-corporation, dc, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Pension Benefit Guaranty Corporation awarded $16.0 million to ZIMMERMAN ASSOCIATES, INC.. DMC CONTRACT
Who is the contractor on this award?
The obligated recipient is ZIMMERMAN ASSOCIATES, 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 $16.0 million.
What is the period of performance?
Start: 2005-04-11. End: 2009-12-31.
What was the justification for the sole-source award, and how was the fixed fee determined?
The justification for a sole-source award typically involves specific circumstances where only one vendor can meet the agency's needs, such as proprietary technology or urgent requirements. The fixed fee in a Cost Plus Fixed Fee contract is negotiated upfront and represents the contractor's profit. Its determination would likely be based on factors like the estimated cost of performance, the complexity of the work, and market rates for similar services.
How does the $15.99M contract value compare to industry benchmarks for similar computing infrastructure services over a 1725-day period?
Benchmarking this contract's value requires comparing it against similar government or commercial contracts for computing infrastructure, data processing, and web hosting services over a comparable duration. Factors such as the scope of services, service level agreements, and the specific technologies employed would influence the comparison. Without access to detailed service requirements and market data, a precise benchmark is difficult, but the lack of competition suggests potential for above-market pricing.
What measures were in place to ensure the effectiveness and efficiency of the services provided under this Cost Plus Fixed Fee contract?
Effectiveness and efficiency under a Cost Plus Fixed Fee contract are typically ensured through robust contract management, including clearly defined performance metrics, regular progress reporting, and independent government oversight. The agency would monitor service delivery against established Service Level Agreements (SLAs) and conduct periodic reviews to ensure the contractor is meeting its obligations and that costs are reasonable and allowable.
Industry Classification
NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 9302 LEE HWY STE 600, FAIRFAX, VA, 11
Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $42,316,665
Exercised Options: $36,917,659
Current Obligation: $15,997,921
Timeline
Start Date: 2005-04-11
Current End Date: 2009-12-31
Potential End Date: 2009-12-31 00:00:00
Last Modified: 2013-02-12
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