PBGC's $19.6M actuarial valuation contract with Buck Global LLC awarded under full and open competition

Contract Overview

Contract Amount: $19,613,171 ($19.6M)

Contractor: Buck Global LLC

Awarding Agency: Pension Benefit Guaranty Corporation

Start Date: 2005-09-16

End Date: 2010-09-25

Contract Duration: 1,835 days

Daily Burn Rate: $10.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: Other

Official Description: ACTUARIAL VALUATION

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 $19.6 million to BUCK GLOBAL LLC for work described as: ACTUARIAL VALUATION Key points: 1. Contract awarded for actuarial valuation services, a critical function for pension plan solvency. 2. Buck Global LLC, a known entity in actuarial services, secured this contract. 3. The contract duration of 1835 days (approx. 5 years) suggests a need for sustained expertise. 4. Awarded by the Pension Benefit Guaranty Corporation (PBGC), indicating a focus on retirement security. 5. The contract was competed fully and openly, implying a robust selection process. 6. The base contract value is substantial, reflecting the complexity of actuarial assessments.

Value Assessment

Rating: good

The contract value of $19.6 million over approximately five years for actuarial valuation services appears reasonable given the specialized nature of the work. Benchmarking against similar large-scale actuarial contracts is challenging without more specific service details, but the price per year ($3.92M) is within a plausible range for comprehensive pension plan valuations. The PBGC manages a complex portfolio of underfunded plans, necessitating expert actuarial support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of two bids suggests a competitive environment, though the exact number of proposals received is not detailed. Full and open competition generally leads to better price discovery and ensures the government selects the best value offering.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure actuarial services at the most advantageous price, preventing potential overpayment for essential functions.

Public Impact

The primary beneficiary is the Pension Benefit Guaranty Corporation (PBGC), which relies on these services to assess the financial health of pension plans. Services delivered include actuarial valuations, crucial for determining plan liabilities and funding status. The geographic impact is national, as the PBGC oversees pension plans across the United States. Workforce implications are indirect, supporting the PBGC's mission to protect retirement income for millions of Americans.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and difficult to transition.
Reliance on a single vendor for critical actuarial data could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent selection.
Contract duration indicates a stable, long-term relationship for consistent service delivery.
Buck Global LLC is a reputable firm in the actuarial services sector.

Sector Analysis

Actuarial services fall within the broader professional, scientific, and technical services sector, specifically human resources consulting. This sector is characterized by specialized expertise and often involves long-term contracts for complex analytical and advisory functions. The market size for actuarial consulting is significant, driven by regulatory requirements and the need for financial risk management across various industries, particularly in finance and insurance.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the specialized nature and scale of actuarial valuations for a federal agency like the PBGC, it is likely that large, established firms with extensive experience and resources are best positioned to compete. There is no explicit information on subcontracting plans for small businesses within this award.

Oversight & Accountability

Oversight is likely managed by the contracting officer's representative (COR) within the PBGC, responsible for monitoring performance, deliverables, and compliance with contract terms. Accountability is ensured through contractual clauses, performance metrics, and payment schedules tied to satisfactory completion of services. Transparency is facilitated by the contract award process itself, being under full and open competition.

Related Government Programs

Pension Plan Administration
Retirement Benefits
Financial Risk Management
Government Actuarial Services
Employee Benefits Consulting

Risk Flags

Long contract duration may limit flexibility to adapt to changing needs.
Labor Hours contract type requires diligent oversight to control costs.

Frequently Asked Questions

What is this federal contract paying for?

Pension Benefit Guaranty Corporation awarded $19.6 million to BUCK GLOBAL LLC. ACTUARIAL VALUATION

Who is the contractor on this award?

The obligated recipient is BUCK GLOBAL 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 $19.6 million.

What is the period of performance?

Start: 2005-09-16. End: 2010-09-25.

What is the historical spending pattern for actuarial valuation services by the PBGC?

Analyzing historical spending for actuarial valuations by the PBGC is crucial for understanding trends and ensuring current contract value. While specific historical contract data for this exact service is not provided in the snippet, the PBGC, as a federal agency responsible for insuring defined benefit pension plans, consistently requires actuarial services. These services are fundamental to assessing plan liabilities, funding levels, and potential risks. Past contracts would likely have been awarded to specialized actuarial firms, potentially including Buck Global LLC or competitors like Milliman, Segal, or Aon Hewitt. The total spending would fluctuate based on the number of plans under PBGC trusteeship and the complexity of their financial situations. A review of PBGC's annual reports and contract databases (like FPDS) would reveal more granular historical spending, including contract values, durations, and awarded vendors over time, allowing for a comparison of pricing and competition levels.

How does Buck Global LLC's track record compare for similar government contracts?

Buck Global LLC has a significant track record in providing actuarial and benefits consulting services, including to government entities. While this specific contract is for the Pension Benefit Guaranty Corporation (PBGC), Buck Global has likely held contracts with other federal agencies or state/local governments requiring similar expertise in pension valuations, healthcare consulting, or employee benefits administration. Assessing their track record involves reviewing past performance evaluations, any reported contract disputes or terminations, and the breadth of their government contracting experience. A deeper dive into federal procurement databases would reveal the types of services they've provided, the agencies they've served, and the contract values. Generally, firms awarded large, complex contracts like this one typically have a history of successful performance and a strong reputation within the industry.

What are the key performance indicators (KPIs) for this actuarial valuation contract?

Key Performance Indicators (KPIs) for an actuarial valuation contract typically focus on accuracy, timeliness, and compliance. For this PBGC contract, KPIs would likely include the accuracy of actuarial calculations against established standards (e.g., GAAP, ERISA), adherence to delivery schedules for valuation reports and data submissions, and the clarity and completeness of the documentation provided. Compliance with relevant regulations and PBGC guidelines is paramount. The contractor's ability to respond to inquiries from PBGC staff and auditors in a timely manner would also be a critical KPI. Performance might be measured through metrics such as the number of revisions required due to errors, the on-time delivery rate of reports, and feedback from PBGC stakeholders on the usability and insightfulness of the actuarial assessments.

What is the potential risk associated with the duration of this contract?

The contract duration of 1835 days (approximately 5 years) presents both opportunities and risks. A significant positive is the stability and continuity of service, allowing Buck Global LLC to develop deep institutional knowledge of the PBGC's portfolio and processes. This can lead to more efficient and accurate valuations over time. However, a longer duration also increases the risk of vendor complacency or a decline in service quality if not actively managed. There's also a risk that market conditions or PBGC needs could evolve significantly over five years, potentially making the contracted services less aligned with current requirements. Furthermore, a long-term reliance on a single vendor could limit the PBGC's exposure to innovative approaches or potentially more cost-effective solutions that might emerge from a more frequent competitive bidding process.

How does the contract type (Labor Hours) influence cost and oversight?

This contract is awarded under a 'Labor Hours' type (pt: LABOR HOURS). This contract type is best suited for situations where the extent or duration of the work cannot be predetermined and must be controlled by the government after contract initiation. For actuarial services, it allows the PBGC to procure specific hours of expert labor as needed for valuations, analyses, and consultations. The primary advantage is flexibility; the PBGC can scale services up or down based on evolving needs. However, it also shifts some cost risk to the government, as the final price depends on the actual hours worked. Effective oversight is therefore critical. The PBGC must closely monitor the hours charged by Buck Global LLC, ensure that the labor categories and rates are appropriate, and verify that the work performed is necessary and directly related to the contract's objectives. Detailed timesheets and regular progress reports are essential for managing and controlling costs under a labor hours contract.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Human Resources Consulting Services

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: PBGC01-RP-05-0007

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Xerox Corporation (UEI: 049591852)

Address: 1 PENN PLZ FL 29, NEW YORK, NY, 90

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,613,171

Exercised Options: $19,613,171

Current Obligation: $19,613,171

Timeline