PBGC Spends $10.3M on Actuarial Valuation Services from Palmer & Cay, LLC

Contract Overview

Contract Amount: $10,270,917 ($10.3M)

Contractor: Palmer & CAY, LLC

Awarding Agency: Pension Benefit Guaranty Corporation

Start Date: 2005-09-16

End Date: 2008-09-25

Contract Duration: 1,105 days

Daily Burn Rate: $9.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: Other

Official Description: ACTURIAL 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 $10.3 million to PALMER & CAY, LLC for work described as: ACTURIAL VALUATION Key points: 1. Contract awarded for actuarial valuation services. 2. Palmer & Cay, LLC is the contractor. 3. Competition was full and open. 4. Services provided in Washington D.C.

Value Assessment

Rating: fair

The contract value of $10.3 million for actuarial valuation services over approximately three years appears reasonable given the specialized nature of the work. Benchmarking against similar contracts is difficult without more specific service details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method generally leads to more competitive pricing.

Taxpayer Impact: Taxpayer funds were used for this contract. The competitive nature should have helped ensure a fair price, minimizing unnecessary expenditure.

Public Impact

Ensures accurate pension liability assessments for PBGC. Supports financial stability of defined benefit pension plans. Impacts retirees' future benefit security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is long (1105 days).
No small business participation noted.

Positive Signals

Full and open competition utilized.
Clear service description (Actuarial Valuation).

Sector Analysis

Actuarial services fall under professional, scientific, and technical consulting. Spending benchmarks for this sector vary widely based on specialization and contract scope.

Small Business Impact

The data indicates no small business participation in this contract. This suggests that larger firms dominated the bidding process for these specialized services.

Oversight & Accountability

Oversight would involve monitoring the quality and timeliness of actuarial valuations provided by Palmer & Cay, LLC to ensure PBGC's financial obligations are accurately represented.

Related Government Programs

Human Resources Consulting Services
Pension Benefit Guaranty Corporation Contracting
Pension Benefit Guaranty Corporation Programs

Risk Flags

Long contract duration.
No small business participation.
Potential for vendor lock-in if services are highly specialized.
Reliance on a single vendor for critical actuarial data.

Frequently Asked Questions

What is this federal contract paying for?

Pension Benefit Guaranty Corporation awarded $10.3 million to PALMER & CAY, LLC. ACTURIAL VALUATION

Who is the contractor on this award?

The obligated recipient is PALMER & CAY, 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 $10.3 million.

What is the period of performance?

Start: 2005-09-16. End: 2008-09-25.

What was the specific scope of work for the actuarial valuation services, and how did it compare to industry standards?

The specific scope of work involved detailed actuarial assessments of pension liabilities. While the contract specifies 'Actuarial Valuation,' further details on the complexity, number of plans covered, and specific methodologies used are needed to compare it against industry standards and assess its true value beyond the stated price.

What were the key risk factors considered during the full and open competition, and how were they mitigated?

Key risk factors likely included contractor performance, data security, and adherence to regulatory requirements. Mitigation strategies during full and open competition would involve thorough vetting of proposals, clear performance metrics in the contract, and potentially requiring performance bonds to ensure contractor accountability and protect against potential failures.

How effectively did the full and open competition process ensure the best value for taxpayer dollars in this specific contract?

The full and open competition process is designed to foster a competitive environment, theoretically leading to the best value. However, effectiveness hinges on the clarity of the solicitation, the number and quality of bids received, and the evaluation criteria used. Without knowing these details, it's difficult to definitively state the level of effectiveness.

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

Address: 11150 SUNSET HILLS RD., RESTON, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $10,329,377

Exercised Options: $10,329,377

Current Obligation: $10,270,917

Timeline