Pension Benefit Guaranty Corporation awards $10.2M contract for investment banking services to Compass Partners Advisors, LLP

Contract Overview

Contract Amount: $10,248,160 ($10.2M)

Contractor: Compass Partners Advisors, LLP

Awarding Agency: Pension Benefit Guaranty Corporation

Start Date: 2006-03-22

End Date: 2009-05-20

Contract Duration: 1,155 days

Daily Burn Rate: $8.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BANKING 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 $10.2 million to COMPASS PARTNERS ADVISORS, LLP for work described as: BANKING SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a robust market for these services. 2. Fixed-price contract type may offer cost certainty for the agency. 3. Contract duration of 1155 days indicates a significant, long-term need for these services. 4. The award value of over $10 million signifies a substantial investment in specialized financial expertise. 5. The specific NAICS code (523110) points to a niche market within financial services. 6. Contractor's primary location in Washington D.C. may indicate proximity to federal agencies.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details or comparable contract data. The $10.2 million award over approximately three years suggests a significant engagement. However, the absence of detailed performance metrics or comparison to similar engagements makes a definitive value-for-money assessment difficult. The fixed-price nature provides some cost predictability, but the overall efficiency and effectiveness of the services rendered would require further analysis of outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple firms were likely invited to bid. The presence of two bidders, as suggested by the 'no' field, implies a degree of competition, though the exact number of proposals received and evaluated is not detailed. This competitive process is generally expected to drive prices towards market rates and encourage the selection of the most capable and cost-effective provider.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best possible price and service for the government's investment in specialized financial advisory services.

Public Impact

The Pension Benefit Guaranty Corporation (PBGC) is the primary beneficiary, receiving specialized investment banking and securities dealing expertise. Services likely support the PBGC's mission of managing and investing assets to ensure pension plan benefits are paid. The geographic impact is primarily federal, centered around the PBGC's operations in Washington D.C. The contract supports specialized financial sector jobs within the contractor's firm.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the true value and effectiveness of the services provided.
The specific nature of 'Investment Banking and Securities Dealing' can involve complex financial instruments and strategies, potentially carrying inherent risks.
Without more information on the scope of work, it's hard to gauge if the $10.2M award represents optimal resource allocation.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent procurement process.
The fixed-price contract type provides cost certainty for the agency.
The contract duration indicates a sustained need and likely a successful prior relationship or strong proposal from the contractor.

Sector Analysis

This contract falls within the financial services sector, specifically investment banking and securities dealing. This sector is characterized by specialized expertise, high transaction values, and regulatory oversight. The market size for federal financial advisory services is substantial, with agencies often seeking external expertise for complex financial operations, asset management, and investment strategies. The PBGC's need for such services aligns with its role in managing pension fund assets and liabilities.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false). As a large contract likely requiring specialized expertise, it may not be suitable for small business participation unless through subcontracting. Further analysis would be needed to determine if any subcontracting opportunities were mandated or utilized, impacting the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Pension Benefit Guaranty Corporation's internal procurement and financial management controls. As a federal contract, it is subject to oversight by the Government Accountability Office (GAO) for bid protests and potentially the PBGC's Office of Inspector General (OIG) for audits and investigations into fraud, waste, or abuse. Transparency is generally maintained through contract databases like FPDS, though detailed operational oversight rests with the contracting agency.

Related Government Programs

Financial Advisory Services
Investment Management Contracts
Securities Dealing Services
Pension Fund Management Support

Risk Flags

Potential for market volatility impacting investment performance.
Risk of contractor conflicts of interest.
Dependence on external expertise for critical financial functions.
Lack of detailed performance metrics in provided data.

Frequently Asked Questions

What is this federal contract paying for?

Pension Benefit Guaranty Corporation awarded $10.2 million to COMPASS PARTNERS ADVISORS, LLP. BANKING SERVICES

Who is the contractor on this award?

The obligated recipient is COMPASS PARTNERS ADVISORS, LLP.

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 $10.2 million.

What is the period of performance?

Start: 2006-03-22. End: 2009-05-20.

What specific investment banking and securities dealing services were provided under this contract?

The provided data indicates the contract was for 'Investment Banking and Securities Dealing' under NAICS code 523110. This typically encompasses a range of services such as advising on mergers and acquisitions, underwriting new debt and equity securities, providing merger and acquisition advisory services, and facilitating the trading of securities. For the Pension Benefit Guaranty Corporation (PBGC), these services likely supported the management of its asset portfolio, potentially involving the analysis and execution of investment strategies to ensure the solvency and operational capacity of the agency in fulfilling its pension insurance obligations. The exact scope would be detailed in the contract's statement of work, which is not available in the provided data.

How does the $10.2 million award compare to typical spending on similar investment banking services by federal agencies?

Comparing the $10.2 million award requires context regarding the duration and scope of services. Federal agencies engage investment banking firms for various needs, from large-scale financial restructuring to ongoing asset management advice. Contracts can range from hundreds of thousands to tens of millions of dollars annually, depending on complexity and duration. For an agency like the PBGC, which manages significant financial assets and liabilities, a multi-year contract valued at over $10 million for specialized investment banking and securities dealing is substantial but not necessarily outside the norm for critical financial advisory functions. Benchmarking would ideally involve comparing it to contracts for similar services provided to entities with comparable financial responsibilities and asset sizes.

What were the key performance indicators (KPIs) or deliverables expected under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or deliverables for this contract. Typically, for investment banking and securities dealing services, KPIs might include the successful execution of trades within specified risk parameters, the quality of financial advice provided (e.g., accuracy of valuations, strategic recommendations), adherence to regulatory compliance, timely reporting, and achievement of investment return targets or risk mitigation goals. Deliverables could include market analysis reports, investment strategy proposals, transaction execution documentation, and regular performance updates. The absence of this information limits a thorough assessment of contractor performance and value.

What is the track record of Compass Partners Advisors, LLP with federal contracts, particularly with the Pension Benefit Guaranty Corporation?

The provided data indicates that Compass Partners Advisors, LLP was awarded this specific contract by the Pension Benefit Guaranty Corporation (PBGC). To assess their track record, one would need to examine their complete federal contract history, including past performance on other contracts, any awards or penalties, and their performance reviews. Information on whether they have held prior contracts with the PBGC or other agencies for similar services would be crucial. A review of contract databases and potentially agency performance evaluations would be necessary to understand their reliability, expertise, and history of successful contract completion.

What risks are associated with this type of investment banking contract for the PBGC?

This contract carries several potential risks for the PBGC. Firstly, market volatility poses a significant risk; investment strategies and securities dealing are subject to fluctuations in financial markets, which could lead to losses. Secondly, there's a risk related to the quality and timeliness of advice provided by the contractor; poor recommendations could result in suboptimal investment decisions or financial losses. Thirdly, conflicts of interest could arise if the contractor has other clients or business dealings that create competing interests. Finally, operational risks, such as data security breaches or errors in transaction processing, are also present. The fixed-price nature might mitigate some cost overrun risks but does not eliminate performance or market risks.

How has the PBGC's spending on investment banking and securities dealing evolved over time?

The provided data only pertains to a single contract awarded in 2006. To understand the evolution of PBGC's spending on investment banking and securities dealing, a historical analysis of all relevant contracts awarded by the agency over several fiscal years would be required. This would involve querying federal procurement databases for contracts categorized under relevant NAICS codes (like 523110) or service descriptions. Analyzing trends in award values, contract durations, number of bidders, and types of services procured would reveal patterns in spending, potentially indicating changes in the agency's financial strategy, market conditions, or reliance on external financial expertise.

Industry Classification

NAICS: Finance and Insurance › Securities and Commodity Contracts Intermediation and Brokerage › Investment Banking and Securities Dealing

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 825 3RD AVE 32ND FL, NEW YORK, NY, 90

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

Financial Breakdown

Contract Ceiling: $10,248,160

Exercised Options: $10,248,160

Current Obligation: $10,248,160

Timeline