PBGC awards $19.4M contract to Greenhill & Co. for Investment Banking services
Contract Overview
Contract Amount: $19,420,314 ($19.4M)
Contractor: Greenhill & CO., LLC
Awarding Agency: Pension Benefit Guaranty Corporation
Start Date: 2007-06-14
End Date: 2012-03-31
Contract Duration: 1,752 days
Daily Burn Rate: $11.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FINANCIAL SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005
Plain-Language Summary
Pension Benefit Guaranty Corporation obligated $19.4 million to GREENHILL & CO., LLC for work described as: FINANCIAL SERVICES Key points: 1. Contract awarded to Greenhill & Co., LLC for Investment Banking and Securities Dealing. 2. The contract value is $19,420,314. 3. The Pension Benefit Guaranty Corporation (PBGC) is the awarding agency. 4. The contract was awarded under full and open competition. 5. The contract duration is 1752 days.
Value Assessment
Rating: fair
The contract value of $19.4 million over approximately 4.8 years suggests a significant investment in specialized financial services. Benchmarking against similar contracts for investment banking services is difficult without more granular data on the scope of services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a competitive bidding process. This method is generally expected to yield fair pricing, though the specific price discovery mechanisms are not detailed.
Taxpayer Impact: Taxpayers are impacted through the funding of PBGC's operations, which includes the cost of these financial advisory services. The competitive award aims to ensure value for money.
Public Impact
Ensures PBGC has access to expert financial advice for its operations. Supports the agency's mission in managing pension plan assets and liabilities. The use of a private firm highlights the need for specialized financial expertise not always available in-house.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics or outcomes in the provided data.
- Potential for cost overruns if the scope of services expands beyond initial expectations.
Positive Signals
- Awarded through full and open competition, suggesting a fair market approach.
- Contract duration indicates a long-term need for these services.
Sector Analysis
The Financial Services sector, particularly investment banking, is crucial for managing complex financial assets and liabilities. PBGC's engagement with firms like Greenhill & Co. reflects the specialized nature of its mission, which often requires external expertise.
Small Business Impact
The data indicates that the contract was awarded to Greenhill & Co., LLC, a specific firm. There is no information provided to suggest whether small businesses were involved as subcontractors or if the prime contractor is a small business itself.
Oversight & Accountability
Oversight of this contract would typically involve the PBGC monitoring the performance of Greenhill & Co., ensuring adherence to the contract terms, and verifying that the services provided are necessary and cost-effective. The fixed-price nature of the contract provides some cost control.
Related Government Programs
- Investment Banking and Securities Dealing
- Pension Benefit Guaranty Corporation Contracting
- Pension Benefit Guaranty Corporation Programs
Risk Flags
- Contract value is substantial, requiring careful monitoring.
- Limited public information on the specific services rendered.
- Potential for vendor lock-in if specialized knowledge is developed.
- Reliance on external expertise may not always be the most cost-effective long-term solution.
Tags
investment-banking-and-securities-dealin, pension-benefit-guaranty-corporation, dc, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Pension Benefit Guaranty Corporation awarded $19.4 million to GREENHILL & CO., LLC. FINANCIAL SERVICES
Who is the contractor on this award?
The obligated recipient is GREENHILL & CO., 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 $19.4 million.
What is the period of performance?
Start: 2007-06-14. End: 2012-03-31.
What specific investment banking services were procured, and how do they align with PBGC's core mission?
The contract specifies 'Investment Banking and Securities Dealing.' This likely encompasses advisory services related to financial markets, asset management, risk assessment, and potentially the structuring or execution of financial transactions relevant to PBGC's role in guaranteeing defined benefit pension plans. The alignment is crucial for effective financial stewardship and risk mitigation.
What is the benchmarked cost for similar investment banking services, and how does this contract's value compare?
Benchmarking investment banking fees is complex due to the bespoke nature of services. Fees are often tied to deal size, complexity, and success. Without detailed service scope and transaction specifics, a direct comparison is difficult. However, $19.4 million over nearly five years for a federal agency suggests substantial, ongoing advisory needs.
What mechanisms are in place to ensure the effectiveness and value for money of these investment banking services?
Effectiveness is likely monitored through performance reviews and the achievement of specific financial objectives outlined in the contract. Value for money is intended to be driven by the competitive award process and the firm fixed-price structure, which shifts some performance risk to the contractor. Regular reporting and milestone reviews would also be key.
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
Solicitation ID: PBGC01-RP-07-0003
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Greenhill & CO., Inc. (UEI: 144656308)
Address: 300 PARK AVE 23 FL, NEW YORK, NY, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,429,918
Exercised Options: $19,429,918
Current Obligation: $19,420,314
Timeline
Start Date: 2007-06-14
Current End Date: 2012-03-31
Potential End Date: 2012-03-31 00:00:00
Last Modified: 2014-03-24
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