PBGC awards $18.2M contract for Pharmacy Benefit Management to Benefit Services Unlimited Inc

Contract Overview

Contract Amount: $18,187,706 ($18.2M)

Contractor: Benefit Services Unlimited Inc

Awarding Agency: Pension Benefit Guaranty Corporation

Start Date: 2009-08-05

End Date: 2015-02-04

Contract Duration: 2,009 days

Daily Burn Rate: $9.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Healthcare

Official Description: COO - BAPD

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 $18.2 million to BENEFIT SERVICES UNLIMITED INC for work described as: COO - BAPD Key points: 1. Contract awarded for Pharmacy Benefit Management services. 2. Benefit Services Unlimited Inc. is the sole awardee. 3. The contract duration spans from 2009 to 2015. 4. The total value is approximately $18.2 million. 5. The contract type is a Definitive Contract.

Value Assessment

Rating: fair

The contract value of $18.2 million over six years suggests a moderate annual spend. Benchmarking against similar PBM contracts would be necessary to assess if this pricing is competitive, especially considering the labor hours pricing structure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: The $18.2 million spent on PBM services represents taxpayer funds allocated to ensure pension benefits are managed effectively.

Public Impact

Ensures efficient administration of pharmacy benefits for pension funds. Supports the financial stability of pension plans managed by PBGC. Provides essential third-party administration for insurance and pension funds.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hours pricing can be less predictable than fixed-price contracts.
Contract duration is relatively long (6 years).

Positive Signals

Awarded under full and open competition.
Clear statement of work for PBM services.

Sector Analysis

Pharmacy Benefit Management falls under the broader healthcare and financial services sectors. Spending benchmarks for PBM services vary significantly based on the number of beneficiaries and services provided.

Small Business Impact

The data does not indicate if small businesses were involved as subcontractors or partners in this contract award.

Oversight & Accountability

The Pension Benefit Guaranty Corporation (PBGC) is responsible for overseeing this contract to ensure compliance and effective service delivery.

Related Government Programs

Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds
Pension Benefit Guaranty Corporation Contracting
Pension Benefit Guaranty Corporation Programs

Risk Flags

Labor Hours Pricing
Long Contract Duration
Lack of Specific Performance Metrics
No Small Business Set-Aside Indicated

Frequently Asked Questions

What is this federal contract paying for?

Pension Benefit Guaranty Corporation awarded $18.2 million to BENEFIT SERVICES UNLIMITED INC. COO - BAPD

Who is the contractor on this award?

The obligated recipient is BENEFIT SERVICES UNLIMITED 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 $18.2 million.

What is the period of performance?

Start: 2009-08-05. End: 2015-02-04.

What was the average annual cost per beneficiary for these PBM services?

The provided data does not specify the number of beneficiaries covered by this contract. To determine the average annual cost per beneficiary, this information would be required. Without it, a meaningful per-member-per-month (PMPM) or annual cost analysis is not possible, hindering a direct comparison to industry benchmarks.

Were there any performance issues or contract modifications during the contract's six-year term?

The data indicates a definitive contract awarded on August 5, 2009, and ending on February 4, 2015, with a total value of $18.2 million. It does not detail any performance issues, disputes, or modifications that may have occurred during its execution. Further review of contract performance reports or modification logs would be needed to assess this.

How did the final cost compare to the initial projected cost given the full and open competition?

The contract was awarded under full and open competition with a total value of $18.2 million. The data does not provide initial projected costs or details on how the final awarded amount was determined relative to bids received. A comparison would require access to the solicitation documents and bid analysis.

Industry Classification

NAICS: Finance and Insurance › Agencies, Brokerages, and Other Insurance Related Activities › Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 2500 GRUBB RD STE 140, WILMINGTON, DE, 19810

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $25,331,178

Exercised Options: $24,915,096

Current Obligation: $18,187,706

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Timeline