PBGC Awards $15.2M for Benefit Administration Support to Cyquest Business Solutions

Contract Overview

Contract Amount: $15,209,577 ($15.2M)

Contractor: Cyquest Business Solutions, Inc.

Awarding Agency: Pension Benefit Guaranty Corporation

Start Date: 2009-08-13

End Date: 2014-09-12

Contract Duration: 1,856 days

Daily Burn Rate: $8.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: Other

Official Description: COO - BAPD SARASOTA, FL FIELD BENEFIT ADMINISTRATION SUPPORT

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 $15.2 million to CYQUEST BUSINESS SOLUTIONS, INC. for work described as: COO - BAPD SARASOTA, FL FIELD BENEFIT ADMINISTRATION SUPPORT Key points: 1. Contract awarded to Cyquest Business Solutions, Inc. for $15.2 million. 2. Service period spans from August 2009 to September 2014. 3. The contract falls under Pharmacy Benefit Management and Third Party Administration. 4. Awarded under a Definitive Contract with Full and Open Competition. 5. The contract was awarded to a single vendor.

Value Assessment

Rating: fair

The contract value of $15.2 million over five years suggests a moderate annual spend. Benchmarking against similar contracts for benefit administration support is difficult without more specific service details, but the per-unit cost is not readily available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing by allowing all eligible vendors to bid.

Taxpayer Impact: Taxpayer funds were used for this contract. The competitive nature of the award suggests an effort to secure fair market value, but the ultimate impact depends on the efficiency and necessity of the services provided.

Public Impact

Ensures continued administration of pension benefits for plan participants. Supports the Pension Benefit Guaranty Corporation's mission to protect retirement security. Potential impact on beneficiaries through efficient and accurate benefit processing. The contract's duration and value indicate a significant, ongoing need for these services.

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 labor hours exceed estimates.
Limited insight into the specific services provided beyond general administration.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Supports a critical government function of protecting retirement benefits.
Contract has a defined end date, allowing for re-evaluation of needs.

Sector Analysis

This contract falls within the administrative and support services sector, specifically related to insurance and pension fund administration. Spending benchmarks in this area can vary widely based on the complexity of the plans and the number of beneficiaries served.

Small Business Impact

The provided data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Pension Benefit Guaranty Corporation is responsible for overseeing this contract. Standard government oversight mechanisms for contract performance and financial management would apply.

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 contract type increases risk of cost overruns.
Limited transparency on specific performance metrics.
Potential for vendor lock-in if services are highly specialized.
Dependence on a single vendor for critical administrative functions.

Frequently Asked Questions

What is this federal contract paying for?

Pension Benefit Guaranty Corporation awarded $15.2 million to CYQUEST BUSINESS SOLUTIONS, INC.. COO - BAPD SARASOTA, FL FIELD BENEFIT ADMINISTRATION SUPPORT

Who is the contractor on this award?

The obligated recipient is CYQUEST BUSINESS SOLUTIONS, 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 $15.2 million.

What is the period of performance?

Start: 2009-08-13. End: 2014-09-12.

What specific administrative tasks are included in 'Field Benefit Administration Support'?

Field Benefit Administration Support likely encompasses a range of tasks critical to managing pension plans. This could include processing benefit applications, calculating benefit amounts, managing beneficiary data, responding to inquiries from retirees and employers, and ensuring compliance with relevant regulations. The exact scope would be detailed in the contract's statement of work.

What is the risk of cost overruns given the 'Labor Hours' contract type?

Contracts based on 'Labor Hours' carry a risk of cost overruns if the actual hours worked by personnel exceed the initial estimates. This risk is mitigated by the government's oversight and the contractor's incentive to manage their workforce efficiently. However, unforeseen complexities or scope changes could necessitate additional hours, potentially increasing the total cost.

How does this contract contribute to the PBGC's overall effectiveness?

This contract is crucial for the PBGC's effectiveness by ensuring the timely and accurate payment of benefits to retirees. Efficient administration reduces the burden on the PBGC's internal resources and helps maintain public trust in the agency's ability to fulfill its mission of protecting defined benefit pension plans.

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

Solicitation ID: PBGC01-RP-09-0019

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 3645 MARKET PL BLVD STE 130, ATLANTA, GA, 30344

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,017,902

Exercised Options: $21,994,852

Current Obligation: $15,209,577

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Timeline