PBGC awards $16.3M contract to Neuberger Berman for portfolio management services

Contract Overview

Contract Amount: $16,279,534 ($16.3M)

Contractor: Neuberger Berman LLC

Awarding Agency: Pension Benefit Guaranty Corporation

Start Date: 2009-10-01

End Date: 2017-03-30

Contract Duration: 2,737 days

Daily Burn Rate: $5.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 18

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CFO/CID

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 $16.3 million to NEUBERGER BERMAN LLC for work described as: CFO/CID Key points: 1. The contract value is $16.3 million over its duration. 2. Neuberger Berman LLC is the sole awardee. 3. The contract was awarded under full and open competition. 4. The service category is portfolio management.

Value Assessment

Rating: good

The contract value of $16.3 million for portfolio management services over approximately 7.5 years appears reasonable given the scope. Benchmarking against similar large-scale investment management contracts is difficult without more specific service details, but the duration suggests a significant, ongoing need.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a robust process for soliciting bids and ensuring fair pricing. This method generally leads to better price discovery and value for the government.

Taxpayer Impact: The competitive award process aims to secure the best value for taxpayers by ensuring fair pricing for essential portfolio management services.

Public Impact

Ensures continued management of pension fund assets, protecting beneficiaries. Supports the financial stability of the Pension Benefit Guaranty Corporation. The contract's duration suggests a long-term commitment to managing significant financial assets.

Waste & Efficiency Indicators

Waste Risk Score: 59 / 10

Warning Flags

Lack of specific performance metrics in provided data.
Potential for cost overruns if market conditions change significantly.
Limited visibility into the specific investment strategies employed.

Positive Signals

Awarded via full and open competition.
Firm Fixed Price contract type can control costs.
Long contract duration indicates a stable, ongoing need.

Sector Analysis

This contract falls within the financial services sector, specifically portfolio management for a government agency. Spending in this area is crucial for managing public funds and investments effectively, with benchmarks varying widely based on asset size and complexity.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). The nature of large-scale portfolio management often requires specialized expertise and resources typically found in larger firms.

Oversight & Accountability

The Pension Benefit Guaranty Corporation is responsible for overseeing this contract. The firm fixed price structure and competitive award process provide a degree of accountability, but ongoing monitoring of performance and adherence to fiduciary duties is essential.

Related Government Programs

Portfolio Management
Pension Benefit Guaranty Corporation Contracting
Pension Benefit Guaranty Corporation Programs

Risk Flags

Contract awarded to a single entity.
Limited information on specific performance metrics.
Potential for market risk impacting investment outcomes.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Pension Benefit Guaranty Corporation awarded $16.3 million to NEUBERGER BERMAN LLC. CFO/CID

Who is the contractor on this award?

The obligated recipient is NEUBERGER BERMAN 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 $16.3 million.

What is the period of performance?

Start: 2009-10-01. End: 2017-03-30.

What specific performance metrics are used to evaluate Neuberger Berman's portfolio management effectiveness?

The provided data does not detail specific performance metrics. Effective oversight would require clear benchmarks for investment returns, risk management, and adherence to the agency's investment policy. Regular reporting and independent audits are crucial to ensure the contractor meets its obligations and delivers value.

What are the primary risks associated with this portfolio management contract?

Key risks include market volatility impacting investment returns, potential for underperformance relative to benchmarks, and the possibility of contractor-related issues such as operational failures or conflicts of interest. Ensuring robust risk mitigation strategies are in place and actively managed is critical for safeguarding the pension fund's assets.

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

This contract is vital for the PBGC's mission by ensuring professional management of its investment portfolio. Effective management aims to grow assets, cover future pension obligations, and maintain the agency's financial solvency. The contract's success directly impacts the PBGC's ability to fulfill its guarantee obligations to plan participants.

Industry Classification

NAICS: Finance and Insurance › Other Financial Investment Activities › Portfolio Management

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: 18

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Neuberger Berman Investment Advisers LLC (UEI: 831766113)

Address: 605 THIRD AVE, NEW YORK, NY, 10158

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

Financial Breakdown

Contract Ceiling: $28,569,323

Exercised Options: $16,814,528

Current Obligation: $16,279,534

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Timeline