PBGC Spends $17.2M on Allianz Global Investors for Financial Investment Activities
Contract Overview
Contract Amount: $17,234,166 ($17.2M)
Contractor: Allianz Global Investors U.S. LLC
Awarding Agency: Pension Benefit Guaranty Corporation
Start Date: 2009-10-01
End Date: 2016-09-30
Contract Duration: 2,556 days
Daily Burn Rate: $6.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 17
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CFO/CID
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005
Plain-Language Summary
Pension Benefit Guaranty Corporation obligated $17.2 million to ALLIANZ GLOBAL INVESTORS U.S. LLC for work described as: CFO/CID Key points: 1. Contract awarded to Allianz Global Investors U.S. LLC for miscellaneous financial investment activities. 2. Total contract value is $17.2 million over a period of 2556 days. 3. The contract was awarded under full and open competition. 4. No small business participation was reported for this contract. 5. The contract type is Firm Fixed Price, indicating predictable costs.
Value Assessment
Rating: fair
The contract value of $17.2 million for financial investment activities is difficult to benchmark without specific service details. However, the firm fixed-price structure suggests a defined cost for services rendered.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically allows for the widest range of potential bidders and can lead to competitive pricing. The firm fixed-price contract type further aids in price discovery by setting a ceiling.
Taxpayer Impact: Taxpayer funds were used for financial investment activities, with the cost determined through a competitive bidding process.
Public Impact
Pension Benefit Guaranty Corporation (PBGC) utilized taxpayer funds for investment management services. The contract duration of over 7 years suggests a long-term need for these financial services. The lack of small business involvement might indicate a focus on large, specialized financial firms.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation
- Long contract duration without clear performance metrics
Positive Signals
- Full and open competition
- Firm fixed-price contract
Sector Analysis
This contract falls under Miscellaneous Financial Investment Activities. Spending in this sector can vary widely based on the complexity of investments and the size of the portfolio managed. Benchmarks are highly dependent on the specific services provided.
Small Business Impact
This contract did not involve small businesses, as indicated by the 'sb' field being false. This suggests that the services required were likely specialized and procured from larger, established financial institutions.
Oversight & Accountability
The contract was awarded under full and open competition, which implies a degree of oversight in the procurement process. However, further details on performance monitoring and accountability mechanisms are not provided.
Related Government Programs
- Miscellaneous Financial Investment Activities
- Pension Benefit Guaranty Corporation Contracting
- Pension Benefit Guaranty Corporation Programs
Risk Flags
- Lack of performance metrics
- No small business participation
- Long contract duration
- Limited detail on specific services
Tags
miscellaneous-financial-investment-activ, pension-benefit-guaranty-corporation, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Pension Benefit Guaranty Corporation awarded $17.2 million to ALLIANZ GLOBAL INVESTORS U.S. LLC. CFO/CID
Who is the contractor on this award?
The obligated recipient is ALLIANZ GLOBAL INVESTORS U.S. 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 $17.2 million.
What is the period of performance?
Start: 2009-10-01. End: 2016-09-30.
What was the specific nature of the financial investment activities performed under this contract, and how did they align with the PBGC's mission?
The contract was for 'Miscellaneous Financial Investment Activities.' Without further details, it's presumed these activities supported the Pension Benefit Guaranty Corporation's mission of managing pension plan assets and liabilities. The specific nature could range from asset allocation and fund management to risk assessment and portfolio analysis, aimed at preserving and growing assets to meet future pension obligations.
Given the $17.2 million expenditure over seven years, what was the return on investment or performance achieved by Allianz Global Investors?
The provided data does not include performance metrics or return on investment for the services rendered by Allianz Global Investors. To assess the value, one would need to compare the contract cost against the portfolio's performance, considering market conditions and the PBGC's investment objectives. This information is crucial for evaluating the effectiveness of the spending.
How did the firm fixed-price contract structure ensure cost-effectiveness and prevent potential cost overruns for these financial services?
A firm fixed-price contract establishes a ceiling on costs, meaning the government pays a set amount regardless of the contractor's actual expenses. This structure incentivizes the contractor, Allianz Global Investors, to manage its costs efficiently to maximize profit. It provides predictability for the PBGC regarding the total expenditure for these financial investment activities.
Industry Classification
NAICS: Finance and Insurance › Other Financial Investment Activities › Miscellaneous Financial Investment Activities
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: 17
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 555 MISSION ST STE 1700, SAN FRANCISCO, CA, 94105
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $26,047,069
Exercised Options: $19,048,298
Current Obligation: $17,234,166
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2009-10-01
Current End Date: 2016-09-30
Potential End Date: 2016-09-30 00:00:00
Last Modified: 2016-09-22
Other Pension Benefit Guaranty Corporation Contracts
- Field Office Support Services — $141.0M (Serco Inc)
- O&M and DM&E Work — $130.5M (Science Applications International Corporation)
- Portfolio Management Services — $117.6M (Pgim, Inc.)
- Portfolio Management Services — $112.4M (Pacific Investment Management Company LLC)
- This to IS to Improve Customer Service Scores Reported by a 3rd-Party Vendor WHO Completes a Quarterly Participant Caller Survey. PSD Seeks to Improve CX by Reducing the Number of Contacts & Paper Forms Customers Complete to Fulfill Requests — $95.8M (Serco Inc)