PBGC Awards $24.3M Contract to Invesco Trust Company for Portfolio Management
Contract Overview
Contract Amount: $24,300,102 ($24.3M)
Contractor: Invesco Trust Company
Awarding Agency: Pension Benefit Guaranty Corporation
Start Date: 2015-09-30
End Date: 2025-09-29
Contract Duration: 3,652 days
Daily Burn Rate: $6.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 20
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024
Plain-Language Summary
Pension Benefit Guaranty Corporation obligated $24.3 million to INVESCO TRUST COMPANY for work described as: IGF::OT::IGF Key points: 1. Contract awarded to Invesco Trust Company for portfolio management services. 2. The contract has a total value of $24.3 million over its duration. 3. This is a definitive contract awarded under full and open competition. 4. The contract duration is approximately 10 years, ending in September 2025.
Value Assessment
Rating: good
The contract's firm fixed price structure provides cost certainty. Benchmarking against similar portfolio management contracts is difficult without more specific service details, but the overall value appears reasonable for a 10-year engagement.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple bidders vie for the contract.
Taxpayer Impact: The competitive award process likely ensures taxpayer funds are used efficiently for these essential financial management services.
Public Impact
Ensures continued professional management of pension assets, safeguarding beneficiaries' interests. Supports the Pension Benefit Guaranty Corporation's mission to protect retirement security. The long-term nature of the contract provides stability in financial operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to potential price increases if market conditions change significantly.
- Reliance on a single vendor for a decade may limit opportunities for adopting newer portfolio management technologies.
Positive Signals
- Awarded through full and open competition, indicating fair market pricing.
- Firm fixed price contract provides budget predictability.
- Long-term engagement ensures continuity of critical financial services.
Sector Analysis
This contract falls within the financial services sector, specifically portfolio management. Spending in this area is crucial for government agencies managing large asset pools to ensure financial stability and growth.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the 'sb' field is false. Further analysis would be needed to determine if small business participation was sought or subcontracted.
Oversight & Accountability
The Pension Benefit Guaranty Corporation is responsible for overseeing this contract. Standard oversight mechanisms for definitive contracts should be in place to ensure performance and compliance.
Related Government Programs
- Portfolio Management
- Pension Benefit Guaranty Corporation Contracting
- Pension Benefit Guaranty Corporation Programs
Risk Flags
- Long contract duration
- Potential for market shifts impacting fixed price
- Lack of small business participation noted
- Reliance on a single vendor for a decade
Tags
portfolio-management, pension-benefit-guaranty-corporation, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Pension Benefit Guaranty Corporation awarded $24.3 million to INVESCO TRUST COMPANY. IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is INVESCO TRUST COMPANY.
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 $24.3 million.
What is the period of performance?
Start: 2015-09-30. End: 2025-09-29.
What specific performance metrics are used to evaluate Invesco Trust Company's portfolio management effectiveness?
Performance metrics likely include investment returns against benchmarks, risk-adjusted returns, adherence to investment policies, and operational efficiency. The contract's Statement of Work (SOW) would detail these KPIs. Regular reporting and reviews by the Pension Benefit Guaranty Corporation are essential to monitor these metrics and ensure the contractor meets expectations.
What are the potential risks associated with a 10-year fixed-price contract for portfolio management?
A significant risk is that market conditions or investment strategies may evolve over 10 years, potentially making the fixed price suboptimal. If inflation is high or investment opportunities change dramatically, the government might overpay or miss out on better returns. Conversely, if market performance is poor, the contractor might struggle to meet targets within the fixed price.
How does this contract contribute to the PBGC's overall mission effectiveness?
This contract is vital for the PBGC's mission to protect retirement security by ensuring its assets are managed professionally and prudently. Effective portfolio management can help preserve and grow the assets needed to pay benefits to participants in terminated pension plans, thereby fulfilling the agency's core mandate.
Industry Classification
NAICS: Finance and Insurance › Other Financial Investment Activities › Portfolio Management
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: PBGC01RP140012
Offers Received: 20
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 11 GREENWAY PLZ STE 1000, HOUSTON, TX, 77046
Business Categories: Category Business, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $24,300,102
Exercised Options: $24,300,102
Current Obligation: $24,300,102
Actual Outlays: $5,228,819
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2015-09-30
Current End Date: 2025-09-29
Potential End Date: 2025-09-29 00:00:00
Last Modified: 2025-12-03
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