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Pension Benefit Guaranty Corporation: Contract Management Needs Improvement

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Report Type Reports and Testimonies
Report Date Sept. 21, 2000
Report No. T-HEHS-00-199
Subject
Summary:

The Pension Benefit Guaranty Corporation (PBGC) sought to address a backlog of hundreds of thousands of pending benefit determinations by contracting for services. However, PBGC has not linked its contracting decisions to longer-term strategic planning considerations. Also, PBGC's procurement planning and execution processes do not stimulate competition for contract awards and they do not have sufficient rationale for contracts awarded. PBGC also does not adequately monitor the performance of contractors in the field and has a weak quality assurance review process. The broader management issues and day-to-day operational problems that GAO identified in PBGC's contracting practices could affect its ability to efficiently and cost-effectively serve the financial needs of millions of pension plan participants. This testimony summarizes the September report, GAO/HEHS-00-130.

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