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. GAO summarized this report in testimony before Congress; see: Pension Benefit Guaranty Corporation: Contract Management Needs Improvement by Barbara D. Bovbjerg, Associate Director for Education, Workforce and Income Security Issues, before the Senate Special Committee on Small Business and the Senate Committee on Small Business. GAO/T-HEHS-00-199, Sept. 21 (15 pages).
