Any discussion about the safety of the TSP has to include a discussion of the key vendors to TSP.
As you may recall, a number of fuctions of the TSP were moved away from government employees, to outside contractors over the last few years. (Thank you G.W. (NOT!!) )
Here are the list of key contractors-from the last Meeting Minutes of the FTRIB:
http://www.frtib.gov/pdf/minutes/MM-2008Jul-Att3.pdf
Of course, we all know about Barclays-
But here are other key players:
SI International-
SI International (SI) is the prime contractor for operating both FRTIB data
centers, operating and maintaining the TSP record keeping system, providing incoming mail, data entry and imaging support, and operating the Clintwood Call Center. SI also administers the accounting, court ordered payments, death benefits, and payroll office liaison functions. SI relies on subcontracting support as follows: Jacob and Sundstrum, Inc. for systems programming support; Switch
& Data for our Reston VA Data Center space; Sungard Workflow Solutions for some TSP record keeping support, and Sungard EXP for incoming mail, data entry and imaging
support.
News this week:
http://www.bizjournals.com/washington/stories/2008/08/25/daily29.html?ana=from_rss
Wednesday, August 27, 2008 - 9:37 AM EDT
SI International sold for $511M
Washington Business Journal - by Tucker Echols Staff Reporter
SI International Inc., which gets virtually all of its business from the federal government, has agreed to be acquired by a British contractor.
Serco Inc., the U.S. division of London-based Serco Group plc, has agreed to acquire Reston-based SI International for $32 per share in cash, or approximately $423 million. Serco will also assume SI International's debt of approximately $87 million making the total value of the deal approximately $511 million.
Federal government contract revenue represented 99 percent of SI International’s second quarter revenue of $118.8 million. SI International has 4,500 employees, nearly 80 percent who hold security clearances. Its IT clients include the U.S. Air Force, Army, Department of Defense, and 15 major federal civilian agencies, including the Department of Homeland Security.
Serco Group plc, with $6 billion in annual revenue, is a management services company with military, government and commercial customers. The North American unit, Serco Inc., is based in Reston, VA, providing a variety of services to federal, state and local government and commercial customers.
Serco and SI International would have had combined revenue of approximately $1.3 billion in 2007 and 11,500 employees serving government clients. The transaction is expected to close by the end of 2008, subject to a vote of SI International's shareholders and regulatory approvals.
"We have had a tremendous track record during our ten-year history and are very proud of the leading position we have achieved in the government services sector,” said Brad Antle, president and CEO of SI International. “Now is the right time to go to the next level so the services we provide to our customers are enhanced by the scale and global reach that Serco can offer."
The per share price represents a premium of 40 percent over SI International closing stock price on Tuesday, August 26. In early Wednesday trading, SI International shares (NASDAQ: SINT) rose $8.11 to $31.00.