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Procurement Market Intelligence Report

401(k) Administration Services
Sourcing Guide & Market Trends

Comprehensive intelligence for making smart purchasing decisions

Learn about actual and potential costs

How much should I pay for 401(k) Administration Services?

What is the average price of 401(k) Administration Services?

This procurement report includes pricing information to help you purchase 401(k) Administration Services. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.

Has the price of 401(k) Administration Services been rising or falling?

Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.

I’m not ready to purchase 401(k) Administration Services yet. Will I pay more if I wait too long?

We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.

What other costs are associated with purchasing 401(k) Administration Services?

Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for 401(k) Administration Services with a reduced risk of unexpected costs.

See how we display average pricing information, trends and market data.

Find the vendor to meet your needs

Where can I purchase ?

The top four 401(k) administration services suppliers collectively earn less than 30.0% of total market revenue, reflecting low market share concentration. High fragmentation derives from the market's low barriers to entry, whereby vendors require a small amount of capital to establish business. Thus, low barriers to entry heighten competition between... Subscribe to learn more.

Questions to ask potential suppliers

How can I gain leverage during negotiations?

Quality Assurance

How does your firm maintain quality? What quality assurance measures do you have in place?

What type of entity would be in charge of my company's 401(k) plan? Would it be a team of multiple people or a single person? Are they fiduciaries?

What type of training do you provide to your clients to ensure they can make full use of your systems?

What procedures do you have in place for measuring client satisfaction? Participant satisfaction?

What index-based funds do you offer in our plan?

What is the average "portfolio turnover" for the funds in our plan?

Reporting Practices

What are the standard reports you offer to clients? Can you provide examples of them?

What customizable reports do you offer to clients? Do you have any examples?

What documents do you provide directly to plan participants?

On what types of media can you produce your reports?

What is the average amount of time it takes to furnish reports after the reporting period has ended?

System Capabilities

What types of hardware and software do you use to keep records and administer your clients' 401(k) plans?

How do you ensure your software remains up to date with regulations and client needs? Are you in charge of its development, or does another firm handle development?

How often are your systems upgraded?

What systems do you have in place to recover files in the case of a disaster?

What types of systems do you offer to plan participants to access information about their 401(k) plans?

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Key elements for every RFP

What should my RFP include?

Project Budget

Buyers should explicitly highlight the number of employees and value of assets of their current plan as pricing will be centered around these factors.

Buyers should state expectations about related fees.

Buyers can consult the Benchmark Price and Total Cost of Ownership sections of this report to estimate what fees they should be willing to pay for services.

Selection Criteria

Buyers should consider a vendor’s experience and past performances when managing 401(k) plans.

Buyers should evaluate the scope of services that a vendor promises to supply.

Buyers should evaluate how a vendor’s implementation plan aligns with their own operating needs.

Buyers should verify each supplier’s financial stability.

For a detailed list of key selection criteria, buyers should reference the Buying-Decision Scorecard section of this report.

Project Schedule

Buyers should outline the timeline for the RFP and project.

Buyers need to include when the RFP documents become available, when the deadline is for written questions, when proposals are due, when interviews will take place and when award information will be available.

Buyers should also include any other relevant benchmark dates, such as the desired date of implementation.

Evaluate major factors to mitigate risk

How risky is the supply chain?

Supply chain risk for 401(k) administration services is low. Vendors of these services source inputs from a multitude of upstream suppliers, including securities brokerage firms, portfolio management firms, commercial real estate lessors and computer and packaged software wholesalers. Of these upstream suppliers, portfolio managers impart the greatest amount of risk... Subscribe to learn more.