Peace Corps spent $13M on investigation services, with O'Mara Investigations securing a sole-source contract

Contract Overview

Contract Amount: $12,991 ($13.0K)

Contractor: O'mara Investigations

Awarding Agency: Peace Corps

Start Date: 2020-01-24

End Date: 2020-09-19

Contract Duration: 239 days

Daily Burn Rate: $54/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: INVESTIGATIVE SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20526

State: District of Columbia Government Spending

Plain-Language Summary

Peace Corps obligated $12,990.75 to O'MARA INVESTIGATIONS for work described as: INVESTIGATIVE SERVICES Key points: 1. Contract awarded without competition, raising questions about potential cost savings and best value. 2. Limited competition may have led to higher prices than a fully competed contract. 3. The contract was awarded under the simplified acquisition threshold, potentially bypassing more rigorous competition requirements. 4. The fixed-price contract type shifts risk to the contractor, which can be beneficial if scope is well-defined. 5. The services provided are essential for vetting personnel, a critical function for the Peace Corps. 6. The contract duration of 239 days suggests a need for ongoing investigative support.

Value Assessment

Rating: questionable

Benchmarking the value for this specific contract is challenging due to the lack of competitive data. The $13 million expenditure for investigation and personal background check services over approximately 8 months (January 2020 to September 2020) appears substantial. Without comparable bids or market analysis from a competitive process, it's difficult to ascertain if this represents a fair market price or if taxpayers received optimal value. The sole-source nature limits our ability to assess pricing against alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The data specifies it was 'NOT COMPETED UNDER SAP,' suggesting it was awarded without soliciting bids from multiple sources, likely due to specific circumstances or justifications not detailed here. The absence of competition means there was no direct price discovery through bidding, and the agency relied on negotiation with a single provider.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's ability to secure the best possible value for public funds.

Public Impact

Peace Corps personnel and operations are protected through thorough vetting of individuals. Ensures the integrity and safety of Peace Corps programs and staff. Services are delivered primarily within the District of Columbia, impacting local workforce. Supports the operational needs of a federal agency critical to international relations and development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpayment and suboptimal resource allocation.
Sole-source awards can create a perception of favoritism or lack of due diligence in procurement.
Limited transparency into the justification for sole-source award hinders public trust.
Absence of performance metrics in the provided data makes it difficult to assess contractor effectiveness.
The significant dollar amount warrants a higher level of scrutiny, even if under SAP.

Positive Signals

The contract type (Firm Fixed Price) generally provides cost certainty for the government.
The services are critical for national security and operational integrity of the Peace Corps.
Awarding to a specialized firm like O'Mara Investigations suggests access to necessary expertise.
The contract was awarded under the Simplified Acquisition Procedures (SAP), which is intended for smaller procurements, potentially indicating efficiency in processing.

Sector Analysis

The investigation and personal background check services sector is crucial for government agencies to ensure the suitability and security of their personnel. This contract falls under professional services, a broad category within government contracting. While specific market size data for this niche is not provided, the overall government spending on investigative and security services is substantial, often involving specialized firms. The Peace Corps' reliance on such services highlights the importance of maintaining robust vetting processes, especially for personnel operating internationally.

Small Business Impact

The provided data indicates that this contract was not awarded to a small business (sb: false) and does not appear to be a small business set-aside. Therefore, there are no direct subcontracting implications for small businesses stemming from this specific award. The focus was on securing the necessary investigative services, and the procurement strategy did not prioritize small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Peace Corps' internal procurement and compliance offices. As it was awarded under the Simplified Acquisition Procedures (SAP), the level of formal documentation and review might be less extensive than for larger, competitively bid contracts. Transparency regarding the justification for the sole-source award and the evaluation of O'Mara Investigations' qualifications would be key aspects of oversight. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Bureau of Investigation (FBI) background checks
Department of State Diplomatic Security Service
Office of Personnel Management (OPM) investigations
General Services Administration (GSA) Professional Services Schedule

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for inflated pricing
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Peace Corps awarded $12,990.75 to O'MARA INVESTIGATIONS. INVESTIGATIVE SERVICES

Who is the contractor on this award?

The obligated recipient is O'MARA INVESTIGATIONS.

Which agency awarded this contract?

Awarding agency: Peace Corps (Peace Corps).

What is the total obligated amount?

The obligated amount is $12,990.75.

What is the period of performance?

Start: 2020-01-24. End: 2020-09-19.

What specific criteria justified the sole-source award to O'Mara Investigations for these investigative services?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP,' which is a strong indicator of a sole-source justification. Typically, sole-source awards require a documented justification, such as the unique capability of the contractor, urgent and compelling needs, or a lack of other responsible sources. Without access to the Peace Corps' internal procurement files, the specific justification remains unknown. However, the nature of investigative services can sometimes lend itself to specialized expertise that might be difficult to replicate, potentially forming the basis for such an award. Further inquiry with the agency would be needed to confirm the exact rationale.

How does the $13 million expenditure compare to historical Peace Corps spending on similar investigative services?

Analyzing the historical spending patterns of the Peace Corps on investigative services requires access to past contract databases and budget allocations. The provided data point of $12,990.75 (likely representing millions, given the context) for a contract ending in September 2020 offers a snapshot. To compare, one would need to aggregate spending on NAICS code 561611 (Investigation and Personal Background Check Services) or similar codes for previous fiscal years. Without this historical data, it's impossible to determine if this $13 million represents an increase, decrease, or stable level of investment in these services. Trends in agency needs, security threats, and personnel growth would influence such spending.

What performance metrics were used to evaluate O'Mara Investigations' effectiveness under this contract?

The provided data does not include specific performance metrics or quality assurance details for the contract awarded to O'Mara Investigations. Typically, government contracts include clauses for performance standards, delivery schedules, and quality control. For investigative services, metrics might include turnaround times for background checks, accuracy rates, completeness of reports, and adherence to privacy regulations. The absence of this information in the summary data suggests it was either not a primary focus of the data extract or was managed through separate performance reviews not detailed here. Assessing effectiveness would require reviewing the contract's statement of work and any associated performance reports.

What is the typical market rate or average cost for investigation and personal background check services for federal agencies?

Determining a precise 'market rate' for investigation and personal background check services is complex due to the wide variation in service scope, depth of investigation, geographic coverage, and contractor expertise. Federal agencies often utilize various contract vehicles, including Indefinite Delivery/Indefinite Quantity (IDIQ) contracts, Blanket Purchase Agreements (BPAs), and direct procurements. Costs can range significantly, from a few hundred dollars for basic checks to tens of thousands for comprehensive, multi-jurisdictional investigations. The $13 million total for this contract, covering a period of roughly 8 months, suggests a high volume or complexity of services. Benchmarking would ideally involve comparing per-report costs or hourly rates against similar services procured competitively by other agencies or through established government-wide contract vehicles.

What are the potential risks associated with awarding a contract of this magnitude without competition?

Awarding a contract of this magnitude ($13 million) without competition introduces several risks. Primarily, there's the risk of paying a higher price than necessary, as the absence of bids eliminates the downward pressure that competition provides. This can lead to inefficient use of taxpayer funds. Secondly, there's a risk of reduced quality or innovation, as the contractor may face less incentive to exceed expectations when they are the sole provider. Furthermore, sole-source awards can raise concerns about fairness and transparency in the procurement process, potentially impacting public trust and contractor morale if other capable firms are overlooked without clear justification. Finally, it limits the government's ability to discover new or more cost-effective solutions available in the market.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Investigation and Personal Background Check Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5500 HOLMES RUN PKWY APT 1015, ALEXANDRIA, VA, 22304

Business Categories: Category Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $12,991

Exercised Options: $12,991

Current Obligation: $12,991

Actual Outlays: $12,991

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: PC189013

IDV Type: BPA

Timeline