DOJ's AFISS2 contract awarded to Five Stones Intelligence for $33.5M, focusing on investigative support services

Contract Overview

Contract Amount: $33,547,612 ($33.5M)

Contractor: Five Stones Intelligence, Inc.

Awarding Agency: Department of Justice

Start Date: 2023-07-01

End Date: 2026-09-30

Contract Duration: 1,187 days

Daily Burn Rate: $28.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: LABOR HOURS

Sector: Other

Official Description: ASSET FORFEITURE & INVESTIGATIVE SUPPORT (AFISS2)

Place of Performance

Location: CLEVELAND, BRADLEY County, TENNESSEE, 37311

State: Tennessee Government Spending

Plain-Language Summary

Department of Justice obligated $33.5 million to FIVE STONES INTELLIGENCE, INC. for work described as: ASSET FORFEITURE & INVESTIGATIVE SUPPORT (AFISS2) Key points: 1. The contract value of $33.5 million over its period of performance represents a significant investment in investigative support. 2. Competition dynamics for this contract were 'Full and Open Competition After Exclusion of Sources', indicating a potentially competitive process but with specific source exclusions. 3. Risk indicators are moderate, with the contract type being 'Delivery Order' under a larger IDIQ, suggesting phased execution and potential for scope adjustments. 4. Performance context is tied to the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) needs for investigative and personal background check services. 5. Sector positioning is within the professional services sector, specifically focusing on security and investigation services for federal law enforcement. 6. The contract's duration of approximately 3.2 years (1187 days) allows for sustained support but requires ongoing performance monitoring.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or detailed cost breakdowns. The award amount of $33.5 million for investigative support services over nearly four years suggests a substantial commitment. However, without comparable contract data for similar scope and scale within the federal government, a precise value-for-money assessment is difficult. The pricing structure, based on labor hours, necessitates careful monitoring to ensure efficient resource utilization and prevent cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. This indicates that while the competition was intended to be broad, certain sources were excluded from consideration. The number of bidders is not explicitly stated in the provided data, but the 'exclusion of sources' suggests a potentially narrowed competitive pool compared to a truly unrestricted full and open competition. This approach can sometimes be used when specific capabilities or security clearances are required, but it may limit the breadth of innovative solutions and potentially impact price discovery.

Taxpayer Impact: Taxpayers benefit from a competitive process, but the exclusion of certain sources might mean that the government did not secure the absolute lowest price achievable if all potential qualified vendors had been allowed to bid.

Public Impact

The primary beneficiaries of this contract are the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) agents and investigators who will receive enhanced support. Services delivered include investigation and personal background check services, crucial for law enforcement operations. The geographic impact is likely nationwide, supporting ATF operations across the United States. Workforce implications include the potential for employment opportunities within Five Stones Intelligence, Inc. and its subcontractors, as well as supporting the operational capacity of federal law enforcement personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition method warrants scrutiny to ensure it was justified and did not unduly restrict competition.
Labor hour pricing models can be susceptible to scope creep and inefficient resource allocation if not rigorously managed.
The specific nature of investigative services requires robust quality assurance to ensure accuracy and reliability of information obtained.

Positive Signals

The contract is awarded to a single entity, Five Stones Intelligence, Inc., suggesting a focused relationship for service delivery.
The contract duration allows for continuity of essential investigative support services for the ATF.
The award is a Delivery Order under a larger IDIQ, which implies a structured procurement process with pre-defined terms and conditions.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on investigation and security services. The market for these services is competitive, with numerous firms offering specialized capabilities to government agencies. The total federal spending on investigation and security services is substantial, driven by national security, law enforcement, and intelligence requirements. This AFISS2 contract represents a portion of the ATF's investment in maintaining its operational effectiveness through outsourced expertise.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The prime contractor, Five Stones Intelligence, Inc., may choose to subcontract portions of the work, and opportunities for small businesses could arise through those arrangements, but this is not mandated by the contract's set-aside status.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Justice, specifically the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) contracting and program officials. As a delivery order under a larger IDIQ, the underlying contract likely has established oversight mechanisms. Accountability measures will be tied to performance metrics and adherence to the terms and conditions of the contract. Transparency is generally facilitated through federal procurement databases, though specific operational details of investigative support may be sensitive.

Related Government Programs

Federal Law Enforcement Support Services
Investigative Services Contracts
Background Check Services
Department of Justice Contracts
ATF Procurement

Risk Flags

Competition Method Justification
Labor Hour Cost Control
Performance Monitoring for Investigative Services
Data Security and Handling Protocols

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $33.5 million to FIVE STONES INTELLIGENCE, INC.. ASSET FORFEITURE & INVESTIGATIVE SUPPORT (AFISS2)

Who is the contractor on this award?

The obligated recipient is FIVE STONES INTELLIGENCE, INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Bureau of Alcohol, Tobacco, Firearms and Explosives Acquisition and Property Management Division).

What is the total obligated amount?

The obligated amount is $33.5 million.

What is the period of performance?

Start: 2023-07-01. End: 2026-09-30.

What is the track record of Five Stones Intelligence, Inc. in performing similar federal contracts?

Information regarding the specific track record of Five Stones Intelligence, Inc. in performing federal contracts, particularly those involving investigative and background check services, is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous government engagements. Federal procurement databases and contractor performance systems (like the Contractor Performance Assessment Reporting System - CPARS) would be the primary sources for this information. Understanding their history is crucial for evaluating their capability to successfully execute the AFISS2 contract and manage associated risks.

How does the awarded amount compare to similar federal contracts for investigative support?

Direct comparison of the $33.5 million award for AFISS2 to similar federal contracts is challenging without access to a broader dataset of comparable procurements. Factors such as the specific scope of services (e.g., types of investigations, depth of background checks), contract duration (1187 days), labor categories, geographic coverage, and the specific agency's requirements significantly influence contract values. However, for large-scale, multi-year investigative support contracts within federal law enforcement, this amount appears to be within a reasonable range, assuming the scope and duration are commensurate. A detailed benchmark analysis would require identifying contracts with highly similar characteristics.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks associated with this contract include potential cost overruns due to the labor-hour pricing model, performance deficiencies in delivering accurate and timely investigative support, and security risks inherent in handling sensitive information. Mitigation strategies likely involve robust contract oversight by the ATF, including regular performance reviews, audits of labor hours, and strict adherence to security protocols. The 'exclusion of sources' in the competition method could also be a risk if it limited the pool of highly qualified vendors, potentially impacting innovation or cost-effectiveness. The contract's phased delivery order structure may also allow for early identification and mitigation of performance issues.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring value for taxpayers?

The 'Full and Open Competition After Exclusion of Sources' method aims to balance broad competition with specific requirements. While it is more competitive than a sole-source award, the exclusion of certain sources means that the government may not be considering all potentially capable vendors. This could lead to a less competitive environment than a truly unrestricted full and open competition, potentially resulting in higher prices or less optimal solutions. The effectiveness for taxpayers hinges on whether the exclusions were strictly necessary and well-justified, and if the remaining competitive pool still provided sufficient price pressure and innovation.

What is the historical spending pattern for AFISS2 or similar investigative support contracts by the ATF?

Historical spending patterns for the AFISS2 program or similar investigative support contracts by the ATF are not detailed in the provided data. To assess this, one would need to examine past contract awards for these services, including their values, durations, and the contractors involved. Analyzing trends in spending over time would reveal whether the ATF's investment in such support is increasing, decreasing, or remaining stable. Understanding historical spending also helps in evaluating the current $33.5 million award in the context of long-term resource allocation and program evolution.

What are the implications of the 'Delivery Order' contract type for program management and cost control?

The 'Delivery Order' (DO) contract type, typically issued under an Indefinite Delivery Indefinite Quantity (IDIQ) contract, allows the government to order specific goods or services up to a certain ceiling amount over a defined period. For program management, this offers flexibility in acquiring services as needed, aligning with ATF's operational demands. For cost control, each DO is usually priced individually, allowing for negotiation or adherence to pre-established rates. However, the overall contract ceiling must be managed, and the cumulative spending across all DOs should not exceed the IDIQ limit. Effective oversight is crucial to ensure that individual DOs are justified and that the total expenditure remains within budget and provides good value.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 15A00023Q00000062

Offers Received: 6

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 1616 H ST NW, WASHINGTON, DC, 20006

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $53,542,434

Exercised Options: $33,547,612

Current Obligation: $33,547,612

Actual Outlays: $25,816,451

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15JPSS23D00000067

IDV Type: IDC

Timeline