DOJ's FBI awards $9.37M BPA for background investigations, with 213 days duration

Contract Overview

Contract Amount: $9,372,946 ($9.4M)

Contractor: Protection Strategies Inc

Awarding Agency: Department of Justice

Start Date: 2025-03-30

End Date: 2025-10-29

Contract Duration: 213 days

Daily Burn Rate: $44.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: BPA FOR BACKGROUND INVESTIGATIONS (BIS) AND ADJUDICATIONS

Place of Performance

Location: KNOXVILLE, KNOX County, TENNESSEE, 37932

State: Tennessee Government Spending

Plain-Language Summary

Department of Justice obligated $9.4 million to PROTECTION STRATEGIES INC for work described as: BPA FOR BACKGROUND INVESTIGATIONS (BIS) AND ADJUDICATIONS Key points: 1. Value for money appears fair given the scope of background investigations and adjudications required. 2. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 3. Risk indicators are moderate, primarily related to the sensitive nature of background checks and potential delays. 4. Performance context is within the standard for investigative services, with a focus on timely and accurate adjudications. 5. Sector positioning is within the security and investigative services industry, a critical function for federal agencies.

Value Assessment

Rating: fair

The contract's value of $9.37 million for background investigations and adjudications over approximately 7 months seems reasonable. Benchmarking against similar large-scale investigation contracts is difficult without more specific service details. However, the Time and Materials (T&M) pricing structure can sometimes lead to cost overruns if not closely managed, which warrants attention.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters competitive pricing and allows the government to select the best value offering. The open competition suggests a healthy market for these services.

Taxpayer Impact: Taxpayers benefit from a competitive process that is intended to drive down costs and ensure the government receives quality services at a fair price.

Public Impact

Federal employees and contractors requiring security clearances will benefit from these services. The services delivered include comprehensive background investigations and adjudications to determine suitability and eligibility. The geographic impact is national, supporting the FBI's mission across various locations. Workforce implications include potential employment opportunities for investigators and adjudicators within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation under the Time and Materials (T&M) pricing model if not diligently monitored.
The sensitive nature of background investigations requires robust data security and privacy protocols.
Timeliness of adjudications can be critical for national security and personnel onboarding, posing a performance risk.

Positive Signals

Awarded under full and open competition, suggesting a competitive market and potential for good value.
The contract duration is relatively short (approx. 7 months), allowing for periodic re-evaluation of needs and performance.
The FBI's selection of a contractor implies a level of confidence in their capabilities for this critical function.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on investigative and security services. The market for background investigations is substantial, driven by federal requirements for personnel security and national security. Comparable spending benchmarks would typically be found within the broader government contracting data for similar investigation and adjudication services.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses are unlikely to be direct prime contractors on this specific award. However, opportunities may exist for small businesses to subcontract with the prime contractor, Protection Strategies Inc., depending on the prime's subcontracting plan and the specific services required.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Bureau of Investigation (FBI), the contracting agency. Accountability measures are typically embedded in the contract terms, including performance standards, reporting requirements, and payment schedules. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly disclosed. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Bureau of Investigation (FBI) Operations
Department of Justice (DOJ) Contracts
Background Investigation Services
Personnel Security Adjudications
Government-wide Acquisition Contracts (GWACs) for professional services

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Data security and privacy risks associated with sensitive investigation information.
Performance risks related to timeliness of investigations and adjudications.
Dependence on contractor's personnel quality and availability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $9.4 million to PROTECTION STRATEGIES INC. BPA FOR BACKGROUND INVESTIGATIONS (BIS) AND ADJUDICATIONS

Who is the contractor on this award?

The obligated recipient is PROTECTION STRATEGIES INC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $9.4 million.

What is the period of performance?

Start: 2025-03-30. End: 2025-10-29.

What is the historical spending pattern for background investigation services by the FBI?

Historical spending on background investigation services by the FBI, and the broader federal government, has been substantial and consistent due to ongoing personnel security requirements. While specific figures for the FBI's background investigation BPA alone are not detailed here, agencies like the Office of Personnel Management (OPM) previously managed vast portions of this work, spending billions annually. The trend has been towards consolidating these services and improving efficiency. The current award of $9.37 million for a 7-month period suggests a significant, but not unprecedented, level of investment for specialized investigative needs. Analyzing past contract awards for similar services, including the number of bidders and final award values, would provide a clearer picture of spending trends and cost-effectiveness over time.

How does the per-unit cost of these background investigations compare to industry benchmarks?

Determining a precise per-unit cost for these background investigations is challenging without more granular data on the types and depth of investigations performed under this BPA. Background checks can range from simple record checks to extensive, multi-scope investigations requiring significant fieldwork and analysis. Industry benchmarks for a single background investigation can vary widely, from a few hundred dollars for basic checks to several thousand dollars for top-secret clearances with extensive fieldwork. Given the total award of $9.37 million and a duration of approximately 7 months, the FBI is likely procuring a substantial volume of investigations. A rough estimate, assuming the entire $9.37 million is spent over the 213-day period, would yield a daily burn rate of approximately $44,014. Without knowing the number of investigations conducted daily, a direct per-unit comparison to market rates remains speculative. The Time and Materials (T&M) contract type further complicates benchmarking, as costs are tied to labor hours and direct costs incurred.

What is the track record of Protection Strategies Inc. in performing similar federal contracts?

Protection Strategies Inc. (PSI) has a history of performing federal contracts, particularly in areas related to security, investigations, and protective services. Information available through federal procurement databases often shows PSI as a recipient of various contracts across different agencies, including defense and law enforcement. Their experience typically includes background investigations, physical security, and personnel vetting. While this specific BPA award is for a significant amount, PSI's past performance on smaller or similar contracts would be a key factor in the FBI's decision-making process. A thorough review of their contract history, including past performance evaluations and any reported issues, would be necessary to fully assess their track record for this particular requirement.

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

The primary risks associated with this contract revolve around the sensitive nature of background investigations and adjudications, potential performance delays, and cost management under a Time and Materials (T&M) pricing structure. Sensitive data handling requires stringent cybersecurity and privacy protocols to prevent breaches. Delays in investigations or adjudications can impact national security and operational readiness. The T&M model, while flexible, necessitates robust oversight to prevent cost overruns. Mitigation strategies likely include strict adherence to data security standards (e.g., NIST guidelines), performance metrics tied to timeliness and accuracy, regular progress reviews, and detailed cost tracking and reporting requirements within the contract terms. The FBI's contracting officers and technical monitors play a crucial role in overseeing these aspects.

How does the competition level for this contract influence its value for taxpayers?

The contract was awarded under 'full and open competition,' which is generally beneficial for taxpayers. This means that all responsible sources were permitted to submit a bid, fostering a competitive environment. When multiple qualified vendors vie for a contract, they are incentivized to offer competitive pricing and superior quality to win the award. This process helps ensure that the government is not overpaying for services and receives the best possible value. While the exact number of bidders isn't specified, the 'full and open' designation suggests that the government had a range of options, increasing the likelihood of a cost-effective outcome compared to sole-source or limited competition scenarios.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 9717 COGDILL RD, KNOXVILLE, TN, 37932

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $9,372,946

Exercised Options: $9,372,946

Current Obligation: $9,372,946

Actual Outlays: $9,373,797

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 15F06719A0003512

IDV Type: BPA

Timeline