OPM's $247M background investigation contract awarded to CACI Premier Technology, LLC, for services in Virginia

Contract Overview

Contract Amount: $247,436,692 ($247.4M)

Contractor: CACI Premier Technology, LLC

Awarding Agency: Office of Personnel Management

Start Date: 2017-10-31

End Date: 2018-09-30

Contract Duration: 334 days

Daily Burn Rate: $740.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 24362018F0104-TASK ORDER #2 11/01/2017-10/30/2018 BACKGROUND INVESTIGATION SERVICES

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Office of Personnel Management obligated $247.4 million to CACI PREMIER TECHNOLOGY, LLC for work described as: 24362018F0104-TASK ORDER #2 11/01/2017-10/30/2018 BACKGROUND INVESTIGATION SERVICES Key points: 1. The contract value of $247 million for background investigation services represents a significant investment in ensuring personnel security. 2. Competition dynamics for this contract are crucial for ensuring fair pricing and optimal service delivery. 3. Risk indicators associated with background investigations include data integrity, timeliness, and potential for human error. 4. Performance context is vital, as the quality of investigations directly impacts national security and agency trust. 5. This contract positions CACI Premier Technology, LLC as a key provider within the government's personnel security sector.

Value Assessment

Rating: good

The contract value of $247 million for background investigation services over approximately one year appears substantial. Benchmarking against similar large-scale background investigation contracts would be necessary for a precise value-for-money assessment. However, given the critical nature of these services, the pricing is likely competitive within the specialized market for federal background checks. The firm fixed-price structure suggests a degree of cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders likely had the opportunity to submit proposals. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The agency's choice of full and open competition suggests confidence in the market's ability to provide qualified vendors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the chances of securing the best possible price and quality for essential government services, preventing potential overspending associated with less competitive methods.

Public Impact

Federal agencies benefit from enhanced personnel security through thorough background investigations. Services delivered include comprehensive background checks to assess suitability and trustworthiness of individuals. The geographic impact is primarily focused on Virginia, where the contractor is based and services are likely performed. Workforce implications include employment opportunities for investigators and support staff within CACI Premier Technology, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays in investigation timelines impacting agency hiring or security clearances.
Ensuring the consistent quality and accuracy of investigation reports across all cases.
Data security and privacy of sensitive personal information collected during investigations.

Positive Signals

Award to an established contractor with a track record in government services.
Firm fixed-price contract provides cost predictability for the agency.
Full and open competition suggests a robust market response and potential for competitive pricing.

Sector Analysis

The background investigation services sector is a critical component of national security and personnel management for government agencies. This market is characterized by specialized firms that possess the expertise and clearances necessary to conduct thorough vetting. Spending in this sector is consistently high due to the ongoing need to investigate federal employees, contractors, and applicants. Comparable spending benchmarks would involve looking at other large-scale contracts for similar services awarded by agencies like the Department of Defense or the Department of Homeland Security.

Small Business Impact

While this contract was awarded to CACI Premier Technology, LLC, and there is no explicit indication of a small business set-aside, the prime contractor may engage small businesses for subcontracting opportunities. The extent of small business participation would depend on CACI's subcontracting plan and the specific requirements of the background investigation services. A robust subcontracting program could significantly benefit the small business ecosystem by providing them with valuable contract experience and revenue.

Oversight & Accountability

The Office of Personnel Management (OPM) is responsible for overseeing this contract. Accountability measures are likely embedded within the contract's performance standards and reporting requirements. Transparency is generally maintained through contract award notices and public reporting, though specific investigation details remain confidential. Inspector General jurisdiction would apply to any potential fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Employee Background Investigations
Personnel Security Services
Government Contracting
National Security Services

Risk Flags

Timeliness of investigations
Data accuracy and integrity
Contractor performance monitoring
Data security and privacy

Frequently Asked Questions

What is this federal contract paying for?

Office of Personnel Management awarded $247.4 million to CACI PREMIER TECHNOLOGY, LLC. 24362018F0104-TASK ORDER #2 11/01/2017-10/30/2018 BACKGROUND INVESTIGATION SERVICES

Who is the contractor on this award?

The obligated recipient is CACI PREMIER TECHNOLOGY, LLC.

Which agency awarded this contract?

Awarding agency: Office of Personnel Management (Office of Personnel Management).

What is the total obligated amount?

The obligated amount is $247.4 million.

What is the period of performance?

Start: 2017-10-31. End: 2018-09-30.

What is CACI Premier Technology, LLC's track record with federal background investigation contracts?

CACI Premier Technology, LLC has a significant history of performing federal contracts, including those related to information technology, intelligence, and security services. While specific details on their past performance solely on background investigation contracts of this magnitude require deeper data mining, their general experience with government agencies suggests a capacity to handle complex requirements. Agencies often award contracts to vendors with a proven ability to meet stringent performance metrics, security protocols, and reporting standards. A review of past performance evaluations and contract awards would provide a more granular understanding of their specific successes and challenges in delivering similar services.

How does the value of this contract compare to similar background investigation contracts awarded by OPM or other agencies?

The $247 million contract value for background investigation services awarded to CACI Premier Technology, LLC is substantial, reflecting the scale and complexity of federal vetting requirements. To benchmark this value, one would compare it against other large-scale contracts for similar services, such as those awarded by the Defense Counterintelligence and Security Agency (DCSA) or other federal entities. The duration of the contract (approximately one year, based on the provided dates) also influences the annual spending rate. Without direct comparative data on per-investigation costs or annual spending for equivalent contracts, it's challenging to definitively assess if this represents optimal value. However, the full and open competition suggests an effort to achieve competitive pricing.

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

Key risks for this contract include potential delays in investigation timelines, which could impact agency hiring and security clearance processes. Ensuring the consistent quality and accuracy of investigation reports across a high volume of cases is another significant risk. Furthermore, the handling and security of sensitive personal information collected during investigations present data privacy and security risks. Mitigation strategies likely involve stringent performance metrics, quality assurance processes, regular reporting, and robust cybersecurity measures mandated by the contract. The firm fixed-price nature also shifts some financial risk to the contractor.

What is the expected effectiveness of the services provided under this contract in enhancing federal personnel security?

The effectiveness of these background investigation services is expected to be high, as they are fundamental to ensuring that individuals in sensitive positions are trustworthy and do not pose a security risk. Thorough investigations help prevent insider threats, espionage, and other security breaches. The quality of the reports generated under this contract directly informs hiring decisions and security clearance adjudications. By contracting with a capable provider like CACI Premier Technology, LLC, OPM aims to maintain the integrity of the federal workforce and protect national security interests through a systematic and comprehensive vetting process.

What are the historical spending patterns for background investigation services by the Office of Personnel Management?

Historical spending patterns for background investigation services by OPM, and more broadly by the federal government, have generally been significant and consistent due to the continuous need for vetting. Prior to the establishment of the DCSA, OPM was a primary provider of these services. Analyzing past OPM budgets and contract awards for background checks would reveal trends in spending volume, average cost per investigation, and the types of services procured. This contract's value of $247 million for a single task order suggests a substantial portion of OPM's or the government's overall background investigation budget is allocated here, reflecting the ongoing demand for these critical security functions.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc (UEI: 045534641)

Address: 14370 NEWBROOK DRIVE, CHANTILLY, VA, 20151

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

Financial Breakdown

Contract Ceiling: $870,219,269

Exercised Options: $870,219,269

Current Obligation: $247,436,692

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $29,500

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: OPM1516D0001

IDV Type: IDC

Timeline