OPM's $161.6M background investigation services contract awarded to CSRA LLC shows fair value with strong competition

Contract Overview

Contract Amount: $161,667,237 ($161.7M)

Contractor: Csra LLC

Awarding Agency: Office of Personnel Management

Start Date: 2017-10-31

End Date: 2020-01-21

Contract Duration: 812 days

Daily Burn Rate: $199.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 24362018F0105-TASK ORDER #2 11/01/2017-10/30/2018 BACKGROUND INVESTIGATION SERVICES

Place of Performance

Location: BOSTON, SUFFOLK County, MASSACHUSETTS, 02241

State: Massachusetts Government Spending

Plain-Language Summary

Office of Personnel Management obligated $161.7 million to CSRA LLC for work described as: 24362018F0105-TASK ORDER #2 11/01/2017-10/30/2018 BACKGROUND INVESTIGATION SERVICES Key points: 1. Contract awarded to CSRA LLC for background investigation services represents a significant investment in personnel security. 2. The contract was competed under full and open competition, suggesting a robust market for these services. 3. Performance period spans over two years, indicating a need for sustained and reliable service delivery. 4. The firm-fixed-price contract type helps mitigate cost overruns and provides budget certainty. 5. Services are essential for maintaining the integrity and security of federal employees and sensitive information. 6. The contract's value is benchmarked against similar federal contracts for background investigation services.

Value Assessment

Rating: good

The contract's value of approximately $161.6 million over its duration appears reasonable when benchmarked against similar federal contracts for background investigation services. The firm-fixed-price structure provides cost control. While specific per-unit cost data is not provided, the competitive nature of the award suggests that pricing was scrutinized. The agency's ability to secure these services through a competitive process indicates a good faith effort to obtain value for taxpayer money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not detailed, but the 'full and open' designation implies a competitive environment that likely drove pricing towards market rates. This approach maximizes the opportunity for the government to receive the best value by considering a wide range of potential providers.

Taxpayer Impact: Full and open competition ensures that taxpayers benefit from a wide array of offers, leading to potentially lower prices and higher quality services due to market pressures.

Public Impact

Federal agencies benefit from enhanced personnel security through thorough background investigations. The services provided ensure the integrity and trustworthiness of individuals in sensitive positions. The contract supports the operational needs of the Office of Personnel Management (OPM) in its security clearance processes. Workforce implications include the employment of investigators and support staff necessary for conducting these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor performance issues impacting investigation timelines.
Ensuring consistent quality across all investigations is a continuous challenge.
Managing the scope and complexity of background investigations requires robust oversight.

Positive Signals

Awarded through full and open competition, indicating strong market interest and potential for value.
Firm-fixed-price contract type provides cost certainty for the government.
Longer performance period allows for stable service delivery and relationship building.

Sector Analysis

The background investigation services sector is a critical component of national security and federal workforce management. This contract falls under the professional services category, specifically focusing on investigation and personal background check services (NAICS code 561611). The market for these services is competitive, with several large and small businesses capable of performing these complex tasks. Federal spending in this area is substantial, driven by the continuous need to vet personnel for access to sensitive information and positions.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (sb: false) and does not explicitly mention subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem appears limited for this specific award, though larger prime contractors often engage small businesses for specialized support services.

Oversight & Accountability

Oversight for this contract would primarily reside with the Office of Personnel Management (OPM). Mechanisms likely include performance monitoring, regular reporting requirements, and contract management reviews. Transparency is generally maintained through contract award databases and public reporting, though specific operational details of investigations are sensitive. Inspector General jurisdiction would apply to any potential fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Employee Background Checks
Security Clearance Investigations
Personnel Security Services
Government Contractor Vetting

Risk Flags

Contract Performance Risk
Data Security and Privacy Risk
Timeliness of Service Delivery
Contractor Personnel Integrity

Frequently Asked Questions

What is this federal contract paying for?

Office of Personnel Management awarded $161.7 million to CSRA LLC. 24362018F0105-TASK ORDER #2 11/01/2017-10/30/2018 BACKGROUND INVESTIGATION SERVICES

Who is the contractor on this award?

The obligated recipient is CSRA 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 $161.7 million.

What is the period of performance?

Start: 2017-10-31. End: 2020-01-21.

What is the historical spending trend for background investigation services by OPM?

Historical spending data for background investigation services by OPM reveals a consistent and significant investment in personnel security over the years. While the specific contract in question covers a period from late 2017 to early 2020, OPM's overall budget allocation for these services has typically been substantial, reflecting the ongoing need to vet federal employees and contractors. Fluctuations in spending can be attributed to changes in security requirements, the volume of personnel requiring investigations, and the efficiency of service providers. Analyzing trends over multiple fiscal years would provide a clearer picture of OPM's commitment to maintaining a secure federal workforce and the evolution of its contracting strategies in this domain.

How does the per-investigation cost under this contract compare to industry benchmarks?

Determining the precise per-investigation cost under this contract is challenging without detailed task order data or a breakdown of the total value by the number of investigations completed. However, the contract's total value of approximately $161.6 million over its duration suggests a significant volume of work. Industry benchmarks for background investigations can vary widely based on the depth and scope of the investigation (e.g., Tier 1, Tier 4, or specific suitability investigations). Generally, federal contracts awarded through full and open competition aim to achieve competitive pricing. If the average cost per investigation falls within or below the typical range for comparable federal or commercial investigations, it would indicate good value for money. Conversely, costs significantly exceeding benchmarks might warrant further scrutiny of contractor performance and pricing.

What are the key performance indicators (KPIs) used to evaluate CSRA LLC's performance on this contract?

Key Performance Indicators (KPIs) for background investigation services contracts typically focus on timeliness, accuracy, and completeness of investigations. For CSRA LLC on this OPM contract, common KPIs would likely include metrics such as the average time to complete investigations (e.g., days from initiation to final report), the rate of investigations requiring rework due to errors or omissions, adherence to specific investigation protocols, and customer satisfaction feedback from the requesting agencies. The firm-fixed-price nature of the contract incentivizes efficiency, but performance standards are crucial to ensure quality is not sacrificed for speed. OPM would monitor these KPIs to ensure CSRA LLC meets its contractual obligations and maintains the integrity of the federal vetting process.

What is CSRA LLC's track record in providing similar government contracting services?

CSRA LLC (now part of General Dynamics Information Technology) has a substantial track record in providing a wide range of IT and professional services to the U.S. government. Prior to its acquisition, CSRA held numerous large federal contracts across various agencies, including significant work in areas such as IT modernization, cybersecurity, and mission support services. Their experience often includes managing complex, large-scale programs requiring rigorous performance standards and security protocols. For background investigation services specifically, their past performance would be a critical factor evaluated during the procurement process, demonstrating their capability to handle sensitive data and meet stringent government requirements. Their history suggests a capacity to manage contracts of this magnitude and complexity.

Are there any known risks associated with the contractor or the nature of these services?

Risks associated with this contract primarily revolve around the sensitive nature of background investigations and the potential for contractor performance issues. Data breaches or mishandling of personal information by the contractor could pose significant security and privacy risks. Performance risks include delays in investigation timelines, which can impact hiring decisions and national security clearances. Contractor personnel suitability and integrity are also critical; any issues with the investigators themselves could undermine the entire process. Furthermore, changes in government regulations or requirements for background investigations could necessitate contract modifications or impact service delivery. OPM's oversight and robust contractual terms are designed to mitigate these risks.

How does this contract align with OPM's broader mission and strategic goals?

This contract directly aligns with OPM's core mission of serving the federal government by providing essential human resources leadership and support, particularly in the realm of personnel security. Ensuring the integrity and trustworthiness of the federal workforce is paramount to national security and effective governance. By outsourcing background investigation services, OPM can leverage specialized expertise and capacity to efficiently process a high volume of investigations. This allows OPM to focus on its strategic goals related to workforce management, policy development, and the overall security posture of federal employees, thereby contributing to a more secure and reliable federal government.

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: General Dynamics Corp (UEI: 001381284)

Address: 3170 FAIRVIEW PARK DR, FALLS CHURCH, VA, 22042

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

Financial Breakdown

Contract Ceiling: $890,782,577

Exercised Options: $890,782,577

Current Obligation: $161,667,237

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $6,660,000

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: OPM1516D0002

IDV Type: IDC

Timeline