OPM's $622M Background Investigation Services Task Order Awarded to Peraton Risk Decision Inc

Contract Overview

Contract Amount: $622,216,641 ($622.2M)

Contractor: Peraton Risk Decision Inc.

Awarding Agency: Office of Personnel Management

Start Date: 2017-11-01

End Date: 2018-09-30

Contract Duration: 333 days

Daily Burn Rate: $1.9M/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 24362018F0106-TASK ORDER #2 11/01/2017-10/30/2018 BACKGROUND INVESTIGATION SERVICES

Place of Performance

Location: LOVELAND, LARIMER County, COLORADO, 80538

State: Colorado Government Spending

Plain-Language Summary

Office of Personnel Management obligated $622.2 million to PERATON RISK DECISION INC. for work described as: 24362018F0106-TASK ORDER #2 11/01/2017-10/30/2018 BACKGROUND INVESTIGATION SERVICES Key points: 1. Significant contract value of $622.2M for background investigation services. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Potential risk associated with a single award for a critical service. 4. Services fall under the 'Investigation and Personal Background Check Services' NAICS code.

Value Assessment

Rating: questionable

The contract value of $622.2M is substantial. Without specific per-unit cost data or benchmarks for similar large-scale background investigation services, it is difficult to definitively assess its value. The fixed-price nature provides cost certainty but may not reflect the most efficient pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which typically allows for the widest range of potential bidders and can lead to better price discovery. However, the single award nature for such a large sum warrants scrutiny to ensure the chosen vendor offers the best overall value.

Taxpayer Impact: Taxpayer funds are being utilized for a critical government function. The competitive award process aims to ensure efficient use of these funds, but ongoing monitoring is necessary to confirm value.

Public Impact

Ensures the continuity of essential background investigation services for federal employees. Impacts national security by vetting individuals in sensitive positions. Supports the operational needs of the Office of Personnel Management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Large contract value could indicate potential for cost overruns if not managed effectively.
Single award for a critical service may limit future competition or flexibility.
Reliance on a single vendor for background checks could pose a systemic risk.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm Fixed Price contract provides cost certainty for the government.
Services are essential for maintaining government security and personnel integrity.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on investigation and background checks. Benchmarks for similar large-scale federal contracts in this sub-sector are crucial for evaluating cost-effectiveness.

Small Business Impact

The data indicates this was a single award to Peraton Risk Decision Inc. under full and open competition. There is no explicit information provided regarding the participation or subcontracting opportunities for small businesses in this specific task order.

Oversight & Accountability

The Office of Personnel Management is the awarding agency. Oversight would involve monitoring contract performance, ensuring adherence to terms, and verifying the quality and timeliness of background investigation services provided by the contractor.

Related Government Programs

Investigation and Personal Background Check Services
Office of Personnel Management Contracting
Office of Personnel Management Programs

Risk Flags

Significant contract value.
Single award for a critical service.
Potential for vendor lock-in.
Dependence on a single entity for national security vetting.

Frequently Asked Questions

What is this federal contract paying for?

Office of Personnel Management awarded $622.2 million to PERATON RISK DECISION INC.. 24362018F0106-TASK ORDER #2 11/01/2017-10/30/2018 BACKGROUND INVESTIGATION SERVICES

Who is the contractor on this award?

The obligated recipient is PERATON RISK DECISION INC..

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 $622.2 million.

What is the period of performance?

Start: 2017-11-01. End: 2018-09-30.

What is the historical cost performance of Peraton Risk Decision Inc. on similar large-scale investigation contracts?

Analyzing Peraton Risk Decision Inc.'s past performance on comparable federal contracts is crucial for assessing the value proposition of this $622M award. Understanding their track record regarding cost control, efficiency, and quality of service delivery on similar-sized agreements would provide a vital benchmark. This historical data can inform whether the current firm fixed price is competitive and sustainable, or if there are indicators of potential overpricing or underperformance.

What are the specific risks associated with relying on a single vendor for nationwide background investigation services?

Relying on a single vendor for nationwide background investigation services presents several risks. These include potential disruptions to service delivery due to unforeseen vendor issues (e.g., financial instability, labor disputes, or security breaches), reduced leverage for the government in future negotiations, and a lack of competitive pressure to drive innovation or cost efficiencies. A single point of failure could significantly impact government operations and national security if the vendor's capabilities are compromised.

How effectively does the current contract structure incentivize Peraton Risk Decision Inc. to maintain high-quality investigation standards?

The firm fixed-price (FFP) structure of this contract provides cost certainty but its effectiveness in incentivizing quality hinges on the specific performance metrics and service level agreements (SLAs) embedded within the task order. If robust quality assurance measures, clear performance standards, and potential penalties for non-compliance are defined, the FFP can drive efficiency. However, without strong oversight and defined quality benchmarks, there's a risk the contractor may prioritize cost-cutting over thoroughness.

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: Peraton Solutions Inc. (UEI: 081218565)

Address: 1750 FOXTRAIL DR, LOVELAND, CO, 80538

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

Financial Breakdown

Contract Ceiling: $1,178,499,217

Exercised Options: $1,178,499,217

Current Obligation: $622,216,641

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: OPM1516D0003

IDV Type: IDC

Timeline