OPM awards $74.3M contract for investigation services to Next Tier Concepts Inc

Contract Overview

Contract Amount: $74,306,687 ($74.3M)

Contractor: Next Tier Concepts Inc

Awarding Agency: Office of Personnel Management

Start Date: 2018-05-01

End Date: 2020-04-30

Contract Duration: 730 days

Daily Burn Rate: $101.8K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SUPPORT SERVICES FIRST TO AGAINST 24362018D0123

Place of Performance

Location: BOYERS, BUTLER County, PENNSYLVANIA, 16018

State: Pennsylvania Government Spending

Plain-Language Summary

Office of Personnel Management obligated $74.3 million to NEXT TIER CONCEPTS INC for work described as: SUPPORT SERVICES FIRST TO AGAINST 24362018D0123 Key points: 1. Contract awarded for investigation and personal background check services. 2. Next Tier Concepts Inc. is the sole awardee. 3. The contract has a duration of 730 days. 4. The award is a delivery order under a larger contract. 5. The total award value is $74,306,687.

Value Assessment

Rating: questionable

The contract's value of $74.3M for investigation services appears high without clear benchmarks. The pricing structure is firm fixed price, which can lead to cost savings if managed well, but also potential overpayment if the scope is not precisely defined or if competition was limited.

Cost Per Unit: $101,790

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no competitive pressure to drive down prices.

Taxpayer Impact: The lack of competition for a significant contract value raises concerns about taxpayer value and the potential for inflated costs.

Public Impact

Government agencies rely on these services for vetting personnel. The contract supports critical background check functions. Awardee's performance will impact agency security and hiring. Taxpayers fund these essential government operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High per-unit cost
Sole-source award

Positive Signals

Firm fixed price contract type
Clear service description

Sector Analysis

This contract falls under professional services, specifically investigation and background checks. Benchmarks for similar services are difficult to ascertain without more detailed scope information, but the per-unit cost suggests a potentially high expenditure.

Small Business Impact

The data does not indicate if small businesses were involved in subcontracting opportunities for this contract.

Oversight & Accountability

Oversight is crucial for sole-source contracts to ensure fair pricing and adequate performance. The Office of Personnel Management is responsible for managing this contract and ensuring accountability.

Related Government Programs

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

Risk Flags

Lack of competitive bidding
Potential for overpayment due to sole-source award
High per-unit cost benchmark
Limited transparency on justification for sole-source

Frequently Asked Questions

What is this federal contract paying for?

Office of Personnel Management awarded $74.3 million to NEXT TIER CONCEPTS INC. SUPPORT SERVICES FIRST TO AGAINST 24362018D0123

Who is the contractor on this award?

The obligated recipient is NEXT TIER CONCEPTS 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 $74.3 million.

What is the period of performance?

Start: 2018-05-01. End: 2020-04-30.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award is not provided in the data. Typically, such awards are made when only one source is capable of meeting the government's needs, or in cases of urgent and compelling requirements. Without this justification, it's difficult to assess if the lack of competition was warranted or if it resulted in a suboptimal outcome for the government.

How does the per-unit cost of $101,790 compare to industry standards for similar investigation services?

Without specific details on the scope and complexity of each investigation, a direct comparison of the per-unit cost is challenging. However, $101,790 per investigation appears to be on the higher end for standard background checks. Further analysis would require benchmarking against contracts with similar service levels and geographic coverage to determine if this represents a fair market price.

What mechanisms are in place to ensure the effectiveness and value for money of these investigation services under a sole-source contract?

Effectiveness and value are typically ensured through robust contract management, performance metrics, and regular reviews. For a sole-source contract, the agency must diligently monitor the contractor's performance against the statement of work, ensure deliverables meet quality standards, and conduct periodic price reasonableness reviews. Strong oversight is paramount to mitigate risks associated with limited competition.

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) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1945 OLD GALLOWS RD STE 400, VIENNA, VA, 22182

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

Financial Breakdown

Contract Ceiling: $74,306,687

Exercised Options: $74,306,687

Current Obligation: $74,306,687

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 24362018D0123

IDV Type: IDC

Timeline