DHS awards $28.3M for background investigative services, with a 487-day duration

Contract Overview

Contract Amount: $28,351,294 ($28.4M)

Contractor: ADC Ltd NM

Awarding Agency: Department of Homeland Security

Start Date: 2023-03-01

End Date: 2024-06-30

Contract Duration: 487 days

Daily Burn Rate: $58.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BACKGROUND INVESTIGATIVE SERVICES

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87106

State: New Mexico Government Spending

Plain-Language Summary

Department of Homeland Security obligated $28.4 million to ADC LTD NM for work described as: BACKGROUND INVESTIGATIVE SERVICES Key points: 1. Contract value of $28.3M for background investigative services. 2. Services to be performed in New Mexico. 3. Contract awarded under full and open competition. 4. Firm Fixed Price contract type. 5. Duration of 487 days. 6. Awarded by U.S. Customs and Border Protection. 7. NAICS code 541611 indicates Administrative Management and General Management Consulting Services.

Value Assessment

Rating: fair

The contract value of $28.3M for background investigative services appears reasonable given the scope and duration. Benchmarking against similar contracts for investigative services is challenging without more granular data on the specific types and volume of investigations. However, the firm fixed-price structure suggests that the government has a clear understanding of the costs involved, which can lead to better value if the contractor can efficiently deliver the required services. The relatively short duration of 487 days for a contract of this value might indicate a focused scope or a bridge to a larger, more comprehensive requirement.

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 provided, but the 'full and open' designation generally suggests a competitive environment. This approach is intended to foster price discovery and ensure the government receives the best value by considering a wide range of potential contractors. The absence of specific bidder numbers prevents a deeper analysis of the intensity of the competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to drive down costs through market forces and ensure a broad base of contractors are considered, potentially leading to more efficient service delivery.

Public Impact

Benefits U.S. Customs and Border Protection by providing essential background investigative services. Supports national security by ensuring the integrity of personnel. Services are geographically focused in New Mexico. Likely impacts the workforce within the background investigation sector, potentially creating or sustaining jobs for investigators and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or quality indicators in the provided data.
Potential for scope creep if the initial requirements are not clearly defined.
Dependence on a single contractor for critical investigative services.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Firm Fixed Price contract type can provide cost certainty.
Clear agency and sub-agency (CBP) identified for service delivery.

Sector Analysis

The background investigation services sector is a critical component of national security and government operations, supporting agencies in vetting personnel for sensitive positions. This contract falls under administrative and management consulting services, specifically focusing on investigative functions. The market for these services is often characterized by a mix of large, established government contractors and specialized investigative firms. Spending in this area is consistently high across various federal agencies, reflecting the ongoing need for thorough vetting processes.

Small Business Impact

The provided data indicates that small business participation (sb) is false and there is no indication of a small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses. While the prime contractor is listed as 'ADC LTD NM', further information would be needed to determine if they are a small business or if subcontracting opportunities exist for small businesses within this contract's performance.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Customs and Border Protection contracting officers and program managers. The firm fixed-price nature of the contract provides a degree of financial oversight by fixing the total cost. Transparency is generally enhanced by the contract award process itself, especially under full and open competition. However, specific details on ongoing performance monitoring, reporting requirements, and the potential involvement of an Inspector General are not available in the provided data.

Related Government Programs

Federal Background Investigation Services
Administrative Management and General Management Consulting Services
Department of Homeland Security Contracts
U.S. Customs and Border Protection Procurement

Risk Flags

Potential for performance issues if quality standards are not met.
Risk of cost overruns if fixed-price contract is not managed efficiently.
Data security and privacy concerns related to sensitive investigative information.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $28.4 million to ADC LTD NM. BACKGROUND INVESTIGATIVE SERVICES

Who is the contractor on this award?

The obligated recipient is ADC LTD NM.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $28.4 million.

What is the period of performance?

Start: 2023-03-01. End: 2024-06-30.

What is the historical spending pattern for background investigative services by U.S. Customs and Border Protection?

Analyzing historical spending patterns for background investigative services by U.S. Customs and Border Protection (CBP) requires access to detailed federal procurement databases. Generally, CBP, as a large component of DHS, would have consistent and significant spending in this area due to the critical nature of its mission, which involves personnel security and national security clearances. Historical data would likely show fluctuations based on agency needs, changes in security regulations, and the lifecycle of previous contracts. Without specific historical data for CBP's background investigations, it's difficult to provide precise figures, but it is reasonable to assume a multi-million dollar annual expenditure to support its vast workforce and operational requirements. This current award of $28.3M should be viewed in the context of this ongoing need and potentially represents a portion of their total annual requirement or a specific project-based need.

How does the awarded amount of $28.3M compare to similar background investigation contracts?

Comparing the $28.3M award for background investigative services requires identifying contracts with similar scope, duration, and service complexity. Background investigation contracts can vary widely in value, from smaller, localized vetting services to large-scale, multi-year contracts covering thousands of individuals across the nation. Contracts for comprehensive background investigations, including those for national security clearances, can easily reach tens or hundreds of millions of dollars over their lifecycle. Given the 487-day duration, this $28.3M award suggests a substantial volume of work or a high-value service component. To provide a precise comparison, one would need to benchmark against contracts awarded by agencies like the Office of Personnel Management (OPM) or other DHS components for similar investigative services, considering factors like the number of investigations, types of checks performed (e.g., suitability, fitness, security clearances), and geographic coverage.

What are the potential risks associated with this contract for ADC LTD NM?

For ADC LTD NM, potential risks associated with this $28.3M contract include performance-related challenges, such as meeting stringent investigative timelines and quality standards set by CBP. Failure to deliver timely and accurate investigative reports could lead to contract deficiencies, penalties, or even termination. Financial risks might arise if the firm fixed-price contract does not adequately account for unforeseen costs or if operational inefficiencies lead to lower profit margins than anticipated. Reputational risk is also a factor; any significant lapse in service quality or security could damage the company's standing with CBP and other potential government clients. Furthermore, managing a contract of this magnitude requires robust project management, skilled personnel, and adherence to strict data security protocols to prevent breaches or mishandling of sensitive information.

What is the track record of ADC LTD NM in performing federal background investigation services?

Information regarding the specific track record of 'ADC LTD NM' in performing federal background investigation services is not detailed in the provided data. To assess their track record, one would need to examine their past performance on similar government contracts, including their history with CBP or other agencies requiring investigative services. Key indicators would include past performance reviews, any documented contract disputes or awards, their experience with the specific types of investigations required, and their ability to meet deadlines and quality standards. Without this historical performance data, it is difficult to definitively evaluate their capability and reliability for this particular contract. A review of federal procurement databases and past performance information systems would be necessary for a thorough assessment.

How does the NAICS code 541611 (Administrative Management and General Management Consulting Services) align with background investigative services?

The North American Industry Classification System (NAICS) code 541611, 'Administrative Management and General Management Consulting Services,' is a broad category that can encompass a wide range of professional services. While not exclusively dedicated to investigative services, it often includes consulting firms that provide specialized support functions, such as human resources consulting, security consulting, and operational efficiency analysis. Background investigations, particularly those involving vetting personnel for government positions, require a high degree of administrative management, process control, and adherence to regulatory frameworks, aligning with the 'management consulting' aspect. Many firms that offer background checks and investigative services operate under this NAICS code because their work involves managing complex processes, advising on security protocols, and ensuring compliance with federal regulations, fitting within the broader scope of management consulting.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2100 AIR PARK RD SE STE 120, ALBUQUERQUE, NM, 87106

Business Categories: Category Business, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $28,351,294

Exercised Options: $28,351,294

Current Obligation: $28,351,294

Actual Outlays: $26,685,663

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70CMSD21A00000001

IDV Type: BPA

Timeline