DHS awards $26.5M for background investigation services, with Peraton Risk Decision Inc. as the prime contractor

Contract Overview

Contract Amount: $26,459,294 ($26.5M)

Contractor: Peraton Risk Decision Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-07-01

End Date: 2026-02-27

Contract Duration: 606 days

Daily Burn Rate: $43.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BACKGROUND INVESTIGATION SERVICES

Place of Performance

Location: LOVELAND, LARIMER County, COLORADO, 80538

State: Colorado Government Spending

Plain-Language Summary

Department of Homeland Security obligated $26.5 million to PERATON RISK DECISION INC. for work described as: BACKGROUND INVESTIGATION SERVICES Key points: 1. The contract value of $26.5 million for background investigation services appears reasonable given the scope and duration. 2. Full and open competition was utilized, suggesting a competitive bidding process that should drive favorable pricing. 3. The contract is a BPA Call, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) agreement. 4. The fixed-price contract type helps mitigate cost overrun risks for the government. 5. The services provided fall under investigation and personal background check services, a critical function for agency security. 6. The contract duration of approximately 606 days (20 months) allows for sustained service delivery.

Value Assessment

Rating: good

The contract value of $26.5 million for background investigation services over approximately 20 months is within a reasonable range for this type of federal procurement. While specific per-unit cost benchmarks are not provided, the use of full and open competition suggests that pricing was vetted against multiple offers. The fixed-price nature of the award also indicates a degree of cost certainty for the government, reducing the risk of unexpected overruns compared to cost-reimbursement contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The specific number of bidders is not detailed, but the designation implies a robust competitive environment. This level of competition is generally expected to lead to more competitive pricing and better value for the government as contractors vie for the award.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider selection of qualified contractors, ensuring that the government secures services at a fair market value.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection (CBP) within the Department of Homeland Security (DHS), which will receive essential background investigation services. These services are critical for ensuring the integrity and security of personnel within CBP, a vital component of national security. The contract supports the operational needs of CBP by providing the necessary vetting for its workforce. The geographic impact is primarily national, as background investigations are a federal requirement for personnel security across the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor performance issues if not adequately monitored, despite fixed-price terms.
Reliance on a single BPA Call awardee for a critical function could pose a risk if the contractor faces significant operational challenges.

Positive Signals

Awarded under full and open competition, indicating a competitive process that likely yielded fair pricing.
Fixed-price contract type helps control costs and provides budget certainty.
The contractor, Peraton Risk Decision Inc., is likely experienced in providing such services, given the nature of the award.
The contract supports a critical national security function for CBP.

Sector Analysis

The federal government extensively procures background investigation services to ensure the security and suitability of its workforce. This contract falls within the broader professional, scientific, and technical services sector, specifically focusing on investigative services. The market for these services is competitive, with several large federal contractors specializing in security clearances and background checks. Spending in this area is consistent across various federal agencies that require personnel vetting.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (sb=false). As a BPA Call under a larger agreement, it's possible that subcontracting opportunities for small businesses may exist, depending on the terms of the base BPA and the prime contractor's subcontracting plan. However, without further details on subcontracting requirements, the direct impact on the small business ecosystem is unclear.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Customs and Border Protection contracting office and program managers. The fixed-price nature of the award provides a degree of accountability by linking payment to deliverables. Transparency is generally maintained through federal procurement databases like FPDS-NG, where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Background Investigation Services
Personnel Security Investigations
Department of Homeland Security Contracts
Customs and Border Protection Procurement
Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts

Risk Flags

Potential for performance issues if not adequately monitored.
Reliance on a single awardee for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $26.5 million to PERATON RISK DECISION INC.. 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: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $26.5 million.

What is the period of performance?

Start: 2024-07-01. End: 2026-02-27.

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

Analyzing historical spending for background investigation services by U.S. Customs and Border Protection (CBP) is crucial for understanding the scale and consistency of this requirement. While specific historical data for CBP alone is not provided in this summary, federal agencies collectively spend billions annually on these services. CBP, as a large component of DHS, would represent a significant portion of this spending. Trends often show an increase in demand during periods of heightened security concerns or agency expansion. Benchmarking this $26.5 million award against previous CBP expenditures on similar services would reveal whether this represents an increase, decrease, or stable level of investment. Without direct historical figures for CBP, comparisons are made to overall federal spending on investigative services, which generally remains robust.

How does the price of this contract compare to similar background investigation contracts awarded to other agencies?

Benchmarking the price of this $26.5 million contract against similar background investigation services procured by other federal agencies requires access to a broader dataset of contract awards. Factors influencing price include the volume of investigations, the types of checks performed (e.g., national security, suitability), the geographic distribution of subjects, and the turnaround time required. Given that this contract is awarded under full and open competition, it suggests that the pricing is likely competitive within the current market for such services. However, a definitive comparison would necessitate analyzing the scope of work, contract duration, and specific service level agreements of comparable contracts across agencies like the Department of Defense or other DHS components.

What is the track record of Peraton Risk Decision Inc. in delivering federal background investigation services?

Peraton Risk Decision Inc. (a subsidiary of Peraton) has a significant track record in providing a wide range of government services, including background investigations and security services. The company has held numerous federal contracts across various agencies, demonstrating its capacity and experience in this domain. Their involvement in large-scale government contracts suggests a proven ability to manage complex operations and meet stringent performance requirements. Evaluating their specific performance on similar background investigation contracts, including client satisfaction, on-time delivery, and adherence to security protocols, would provide a more granular assessment. However, their continued success in winning competitive bids indicates a generally positive standing within the federal contracting community for these types of services.

What are the potential risks associated with relying on a single BPA Call awardee for background investigation services?

Relying on a single contractor, even through a BPA Call, for critical background investigation services introduces several potential risks. Firstly, there's a risk of contractor performance degradation over time if not actively managed and monitored. Secondly, if the contractor experiences financial instability, operational disruptions, or significant staffing shortages, it could lead to delays in investigations, impacting agency hiring and security protocols. Thirdly, a sole awardee might have less incentive to innovate or offer cost efficiencies compared to a more competitive environment. While the fixed-price nature mitigates cost overruns, it doesn't guarantee timely or quality delivery. Robust government oversight, clear performance metrics, and contingency planning are essential to mitigate these risks.

How does the use of a BPA Call structure impact the flexibility and efficiency of procuring background investigation services?

A Blanket Purchase Agreement (BPA) Call offers a degree of flexibility and efficiency for recurring needs like background investigations. Instead of issuing a new solicitation for each individual requirement, agencies can place orders against an existing BPA. This streamlines the procurement process, reduces administrative burden, and can lead to faster service delivery. The 'Call' aspect signifies a specific order placed against a pre-established BPA. This structure is beneficial when an agency anticipates a consistent need for services but the exact quantity or timing may vary. It allows for pre-negotiated terms and pricing, providing a balance between the efficiency of a streamlined process and the competitive nature of the underlying BPA.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $26,459,294

Exercised Options: $26,459,294

Current Obligation: $26,459,294

Actual Outlays: $6,406,984

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $60,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70CMSD21A00000005

IDV Type: BPA

Timeline