DHS awards $23.3M for background investigation services, supporting OPR and contractor vetting

Contract Overview

Contract Amount: $23,274,326 ($23.3M)

Contractor: ADC Ltd NM

Awarding Agency: Department of Homeland Security

Start Date: 2025-06-16

End Date: 2026-04-30

Contract Duration: 318 days

Daily Burn Rate: $73.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS AWARD FUNDS CALL FIVE UNDER BACKGROUND INVESTIGATION SERVICES II, WHICH SUPPORTS BACKGROUND INVESTIGATION SERVICES FOR INVESTIGATION REPORTS OF CONTRACTORS, AND FEDERAL EMPLOYEES TO THE OFFICE OF PROFESSIONAL RESPONSIBILITY.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $23.3 million to ADC LTD NM for work described as: THIS AWARD FUNDS CALL FIVE UNDER BACKGROUND INVESTIGATION SERVICES II, WHICH SUPPORTS BACKGROUND INVESTIGATION SERVICES FOR INVESTIGATION REPORTS OF CONTRACTORS, AND FEDERAL EMPLOYEES TO THE OFFICE OF PROFESSIONAL RESPONSIBILITY. Key points: 1. Contract supports critical background investigations for federal employees and contractors. 2. Services are essential for the Office of Professional Responsibility's mission. 3. Awarded under a broader Background Investigation Services II BPA, indicating a pre-competed framework. 4. Fixed-price contract type suggests cost certainty for the government. 5. Performance period spans over a year, ensuring continuity of services. 6. Geographic focus on Washington D.C. highlights a concentration of federal operations.

Value Assessment

Rating: good

The contract value of $23.3 million for approximately 1.5 years of service appears reasonable given the critical nature of background investigations. Benchmarking against similar large-scale investigation contracts is challenging without more granular data on the scope and volume of reports. However, the use of a Blanket Purchase Agreement (BPA) call suggests that pricing was likely established through a prior competitive process, potentially offering better value than a new sole-source award. The fixed-price nature of the award also helps control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition framework, likely through the Background Investigation Services II BPA. This indicates that multiple vendors had the opportunity to bid on the underlying BPA, and this call represents a specific task order against that agreement. The specific number of bidders for this call isn't detailed, but the BPA structure implies a competitive environment was established initially.

Taxpayer Impact: A full and open competition, even at the BPA level, generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source procurements.

Public Impact

Federal employees undergoing background checks benefit from the integrity of the investigation process. Contractors seeking to work with the federal government are supported by these essential vetting services. The Office of Professional Responsibility (OPR) receives critical support for its internal investigations and oversight functions. The primary geographic impact is within the District of Columbia, where many federal agencies are headquartered. The contract supports a workforce engaged in conducting and managing background investigations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the volume of investigations significantly exceeds projections.
Dependence on contractor performance for timely and accurate reporting, which is crucial for security clearances and suitability determinations.

Positive Signals

Awarded under a BPA suggests a pre-vetted and competitive pool of contractors.
Fixed-price contract type provides cost predictability.
Clear definition of services supports focused execution.

Sector Analysis

This contract falls within the professional services sector, specifically administrative and management consulting. The market for background investigation services is significant, driven by federal mandates for security clearances and suitability determinations. This award is a task order under a larger BPA, indicating a strategic approach by DHS to manage ongoing needs for these services. Comparable spending benchmarks would typically be found within broader federal spending on personnel security and investigative services.

Small Business Impact

The provided data indicates that small business participation (sb: false) was not a specific set-aside for this particular award. While the underlying BPA may have included small business considerations, this specific call does not appear to have a small business set-aside. Subcontracting opportunities for small businesses could exist if the prime contractor, ADC LTD NM, chooses to utilize them, but this is not explicitly mandated by the award details.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Immigration and Customs Enforcement (ICE) contracting officer and program officials within the Office of Professional Responsibility. The fixed-price nature of the contract provides a degree of accountability by limiting the government's financial exposure. Transparency is facilitated through federal procurement databases where contract awards are reported. Specific Inspector General (IG) jurisdiction would depend on the nature of any performance issues or potential fraud.

Related Government Programs

Federal Employee Background Investigations
Contractor Vetting Services
Office of Professional Responsibility Operations
Homeland Security Investigations
Administrative Management and General Management Consulting Services

Risk Flags

Potential for scope creep
Dependence on contractor performance for critical security functions

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $23.3 million to ADC LTD NM. THIS AWARD FUNDS CALL FIVE UNDER BACKGROUND INVESTIGATION SERVICES II, WHICH SUPPORTS BACKGROUND INVESTIGATION SERVICES FOR INVESTIGATION REPORTS OF CONTRACTORS, AND FEDERAL EMPLOYEES TO THE OFFICE OF PROFESSIONAL RESPONSIBILITY.

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. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $23.3 million.

What is the period of performance?

Start: 2025-06-16. End: 2026-04-30.

What is the historical spending pattern for Background Investigation Services II BPA?

The Background Investigation Services II BPA (BPA Call 5) is part of a larger framework established to procure background investigation services. While specific historical spending for this particular BPA call is not detailed here, the existence of multiple calls under the BPA suggests ongoing and potentially significant demand. To understand historical spending patterns, one would need to analyze the total value and duration of all calls issued under the Background Investigation Services II BPA since its inception. This would reveal trends in agency utilization, service volumes, and overall investment in these critical vetting functions. Without access to the full BPA's award history, a precise historical spending analysis is not possible, but the $23.3M award indicates a substantial commitment for the current period.

How does the pricing of this contract compare to similar background investigation services?

Directly comparing the pricing of this $23.3 million contract to similar background investigation services is challenging without detailed breakdowns of the services rendered (e.g., number of investigations, types of investigations, turnaround times) and the specific pricing structure (e.g., per report, per investigation hour). However, the contract is awarded under a Blanket Purchase Agreement (BPA) Call, which implies that the pricing structure was likely established through a prior competitive process when the BPA itself was awarded. This suggests that the rates are likely benchmarked against market conditions at that time. The fixed-price nature of the award also provides cost certainty. To perform a robust comparison, one would need access to the pricing details within the BPA and compare them against other federal or commercial contracts for similar scope and volume of background investigations.

What are the key performance indicators (KPIs) for this contract?

Key performance indicators (KPIs) for this background investigation services contract would likely focus on the timeliness, accuracy, and completeness of the investigation reports. Specific KPIs might include: 1) On-time completion rates for different types of investigations (e.g., Tier 1, Tier 4). 2) Accuracy rate of submitted reports, measured by the number of errors or omissions requiring correction. 3) Adherence to reporting standards and formats required by the Office of Professional Responsibility (OPR). 4) Turnaround time from initiation to submission of completed reports. 5) Customer satisfaction feedback from OPR and other relevant federal entities. These KPIs ensure that the contractor meets the critical requirements for maintaining the integrity of federal personnel and contractor vetting processes.

What is the track record of ADC LTD NM in providing similar services?

The provided data identifies ADC LTD NM as the contractor for this award. To assess their track record, a review of their past performance on federal contracts, particularly those involving background investigations or similar sensitive administrative and management consulting services, would be necessary. This would involve examining contract performance evaluations (e.g., CPARS reports), any past disputes or contract terminations, and their experience with agencies like the Department of Homeland Security (DHS) or other entities requiring similar vetting. A positive track record would indicate reliability and capability in delivering high-quality investigative services, while a history of performance issues could raise concerns about the successful execution of this current contract.

What is the potential risk associated with the duration and value of this contract?

The duration of this contract is approximately 1 year and 4 months (from June 16, 2025, to April 30, 2026), with a value of $23.3 million. The primary risks associated with this duration and value include: 1) **Scope Creep:** If the volume of background investigations required by OPR significantly increases beyond initial projections, the fixed-price nature could lead to cost overruns if not managed carefully through contract modifications, or a reduction in service quality if the contractor attempts to maintain margins. 2) **Performance Degradation:** Over the contract period, there's a risk that the contractor's performance could degrade due to staffing issues, burnout, or changes in management, impacting the timeliness and quality of investigations. 3) **Market Changes:** The landscape of background investigations and security requirements can evolve; the contract needs to remain adaptable to new regulations or technological advancements in vetting. 4) **Contractor Viability:** While less likely for a contract of this size under a BPA, there's always a residual risk of the contractor facing financial or operational challenges that could disrupt service delivery.

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: $23,274,326

Exercised Options: $23,274,326

Current Obligation: $23,274,326

Actual Outlays: $550,984

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70CMSD21A00000001

IDV Type: BPA

Timeline