DHS awards $17.1M for background investigations, with Peraton Risk Decision Inc. as the prime contractor

Contract Overview

Contract Amount: $17,102,203 ($17.1M)

Contractor: Peraton Risk Decision Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2021-08-18

End Date: 2023-07-31

Contract Duration: 712 days

Daily Burn Rate: $24.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BACKGROUND INVESTIGATIVE SERVICES FOR OFFICE OF SECURITY AND INTEGRITY (OSI)

Place of Performance

Location: LOVELAND, LARIMER County, COLORADO, 80538

State: Colorado Government Spending

Plain-Language Summary

Department of Homeland Security obligated $17.1 million to PERATON RISK DECISION INC. for work described as: BACKGROUND INVESTIGATIVE SERVICES FOR OFFICE OF SECURITY AND INTEGRITY (OSI) Key points: 1. Contract value of $17.1M for investigative services appears reasonable given the duration and scope. 2. Full and open competition suggests a healthy market for these services, potentially driving competitive pricing. 3. The contract duration of 712 days (approx. 2 years) indicates a need for ongoing investigative support. 4. Services fall under 'Investigation and Personal Background Check Services', a critical function for agency security. 5. The award to Peraton Risk Decision Inc. represents a significant portion of the available market for this niche service. 6. Fixed-price contract type helps mitigate cost overrun risks for the government.

Value Assessment

Rating: good

The contract value of $17.1M over approximately two years for background investigative services seems aligned with market rates for similar government contracts. While specific per-unit cost benchmarks for background checks are not provided, the fixed-price nature of the award suggests that the agency has a clear understanding of the expected costs. The competition level also supports the notion of fair pricing, as multiple bidders would likely have vied for this contract.

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 bids. The number of bidders is not explicitly stated, but the designation suggests a competitive process. This level of competition is generally favorable for price discovery and ensures that the government receives offers from a wide range of qualified vendors.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically leads to more competitive pricing and a wider selection of qualified contractors, ensuring better value for public funds.

Public Impact

The Office of Security and Integrity (OSI) within USCIS benefits from these services by ensuring the integrity of its personnel. Services delivered include background investigations and personal background checks for individuals requiring security clearance. The geographic impact is primarily national, as USCIS operates across the United States. Workforce implications include ensuring a vetted and trustworthy workforce within USCIS, crucial for national security and immigration processes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor performance issues impacting the timeliness of security clearances.
Reliance on a single contractor for a critical security function could pose a risk if performance degrades.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Fixed-price contract type helps control costs and provides budget certainty.
The contractor, Peraton Risk Decision Inc., likely has experience in this specialized field.

Sector Analysis

The background investigation services market is a specialized segment within the broader professional services industry. Government agencies, particularly those dealing with national security and sensitive information, are significant consumers of these services. The market is characterized by a need for high levels of trust, accuracy, and compliance with stringent federal regulations. Comparable spending benchmarks are difficult to ascertain without more granular data on the specific types and depths of investigations conducted.

Small Business Impact

The data indicates that small business participation was not a specific requirement for this contract (ss=false, sb=false). Therefore, the direct impact on small businesses through set-asides is minimal. However, the prime contractor may engage small businesses as subcontractors, though this is not detailed in the provided information. The absence of small business considerations in the primary award suggests larger, established firms are likely the main players in this contracting space.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting officers and program managers. The contract's fixed-price nature provides a degree of financial oversight by limiting potential cost increases. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed oversight reports may not be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Bureau of Investigation (FBI) background checks
Office of Personnel Management (OPM) investigations
Department of Defense (DoD) security clearances
General Services Administration (GSA) professional services schedules

Risk Flags

Contract duration may be subject to change based on agency needs.
Performance quality and timeliness are critical success factors.
Potential for future contract renewals or extensions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $17.1 million to PERATON RISK DECISION INC.. BACKGROUND INVESTIGATIVE SERVICES FOR OFFICE OF SECURITY AND INTEGRITY (OSI)

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. Citizenship and Immigration Services).

What is the total obligated amount?

The obligated amount is $17.1 million.

What is the period of performance?

Start: 2021-08-18. End: 2023-07-31.

What is the historical spending pattern for background investigative services by USCIS or DHS?

Analyzing historical spending for background investigative services by USCIS or DHS is crucial for understanding the scale and consistency of this requirement. Without specific historical data, it's challenging to determine if the $17.1M award represents an increase, decrease, or stable level of investment compared to previous periods. Trends in federal spending on background checks are often influenced by changes in security protocols, workforce expansion or reduction, and national security priorities. A review of past contracts, including their values, durations, and awarded contractors, would provide context for assessing whether this current award is typical, an outlier, or indicative of a shifting demand for these services within the agency.

How does the per-investigation cost for this contract compare to industry benchmarks?

Determining the per-investigation cost benchmark requires knowing the total number of investigations performed under this contract and the specific types of investigations (e.g., Tier 1, Tier 2, Tier 4). The provided data does not include the volume of investigations. However, if we assume a certain number of investigations based on the contract value and duration, we could attempt a rough comparison. Industry benchmarks for background checks vary significantly based on the depth of the investigation, the required turnaround time, and the specific data sources accessed. Government contracts often have unique compliance requirements that can influence pricing. A detailed analysis would involve comparing the contract's unit price (if calculable) against publicly available data or industry reports on similar government or commercial background check services.

What is Peraton Risk Decision Inc.'s track record with similar government contracts?

Peraton Risk Decision Inc.'s track record with similar government contracts is a key indicator of their capability and reliability in performing background investigative services. As a contractor likely specializing in risk and decision support, their history with federal agencies, particularly within DHS or USCIS, would reveal their performance on contracts of comparable size, scope, and complexity. Information regarding past performance, including any awards, penalties, or contract terminations, would be essential. Examining their experience with investigation and personal background check services specifically would highlight their expertise in meeting federal security and compliance standards. A positive track record suggests a lower risk of performance issues for this current contract.

What are the potential risks associated with relying on a single contractor for these critical services?

Relying on a single contractor, even one selected through full and open competition, introduces several potential risks. Firstly, there's the risk of performance degradation over time; if the contractor becomes complacent or faces internal challenges, the quality or timeliness of investigations could suffer, impacting USCIS's ability to vet personnel effectively. Secondly, a sole-source situation, even if initially competed, can reduce leverage for future negotiations if the incumbent is the only viable option. Thirdly, unforeseen events like contractor bankruptcy or major operational disruptions could leave the agency without essential services, necessitating emergency procurements at potentially higher costs. Robust contract management, performance monitoring, and contingency planning are vital to mitigate these risks.

How does the 'Investigation and Personal Background Check Services' NAICS code (561611) reflect the market for these services?

The North American Industry Classification System (NAICS) code 561611, 'Investigation and Personal Background Check Services,' accurately categorizes the services procured under this contract. This code encompasses establishments primarily engaged in providing investigative or protective services, including background checks, process serving, and security guard services. The existence of this specific code highlights that there is a recognized and distinct market for these specialized services, both within the government and commercial sectors. It suggests a competitive landscape populated by firms whose core business is conducting investigations and verifying personal information, adhering to specific legal and regulatory frameworks.

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

Solicitation ID: 70SBUR21Q00000119

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: $81,484,977

Exercised Options: $17,102,203

Current Obligation: $17,102,203

Actual Outlays: $10,498,015

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70CMSD21A00000005

IDV Type: BPA

Timeline