DOJ's $43M investigative support contract awarded to Five Stones Intelligence, Inc. shows extended performance

Contract Overview

Contract Amount: $43,076,904 ($43.1M)

Contractor: Five Stones Intelligence, Inc.

Awarding Agency: Department of Justice

Start Date: 2016-10-01

End Date: 2023-03-31

Contract Duration: 2,372 days

Daily Burn Rate: $18.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: LABOR HOURS

Sector: Other

Official Description: IGF::OT::IGF OCDETF ASSET FORFEITURE INVESTIGATIVE SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $43.1 million to FIVE STONES INTELLIGENCE, INC. for work described as: IGF::OT::IGF OCDETF ASSET FORFEITURE INVESTIGATIVE SUPPORT SERVICES Key points: 1. Contract duration of over 6 years suggests a sustained need for investigative support services. 2. The contract was awarded under full and open competition, indicating a broad market search. 3. The award was a delivery order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 4. The North American Industry Classification System (NAICS) code 561611 points to specialized investigation and background check services. 5. The contract's value of $43,076,904 over its term represents a significant investment in intelligence gathering and support. 6. The contract was not set aside for small businesses, suggesting the scope or nature of services may not have been suitable for smaller entities.

Value Assessment

Rating: fair

The total award amount of $43,076,904 over nearly seven years averages to approximately $6.15 million per year. Without specific performance metrics or detailed cost breakdowns, it is difficult to definitively benchmark the value for money. However, the duration suggests the services provided were deemed necessary and reasonably priced by the Department of Justice over an extended period. Further analysis would require comparison to similar contracts for investigative support services and an understanding of the specific deliverables.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which typically means that after an initial exclusion of certain sources (perhaps due to specific requirements or prior contracts), the opportunity was then broadly advertised to all eligible offerors. The presence of 7 bidders indicates a competitive environment, which generally leads to better price discovery and potentially more favorable terms for the government. The specific details of the 'exclusion of sources' would be crucial for a complete understanding of the competition dynamics.

Taxpayer Impact: The full and open competition, with multiple bidders, suggests that taxpayers benefited from a process designed to solicit the best value and pricing available in the market for these specialized investigative support services.

Public Impact

The primary beneficiaries are the various components within the Department of Justice requiring specialized investigative support. Services delivered likely include background checks, intelligence gathering, and other investigative assistance crucial for law enforcement and regulatory functions. The contract's impact is primarily concentrated in the District of Columbia, where the agency is headquartered. The workforce implications involve specialized personnel skilled in investigation, analysis, and potentially intelligence operations, employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause in the competition type warrants further investigation to ensure it did not unduly limit competition.
Lack of specific performance metrics makes it challenging to assess the true value for money and effectiveness of the services.
The extended duration of the contract (over 6 years) could indicate a lack of flexibility or potential for cost overruns if not managed tightly.

Positive Signals

Awarded under full and open competition, suggesting a robust market search and potential for competitive pricing.
The contract was awarded as a delivery order, which is a common and efficient method for procuring services under existing IDIQ vehicles.
The sustained award over multiple years indicates consistent demand and perceived value from the Department of Justice.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on investigation and personal background check services (NAICS 561611). This sub-sector is critical for government agencies, particularly law enforcement and intelligence bodies, to conduct due diligence, gather information, and support operational needs. The market for such services is competitive, with a mix of large and small firms offering specialized expertise. The Department of Justice's spending in this area is substantial, reflecting the ongoing need for these capabilities.

Small Business Impact

The contract was not set aside for small businesses, and the 'sb' (small business) indicator is false. This suggests that the requirements of the contract, or the nature of the services provided, were likely beyond the typical scope or capacity of small businesses, or that the competition was structured in a way that favored larger, more established firms. There is no explicit information on subcontracting plans for small businesses, which would be a key area to explore for potential small business involvement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's contracting officers and program managers. The Inspector General's office for the DOJ would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract. Transparency is generally facilitated through contract award databases, but detailed performance reports and cost breakdowns are often not publicly available, limiting a full assessment of accountability.

Related Government Programs

Department of Justice Investigative Services
Federal Bureau of Investigation Support Contracts
Drug Enforcement Administration Support Services
Asset Forfeiture Program Support

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Lack of detailed performance metrics hinders value assessment.
Extended contract duration may pose risks of cost escalation or performance degradation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $43.1 million to FIVE STONES INTELLIGENCE, INC.. IGF::OT::IGF OCDETF ASSET FORFEITURE INVESTIGATIVE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is FIVE STONES INTELLIGENCE, INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $43.1 million.

What is the period of performance?

Start: 2016-10-01. End: 2023-03-31.

What specific types of investigative support services were provided under this contract?

While the NAICS code 561611 indicates 'Investigation and Personal Background Check Services,' the specific deliverables under this contract are not detailed in the provided data. However, given the awarding agency is the Department of Justice and the contract title mentions 'OCDETF ASSET FORFEITURE INVESTIGATIVE SUPPORT SERVICES,' it is highly probable that the services included intelligence gathering, surveillance support, background investigations for individuals and entities involved in asset forfeiture cases, witness interviews, and potentially forensic analysis support. The duration and value suggest a comprehensive suite of services rather than a single, narrow task.

How does the average annual cost of this contract compare to similar DOJ contracts for investigative support?

The average annual cost of this contract is approximately $6.15 million ($43,076,904 / 6.87 years). Benchmarking this against similar Department of Justice contracts for investigative support requires access to a broader dataset of federal contract awards. Without comparative data on contract scope, duration, specific services rendered, and the number of bidders, it is challenging to definitively state whether this represents a high, low, or average cost. However, for specialized investigative services, this annual figure is substantial and suggests a significant level of support was required.

What are the potential risks associated with a contract of this duration and value?

Contracts of this duration and value carry several potential risks. Firstly, there's the risk of cost escalation if not managed effectively, where actual costs exceed initial projections. Secondly, the risk of contractor performance degradation over time, where the quality of services may decline if not continuously monitored and enforced. Thirdly, there's the risk of technological obsolescence or changes in operational requirements that could make the contracted services less relevant or efficient. Finally, the 'exclusion of sources' aspect of the competition type could pose a risk if it unduly limited the pool of qualified offerors, potentially leading to less competitive pricing or a suboptimal selection.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply for accountability?

This designation implies a multi-stage competition process. Initially, certain sources might have been excluded based on specific criteria (e.g., security clearances, past performance, specific technical capabilities). Following this exclusion, the remaining opportunity was opened to all eligible sources. This process aims to balance the need for specialized capabilities with broad market access. For accountability, it suggests that the initial exclusion criteria were justified and documented. The subsequent full and open competition phase ensures that multiple offerors had the chance to compete, providing a basis for evaluating the selected contractor's performance against a competitive baseline. Robust documentation of the exclusion criteria and the evaluation of all subsequent bids are key to accountability.

What is the significance of the contract being a 'DELIVERY ORDER'?

The designation as a 'DELIVERY ORDER' indicates that this contract was likely issued under a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar type of multiple-award contract. IDIQs allow agencies to procure services or supplies over a period, with specific orders placed as needed. Being a delivery order means this $43 million represents the total value of goods or services ordered against a larger contract vehicle. This is a common and efficient procurement method for services that are needed repeatedly but in unpredictable quantities. It allows for flexibility and can streamline the procurement process for the agency.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Five Stones Intelligence Inc

Address: 211 N UNION ST STE 100, ALEXANDRIA, VA, 22314

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

Financial Breakdown

Contract Ceiling: $43,701,968

Exercised Options: $43,146,003

Current Obligation: $43,076,904

Actual Outlays: $23,051,263

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DJJ16PSSV2670

IDV Type: IDC

Timeline