DoD's $51.4M Background Investigation Services Task Order Transferred, Not Competed
Contract Overview
Contract Amount: $51,427,658 ($51.4M)
Contractor: Next Tier Concepts Inc
Awarding Agency: Department of Defense
Start Date: 2019-10-01
End Date: 2020-07-31
Contract Duration: 304 days
Daily Burn Rate: $169.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SUPPORT SERVICES FOR BCKGRND INVSTG. THIS IS NOT A NEW TASK ORDER. IN ACCORDANCE WITH EXECUTIVE ORDER 13869, DATED APRIL 24, 2019, THIS TASK ORDER HAS BEEN TRANSFERRED FROM THE NBIB TO THE DCSA. THE ORIGINAL TASK ORDER NUMBER IS 24362018F0253.
Place of Performance
Location: BOYERS, BUTLER County, PENNSYLVANIA, 16018
Plain-Language Summary
Department of Defense obligated $51.4 million to NEXT TIER CONCEPTS INC for work described as: SUPPORT SERVICES FOR BCKGRND INVSTG. THIS IS NOT A NEW TASK ORDER. IN ACCORDANCE WITH EXECUTIVE ORDER 13869, DATED APRIL 24, 2019, THIS TASK ORDER HAS BEEN TRANSFERRED FROM THE NBIB TO THE DCSA. THE ORIGINAL TASK ORDER NUMBER IS 24362018F0253. Key points: 1. Significant contract value of $51.4M for background investigation services. 2. Awarded to Next Tier Concepts Inc. under a non-competed sole-source justification. 3. Task order transferred from NBIB to DCSA per Executive Order 13869. 4. Services provided are Investigation and Personal Background Check Services (NAICS 561611).
Value Assessment
Rating: questionable
The contract value of $51.4M for background investigation services is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This task order was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competition is bypassed.
Taxpayer Impact: The lack of competition for a contract of this magnitude raises concerns about the efficient use of taxpayer funds.
Public Impact
Ensures continuity of essential background investigation services for national security. Potential for increased costs due to lack of competitive pricing. Transfer of task order may indicate consolidation or restructuring of government functions. Citizens undergoing background checks are impacted by the service provider.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- High contract value without competitive benchmark
Positive Signals
- Continuity of essential services
- Executive order driven transfer
Sector Analysis
The Defense Counterintelligence and Security Agency (DCSA) operates within the broader federal IT and security services sector. Spending benchmarks for investigation services can vary widely based on scope and complexity, but a $51.4M contract without competition warrants scrutiny.
Small Business Impact
The data provided does not indicate whether small businesses were involved in subcontracting opportunities for this task order. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The transfer of this task order under Executive Order 13869 suggests a deliberate governmental action. Oversight should focus on the justification for the sole-source award and the effectiveness of the services provided by Next Tier Concepts Inc.
Related Government Programs
- Investigation and Personal Background Check Services
- Department of Defense Contracting
- Defense Counterintelligence and Security Agency Programs
Risk Flags
- Sole-source award bypasses competition
- Potential for inflated pricing due to lack of competition
- Limited transparency on cost-effectiveness
- Need for robust performance monitoring
Tags
investigation-and-personal-background-ch, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $51.4 million to NEXT TIER CONCEPTS INC. SUPPORT SERVICES FOR BCKGRND INVSTG. THIS IS NOT A NEW TASK ORDER. IN ACCORDANCE WITH EXECUTIVE ORDER 13869, DATED APRIL 24, 2019, THIS TASK ORDER HAS BEEN TRANSFERRED FROM THE NBIB TO THE DCSA. THE ORIGINAL TASK ORDER NUMBER IS 24362018F0253.
Who is the contractor on this award?
The obligated recipient is NEXT TIER CONCEPTS INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Counterintelligence and Security Agency).
What is the total obligated amount?
The obligated amount is $51.4 million.
What is the period of performance?
Start: 2019-10-01. End: 2020-07-31.
What was the specific justification for awarding this task order on a sole-source basis, especially given its significant value?
The provided data indicates the task order was 'NOT COMPETED' and transferred under Executive Order 13869. While the EO addresses certain national security and administrative functions, the specific rationale for bypassing competition for this particular contract requires further documentation from the agency. Typically, sole-source awards are justified by factors like unique capabilities, urgent needs, or lack of market availability.
How does the cost of $51.4M for background investigation services compare to industry benchmarks for similar services, particularly given the lack of competition?
Without a competitive bidding process, establishing a precise cost benchmark is challenging. The $51.4M contract value for investigation and personal background check services needs to be compared against historical government contracts for similar scope or private sector pricing for comparable services. The absence of competition raises a red flag regarding potential overpayment or suboptimal resource allocation.
What is the expected effectiveness and quality of the background investigation services provided by Next Tier Concepts Inc. under this sole-source contract?
The effectiveness and quality of services are critical, especially for background investigations impacting national security. Performance metrics, past performance reviews, and any quality assurance reports associated with Next Tier Concepts Inc. for this task order are essential to evaluate. The sole-source nature necessitates a heightened focus on monitoring contractor performance to ensure taxpayer value and mission success.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8150 LEESBURG PIKE STE 1400, VIENNA, VA, 22182
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $76,237,336
Exercised Options: $66,363,410
Current Obligation: $51,427,658
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HS002119D0132
IDV Type: IDC
Timeline
Start Date: 2019-10-01
Current End Date: 2020-07-31
Potential End Date: 2020-09-30 00:00:00
Last Modified: 2025-04-23
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