Equifax awarded $5.8M contract for employment verification services by the Defense Counterintelligence and Security Agency
Contract Overview
Contract Amount: $5,847,643 ($5.8M)
Contractor: Equifax Workforce Solutions LLC
Awarding Agency: Department of Defense
Start Date: 2023-06-21
End Date: 2026-05-31
Contract Duration: 1,075 days
Daily Burn Rate: $5.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: EMPLOYMENT VERIFICATION SERVICES
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63146
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $5.8 million to EQUIFAX WORKFORCE SOLUTIONS LLC for work described as: EMPLOYMENT VERIFICATION SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. Fixed-price contract type aims to control costs for the government. 3. The contract duration of nearly three years provides stability for service delivery. 4. Services fall under investigation and personal background check, a critical function for security. 5. Awarded to a single vendor, Equifax Workforce Solutions LLC, for specialized services. 6. Geographic focus on Missouri for this specific delivery order.
Value Assessment
Rating: good
The contract value of $5.8 million for nearly three years of employment verification services appears reasonable given the specialized nature of the work. Benchmarking against similar contracts for background check services is challenging without more specific data on service scope and volume. However, the fixed-price nature of the contract provides cost certainty. The award amount is within the expected range for such services supporting a federal agency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit offers. This suggests a robust bidding process where multiple vendors likely had the opportunity to compete. The presence of competition is generally favorable for achieving competitive pricing and ensuring the government receives the best value.
Taxpayer Impact: Full and open competition helps ensure taxpayer dollars are used efficiently by driving down prices through market forces, leading to potentially lower costs compared to sole-source or limited competition awards.
Public Impact
The primary beneficiaries are federal agencies requiring verified employment data for security clearance and personnel vetting. Services delivered include investigation and personal background checks, crucial for national security. The geographic impact is noted as Missouri for this specific delivery order, though the overall impact is national for security functions. Workforce implications include support for the security clearance process and potentially the employment of personnel within the background check industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if transition to a new provider is complex.
- Reliance on a single vendor for critical data could pose a risk if service levels degrade.
Positive Signals
- Award through full and open competition suggests a competitive market for these services.
- Fixed-price contract type helps manage cost overruns.
- Longer contract duration provides continuity of essential services.
Sector Analysis
The contract falls within the professional, scientific, and technical services sector, specifically focusing on investigation and personal background check services. This market is characterized by a need for high accuracy, security, and compliance with various regulations. The total federal spending on similar services can be substantial, supporting national security and personnel management across numerous agencies. This contract represents a portion of that broader spending.
Small Business Impact
The provided data does not indicate if this contract included small business set-asides or subcontracting requirements. Further analysis would be needed to determine the extent of small business participation and its impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the Defense Counterintelligence and Security Agency (DCSA). Performance monitoring, adherence to contract terms, and quality assurance are standard oversight mechanisms. Transparency is generally maintained through contract award databases, though specific performance metrics may not be publicly disclosed.
Related Government Programs
- Federal Background Check Services
- Personnel Security Investigations
- Employment Verification Systems
- Defense Security Services
Risk Flags
- Data Security Risk
- Service Continuity Risk
- Vendor Performance Risk
Tags
employment-verification, background-checks, equifax, department-of-defense, dcsa, missouri, full-and-open-competition, firm-fixed-price, investigation-services, personnel-security, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.8 million to EQUIFAX WORKFORCE SOLUTIONS LLC. EMPLOYMENT VERIFICATION SERVICES
Who is the contractor on this award?
The obligated recipient is EQUIFAX WORKFORCE SOLUTIONS LLC.
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 $5.8 million.
What is the period of performance?
Start: 2023-06-21. End: 2026-05-31.
What is the track record of Equifax Workforce Solutions LLC in providing similar employment verification services to the federal government?
Equifax Workforce Solutions LLC has a history of providing employment and income verification services to various entities, including federal agencies. They are a known provider in this space, often handling large volumes of data for background checks and employment eligibility verification. Their experience typically includes compliance with regulations such as the Fair Credit Reporting Act (FCRA) and other privacy laws. While specific performance details for this contract are not public, their established presence suggests a capacity to handle federal requirements. Past performance reviews and contract awards from other agencies would offer a more granular view of their track record.
How does the awarded amount compare to similar federal contracts for employment verification services?
Comparing the $5.8 million award for nearly three years of service requires understanding the scope, volume, and specific services rendered. Federal contracts for employment verification and background checks vary significantly based on the number of individuals processed, the depth of the investigation, and the required turnaround time. Generally, contracts of this magnitude for specialized verification services are competitive. Without access to detailed service level agreements and volume metrics for this specific contract, a precise benchmark is difficult. However, the award appears to be within a reasonable range for a contract supporting a significant federal agency like DCSA, especially considering the fixed-price nature which caps potential government expenditure.
What are the primary risks associated with this contract for the government?
Key risks for the government include potential service disruptions if Equifax faces operational issues, data security breaches compromising sensitive personal information, or a decline in the quality or timeliness of verification services. There's also a risk of vendor lock-in, making it difficult and costly to switch providers if performance issues arise or market conditions change. Ensuring continuous compliance with evolving regulations and maintaining accurate, up-to-date databases are ongoing challenges. The government mitigates these risks through performance monitoring, contract clauses, and potentially by maintaining contingency plans for service continuity.
How effective are employment verification services in supporting the mission of the Defense Counterintelligence and Security Agency (DCSA)?
Employment verification services are critically important to the DCSA's mission of safeguarding national security information and personnel. By verifying the employment history and background of individuals requiring access to sensitive information or positions, these services help identify potential security risks, foreign influence, or disqualifying factors. Accurate and timely verification is fundamental to the vetting process, enabling DCSA to make informed decisions about security clearances and suitability. The effectiveness hinges on the thoroughness, accuracy, and speed of the verification process, directly impacting the integrity of the federal workforce and the protection of classified information.
What are the historical spending patterns for employment verification services by the Department of Defense or DCSA?
Historical spending on employment verification and background check services by the Department of Defense (DoD) and its agencies like DCSA is substantial, reflecting the vast number of personnel requiring vetting. While specific historical figures for DCSA's employment verification contracts are not readily available in the public domain, the DoD consistently ranks among the largest federal spenders in this category. Annual spending can fluctuate based on security clearance reinvestigation cycles, hiring trends, and evolving security requirements. The trend generally shows a consistent need for these services, with spending often in the millions or tens of millions annually across the department for various related services.
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: HS002123Q0006
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1550 PEACHTREE ST NW, ATLANTA, GA, 30309
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $7,535,526
Exercised Options: $5,860,650
Current Obligation: $5,847,643
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS02F0235X
IDV Type: FSS
Timeline
Start Date: 2023-06-21
Current End Date: 2026-05-31
Potential End Date: 2027-05-31 00:00:00
Last Modified: 2025-12-29
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