DHS's $42.9M background investigation contract with Omniplex World Services Corporation awarded under full and open competition

Contract Overview

Contract Amount: $42,882,913 ($42.9M)

Contractor: Omniplex World Services Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2003-11-24

End Date: 2007-09-30

Contract Duration: 1,406 days

Daily Burn Rate: $30.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIXED PRICE INCENTIVE

Sector: Other

Official Description: BACKGROUND INVESTIGATION SERVICES

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $42.9 million to OMNIPLEX WORLD SERVICES CORPORATION for work described as: BACKGROUND INVESTIGATION SERVICES Key points: 1. Contract awarded for background investigation services, a critical function for national security and personnel vetting. 2. The contract utilized a Fixed Price Incentive pricing structure, aiming to balance cost control with contractor performance. 3. Awarded to Omniplex World Services Corporation, a company with a significant role in providing these essential services. 4. The duration of the contract was substantial, spanning over 1400 days, indicating a long-term need for these services. 5. The contract was not set aside for small businesses, suggesting the scope and requirements were geared towards larger, established providers. 6. The services provided fall under the NAICS code 561611, 'Investigation and Personal Background Check Services'.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without detailed performance metrics and comparable contract data from the period. The fixed-price incentive structure suggests an attempt to manage costs while encouraging performance, but the overall value depends heavily on the efficiency and effectiveness of the investigations conducted. The raw dollar amount of $42.9 million over approximately four years indicates a significant investment in vetting personnel.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is generally expected to drive better pricing and service quality as contractors vie for the award. The number of bids received (4) suggests a reasonable level of interest in this requirement.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible price and quality for essential background investigation services.

Public Impact

Federal agencies, particularly those within the Department of Homeland Security, benefit from thorough background investigations to ensure personnel suitability and security. The services delivered are critical for maintaining the integrity and security of government operations and sensitive information. The contract's impact is primarily national, supporting the vetting of individuals across various federal roles. Workforce implications include the employment of investigators and support staff by Omniplex World Services Corporation to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if incentive targets are not met efficiently.
Ensuring consistent quality and thoroughness across all investigations over a long contract duration.
Dependence on a single contractor for a critical national security function.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Fixed Price Incentive contract type aims to align contractor and government interests for cost efficiency.
Long contract duration indicates a sustained need and potential for established working relationships.

Sector Analysis

The background investigation services sector is a vital component of the government's security apparatus. This contract falls within the broader professional, scientific, and technical services industry. The market for these services is competitive, with numerous firms specializing in vetting and security clearances. Spending in this area is consistently high due to the ongoing need for security and suitability assessments across federal agencies.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned in the provided data. The scale and nature of comprehensive background investigations often lend themselves to larger contracting firms with established infrastructure and personnel, potentially limiting direct opportunities for smaller entities in the prime contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of Homeland Security. Performance would be monitored against the terms of the Fixed Price Incentive contract, including quality standards and delivery timelines. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance details may be sensitive.

Related Government Programs

Federal Bureau of Investigation (FBI) background checks
Office of Personnel Management (OPM) investigations
Defense Counterintelligence and Security Agency (DCSA) services
Security Clearance Investigations

Risk Flags

Contract duration
Fixed Price Incentive contract type
Large contract value

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $42.9 million to OMNIPLEX WORLD SERVICES CORPORATION. BACKGROUND INVESTIGATION SERVICES

Who is the contractor on this award?

The obligated recipient is OMNIPLEX WORLD SERVICES CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $42.9 million.

What is the period of performance?

Start: 2003-11-24. End: 2007-09-30.

What was the specific performance history of Omniplex World Services Corporation on similar federal contracts prior to this award?

Assessing Omniplex World Services Corporation's prior performance requires a deep dive into federal procurement databases like FPDS-NG and CPARS. Generally, agencies evaluate past performance as a key factor in contract awards. For a contract of this magnitude and duration, the government would have reviewed Omniplex's track record on previous contracts for timeliness, quality of service, cost control, and overall customer satisfaction. A positive past performance review is crucial for winning significant federal contracts, especially in sensitive areas like background investigations. Without access to specific CPARS reports or internal agency evaluations from that period, a definitive statement on their prior performance is speculative, but the award itself suggests they met the government's criteria at the time.

How does the per-investigation cost under this contract compare to industry benchmarks for background checks during the 2003-2007 period?

Determining the precise per-investigation cost benchmark for the 2003-2007 period is challenging due to the variability in investigation depth and the proprietary nature of pricing data. However, the contract's total value of approximately $42.9 million over roughly 1406 days (about 3.85 years) suggests an average annual spend of around $11.1 million. If we assume a significant volume of investigations, the cost per investigation would need to be competitive. Industry benchmarks from that era for standard background checks (e.g., federal employment suitability) could range from a few hundred to over a thousand dollars, depending on the level of scrutiny (e.g., NACLC, SSBI). The Fixed Price Incentive structure implies that the government aimed for a target cost per investigation, with adjustments based on performance, making direct comparison difficult without knowing the target and actual costs.

What were the primary risks identified by DHS when awarding this contract, and what mitigation strategies were employed?

Primary risks for a contract of this nature typically include contractor performance failures (e.g., delays, incomplete investigations, compromised data), potential security breaches of sensitive information, and cost overruns. Given the Fixed Price Incentive (FPI) contract type, a key risk is ensuring the incentive structure effectively motivates the contractor without leading to unintended consequences or excessive costs if targets are poorly defined. DHS likely mitigated these risks through rigorous pre-award evaluations of Omniplex's capabilities and past performance, clear performance standards and metrics outlined in the contract, robust oversight mechanisms by contracting officers and technical monitors, and potentially through security protocols and background checks on the contractor's own personnel handling sensitive data. The FPI structure itself is a risk mitigation tool, aiming to share potential cost savings or overruns.

How effective was this contract in meeting DHS's background investigation needs during its performance period?

The effectiveness of this contract in meeting DHS's background investigation needs is best assessed through performance metrics and feedback mechanisms that were likely in place during the contract's life. These would include metrics on timeliness of investigations, accuracy and completeness of reports, and overall satisfaction from the end-user components within DHS. As the contract was awarded and completed, it implies a level of effectiveness that met the government's requirements at the time. However, without access to specific performance reports (e.g., Contractor Performance Assessment Reporting System - CPARS) or internal DHS evaluations from 2003-2007, a definitive judgment on its effectiveness remains elusive. The renewal or re-competition of such services often indicates satisfaction, but also evolving needs.

What was the total federal spending on background investigation services in the years surrounding this contract (2003-2007)?

Total federal spending on background investigation services during the period of this contract (2003-2007) was substantial and growing, driven by increased security concerns post-9/11. While precise aggregate figures for just 'background investigation services' can be difficult to isolate due to varied categorization across agencies and reporting systems, the overall federal spending on personnel security and investigations was in the billions annually. Agencies like the Department of Defense, Department of Homeland Security, and intelligence agencies are major consumers of these services. The Office of Personnel Management (OPM), prior to the establishment of the Defense Counterintelligence and Security Agency (DCSA), was a primary provider and procurer. Spending trends indicated a significant upward trajectory in this sector during those years.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 4

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Address: 14840 CONFERENCE CENTER DRIVE, CHANTILLY, VA, 20151

Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $43,437,400

Exercised Options: $42,882,913

Current Obligation: $42,882,913

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline