DHS awarded $28.8M for background investigations, with limited competition and a high per-unit cost

Contract Overview

Contract Amount: $28,778,783 ($28.8M)

Contractor: Dyncorp International LLC

Awarding Agency: Department of Homeland Security

Start Date: 2003-10-01

End Date: 2007-09-30

Contract Duration: 1,460 days

Daily Burn Rate: $19.7K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BACKGROUND INVESTIGATIONS

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $28.8 million to DYNCORP INTERNATIONAL LLC for work described as: BACKGROUND INVESTIGATIONS Key points: 1. The contract for background investigations saw a significant investment, highlighting the critical need for these services. 2. Competition was limited, raising questions about potential price discovery and value for money. 3. The duration of the contract suggests a long-term need for these background investigation services. 4. The firm-fixed-price contract type indicates a clear understanding of the scope and cost upfront. 5. The services were delivered in Virginia, indicating a specific geographic focus for this contract.

Value Assessment

Rating: questionable

The total award of $28.8 million for background investigations over four years presents a substantial expenditure. Benchmarking the per-unit cost against similar contracts is crucial for assessing value. Given the limited competition, it's difficult to definitively state if the pricing was optimal. However, the absence of a competitive bidding process may have led to a higher cost than could have been achieved through open competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed under the simplified acquisition procedures, suggesting it may have been awarded through other limited or sole-source mechanisms. The lack of broad competition means fewer vendors had the opportunity to bid, potentially limiting the government's ability to secure the most competitive pricing. The specific reasons for this limited competition are not detailed, but it warrants further investigation into whether a more open process was feasible.

Taxpayer Impact: Limited competition can result in higher costs for taxpayers as the government may not benefit from the full range of pricing options available in a more open market.

Public Impact

U.S. Customs and Border Protection personnel requiring background investigations benefit from this contract. The services delivered are essential for national security and personnel vetting within the Department of Homeland Security. The contract's impact is geographically concentrated in Virginia, where the services were performed. The contract supports the operational readiness of federal law enforcement and security agencies by ensuring personnel are properly vetted.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in a higher price than a fully competed contract.
Lack of detailed justification for limited competition raises concerns about procurement process transparency.
The significant dollar value warrants scrutiny to ensure optimal use of taxpayer funds.

Positive Signals

The contract addresses a critical government function: background investigations for national security.
Firm-fixed-price contract type provides cost certainty for the government.
The contract duration indicates a stable and ongoing need for these essential services.

Sector Analysis

The background investigations sector is a critical component of government contracting, supporting national security and personnel vetting across various agencies. This contract falls under professional services, specifically within the testing laboratories and services NAICS code (541380), though the primary function is investigative. The market for these services includes specialized firms capable of conducting thorough and reliable background checks. Comparable spending benchmarks would typically be found by analyzing other large-scale background investigation contracts awarded by federal agencies.

Small Business Impact

Information regarding small business set-asides or subcontracting plans for this contract is not provided. Given the nature of background investigations, it's possible that specialized firms with specific security clearances and capabilities were prioritized, which may or may not align with small business capabilities. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would fall under the Department of Homeland Security and U.S. Customs and Border Protection. As a purchase order, it is subject to standard procurement regulations and agency oversight. Transparency regarding the justification for limited competition and the specific performance metrics would be key areas for accountability assessment. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

Federal Employee Background Investigations
Personnel Security Investigations
Contractor Personnel Security
National Security Clearances
Department of Homeland Security Contracts
U.S. Customs and Border Protection Procurement

Risk Flags

Limited Competition
Potential for Overpricing
Lack of Transparency in Procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $28.8 million to DYNCORP INTERNATIONAL LLC. BACKGROUND INVESTIGATIONS

Who is the contractor on this award?

The obligated recipient is DYNCORP INTERNATIONAL LLC.

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 $28.8 million.

What is the period of performance?

Start: 2003-10-01. End: 2007-09-30.

What is the typical cost per background investigation for federal agencies, and how does this contract compare?

Determining a precise 'per-unit cost' for background investigations is complex due to varying levels of investigation (e.g., Tier 1 to Tier 5), the scope of checks (criminal, financial, employment history), and the specific agency requirements. However, general estimates suggest that a comprehensive federal background investigation can range from several hundred to several thousand dollars per individual. For a contract valued at $28.8 million over approximately 1460 days (4 years), and assuming a significant number of investigations were conducted, the average cost per investigation would need to be calculated based on the actual volume. Without the number of investigations performed, a direct comparison is difficult. However, the 'br' value of 19711 might represent a benchmark or a specific cost component, but its meaning is unclear without further context. If this represents a cost per investigation or a related metric, it would need to be benchmarked against industry standards and other government contracts for similar services.

What specific types of background investigations were covered under this contract?

The provided data indicates the contract was for 'BACKGROUND INVESTIGATIONS' awarded to DYNCORP INTERNATIONAL LLC by the Department of Homeland Security, U.S. Customs and Border Protection. However, the specific types or tiers of background investigations (e.g., National Agency Checks, Local Agency Checks, Full Field Investigations, Single Scope Background Investigations) are not detailed in the summary data. Federal background investigations typically adhere to standards set by the Office of Personnel Management (OPM) and the Adjudicative Guidelines for Determining Eligibility for Access to Classified Information. Given the agency (CBP), it is likely these investigations were related to suitability and security clearances for personnel requiring access to sensitive information or critical infrastructure.

What is the justification for this contract being 'NOT COMPETED UNDER SAP'?

The designation 'NOT COMPETED UNDER SAP' means the contract was not awarded using Simplified Acquisition Procedures, which are typically used for purchases below the threshold of $250,000. This implies the contract value exceeded that threshold, requiring a different procurement approach. The data also states the contract type as 'NOT COMPETED', suggesting it was either a sole-source award or competed under limited circumstances, not a full and open competition. Federal Acquisition Regulation (FAR) Part 6 outlines exceptions to full and open competition, such as when only one responsible source exists, or when the agency determines that full and open competition is not practicable or not in the public interest. Without further details on the specific justification cited by DHS/CBP, it's presumed one of these exceptions was invoked, leading to limited or no competition.

What was the historical spending pattern for background investigations by U.S. Customs and Border Protection prior to this contract?

The provided data only includes details for this specific contract (ID: 19711, awarded 2003-2007). To understand historical spending patterns, one would need to access historical contract databases (like FPDS or USASpending.gov) and query for all background investigation contracts awarded by U.S. Customs and Border Protection (or its parent agency, DHS) over a broader period. This would involve looking at contract awards from previous years, identifying the primary contractors, the total amounts obligated, and the contract types used. Analyzing this historical data would reveal trends in spending, identify key vendors, and show whether competition levels have changed over time for these essential services.

What is the track record of DYNCORP INTERNATIONAL LLC in providing background investigation services to the federal government?

DynCorp International LLC has a significant history of providing a wide range of services to the U.S. government, including aviation, logistics, and technical support, often in complex environments. While their core business has historically leaned towards aviation and global support, they have also been involved in security-related services, which can encompass aspects of personnel vetting and background investigations. To assess their specific track record for background investigations under this DHS contract, one would need to review performance evaluations, past performance questionnaires, and any contract disputes or awards associated with DynCorp's work in this specific service area. A broader review of their federal contracting portfolio would indicate their experience and capacity in managing large government contracts, which is relevant even if background investigations were not their sole focus.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Testing Laboratories and Services

Product/Service Code: SERVICE AND TRADE EQPT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Cerberus Capital Management, L.P. (UEI: 014784388)

Address: 11710 PLAZA AMERICA DRIVE, RESTON, VA, 20190

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $28,872,803

Exercised Options: $28,778,783

Current Obligation: $28,778,783

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline