DHS's $15.7M background investigation contract awarded to PAE Professional Services, LLC

Contract Overview

Contract Amount: $15,741,825 ($15.7M)

Contractor: PAE Professional Services, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2006-11-20

End Date: 2009-03-15

Contract Duration: 846 days

Daily Burn Rate: $18.6K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BACKGROUND INVESTIGATION SERVICES

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22043

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $15.7 million to PAE PROFESSIONAL SERVICES, LLC for work described as: BACKGROUND INVESTIGATION SERVICES Key points: 1. Contract value represents a significant investment in ensuring the integrity of personnel. 2. Competition dynamics for this contract are crucial for ensuring fair pricing. 3. Performance history of the contractor will be a key indicator of value. 4. This contract falls within the broader context of federal personnel security. 5. The services provided are essential for national security and operational readiness.

Value Assessment

Rating: good

The total contract value of $15.7 million for background investigation services appears reasonable given the scope and duration. Benchmarking against similar contracts for federal background checks is challenging without more granular data on the number of investigations and complexity. However, the firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be a positive indicator of value if managed effectively. The contract's duration of approximately 2.5 years also allows for a stable service provision.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was awarded as a competitive delivery order, indicating that multiple vendors likely had the opportunity to bid. The presence of 3 bidders suggests a moderate level of competition. While not a full and open competition, a competitive delivery order process generally allows for price discovery and encourages vendors to offer competitive terms. The specific details of the bidding process would provide further insight into the strength of the competition.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

U.S. Customs and Border Protection (CBP) personnel will undergo background investigations. This ensures the trustworthiness and suitability of individuals in sensitive positions. The services support national security by vetting individuals with access to critical information and infrastructure. The contract contributes to the operational readiness of CBP by maintaining a secure workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the number of investigations exceeds initial estimates.
Reliance on a single contractor for critical vetting services could pose a risk if performance degrades.
Ensuring consistent quality across all investigations is paramount.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Competitive award process suggests potential for cost savings.
Long-term contract allows for stable service delivery and potential for economies of scale.

Sector Analysis

The background investigation services sector is a critical component of the federal government's personnel security apparatus. This contract fits within the broader market for professional services, specifically those related to security and investigative support. The federal government is a major consumer of these services, with significant spending allocated annually to ensure the vetting of employees and contractors. Comparable spending benchmarks would involve analyzing the total federal expenditure on background checks across various agencies and service providers.

Small Business Impact

Information regarding small business set-asides or subcontracting plans for this specific contract was not provided in the data. Typically, federal contracts aim to include opportunities for small businesses. The absence of explicit set-aside information suggests this may have been awarded to a large business, but further details on subcontracting would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver services within the agreed-upon budget. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

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

Risk Flags

Contract duration may be insufficient for long-term strategic planning.
Potential for performance issues if contractor resources are overstretched.
Lack of detailed performance metrics makes value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $15.7 million to PAE PROFESSIONAL SERVICES, LLC. BACKGROUND INVESTIGATION SERVICES

Who is the contractor on this award?

The obligated recipient is PAE PROFESSIONAL SERVICES, 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 $15.7 million.

What is the period of performance?

Start: 2006-11-20. End: 2009-03-15.

What is the historical spending trend for background investigation services by U.S. Customs and Border Protection?

Analyzing the historical spending trend for background investigation services by U.S. Customs and Border Protection (CBP) is crucial for understanding the context of this $15.7 million contract. Without specific historical data for CBP's background investigations, we can infer general trends in federal spending on such services. The Office of Personnel Management (OPM), and more recently the Defense Counterintelligence and Security Agency (DCSA), have been the primary federal entities responsible for conducting background investigations. Federal spending in this area has generally been substantial, often in the billions of dollars annually, driven by national security requirements and the need to vet a large federal workforce. Factors influencing spending include changes in security threat levels, legislative mandates (like the Federal Information Security Modernization Act or various security clearance reforms), and the volume of new hires and periodic reinvestigations required. It's important to note that while this contract is with CBP, the underlying investigative services might be performed by or coordinated with agencies like DCSA, depending on the specific arrangement and historical context of federal background investigation reform.

How does the per-investigation cost of this contract compare to industry benchmarks?

Determining the precise per-investigation cost for this $15.7 million contract is challenging without knowing the total number of investigations to be conducted over its duration (approximately 846 days or 2.5 years). However, we can discuss the factors that influence such benchmarks. Federal background investigations vary significantly in complexity, ranging from basic suitability checks to comprehensive Tier 2, Tier 4, or Tier 5 investigations, each with different cost structures. Industry benchmarks for federal background investigations can range widely, from a few hundred dollars for simpler checks to several thousand dollars for the most in-depth investigations. The firm fixed-price nature of this contract suggests that PAE Professional Services, LLC has calculated its costs, including profit, to cover the expected workload. If the number of investigations is high and the complexity is moderate, the per-investigation cost might fall within a competitive range. Conversely, if the number of investigations is lower or the complexity higher than anticipated by the contractor, the per-unit cost could appear higher or lower relative to benchmarks.

What is PAE Professional Services, LLC's track record with federal background investigation contracts?

PAE Professional Services, LLC has a significant track record in providing professional and technical services to the U.S. government, including areas related to security and logistics. While specific details on their performance for this particular $15.7 million background investigation contract with U.S. Customs and Border Protection (CBP) would require a deeper dive into contract performance reports and past performance evaluations, PAE has historically been a major federal contractor. Their experience often includes supporting complex government operations, which can encompass personnel vetting and support services. It is important to review their performance on similar contracts, looking for indicators such as on-time delivery, quality of service, and any past performance issues or commendations. Agencies often use past performance as a key factor in award decisions, suggesting that PAE's existing relationship and demonstrated capabilities likely played a role in securing this delivery order.

What are the potential risks associated with relying on a single contractor for background investigation services?

Relying on a single contractor, even through a competitive delivery order process, for critical services like background investigations presents several potential risks. Firstly, there's a risk of service degradation if the contractor faces internal challenges such as staffing shortages, financial difficulties, or a decline in management focus. This could lead to delays in investigations, impacting hiring timelines and operational readiness. Secondly, a lack of ongoing competition can reduce the incentive for the contractor to innovate or maintain the highest levels of efficiency and cost-effectiveness over the long term. Thirdly, if the contractor experiences a major disruption (e.g., a data breach, significant legal issues, or bankruptcy), it could create an immediate and severe gap in essential vetting services, potentially compromising national security. Robust oversight, clear performance metrics, and contingency planning are crucial to mitigate these risks.

How does this contract align with the Department of Homeland Security's overall mission?

This contract for background investigation services directly aligns with the Department of Homeland Security's (DHS) core mission of safeguarding the nation. U.S. Customs and Border Protection (CBP), as a component of DHS, is on the front lines of border security and trade enforcement. Ensuring that CBP personnel, who often hold positions of significant trust and access to sensitive information and operational areas, are thoroughly vetted is paramount to maintaining the integrity and effectiveness of these operations. Background investigations help identify potential security risks, suitability concerns, and ensure that individuals entrusted with critical responsibilities meet the highest standards of loyalty, reliability, and trustworthiness. Therefore, this contract is a fundamental enabler of CBP's ability to execute its mission securely and effectively, contributing to the broader DHS objective of preventing terrorism, securing borders, and enforcing immigration laws.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: SEALED BID

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: PAE Holding Corporation (UEI: 968071493)

Address: 7799 LEESBURG PIKE STE 300 N, FALLS CHURCH, VA, 22043

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $15,761,878

Exercised Options: $15,761,878

Current Obligation: $15,741,825

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS22F9736H

IDV Type: FSS

Timeline