OPM's $14.9M investigative services contract with Omniplex World Services Corporation awarded non-competitively

Contract Overview

Contract Amount: $14,930,164 ($14.9M)

Contractor: Omniplex World Services Corporation

Awarding Agency: Office of Personnel Management

Start Date: 2004-12-17

End Date: 2008-09-30

Contract Duration: 1,383 days

Daily Burn Rate: $10.8K/day

Competition Type: NON-COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: INVESTIGATIVE SERVICES

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Office of Personnel Management obligated $14.9 million to OMNIPLEX WORLD SERVICES CORPORATION for work described as: INVESTIGATIVE SERVICES Key points: 1. Contract awarded via a non-competitive delivery order, raising questions about potential cost savings through competition. 2. The contract duration of 1383 days suggests a long-term need for investigative services. 3. Fixed Price with Economic Price Adjustment (FPEPA) contract type can lead to cost increases over time. 4. The North American Industry Classification System (NAICS) code 561611 indicates a focus on investigation and personal background check services. 5. The contract was awarded to a single vendor, Omniplex World Services Corporation, with no indication of other bidders. 6. The value of the contract, approximately $14.9 million, warrants scrutiny for value for money.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without comparable non-competitive awards for similar investigative services. The fixed-price with economic price adjustment structure introduces potential for cost escalation over its nearly four-year duration. Given the non-competitive nature, it is difficult to assess if OPM secured the best possible pricing or if alternative solutions could have offered better value. The total award amount of $14.9 million for investigative services requires careful review to ensure it aligns with market rates for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a non-competitive delivery order, meaning it was not openly competed. The specific justification for this sole-source award is not provided in the data. Without a competitive process, it is impossible to determine the number of potential bidders or the range of pricing that might have been available. This lack of competition limits the government's ability to leverage market forces to achieve the best possible price and service.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of a competitive bidding process, potentially missing out on cost savings that competition typically drives.

Public Impact

The Office of Personnel Management (OPM) benefits from these services, likely for background checks and investigations related to federal employment. Services delivered include investigation and personal background check services, crucial for maintaining the integrity of the federal workforce. The geographic impact is primarily within Virginia, where the contract was awarded, but the services likely support federal personnel nationwide. Workforce implications include the potential support for federal HR functions and the need for skilled investigators.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Non-competitive award limits price discovery and potential cost savings for taxpayers.
Economic price adjustment clause introduces risk of cost increases over the contract term.
Lack of transparency regarding the justification for sole-source award.
Long contract duration (1383 days) may indicate a lack of market research for more efficient solutions.

Positive Signals

Contract addresses a critical government function: personnel investigations.
Awarded to a single, presumably capable, vendor for specialized services.
Fixed-price elements provide some cost certainty, though adjusted.

Sector Analysis

The contract falls within the professional, scientific, and technical services sector, specifically focusing on investigative and security services. This market includes a range of companies offering background checks, due diligence, and investigative support to government and private entities. Government spending in this area is often driven by national security, personnel vetting, and regulatory compliance needs. Comparable spending benchmarks would typically involve analyzing other federal contracts for similar investigative services, particularly those awarded competitively to gauge market pricing.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, Omniplex World Services Corporation, is likely a larger entity, and the absence of a set-aside means opportunities for small business participation through subcontracting are not mandated by this specific award mechanism.

Oversight & Accountability

Oversight for this contract would typically fall under the Office of Personnel Management (OPM), specifically the contracting officer and program managers responsible for investigative services. Accountability measures would be tied to the performance standards outlined in the contract. Transparency is limited due to the non-competitive nature of the award; the justification for the sole-source award would be a key document for assessing transparency. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Background Investigation Services
Personnel Security Investigations
Government Contracting Services
Professional Services Contracts
Security and Investigation Services

Risk Flags

Non-competitive award
Potential for cost overruns due to E.P.A.
Lack of transparency in award justification

Frequently Asked Questions

What is this federal contract paying for?

Office of Personnel Management awarded $14.9 million to OMNIPLEX WORLD SERVICES CORPORATION. INVESTIGATIVE SERVICES

Who is the contractor on this award?

The obligated recipient is OMNIPLEX WORLD SERVICES CORPORATION.

Which agency awarded this contract?

Awarding agency: Office of Personnel Management (Office of Personnel Management).

What is the total obligated amount?

The obligated amount is $14.9 million.

What is the period of performance?

Start: 2004-12-17. End: 2008-09-30.

What is the specific justification for awarding this contract non-competitively?

The provided data indicates the contract was awarded as a 'NON-COMPETITIVE DELIVERY ORDER' (ct: NON-COMPETITIVE DELIVERY ORDER). However, the specific justification or rationale for why this contract was not competed is not detailed in the dataset. Typically, non-competitive awards are made under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can satisfy the agency's needs, or in cases of urgent and compelling need. Without further documentation from the agency (OPM), the precise reason for bypassing the competitive bidding process remains unknown. This lack of transparency is a common concern with sole-source or non-competitive contracts, as it limits the ability to verify if the government truly obtained the best value.

How does the pricing of this contract compare to similar investigative services contracts awarded competitively?

Directly comparing the pricing of this $14.9 million non-competitive contract to similar services awarded competitively is difficult without access to detailed pricing structures and market analysis data. Non-competitive awards inherently lack the price discovery mechanism that competition provides. To perform a robust comparison, one would need to identify comparable contracts for investigation and personal background check services (NAICS 561611) awarded by OPM or other agencies around the same period (2004-2008). Key metrics to compare would include the average cost per investigation, cost per hour for investigators, and overhead rates. The presence of an 'Economic Price Adjustment' clause also complicates direct comparisons, as it allows for price changes over the contract's duration, potentially increasing the final cost beyond initial estimates.

What are the potential risks associated with a Fixed Price with Economic Price Adjustment (FPEPA) contract type for investigative services?

The Fixed Price with Economic Price Adjustment (FPEPA) contract type for investigative services carries several risks. Primarily, the 'Economic Price Adjustment' component introduces uncertainty regarding the final cost. This clause allows for adjustments to the contract price based on fluctuations in specific economic factors, such as labor costs, material costs, or inflation indices. While intended to protect the contractor from unforeseen economic shifts, it can lead to higher-than-anticipated expenditures for the government if these economic factors rise significantly. For a contract spanning over three years (1383 days), these adjustments can accumulate, potentially making the total cost substantially higher than a firm fixed-price contract. This risk necessitates careful monitoring of the economic indicators used for adjustment and robust negotiation of the adjustment formula.

What is the historical spending pattern for investigative services by the Office of Personnel Management?

The provided data reflects a single contract award of $14.9 million for investigative services to Omniplex World Services Corporation between December 2004 and September 2008. This data point alone does not provide a comprehensive historical spending pattern for OPM in this category. To understand OPM's historical spending, a broader analysis of all contracts awarded for 'INVESTIGATIVE SERVICES' (d: INVESTIGATIVE SERVICES) or related NAICS codes (like 561611) over multiple fiscal years would be necessary. This would involve examining trends in contract values, the number of contracts awarded, the mix of competitive versus non-competitive awards, and the primary contractors utilized. Without this broader dataset, it's impossible to determine if this $14.9 million award represents a typical, increased, or decreased level of spending for OPM's investigative needs during that period.

What is the track record of Omniplex World Services Corporation in performing federal contracts, particularly for investigative services?

The provided data identifies Omniplex World Services Corporation (co: OMNIPLEX WORLD SERVICES CORPORATION) as the contractor for this $14.9 million investigative services contract with OPM. However, this dataset does not include information on Omniplex's broader contract performance history, such as past performance ratings, number of contracts held, or any past issues or disputes. To assess their track record, one would need to consult federal procurement databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) to review their history across multiple agencies and contract types. A thorough review would look for consistent on-time delivery, adherence to quality standards, and overall client satisfaction in similar service areas.

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: NON-COMPETITIVE DELIVERY ORDER

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 14840 CONFERENCE CENTER DRIVE, CHANTILLY, VA, 90

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

Financial Breakdown

Contract Ceiling: $14,930,164

Exercised Options: $14,930,164

Current Obligation: $14,930,164

Parent Contract

Parent Award PIID: OPMBPA040400017

IDV Type: IDC

Timeline