Army's $13.8M background check contract with Peraton Risk Decision Inc. awarded under full and open competition

Contract Overview

Contract Amount: $13,849,026 ($13.8M)

Contractor: Peraton Risk Decision Inc.

Awarding Agency: Department of Defense

Start Date: 2008-03-28

End Date: 2013-03-27

Contract Duration: 1,825 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ACTIVE ARMY CHECKS

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $13.8 million to PERATON RISK DECISION INC. for work described as: ACTIVE ARMY CHECKS Key points: 1. Value for money appears reasonable given the fixed-price nature and duration of the contract. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are not explicitly detailed but the contract has been active since 2008. 4. Performance context is tied to investigation and personal background check services for the Army. 5. Sector positioning is within the professional services sector, specifically for government security needs.

Value Assessment

Rating: good

The contract's total value of approximately $13.8 million over a 5-year period suggests a moderate annual spend. Benchmarking against similar investigation and background check services for federal agencies is challenging without more granular data on the scope and complexity of each check. However, the firm-fixed-price structure generally provides cost certainty for the government, implying a degree of value for money if the services meet requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The data indicates there were 3 bids received. A competitive process like this typically fosters price discovery and allows the government to select the offer that provides the best value, balancing cost and technical factors.

Taxpayer Impact: A full and open competition suggests that taxpayers benefited from a potentially lower price due to multiple companies vying for the contract, rather than a sole-source award.

Public Impact

The primary beneficiaries are the Department of the Army and its personnel, ensuring security and suitability. Services delivered include investigation and personal background check services, crucial for maintaining a secure workforce. The geographic impact is primarily within the United States, supporting Army operations nationwide. Workforce implications include ensuring the integrity and trustworthiness of individuals in sensitive positions within the Army.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor performance degradation over a long contract duration.
Ensuring consistent quality of background checks across all service members and applicants.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm-fixed-price contract provides cost predictability for the government.
Long-standing contract suggests a sustained need and potentially satisfactory performance.

Sector Analysis

The market for investigation and personal background check services is a significant segment within the broader professional services industry, particularly for government clients. Federal agencies rely heavily on these services to vet personnel for security clearances and suitability. Spending in this area is driven by national security requirements and the need to maintain the integrity of government operations. Comparable spending benchmarks would typically be found within the broader category of security services and personnel vetting.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As it was awarded under full and open competition, there is no explicit information on subcontracting plans with small businesses. The impact on the small business ecosystem is therefore not directly quantifiable from this data alone.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract structure, requiring the contractor to deliver services as specified. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not be publicly available.

Related Government Programs

Federal Background Investigation Services
Department of Defense Personnel Security
Army Security and Suitability Programs

Risk Flags

Contract Duration
Performance Monitoring
Data Security

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.8 million to PERATON RISK DECISION INC.. ACTIVE ARMY CHECKS

Who is the contractor on this award?

The obligated recipient is PERATON RISK DECISION INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $13.8 million.

What is the period of performance?

Start: 2008-03-28. End: 2013-03-27.

What is the typical cost per background check for similar government contracts?

Determining a precise 'per-unit cost' for background checks is complex due to varying levels of investigation (e.g., Tier 1, Tier 2, Tier 4) and the specific data points required. For federal contracts, costs can range significantly, often from a few hundred dollars for basic checks to several thousand dollars for comprehensive investigations requiring extensive fieldwork and record reviews. Without knowing the specific type and depth of investigations performed under this $13.8 million Army contract, a direct comparison is difficult. However, given the contract's total value and duration, the average annual spend is around $2.77 million. If we assume a significant volume of checks, the per-check cost would likely fall within the established government benchmarks for similar services, reflecting the labor, administrative, and reporting overhead involved.

How does Peraton Risk Decision Inc.'s track record compare for similar government contracts?

Peraton Risk Decision Inc. (a subsidiary of Peraton) has a substantial track record in providing mission-critical services to the U.S. government, including background investigations and security services. Their history with the Department of Defense and other federal agencies suggests experience in handling large-scale, sensitive contracts. While specific performance metrics for this particular Army contract are not detailed here, Peraton as a whole has been a significant player in the government contracting space, often winning large, complex deals. Evaluating their track record would involve reviewing past performance evaluations, any contract disputes, and their success in winning subsequent or similar contracts across various agencies.

What are the primary risks associated with long-term contracts for background investigation services?

Long-term contracts for background investigation services carry several inherent risks. One primary risk is the potential for contractor performance degradation over time, where quality or efficiency may decline as the contract matures. Another significant risk is ensuring the consistent application of rigorous standards and data security protocols, especially with evolving threats and technologies. Furthermore, changes in government requirements or regulations could necessitate contract modifications, potentially impacting cost and schedule. The government also faces the risk of vendor lock-in, making it difficult and costly to switch providers if performance issues arise or if market conditions change favorably for alternative solutions.

How has spending on investigation and background check services evolved within the Department of the Army?

Spending on investigation and background check services within the Department of the Army, like across the broader federal government, has generally seen fluctuations driven by security needs, policy changes, and budget allocations. Following major security events, there's often an increased focus and investment in vetting processes. The trend has also been towards consolidating background investigation functions and leveraging technology to improve efficiency and data accuracy. This specific contract, active from 2008 to 2013, falls within a period where such services were critical for maintaining personnel security. Historical data would show peaks and troughs in spending related to national security priorities and shifts in contracting strategies.

What is the significance of the NAICS code 561611 for this contract?

The North American Industry Classification System (NAICS) code 561611 designates 'Investigative and Security Services.' This code specifically covers establishments primarily engaged in providing security services, such as armored car services, guard services, and investigation services. For this contract, it signifies that the core service being procured by the Department of the Army falls under the umbrella of investigative services, which includes activities like background checks, process serving, and other forms of information gathering and verification related to personal or organizational security. This classification helps in understanding the market segment and comparing spending with similar government procurements.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Veritas Capital Fund II L P

Address: 11411 ISAAC NEWTON SQUARE SOUTH, RESTON, VA, 20190

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $13,849,026

Exercised Options: $13,849,026

Current Obligation: $13,849,026

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS02F0054S

IDV Type: FSS

Timeline