DOJ awards $9.2M for investigation services, with 7 bidders competing for a 3-year contract

Contract Overview

Contract Amount: $9,211,693 ($9.2M)

Contractor: Potomac River Group, LLC

Awarding Agency: Department of Justice

Start Date: 2023-09-01

End Date: 2026-09-30

Contract Duration: 1,125 days

Daily Burn Rate: $8.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: AFISS2 EOUSA

Place of Performance

Location: PALM HARBOR, PINELLAS County, FLORIDA, 34685

State: Florida Government Spending

Plain-Language Summary

Department of Justice obligated $9.2 million to POTOMAC RIVER GROUP, LLC for work described as: AFISS2 EOUSA Key points: 1. The contract's value appears reasonable given the scope of investigation and personal background check services. 2. Full and open competition suggests a healthy market for these services, potentially driving competitive pricing. 3. The Time and Materials pricing structure introduces some cost variability risk. 4. This contract supports the Department of Justice's operational needs for background checks. 5. The services fall within the professional and commercial support sector. 6. The contract duration of over three years allows for sustained support.

Value Assessment

Rating: good

The award of $9.2 million for investigation and personal background check services seems aligned with market rates for similar federal contracts. The presence of seven bidders indicates a competitive environment, which typically leads to more favorable pricing for the government. While the Time and Materials (T&M) pricing model can introduce some uncertainty, the overall value proposition appears sound, especially considering the specialized nature of the services required by the Department of Justice.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the solicitation was broadly advertised, and multiple responsible sources were permitted to submit offers. The participation of seven bidders suggests a robust level of competition for these specialized investigation services. This level of competition is generally positive for price discovery and ensures the government receives offers from a range of qualified providers.

Taxpayer Impact: The strong competition for this contract is beneficial for taxpayers, as it likely drove down prices and ensured the government secured services at a competitive rate. It also suggests that the government is not overly reliant on a single provider, reducing potential price gouging.

Public Impact

The Department of Justice benefits from enhanced capabilities in conducting thorough investigations and background checks. Essential services for personnel vetting and due diligence are delivered. The contract's impact is primarily national, supporting DOJ operations across various offices and boards. The contract supports a specialized workforce in the investigation and background check industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost overruns if not carefully managed.
The specific nature of 'Investigation and Personal Background Check Services' requires stringent quality control and data security.

Positive Signals

Full and open competition suggests a healthy market and potential for competitive pricing.
The contract is awarded to a single entity, simplifying management and oversight.
The duration of the contract allows for consistent service delivery.

Sector Analysis

The professional and commercial support services sector, specifically NAICS code 561611 (Investigation and Personal Background Check Services), is a critical component of government operations. This sector includes a wide range of services from private investigators to security consultants. Federal spending in this area is substantial, supporting agencies' needs for vetting personnel, conducting due diligence, and ensuring security. Comparable contracts often involve similar pricing structures and competitive bidding processes.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the primary contractor is POTOMAC RIVER GROUP, LLC, there is no explicit information on subcontracting plans for small businesses within this award. Further analysis would be needed to determine if small businesses are involved in the supply chain or if there are opportunities for them to participate in future similar procurements.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's contracting officers and program managers. Accountability measures are inherent in the contract terms, including performance standards and payment schedules. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Bureau of Investigation Services
Department of Homeland Security Vetting Services
General Services Administration Professional Services Schedule
Office of Personnel Management Background Investigations

Risk Flags

Time and Materials pricing structure requires careful monitoring to control costs.
Ensuring data security and privacy in background check services is paramount.
Performance quality and timeliness are critical for investigation services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $9.2 million to POTOMAC RIVER GROUP, LLC. AFISS2 EOUSA

Who is the contractor on this award?

The obligated recipient is POTOMAC RIVER GROUP, LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $9.2 million.

What is the period of performance?

Start: 2023-09-01. End: 2026-09-30.

What is the track record of POTOMAC RIVER GROUP, LLC with federal contracts, particularly in investigation services?

A review of federal procurement data would be necessary to fully assess POTOMAC RIVER GROUP, LLC's track record. This would involve examining past contract awards, performance evaluations (if available), and any history of disputes or contract modifications. Without specific data on their past performance, it's difficult to definitively gauge their reliability and expertise in delivering investigation and personal background check services. However, their ability to win a competitive bid for this significant DOJ contract suggests they have met the necessary qualifications and demonstrated capability to the agency.

How does the $9.2 million contract value compare to similar investigation services contracts awarded by the DOJ or other federal agencies?

Benchmarking this $9.2 million contract requires comparing it against similar 'Investigation and Personal Background Check Services' (NAICS 561611) contracts awarded by the Department of Justice and other federal agencies over a comparable timeframe. Factors such as contract duration, scope of work (e.g., number of checks, depth of investigation), and pricing structure (e.g., T&M vs. fixed-price) are crucial for a fair comparison. Given the 3-year duration and the competitive nature indicated by 7 bidders, the value appears reasonable, but a detailed analysis of contract line item pricing and service levels would provide a more precise valuation.

What are the primary risks associated with a Time and Materials (T&M) contract for investigation services?

The primary risk with a Time and Materials (T&M) contract for investigation services is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If the scope of work expands, or if the contractor's efficiency is lower than anticipated, the total cost to the government can exceed initial estimates. Effective oversight, clear task definitions, and robust monitoring of labor hours and material costs are essential to mitigate these risks and ensure value for money.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring competitive pricing for specialized services like background checks?

The 'Full and Open Competition After Exclusion of Sources' method is generally effective in ensuring competitive pricing for specialized services. By broadly advertising the requirement and allowing all responsible sources to submit offers, it maximizes the pool of potential bidders. The fact that seven bidders participated in this specific contract indicates that the market for investigation and personal background check services is sufficiently robust to support open competition. This level of competition typically drives down prices as contractors vie for the award, leading to better value for the government compared to sole-source or limited competition scenarios.

What is the historical spending trend for investigation and personal background check services within the Department of Justice?

Analyzing historical spending trends for investigation and personal background check services within the Department of Justice would involve examining procurement data over several fiscal years. This would reveal whether spending in this category has been increasing, decreasing, or remaining relatively stable. It would also highlight the typical contract values, durations, and the prevalence of different competition levels (e.g., full and open vs. sole source). Understanding these trends can help in assessing whether the current $9.2 million award is an outlier or consistent with past spending patterns, and it can inform future budget planning and procurement strategies.

Are there specific performance metrics or KPIs tied to this contract to ensure the quality and timeliness of background checks?

While the provided data does not detail specific performance metrics or Key Performance Indicators (KPIs) for this contract, it is standard practice for federal contracts, especially those involving sensitive services like background checks, to include such measures. These typically address aspects like turnaround time for investigations, accuracy rates, completeness of reports, and adherence to security protocols. The Department of Justice's contracting officer and program managers would be responsible for monitoring POTOMAC RIVER GROUP, LLC's performance against these defined metrics. Failure to meet KPIs could result in contract remedies, including financial penalties or termination.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 19775 BELMONT EXECUTIVE PLZ, ASHBURN, VA, 20147

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,722,712

Exercised Options: $11,806,186

Current Obligation: $9,211,693

Actual Outlays: $6,265,678

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15JPSS23D00000065

IDV Type: IDC

Timeline