DOJ's $10.4M contract for investigation services awarded to Madison Associates Inc. amid full and open competition

Contract Overview

Contract Amount: $10,414,476 ($10.4M)

Contractor: Madison Associates Inc

Awarding Agency: Department of Justice

Start Date: 2023-07-31

End Date: 2026-09-30

Contract Duration: 1,157 days

Daily Burn Rate: $9.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: LABOR HOURS

Sector: Other

Official Description: MLARS AFISS TASK ORDER

Place of Performance

Location: LEESBURG, LOUDOUN County, VIRGINIA, 20175

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $10.4 million to MADISON ASSOCIATES INC for work described as: MLARS AFISS TASK ORDER Key points: 1. Contract value of $10.4 million for investigation and background check services. 2. Awarded to Madison Associates Inc. under a full and open competition. 3. Performance period spans from July 2023 to September 2026. 4. Services fall under the NAICS code 561611 for Investigation and Personal Background Check Services. 5. Contract type is a Delivery Order under a larger contract vehicle. 6. The contract is structured using Labor Hours pricing. 7. The agency is the Department of Justice, specifically Offices, Boards and Divisions. 8. The contract is located in Virginia.

Value Assessment

Rating: good

The contract value of $10.4 million for investigation and personal background check services appears reasonable given the duration and scope. Benchmarking against similar contracts for background check services within federal agencies suggests that pricing for labor hours can vary significantly based on skill level and experience required. Without specific details on the labor categories and hours, a precise per-unit cost comparison is difficult. However, the contract's duration of over two years indicates a substantial need for these services, and the competitive award process likely contributed to a fair market price.

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 while the competition was broad, there might have been specific exclusions or a particular contract vehicle that limited the pool of eligible bidders. The presence of 6 bidders suggests a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and ensures that the government receives offers from multiple qualified vendors, fostering a more efficient allocation of taxpayer funds.

Taxpayer Impact: The full and open competition, with multiple bidders, suggests that taxpayers are likely benefiting from competitive pricing and a wider range of service options. This process helps ensure that the selected contractor offers the best value proposition.

Public Impact

The Department of Justice benefits from enhanced investigative and background check capabilities. Services provided are crucial for due diligence, security assessments, and personnel vetting. The contract supports the operational needs of the Offices, Boards and Divisions within DOJ. Geographic impact is primarily within Virginia, where the contract is managed and potentially where services are rendered. The contract supports employment within the private sector for investigation and background check professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements are not clearly defined.
Reliance on labor hours pricing can sometimes lead to cost overruns if not closely monitored.
Ensuring consistent quality across all investigation services provided by the contractor.

Positive Signals

Awarded through a competitive process, indicating potential for good value.
Clear performance period (2023-2026) allows for structured service delivery.
Contract is with an established entity (Madison Associates Inc.) likely with relevant experience.

Sector Analysis

The market for investigation and personal background check services is a significant segment within the broader professional services industry. Federal agencies, particularly those in law enforcement and national security, are major consumers of these services. The North American Industry Classification System (NAICS) code 561611 specifically covers this niche. Spending in this sector is driven by the need for thorough vetting of personnel, due diligence in various processes, and investigative support. Comparable spending benchmarks are difficult to establish without detailed service descriptions, but federal contracts for similar services can range from thousands to millions of dollars annually.

Small Business Impact

This contract does not appear to have a specific small business set-aside. The data indicates the contractor is Madison Associates Inc., and there is no explicit mention of subcontracting goals for small businesses. Further analysis would be needed to determine if subcontracting opportunities exist and if they are being utilized to support the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and the program managers within the Department of Justice's Offices, Boards and Divisions. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise concerning this contract.

Related Government Programs

Department of Justice Contracts
Investigation Services
Background Check Services
Professional Services Contracts
Federal Law Enforcement Support

Risk Flags

Potential for cost overruns with labor hours pricing.
Data security and confidentiality risks with sensitive information.
Ensuring consistent quality and accuracy of investigative reports.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $10.4 million to MADISON ASSOCIATES INC. MLARS AFISS TASK ORDER

Who is the contractor on this award?

The obligated recipient is MADISON ASSOCIATES INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.4 million.

What is the period of performance?

Start: 2023-07-31. End: 2026-09-30.

What is the track record of Madison Associates Inc. in performing similar federal contracts?

Madison Associates Inc. has a history of performing federal contracts, primarily within the realm of investigation and personal background check services. While specific details on past performance metrics for this particular contractor require deeper database dives, their ability to secure this $10.4 million delivery order suggests a demonstrated capability to meet federal requirements. Federal procurement data often shows patterns of successful contract completions, on-time delivery, and adherence to quality standards for established vendors. A review of their contract history would reveal the types of agencies they have served, the value of previous awards, and any performance ratings or past performance questionnaires submitted by government agencies.

How does the awarded value compare to similar federal contracts for investigation services?

The awarded value of $10.4 million for investigation and personal background check services over approximately three years (July 2023 - September 2026) places this contract within a moderate to significant spending range for such services. Federal contracts for background checks can vary widely based on the depth of the investigation, the number of individuals screened, and the specific skill sets required (e.g., security clearances, specialized knowledge). Contracts for high-volume, basic checks might be significantly lower, while those involving complex, multi-jurisdictional investigations or extensive security clearance processing could be much higher. This contract's value suggests a substantial scope of work, likely involving a considerable number of detailed investigations or comprehensive background assessments.

What are the primary risks associated with this type of contract, and how are they mitigated?

Primary risks for this contract include potential cost overruns due to the labor hours pricing model if not managed diligently, ensuring the quality and accuracy of sensitive investigative data, and maintaining contractor performance throughout the contract period. Mitigation strategies typically involve robust oversight by the Department of Justice, clear performance work statements, regular progress reviews, and defined quality assurance surveillance plans. The competitive award process itself helps mitigate risks by selecting a vendor with a proven ability to perform. Furthermore, contract clauses addressing data security and confidentiality are critical for protecting sensitive information gathered during investigations.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' approach for this specific service?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' approach aims to balance broad competition with specific requirements or existing contract vehicles. For investigation services, this might mean that while the competition was open to all qualified sources, it was conducted under a specific Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a pre-approved list of vendors. This can streamline the procurement process and ensure that bidders have already met certain pre-qualification standards. The effectiveness hinges on whether the exclusions were justified and did not unduly limit competition, thereby potentially impacting price or innovation. The presence of 6 bidders suggests that the exclusions did not significantly stifle competition in this instance.

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

Historical spending on investigation and background check services within the Department of Justice (DOJ) is generally substantial, reflecting the agency's core mission functions related to law enforcement, national security, and personnel vetting. While specific year-over-year trends for this exact service category require detailed analysis of DOJ's procurement data, it's common for such services to see consistent or increasing demand. Factors influencing spending include changes in security requirements, personnel turnover, new investigative initiatives, and evolving threats. The DOJ, like other large federal agencies, relies heavily on contractors for specialized investigative support, making this a recurring and significant expenditure area.

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: 6

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 19812 ALDIE BURN LN, LEESBURG, VA, 20175

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,285,613

Exercised Options: $12,003,745

Current Obligation: $10,414,476

Actual Outlays: $7,935,602

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15JPSS23D00000069

IDV Type: IDC

Timeline