DOJ awards $2.86M for personnel security services, raising questions on competition and value

Contract Overview

Contract Amount: $2,855,861 ($2.9M)

Contractor: TSI Federal LLC

Awarding Agency: Department of Justice

Start Date: 2023-09-07

End Date: 2026-11-06

Contract Duration: 1,156 days

Daily Burn Rate: $2.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: PERSONNEL SECURITY AND CREDENTIALING SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $2.9 million to TSI FEDERAL LLC for work described as: PERSONNEL SECURITY AND CREDENTIALING SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The contract's duration of nearly three years suggests a need for sustained support. 3. Services fall under 'All Other Business Support Services,' a broad category lacking specific performance metrics. 4. The lack of competition raises concerns about whether the government secured the best possible value. 5. Geographic location is limited to Washington D.C., indicating a localized service requirement. 6. The contractor, TSI Federal LLC, has secured this award without a competitive bidding process.

Value Assessment

Rating: questionable

Benchmarking the value for this contract is challenging due to the lack of competitive bids and specific performance metrics. The total award of $2.86 million over approximately three years suggests a significant investment in personnel security. Without comparable contracts or market data for similar 'All Other Business Support Services' in the federal space, it's difficult to definitively assess if the pricing is optimal. The absence of competition inherently limits the government's ability to negotiate the most favorable terms and pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This typically occurs when only one responsible source is available or when a compelling justification for other than full and open competition exists. The lack of multiple bidders means there was no opportunity for price comparison or negotiation based on market forces, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. Without competing offers, the government cannot be certain it received the lowest possible price for these essential personnel security services.

Public Impact

The Department of Justice, specifically the Office of Justice Programs, will benefit from enhanced personnel security and credentialing. Services delivered are crucial for maintaining the integrity and security of personnel within the agency. The geographic impact is concentrated in Washington D.C., where the services are likely performed. This contract supports the operational needs of the agency by ensuring qualified and vetted personnel are in place.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and value assessment.
Broad service category ('All Other Business Support Services') lacks specific performance indicators.
Limited transparency into the justification for sole-source procurement.

Positive Signals

Addresses a critical need for personnel security and credentialing.
Contract awarded to a known entity, TSI Federal LLC.
Clear contract duration and funding mechanism (definitive contract).

Sector Analysis

This contract falls under the broad category of Business Support Services, specifically related to personnel security and credentialing. The federal market for such services is substantial, encompassing background checks, vetting, and access control. While specific benchmarks for 'All Other Business Support Services' are difficult to pinpoint due to their heterogeneity, contracts for specialized security and administrative support often range from hundreds of thousands to millions of dollars annually, depending on scope and duration. This award of $2.86 million over nearly three years is consistent with significant support requirements.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. There is no information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, and there's no indication of efforts to leverage small business capabilities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Office of Justice Programs. As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency regarding the justification for the sole-source award is crucial for accountability. Further oversight could involve contract performance reviews and audits to ensure services are delivered as specified and at a reasonable cost, though the lack of competition complicates value-for-money oversight.

Related Government Programs

Personnel Security Investigations
Background Check Services
Federal Credentialing Services
Administrative Support Services
Department of Justice Contracts

Risk Flags

Sole-source award raises concerns about fair pricing and competition.
Broad service category lacks specific performance metrics for effective oversight.
Lack of transparency regarding the justification for sole-source procurement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $2.9 million to TSI FEDERAL LLC. PERSONNEL SECURITY AND CREDENTIALING SERVICES

Who is the contractor on this award?

The obligated recipient is TSI FEDERAL LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Office of Justice Programs).

What is the total obligated amount?

The obligated amount is $2.9 million.

What is the period of performance?

Start: 2023-09-07. End: 2026-11-06.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source awards are made when only one responsible source is capable of providing the required services, or under circumstances such as a public exigency, or when a statutory authority permits it. Without this justification, it is impossible to assess the validity of the sole-source determination and whether full and open competition was appropriately bypassed. Further investigation into the contract file or agency justifications would be required to understand the rationale behind this procurement approach.

How does the pricing of this contract compare to similar personnel security services procured competitively?

Direct price comparison is not feasible with the current data, as this contract was awarded sole-source. Competitive procurements allow for price discovery through multiple bids, enabling agencies to benchmark against market rates and potentially negotiate lower prices. Since this award lacked competition, it's impossible to state whether the negotiated price is favorable. To assess value, one would need to compare the per-unit costs or overall contract value against similar services procured competitively by other federal agencies or within the private sector, adjusting for scope, duration, and service level differences.

What are the key performance indicators (KPIs) for the 'All Other Business Support Services' being provided?

The data categorizes these services under NAICS code 561499, 'All Other Business Support Services,' which is a very broad classification. Specific performance indicators (KPIs) are not detailed in the provided information. Effective oversight and value assessment rely on clearly defined KPIs tied to the specific tasks of personnel security and credentialing, such as turnaround times for background checks, accuracy rates, or compliance with security protocols. Without these, it is difficult to measure the contractor's performance objectively and ensure the government is receiving the expected level of service.

What is the track record of TSI Federal LLC in providing personnel security and credentialing services to the federal government?

Information regarding TSI Federal LLC's specific track record in providing personnel security and credentialing services is not detailed in the provided data. While they are the awardee of this contract, their past performance, client satisfaction, and history with similar federal contracts are unknown from this summary. A comprehensive assessment would require reviewing their performance on previous contracts, any past performance evaluations, and their experience within this specialized service area. This information is typically available through federal contract databases and performance reporting systems.

What is the historical spending pattern for personnel security and credentialing services by the Office of Justice Programs?

The provided data only pertains to this specific contract award and does not offer historical spending patterns for the Office of Justice Programs (OJP) regarding personnel security and credentialing services. To understand historical spending, one would need to analyze OJP's procurement data over several fiscal years, identifying all contracts related to these services, their values, durations, and award types (competitive vs. sole-source). This analysis would reveal trends, identify major service providers, and highlight any shifts in procurement strategies or spending levels over time.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › All Other Business Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 111 W 16TH AVE, ANCHORAGE, AK, 99501

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,393,219

Exercised Options: $3,010,892

Current Obligation: $2,855,861

Actual Outlays: $1,663,186

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NO

Timeline