DHS awards $11M for background investigation services, with a 364-day duration

Contract Overview

Contract Amount: $11,057,235 ($11.1M)

Contractor: ADC Ltd NM

Awarding Agency: Department of Homeland Security

Start Date: 2026-02-01

End Date: 2027-01-31

Contract Duration: 364 days

Daily Burn Rate: $30.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BACKGROUND INVESTIGATION SERVICES

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87106

State: New Mexico Government Spending

Plain-Language Summary

Department of Homeland Security obligated $11.1 million to ADC LTD NM for work described as: BACKGROUND INVESTIGATION SERVICES Key points: 1. Contract awarded via BPA Call, indicating a pre-competed framework. 2. Firm Fixed Price contract type suggests predictable costs for the government. 3. No small business set-aside, raising questions about broader economic impact. 4. Services fall under Administrative Management and General Management Consulting. 5. Contract duration of 364 days is standard for this type of service. 6. Awarded to ADC LTD NM, a single contractor for this specific call.

Value Assessment

Rating: fair

The total award amount is $11,057,234.71. Without specific performance metrics or comparable contract data, it is difficult to definitively assess value for money. The firm fixed price nature provides cost certainty. However, the lack of competition details for this specific BPA Call makes benchmarking challenging. Further analysis would require understanding the underlying BPA's competitive history and the specific services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was awarded as a BPA Call, which implies that the underlying Blanket Purchase Agreement (BPA) was likely competed. However, the specific competition for this individual call order is not detailed in the provided data. If the BPA was competed broadly, this call order benefits from that initial competition. If the BPA itself had limited competition, or if this call order was placed without further competition under the BPA, it could limit price discovery.

Taxpayer Impact: The level of competition for this BPA Call directly impacts taxpayer value. Robust competition generally leads to lower prices and better service offerings. If this call order was not competitively bid, taxpayers may not be receiving the best possible price or terms.

Public Impact

Benefits federal agencies requiring background investigation services. Ensures the integrity and security of personnel within government operations. Services are geographically focused on New Mexico. Supports the workforce involved in conducting and managing background checks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the specific competition for this BPA Call.
Potential for limited price discovery if competition under the BPA was restricted.
No indication of small business participation in this specific award.

Positive Signals

Firm Fixed Price contract provides cost certainty.
BPA Call suggests a pre-competed framework, potentially streamlining acquisition.
Services are critical for national security and government personnel vetting.

Sector Analysis

The background investigation services sector is a critical component of government security and personnel management. This contract falls under administrative and management consulting services, specifically focusing on vetting individuals for federal employment or access. The market for these services is substantial, driven by continuous government needs for security clearances and suitability determinations. Comparable spending benchmarks would typically involve analyzing other large federal contracts for similar investigation services across various agencies.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside (ss: false, sb: false). This means that the opportunity was not specifically reserved for small businesses. While the underlying BPA might have included small business participation, this particular award does not reflect a direct set-aside. Further investigation into subcontracting plans or the overall BPA structure would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would likely fall under the U.S. Customs and Border Protection (CBP) within the Department of Homeland Security (DHS). The effectiveness of oversight depends on the specific contract administration procedures in place, including performance monitoring, quality assurance checks, and adherence to the terms of the BPA and the call order. Transparency is generally facilitated through contract award databases, but detailed performance data may be less accessible.

Related Government Programs

Federal Background Investigation Services
Administrative Management and General Management Consulting Services
Department of Homeland Security Contracts
U.S. Customs and Border Protection Contracts
Blanket Purchase Agreements (BPAs)

Risk Flags

Limited competition details for BPA Call
No small business set-aside specified

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $11.1 million to ADC LTD NM. BACKGROUND INVESTIGATION SERVICES

Who is the contractor on this award?

The obligated recipient is ADC LTD NM.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $11.1 million.

What is the period of performance?

Start: 2026-02-01. End: 2027-01-31.

What is the historical spending pattern for background investigation services by U.S. Customs and Border Protection?

Analyzing historical spending patterns for background investigation services by U.S. Customs and Border Protection (CBP) is crucial for understanding the scale and consistency of their needs in this area. While specific historical data for CBP alone isn't provided, the Department of Homeland Security (DHS), which oversees CBP, consistently allocates significant funds towards personnel security and vetting. Agencies like CBP require continuous background checks for their vast workforce, including law enforcement and support staff. Trends often show steady or increasing demand due to evolving security threats and personnel turnover. Benchmarking against previous years' obligations and contract awards for similar services would reveal if this $11 million award represents a typical investment, an increase, or a decrease in CBP's background investigation budget. Understanding these patterns helps in assessing the long-term financial commitment and the stability of the contractor's role.

How does the firm fixed price (FFP) structure impact the value and risk for this background investigation services contract?

The Firm Fixed Price (FFP) contract structure for this background investigation services award offers significant advantages in terms of cost predictability for the government. Under FFP, the contractor, ADC LTD NM, assumes most of the risk associated with cost overruns. This means the agreed-upon price remains constant regardless of the contractor's actual costs, incentivizing efficiency and cost control on their part. For the government, this translates to a clear and stable budget line item, simplifying financial planning and reducing the risk of unexpected cost increases. However, the value proposition hinges on the initial negotiation and the clarity of the Statement of Work (SOW). If the SOW is poorly defined or if unforeseen complexities arise during the investigation process, the contractor might be disincentivized from performing thorough work to maintain profitability, potentially impacting quality. Conversely, a well-defined SOW and competitive bidding process prior to the BPA call should ensure that the FFP reflects a fair market value for the expected services.

What are the implications of this contract being awarded via a BPA Call rather than a direct solicitation?

Awarding this contract via a Blanket Purchase Agreement (BPA) Call signifies that the underlying BPA was likely established through a prior, broader competitive process. BPAs are essentially charge accounts that simplify the process of obtaining supplies or services from approved vendors. When a BPA is in place, individual task orders or call orders, like this one for background investigation services, can be issued more rapidly and with less administrative burden than a new, full solicitation. This can lead to faster service delivery and potentially better pricing if the original BPA competition was robust. However, the specific competition for this individual call order is not detailed. If the BPA itself had limited competition, or if this call order was placed without further competition among BPA holders, it could limit the government's ability to achieve the best possible price and terms for this specific requirement. The efficiency gains of a BPA must be balanced against ensuring adequate competition at the call order level.

What is the track record of ADC LTD NM in providing similar federal contracting services?

Information regarding the specific track record of ADC LTD NM in providing federal contracting services, particularly background investigation services, is not detailed in the provided data snippet. To assess their reliability and performance history, one would typically need to examine past federal contract awards to this entity, including contract values, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or terminations. A strong track record with similar services would indicate a lower performance risk for this current contract. Conversely, a limited or poor history would raise concerns about the contractor's capability to meet the requirements effectively and efficiently. Further research into federal procurement databases and performance records would be necessary for a comprehensive evaluation.

How does the geographic focus on New Mexico impact the overall cost and efficiency of these background investigation services?

The geographic focus on New Mexico for these background investigation services has several potential implications for cost and efficiency. If the investigations primarily involve individuals residing or working in New Mexico, concentrating the service delivery within that state can streamline operations. It may reduce travel costs for investigators and allow for better coordination with local resources and agencies. This localization can potentially lead to more efficient turnaround times for investigations conducted within the state. However, the overall cost-effectiveness also depends on the availability of qualified investigators and support staff within New Mexico and the prevailing labor rates in that region. If the contractor, ADC LTD NM, has a strong established presence and operational infrastructure in New Mexico, this focus could indeed enhance efficiency and potentially lower costs compared to a broader, less geographically concentrated contract. Conversely, if the requirement necessitates investigations extending significantly beyond New Mexico, the stated focus might be misleading or incomplete.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2100 AIR PARK RD SE STE 120, ALBUQUERQUE, NM, 87106

Business Categories: Category Business, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $48,063,919

Exercised Options: $11,057,235

Current Obligation: $11,057,235

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70CMSD21A00000001

IDV Type: BPA

Timeline