HHS awards $4.1M for background investigations, with Protection Strategies Inc. securing a significant portion

Contract Overview

Contract Amount: $4,087,849 ($4.1M)

Contractor: Protection Strategies Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2024-04-01

End Date: 2027-03-31

Contract Duration: 1,094 days

Daily Burn Rate: $3.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ONBOARDING BACKGROUND INVESTIGATIONS AND BACKGROUND ADJUDICATIONS SERVICES FOR THE INDIAN HEALTH SERVICE, OFFICE OF HUMAN RESOURCES, DIVISION OF PERSONNEL SECURITY AND ETHICS (IHS/OHR/DPSE) QUOTE FROM VENDOR ADJUDICATOR BASE PRICE: $889,349.76

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $4.1 million to PROTECTION STRATEGIES INC for work described as: ONBOARDING BACKGROUND INVESTIGATIONS AND BACKGROUND ADJUDICATIONS SERVICES FOR THE INDIAN HEALTH SERVICE, OFFICE OF HUMAN RESOURCES, DIVISION OF PERSONNEL SECURITY AND ETHICS (IHS/OHR/DPSE) QUOTE FROM VENDOR ADJUDICATOR BASE PRICE: $889,349.76 Key points: 1. Value for money appears fair, with a base price of $889,349.76 for adjudicator services. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. Risk indicators are moderate, given the nature of background investigations and adjudications. 4. Performance context is tied to the Indian Health Service's need for personnel security. 5. Sector positioning is within administrative and human resources support services for healthcare.

Value Assessment

Rating: fair

The base price for adjudicator services is $889,349.76. While a direct comparison to similar contracts is difficult without more detailed service breakdowns, the total award of $4,087,848.96 for a three-year period suggests a moderate per-year cost for background investigation and adjudication services. The firm-fixed-price nature of the contract helps control costs for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple vendors were likely solicited and allowed to bid. The specific number of bidders is not provided, but this method generally fosters price discovery and allows the government to select the most advantageous offer based on a combination of price and other factors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and ensures the government receives competitive offers, maximizing the value of taxpayer dollars.

Public Impact

Benefits the Indian Health Service by ensuring the integrity and security of its personnel. Delivers essential background investigation and adjudication services for federal employees and contractors. Geographic impact is national, supporting the IHS's widespread operations. Workforce implications include ensuring a vetted and trustworthy workforce within the IHS.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays in background checks impacting hiring timelines.
Ensuring consistent adjudication standards across all cases.
Data security and privacy of sensitive personal information.

Positive Signals

Contract awarded through full and open competition.
Firm-fixed-price contract provides cost certainty.
Long-term contract duration allows for stable service provision.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on investigation and personal background check services. The market for these services is robust, driven by government and corporate needs for security and vetting. Comparable spending benchmarks would involve analyzing other federal contracts for similar background investigation and adjudication services across various agencies.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As it was awarded through full and open competition, it is unlikely that small businesses were exclusively targeted. However, the prime contractor, Protection Strategies Inc., may engage small businesses as subcontractors, though this is not detailed in the award information.

Oversight & Accountability

Oversight for this contract would typically fall under the Indian Health Service's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver services as specified. Transparency is facilitated by the contract award notice, though detailed performance metrics and oversight reports are not publicly available.

Related Government Programs

Federal Employee Background Investigations
Personnel Security Services
Indian Health Service Human Resources
Background Adjudication Services

Risk Flags

Potential for delays impacting hiring.
Data security and privacy concerns.
Ensuring consistent adjudication standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $4.1 million to PROTECTION STRATEGIES INC. ONBOARDING BACKGROUND INVESTIGATIONS AND BACKGROUND ADJUDICATIONS SERVICES FOR THE INDIAN HEALTH SERVICE, OFFICE OF HUMAN RESOURCES, DIVISION OF PERSONNEL SECURITY AND ETHICS (IHS/OHR/DPSE) QUOTE FROM VENDOR ADJUDICATOR BASE PRICE: $889,349.76

Who is the contractor on this award?

The obligated recipient is PROTECTION STRATEGIES INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $4.1 million.

What is the period of performance?

Start: 2024-04-01. End: 2027-03-31.

What is the track record of Protection Strategies Inc. in providing background investigation and adjudication services to federal agencies?

Protection Strategies Inc. (PSI) has a history of providing security-related services, including background investigations and security consulting. While specific details on their performance with the Indian Health Service (IHS) or the scale of their previous federal contracts are not fully detailed in this award notice, PSI's presence in the federal contracting space suggests experience. A deeper dive into their contract history, past performance evaluations, and any reported issues or successes with similar agencies would provide a more comprehensive understanding of their capabilities and reliability for this critical function.

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

The base price for adjudicator services is $889,349.76, with a total award of $4,087,848.96 over approximately three years. Benchmarking this against market rates requires access to detailed service level agreements and pricing structures from other providers. However, given the specialized nature of federal background investigations and adjudications, which often involve compliance with strict government standards (e.g., E.O. 12968, Intelligence Community Directives), government contracts can sometimes be higher than commercial equivalents due to these rigorous requirements. The firm-fixed-price structure suggests an effort to control costs, but a definitive value assessment would necessitate a detailed cost-benefit analysis against comparable government contracts.

What are the primary risks associated with this contract and how are they being mitigated?

Key risks include potential delays in the background investigation and adjudication process, which could impact the IHS's ability to onboard essential personnel. Another risk is ensuring the consistent application of adjudication standards to maintain fairness and accuracy. Data security and the protection of sensitive personal information handled during these processes are paramount. Mitigation strategies likely involve clear performance standards in the contract, regular performance reviews, robust data security protocols mandated by the government, and potentially contingency plans for workload surges or contractor performance issues. The firm-fixed-price nature also mitigates financial risk for the government.

How effective is the current process for background investigations and adjudications within the IHS, and how does this contract support that effectiveness?

The effectiveness of the IHS's background investigation and adjudication process is directly supported by this contract, which outsources these critical functions to Protection Strategies Inc. The contract aims to ensure timely and thorough vetting of personnel, which is crucial for maintaining the integrity and security of the IHS. The success of this contract in enhancing effectiveness would be measured by metrics such as turnaround times for investigations and adjudications, accuracy rates, and the overall impact on the IHS's ability to maintain a secure and reliable workforce. Without specific performance data from the contract's execution, a definitive assessment of effectiveness is not possible, but the contract's existence signifies a recognized need for these services.

What are the historical spending patterns for background investigation and adjudication services by the Indian Health Service or the Department of Health and Human Services?

Historical spending data for background investigation and adjudication services by the IHS or HHS is not detailed in this specific award notice. However, federal agencies consistently require these services due to security mandates. Spending in this area can fluctuate based on hiring needs, changes in security regulations, and the volume of personnel requiring vetting. Analyzing historical contract databases for IHS and HHS would reveal trends in spending, average contract values, and the types of services procured. This contract, valued at approximately $4.1 million over three years, represents a significant investment in maintaining personnel security within the IHS.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9717 COGDILL RD, KNOXVILLE, TN, 37932

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $7,021,572

Exercised Options: $4,087,849

Current Obligation: $4,087,849

Actual Outlays: $1,960,999

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 75P00118A00046

IDV Type: BPA

Timeline