DoD's $23M Investigation Services Contract with JUPITER CORPORATION raises value concerns
Contract Overview
Contract Amount: $22,987,378 ($23.0M)
Contractor: Jupiter Corporation
Awarding Agency: Department of Defense
Start Date: 2005-07-01
End Date: 2008-06-30
Contract Duration: 1,095 days
Daily Burn Rate: $21.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Other
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20330
Plain-Language Summary
Department of Defense obligated $23.0 million to JUPITER CORPORATION for work described as: Key points: 1. Contract awarded to JUPITER CORPORATION for investigation services. 2. Total award value of $22,987,378 over 1095 days. 3. Competition method was 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. 4. Contract type is FIRM FIXED PRICE. 5. Services provided under NAICS code 561611.
Value Assessment
Rating: questionable
The contract's total value of $22.9 million for investigation and background check services appears high without clear benchmarks. The fixed-price nature suggests cost certainty, but the lack of detailed performance metrics makes value assessment difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition was 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', indicating some level of competition but potentially limiting the pool of bidders. This method might not have achieved the most competitive pricing possible.
Taxpayer Impact: Taxpayer funds totaling nearly $23 million are allocated to this contract, necessitating scrutiny to ensure efficient use of resources.
Public Impact
Ensures critical background checks for personnel within the Department of the Air Force. Supports national security by vetting individuals in sensitive positions. Potential for cost overruns if scope creep occurs, despite fixed-price contract. Impacts the efficiency and effectiveness of security clearance processes.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition method
- High total contract value
- Lack of detailed performance metrics for value assessment
Positive Signals
- Firm fixed-price contract provides cost certainty
- Supports critical national security functions
Sector Analysis
The investigation and personal background check services sector is crucial for government operations, particularly in defense and security. Spending benchmarks for such services can vary widely based on complexity and volume, making direct comparisons challenging without detailed scope.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight of this contract would involve monitoring JUPITER CORPORATION's performance against contract requirements and ensuring adherence to the terms. The 'exclusion of sources' aspect warrants specific attention to justify the limited competition.
Related Government Programs
- Investigation and Personal Background Check Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for uncompetitive pricing due to limited competition.
- High total contract value without clear performance benchmarks.
- Lack of transparency regarding specific services rendered for the cost.
- Risk of scope creep impacting overall cost and effectiveness.
Tags
investigation-and-personal-background-ch, department-of-defense, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.0 million to JUPITER CORPORATION. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is JUPITER CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $23.0 million.
What is the period of performance?
Start: 2005-07-01. End: 2008-06-30.
What specific metrics define 'value' for investigation and personal background check services in this context?
Value in investigation services is typically defined by the accuracy, timeliness, and thoroughness of the background checks conducted, alongside the cost-effectiveness of the process. Metrics could include turnaround time for investigations, error rates in reports, and client satisfaction scores from the Department of the Air Force. Without these, assessing if $23 million represents good value is difficult.
How does the 'exclusion of sources' impact the risk of inflated pricing?
Excluding sources, even within a full and open competition framework, inherently limits the competitive landscape. This reduction in potential bidders can decrease price pressure, potentially leading to higher prices than if a broader range of competitors were allowed to bid. The risk is that JUPITER CORPORATION may not have faced the most aggressive pricing competition.
What is the effectiveness of JUPITER CORPORATION's services in supporting the Department of the Air Force's mission?
Effectiveness is measured by how well the investigation services contribute to the Air Force's ability to make informed decisions regarding personnel security and suitability. This includes the reliability of the background checks in identifying potential risks and ensuring that individuals in sensitive positions meet required standards, thereby maintaining operational security and integrity.
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: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2730 UNIVERSITY BLVD W # 9, WHEATON, MD, 20902
Business Categories: Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2005-07-01
Current End Date: 2008-06-30
Potential End Date: 2008-09-30 00:00:00
Last Modified: 2016-02-10
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