DoD's $7.98M Investigation Services Contract Awarded to Ruchman and Associates, Inc

Contract Overview

Contract Amount: $7,982,744 ($8.0M)

Contractor: Ruchman and Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-06-02

End Date: 2026-09-30

Contract Duration: 485 days

Daily Burn Rate: $16.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: LABOR HOURS

Sector: Other

Official Description: FINANCIAL INVESTIGATIVE SERVICES

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22350

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $8.0 million to RUCHMAN AND ASSOCIATES, INC. for work described as: FINANCIAL INVESTIGATIVE SERVICES Key points: 1. Contract value of $7.98 million for investigation and background check services. 2. Awarded to Ruchman and Associates, Inc. under full and open competition. 3. Duration of 485 days, ending September 30, 2026. 4. Services fall under NAICS code 561611, indicating a focus on investigative services. 5. The contract type is a Delivery Order, suggesting it's part of a larger indefinite-delivery contract. 6. The agency is the Department of Defense, specifically Washington Headquarters Services. 7. The contract uses Labor Hours pricing, which can be subject to cost overruns if not managed carefully.

Value Assessment

Rating: fair

The contract value of $7.98 million for investigation and personal background check services appears to be within a reasonable range for the scope of work, given the duration and the nature of the services. Benchmarking against similar contracts for investigative services within the Department of Defense or other federal agencies would provide a clearer picture of value for money. The use of Labor Hours pricing necessitates close monitoring to ensure efficiency and prevent cost escalation beyond initial estimates. Without specific per-unit cost data or detailed task breakdowns, a definitive assessment of cost-effectiveness is challenging.

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,' which implies that while the competition was initially broad, certain sources may have been excluded prior to the final award. The presence of 6 bidders indicates a moderate level of competition. This suggests that the agency sought multiple proposals, but the exclusion of some sources might warrant further investigation to understand its impact on the final price and the range of solutions considered. The competition level is generally positive for price discovery.

Taxpayer Impact: The full and open competition, despite potential source exclusions, likely resulted in a more competitive pricing structure, benefiting taxpayers by potentially lowering the overall cost compared to a sole-source award.

Public Impact

Benefits Department of Defense personnel by ensuring thorough background checks and investigations. Delivers critical investigation and personal background check services to support national security and personnel vetting. Geographic impact is primarily within the Washington D.C. metropolitan area, supporting the Washington Headquarters Services. Workforce implications include employment for investigators and support staff within Ruchman and Associates, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the use of Labor Hours pricing if not closely managed.
The 'exclusion of sources' in the competition type requires further scrutiny to ensure fairness and optimal price discovery.
Limited transparency on specific performance metrics and quality assurance measures for the investigative services provided.

Positive Signals

Awarded under full and open competition, indicating a structured procurement process.
Multiple bidders (6) participated, suggesting a degree of market interest and potential for competitive pricing.
The contract supports essential security and vetting functions for the Department of Defense.

Sector Analysis

The market for investigation and personal background check services is a significant segment within the broader professional services sector. Federal agencies, particularly those in defense and security, rely heavily on these services for personnel vetting, security clearances, and internal investigations. The North American Industry Classification System (NAICS) code 561611 specifically covers this niche. Spending in this area is often driven by national security requirements and regulatory compliance. Comparable spending benchmarks would typically involve analyzing contract values for similar services across agencies like the FBI, DHS, and other DoD components.

Small Business Impact

This contract does not appear to have a small business set-aside (SB is false). There is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific contract is likely minimal, unless Ruchman and Associates, Inc. voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the Washington Headquarters Services contracting officers and program managers within the Department of Defense. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases like FPDS, but detailed operational oversight and Inspector General jurisdiction would depend on the specific nature of the investigations and any reported issues.

Related Government Programs

Federal Bureau of Investigation (FBI) background check contracts
Department of Homeland Security (DHS) vetting services
General Services Administration (GSA) Professional Services Schedule (PSS) contracts
Defense Counterintelligence and Security Agency (DCSA) contracts

Risk Flags

Potential for cost overruns due to Labor Hours pricing.
Limited transparency on specific performance metrics.
Rationale for 'exclusion of sources' requires further review.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.0 million to RUCHMAN AND ASSOCIATES, INC.. FINANCIAL INVESTIGATIVE SERVICES

Who is the contractor on this award?

The obligated recipient is RUCHMAN AND ASSOCIATES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $8.0 million.

What is the period of performance?

Start: 2025-06-02. End: 2026-09-30.

What is the historical spending pattern for investigation and personal background check services by the Washington Headquarters Services?

Analyzing historical spending patterns for investigation and personal background check services by the Washington Headquarters Services (WHS) is crucial for understanding the agency's needs and budget allocation for these critical functions. Without direct access to WHS's historical procurement data, we can infer trends based on broader Department of Defense (DoD) spending. The DoD consistently allocates significant resources to security, vetting, and investigative services due to its vast personnel base and national security mandates. Contracts for services like those provided by Ruchman and Associates, Inc. (NAICS 561611) are recurring needs. Factors influencing historical spending include changes in security threat levels, regulatory updates (e.g., concerning security clearance processes), and shifts in personnel management policies. A detailed analysis would involve examining contract awards over the past 5-10 years, identifying key contractors, average contract values, and the frequency of such awards to gauge the stability and growth of this spending category within WHS.

How does the pricing structure (Labor Hours) compare to fixed-price contracts for similar investigative services?

The Labor Hours (LH) pricing structure for this contract means payment is based on the direct labor hours expended by the contractor's personnel at specified hourly rates. This contrasts with fixed-price contracts, where the total price is agreed upon upfront, regardless of the actual effort expended. For investigative services, LH can offer flexibility, especially when the scope of work is not precisely defined or is expected to fluctuate. However, it carries a higher risk of cost overruns for the government if the contractor's hours are not efficiently managed or if the hourly rates are inflated. Fixed-price contracts provide greater cost certainty for the government but require a very well-defined scope of work to avoid contractor claims for additional work or scope creep. Benchmarking would involve comparing the effective hourly rates and total costs of this LH contract against similar fixed-price contracts for comparable investigative tasks, considering the complexity and duration of the services.

What are the potential risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' contract type?

The contract type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' presents a nuanced approach to procurement. While it aims for broad competition, the explicit exclusion of certain sources prior to the competition phase introduces potential risks. Firstly, it could inadvertently limit the pool of qualified offerors, potentially leading to less competitive pricing or fewer innovative solutions than a truly unrestricted full and open competition. Secondly, the rationale for excluding specific sources must be well-documented and justifiable to avoid perceptions of bias or unfairness, which could lead to protests. Taxpayers might be at risk if the exclusion prevents the most cost-effective or technically superior solution from being considered. Transparency regarding the criteria and process for source exclusion is paramount to ensure the integrity of the procurement and maximize value for the government.

What is Ruchman and Associates, Inc.'s track record with federal government contracts, particularly within the DoD?

Ruchman and Associates, Inc. has a history of performing federal government contracts, including work with the Department of Defense (DoD). Analyzing their track record involves reviewing past contract awards, performance evaluations (if publicly available), and any reported issues or disputes. Companies specializing in investigative and security services often secure contracts with agencies requiring personnel vetting, background checks, and related support. A positive track record typically includes successful completion of contracts on time and within budget, positive past performance reviews, and minimal contract disputes or terminations. For this specific $7.98 million contract, understanding their experience with similar scope, scale, and security requirements within the DoD is essential for assessing their capability and the likelihood of successful performance.

How does the contract's duration (485 days) and end date (September 30, 2026) align with typical federal fiscal years and program lifecycles?

The contract duration of 485 days, spanning from June 2, 2025, to September 30, 2026, aligns closely with federal fiscal year cycles. The end date of September 30th marks the conclusion of Fiscal Year 2026. This timing suggests that the funding for this contract is likely allocated within FY2025 and FY2026 budgets. Federal agencies often structure contracts to align with fiscal year end dates to facilitate budget planning and execution. A duration of approximately 16 months is common for service contracts of this nature, allowing sufficient time for the delivery of investigative services while providing flexibility for potential follow-on actions or adjustments. This alignment indicates a standard approach to federal contracting timelines.

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

Solicitation ID: HQ003424R0456

Offers Received: 6

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 4425 FITCH AVE STE 114, NOTTINGHAM, MD, 21236

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,643,619

Exercised Options: $7,982,744

Current Obligation: $7,982,744

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15JPSS23D00000070

IDV Type: IDC

Timeline