DoD's $291M background investigation fieldwork contract awarded to Securitas, with 4 years of performance

Contract Overview

Contract Amount: $290,961,623 ($291.0M)

Contractor: Securitas Critical Infrastructure Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-10-01

End Date: 2023-09-30

Contract Duration: 1,460 days

Daily Burn Rate: $199.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BACKGROUND INVESTIGATIONS FIELDWORK SERV. THIS IS NOT A NEW TASK ORDER. IN ACCORDANCE WITH EXECUTIVE ORDER 13869, DATED APRIL 24, 2019, THIS TASK ORDER HAS BEEN TRANSFERRED FROM THE NBIB TO THE DCSA. THE ORIGINAL TASK ORDER NUMBER IS 24362018F0107

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $291.0 million to SECURITAS CRITICAL INFRASTRUCTURE SERVICES, INC. for work described as: BACKGROUND INVESTIGATIONS FIELDWORK SERV. THIS IS NOT A NEW TASK ORDER. IN ACCORDANCE WITH EXECUTIVE ORDER 13869, DATED APRIL 24, 2019, THIS TASK ORDER HAS BEEN TRANSFERRED FROM THE NBIB TO THE DCSA. THE ORIGINAL TASK ORDER NUMBER IS 24362018F0107 Key points: 1. The contract value of $291 million over four years suggests a significant investment in national security personnel vetting. 2. Awarded under full and open competition, this indicates a robust market for background investigation services. 3. The fixed-price contract type aims to control costs, but requires careful monitoring of scope creep. 4. Performance is benchmarked against similar large-scale federal contracts for investigative services. 5. The Defense Counterintelligence and Security Agency (DCSA) is a key player in federal background checks. 6. The transfer from NBIB to DCSA highlights evolving agency structures for national security functions.

Value Assessment

Rating: good

The total contract value of $291 million over four years averages to approximately $72.7 million annually. This figure appears substantial and aligns with the scale of federal background investigations. Benchmarking against similar large-scale contracts for investigative services would be necessary for a precise value-for-money assessment, but the duration and scope suggest a significant, ongoing need. The firm-fixed-price structure provides cost certainty for the government, assuming the scope of work remains consistent.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple capable vendors were allowed to bid. This approach generally fosters a competitive environment, encouraging vendors to offer competitive pricing and high-quality services to win the contract. The presence of multiple bidders suggests a healthy market for these specialized services, which is beneficial for price discovery and ensuring the government receives optimal value.

Taxpayer Impact: Full and open competition is the most taxpayer-favorable method, as it maximizes the pool of potential offerors and drives down prices through market forces. This ensures that taxpayer dollars are used efficiently by selecting the best value proposition.

Public Impact

Federal employees and contractors requiring security clearances benefit from timely and thorough background investigations. The services delivered ensure the integrity and trustworthiness of individuals in sensitive positions across government agencies. The geographic impact is nationwide, covering the extensive fieldwork required for comprehensive background checks. The contract supports a workforce of investigators and administrative staff essential for conducting these critical services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in complex investigations could lead to cost overruns despite fixed-price structure.
Ensuring consistent quality and adherence to investigative standards across a large, geographically dispersed workforce is a challenge.
The transition of task orders between agencies may introduce administrative complexities or require adjustments in operational procedures.

Positive Signals

Awarded through full and open competition, indicating a competitive market and potential for good value.
Firm-fixed-price contract type provides cost certainty for the government.
Long-term contract duration allows for stable planning and execution of essential national security functions.

Sector Analysis

The background investigation services sector is a critical component of national security and personnel vetting within the federal government. This contract falls under the broader professional, scientific, and technical services industry. The market is characterized by a few large, established players and numerous smaller specialized firms. Federal spending in this area is substantial and driven by ongoing requirements for security clearances across various agencies, particularly those involved in defense and intelligence.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have specific small business set-aside provisions, the prime contractor, Securitas Critical Infrastructure Services, Inc., may engage small businesses as subcontractors. The scale of this contract suggests potential opportunities for specialized investigative firms or support services that could be sourced from the small business sector, contributing to their growth and participation in federal contracting.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Counterintelligence and Security Agency (DCSA), which is responsible for conducting background investigations. The firm-fixed-price nature of the contract provides a degree of cost control. Transparency is generally maintained through contract reporting mechanisms, and performance metrics are typically established to ensure quality and timeliness. The Inspector General's office for the Department of Defense would have jurisdiction for audits and investigations into potential fraud or mismanagement.

Related Government Programs

Federal Employee Background Investigations
National Security Clearances
Personnel Security Investigations
Defense Security Service Contracts
Government Investigation Services

Risk Flags

Potential for performance degradation over contract duration.
Risk of scope creep impacting fixed-price budget.
Challenges in maintaining consistent quality across dispersed workforce.
Dependence on contractor's internal security protocols.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $291.0 million to SECURITAS CRITICAL INFRASTRUCTURE SERVICES, INC.. BACKGROUND INVESTIGATIONS FIELDWORK SERV. THIS IS NOT A NEW TASK ORDER. IN ACCORDANCE WITH EXECUTIVE ORDER 13869, DATED APRIL 24, 2019, THIS TASK ORDER HAS BEEN TRANSFERRED FROM THE NBIB TO THE DCSA. THE ORIGINAL TASK ORDER NUMBER IS 24362018F0107

Who is the contractor on this award?

The obligated recipient is SECURITAS CRITICAL INFRASTRUCTURE SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Counterintelligence and Security Agency).

What is the total obligated amount?

The obligated amount is $291.0 million.

What is the period of performance?

Start: 2019-10-01. End: 2023-09-30.

What is the historical spending trend for background investigation fieldwork services by the Department of Defense?

Historical spending data for background investigation fieldwork services by the Department of Defense is extensive. Prior to this contract, similar services were procured through various mechanisms, including task orders under larger indefinite-delivery/indefinite-quantity (IDIQ) contracts and direct awards. The transfer of this task order from NBIB to DCSA in 2019 indicates a consolidation or restructuring of these functions. Analyzing spending patterns before and after this transfer, and comparing it to the $291 million awarded here, would reveal trends in demand, pricing, and contractor performance over time. This specific task order's value suggests a significant and sustained requirement for these services.

How does the pricing of this contract compare to similar background investigation services procured by other federal agencies?

Benchmarking the pricing of this $291 million contract against similar background investigation services requires access to detailed pricing data for comparable contracts across agencies like the Office of Personnel Management (OPM) or intelligence community agencies. Factors influencing price include the scope of investigations (e.g., Secret, Top Secret, SCI), the number of investigations, the required turnaround times, and the geographic distribution of fieldwork. Given that this is a firm-fixed-price contract awarded under full and open competition, it suggests that the pricing reflects market conditions. However, a detailed comparison would necessitate analyzing the specific service levels and deliverables outlined in the contract statement of work against those of other federal contracts.

What are the primary risks associated with a large, multi-year contract for background investigation fieldwork?

The primary risks associated with a large, multi-year contract for background investigation fieldwork include potential scope creep, where the requirements may expand beyond the initial agreement, leading to cost overruns despite the firm-fixed-price structure. There's also a risk related to maintaining consistent quality and adherence to strict investigative standards across a geographically dispersed workforce of investigators. Contractor performance degradation over time, challenges in recruiting and retaining qualified investigators, and potential security vulnerabilities within the contractor's own operations are also significant risks. Furthermore, changes in federal regulations or policy regarding background investigations could necessitate contract modifications.

What is the track record of Securitas Critical Infrastructure Services, Inc. in performing large federal contracts, particularly in investigative services?

Securitas Critical Infrastructure Services, Inc. has a substantial track record in providing security and facility management services, including to the federal government. While their primary focus may be broader security solutions, their involvement in federal contracts, especially those requiring extensive personnel vetting and fieldwork, indicates experience relevant to this task order. Assessing their specific performance on similar large-scale federal contracts, particularly those involving sensitive investigations, would involve reviewing past performance evaluations, contract awards, and any reported issues or successes. Their ability to manage complex operations across diverse locations is a key indicator of their capacity for this role.

How has the consolidation of background investigation functions under DCSA impacted the efficiency and effectiveness of these services?

The consolidation of background investigation functions under the Defense Counterintelligence and Security Agency (DCSA), following the transfer from agencies like NBIB, was intended to streamline processes, improve efficiency, and enhance the overall effectiveness of federal background investigations. The goal was to create a more unified and robust system for vetting personnel across the government. The impact can be assessed by examining metrics such as investigation timeliness, accuracy rates, cost per investigation, and user satisfaction from agencies relying on DCSA's services. While consolidation aims for improvement, challenges in integration, standardization, and managing a larger, centralized operation can also arise.

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) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Securitas AB

Address: 13900 LINCOLN PARK DR STE 370, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $1,182,428,466

Exercised Options: $1,182,428,466

Current Obligation: $290,961,623

Actual Outlays: $138,389,891

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HS002119D0129

IDV Type: IDC

Timeline