State Department's $11M security support contract awarded to APS-ARTI, LLC, raises questions on competition and value

Contract Overview

Contract Amount: $10,981,094 ($11.0M)

Contractor: Aps-Arti, LLC

Awarding Agency: Department of State

Start Date: 2007-06-22

End Date: 2014-09-30

Contract Duration: 2,657 days

Daily Burn Rate: $4.1K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SECURITY SUPPORT SERVICES

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA (CITY) County, VIRGINIA, 22314

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $11.0 million to APS-ARTI, LLC for work described as: SECURITY SUPPORT SERVICES Key points: 1. Contract awarded without competition, limiting price discovery and potentially increasing costs. 2. Long contract duration of over 7 years suggests a need for ongoing services. 3. Services provided fall under investigation and background check categories, critical for agency operations. 4. The contract's value, while significant, needs benchmarking against similar services to assess value for money. 5. Lack of competition is a key risk indicator for potential overpricing or reduced service quality. 6. The firm fixed-price structure aims to control costs, but without competition, its effectiveness is diminished.

Value Assessment

Rating: questionable

Benchmarking the value of this $11 million contract is challenging due to the lack of competitive bidding. Without comparison to other offers, it's difficult to ascertain if APS-ARTI, LLC's pricing reflects fair market value. The services provided, investigation and personal background checks, are essential but the absence of competition prevents a robust assessment of cost-effectiveness. Further analysis would require access to pricing details and comparisons with similar government contracts for background check services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating a sole-source or limited competition award. The data explicitly states 'NOT COMPETED UNDER SAP,' suggesting it was likely awarded without a broad solicitation. The absence of multiple bidders means there was no opportunity for price negotiation or comparison, which can lead to higher costs for the government and taxpayers.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible pricing through competitive pressure. This can result in taxpayers paying more than necessary for essential services.

Public Impact

The primary beneficiary is the Department of State, which receives critical security support services. Services include investigation and personal background check services, vital for personnel security and vetting. The geographic impact is likely national, supporting the Department of State's operations across various locations. Workforce implications include the provision of specialized investigative and analytical skills to support agency functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may lead to inflated prices.
Sole-source award limits transparency in pricing and service delivery.
Long contract duration without competition could indicate vendor lock-in.
Absence of performance metrics in the provided data makes it hard to assess service quality.
The contract was awarded under 'NOT COMPETED UNDER SAP,' suggesting potential circumvention of standard competitive processes.

Positive Signals

Firm Fixed Price contract type helps to establish a ceiling on costs.
The contract supports essential security functions for the Department of State.
APS-ARTI, LLC is the awarded contractor, implying they possess the necessary qualifications.
The contract has a defined start and end date, providing a clear timeframe for service delivery.

Sector Analysis

The contract falls within the professional, scientific, and technical services sector, specifically focusing on investigation and security support. This sub-sector is crucial for government agencies requiring background checks, security clearances, and investigative services. The market for these services is competitive, but sole-source awards can distort market dynamics. Comparable spending benchmarks for similar investigation services would typically be found within government-wide contract vehicles or agency-specific historical data.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract, nor does it specify subcontracting goals. Given the sole-source nature and the specific services required, it is possible that small businesses were not actively solicited or considered. Further investigation into the contract's history and the contractor's utilization of small business subcontractors would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. As a sole-source award, the justification for not competing it would be subject to review. Transparency is limited due to the lack of competition. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's performance.

Related Government Programs

Department of State Security Services
Federal Background Investigation Services
Government Contract Security Support
Investigation and Legal Services

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency
No Small Business Set-Aside Indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $11.0 million to APS-ARTI, LLC. SECURITY SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is APS-ARTI, LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $11.0 million.

What is the period of performance?

Start: 2007-06-22. End: 2014-09-30.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP,' which typically suggests a sole-source award. However, the specific justification for this sole-source determination is not included. Common reasons for sole-source awards include unique capabilities of the contractor, urgent and compelling needs where competition is not feasible, or specific statutory authority. Without the official justification document, it is impossible to definitively state why APS-ARTI, LLC was the only contractor considered for this $11 million contract. This lack of transparency is a significant concern for ensuring fair and competitive procurement practices.

How does the pricing of this contract compare to similar services procured competitively by the government?

Direct comparison of pricing is difficult without access to detailed cost breakdowns and competitive bid data for similar contracts. The sole-source nature of this award means there was no competitive bidding process to establish a market-driven price. To assess value for money, one would need to benchmark the per-unit costs or overall contract value against other government contracts for investigation and personal background check services that were awarded competitively. Such a benchmark analysis would reveal if APS-ARTI, LLC's pricing is within an acceptable range or if it appears inflated due to the lack of competition.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, contracts for investigation and background check services would include metrics related to turnaround times for investigations, accuracy of reports, and adherence to privacy regulations. The absence of this information in the summary data makes it challenging to objectively assess the quality and efficiency of the services provided by APS-ARTI, LLC. A thorough review of the full contract documentation would be necessary to identify these performance standards.

What is the track record of APS-ARTI, LLC in performing similar government contracts?

APS-ARTI, LLC has been awarded this Department of State contract, indicating they possess the necessary qualifications and have likely performed similar services. However, without access to past performance reviews, contract termination history, or details on other contracts they have held, a comprehensive assessment of their track record is not possible from the given data. Further research into their contract history with the government, including any awards, past performance evaluations, and any disputes or terminations, would provide a clearer picture of their reliability and performance capabilities.

What is the historical spending trend for investigation and background check services at the Department of State?

The provided data only pertains to this single contract valued at approximately $11 million, awarded in 2007 and ending in 2014. It does not offer insight into the Department of State's overall historical spending trends for investigation and background check services. To understand these trends, one would need to analyze spending data across multiple fiscal years, examine various contracts within this service category, and identify any patterns of increase or decrease in expenditure. This would help contextualize the significance of this particular contract within the agency's broader budget for security services.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1555 KING STREET #100, ALEXANDRIA, VA, 08

Business Categories: American Indian Owned Business, Category Business, Minority Owned Business, Native American Owned Business, Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $10,981,094

Exercised Options: $10,981,094

Current Obligation: $10,981,094

Parent Contract

Parent Award PIID: SAQMPD07D0030

IDV Type: IDC

Timeline