State Department's $11.9M security support contract awarded to APS-ARTI, LLC, ran for 6 years

Contract Overview

Contract Amount: $11,875,483 ($11.9M)

Contractor: Aps-Arti, LLC

Awarding Agency: Department of State

Start Date: 2007-08-13

End Date: 2013-09-15

Contract Duration: 2,225 days

Daily Burn Rate: $5.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SECURITY ADMINISTRATIVE SUPPORT SERVICES

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $11.9 million to APS-ARTI, LLC for work described as: SECURITY ADMINISTRATIVE SUPPORT SERVICES Key points: 1. The contract provided essential security administrative support, contributing to the operational integrity of the Department of State. 2. Awarded under full and open competition, suggesting a broad market engagement for these services. 3. The firm-fixed-price contract type likely provided cost certainty for the government. 4. The duration of the contract, over 2200 days, indicates a sustained need for these services. 5. Performance was managed by the State Department itself, ensuring direct oversight. 6. The North American Industry Classification System (NAICS) code 561611 points to specialized investigation and background check services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more granular data on the specific services rendered and market rates at the time. The total award amount of approximately $11.9 million over six years suggests a moderate annual expenditure. However, without comparable contract data for similar security administrative support services, it's difficult to definitively assess if this represented excellent value for money. The firm-fixed-price structure, while offering budget predictability, could have led to overpayment if costs were lower than anticipated.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that the Department of State sought proposals from all responsible sources. The fact that it was competed broadly suggests a healthy market for these types of security administrative support services. While the number of bidders is not specified, full and open competition generally fosters price discovery and encourages contractors to offer competitive pricing to win the award.

Taxpayer Impact: Taxpayers likely benefited from a more competitive pricing environment due to the broad solicitation, potentially leading to a more cost-effective outcome compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries of this contract were the Department of State personnel and operations, which relied on secure and efficient administrative support. Services delivered included investigation and personal background check functions, crucial for maintaining security clearances and personnel integrity. The geographic impact is primarily within the operational sphere of the Department of State, likely supporting domestic and potentially international facilities. Workforce implications include the employment of individuals performing administrative and investigative tasks, contributing to the security sector workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the quality and effectiveness of the services provided.
The extended duration of the contract without readily available performance reviews raises questions about ongoing value.
Limited public information on the specific tasks performed hinders a comprehensive understanding of the contract's impact.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Firm-fixed-price contract type provides budget certainty for the awarding agency.
The contract was managed by the Department of State, suggesting direct agency oversight.

Sector Analysis

The security and administrative support services sector is a critical component of government operations, encompassing a wide range of activities from physical security to personnel vetting and administrative functions. This contract falls within the broader professional, scientific, and technical services industry. Government spending in this area is substantial, driven by national security needs and the requirement for efficient administrative processes. Comparable spending benchmarks would typically involve analyzing other contracts for similar investigation, background check, and security administrative support services across various federal agencies.

Small Business Impact

There is no indication from the provided data that this contract included specific small business set-asides or subcontracting requirements. The award to APS-ARTI, LLC, does not specify its size status. Therefore, the direct impact on the small business ecosystem is unclear, and it's unknown if small businesses were involved as subcontractors.

Oversight & Accountability

Oversight for this contract was presumably handled by the Department of State, as they were the awarding and presumably the receiving agency. The firm-fixed-price nature of the contract provides a degree of financial oversight by fixing the cost. Transparency regarding the specific deliverables and performance outcomes would depend on the Department's internal reporting and any public disclosures made. Inspector General jurisdiction would typically extend to investigating waste, fraud, and abuse related to federal contracts.

Related Government Programs

Department of State Security Services
Federal Background Investigation Services
Government Administrative Support Contracts
Personnel Security Management

Risk Flags

Contract Duration
Limited Performance Data
Lack of Small Business Subcontracting Details

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $11.9 million to APS-ARTI, LLC. SECURITY ADMINISTRATIVE 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 $11.9 million.

What is the period of performance?

Start: 2007-08-13. End: 2013-09-15.

What specific types of security administrative support services were included under this contract?

The provided data indicates the contract's NAICS code is 561611, which covers Investigation and Personal Background Check Services. This suggests the core services likely involved conducting background investigations, verifying credentials, and potentially providing administrative support related to security clearances and personnel vetting for the Department of State. The term 'Security Administrative Support Services' is broad, but in conjunction with the NAICS code, it points towards functions that ensure the integrity and security of personnel and operations through diligent vetting and administrative processes.

How does the $11.9 million award compare to similar contracts for security administrative support?

Direct comparison is difficult without access to a database of similar contracts awarded during the 2007-2013 period, specifying identical services and scope. However, $11.9 million over six years averages to approximately $2 million per year. This figure is moderate for a federal contract supporting a large agency like the Department of State. Contracts for comprehensive background investigations or large-scale security support can range from millions to hundreds of millions of dollars annually, depending on the volume of individuals processed, the depth of investigation required, and the specific administrative tasks involved. This contract appears to be for a focused set of services.

What were the key performance indicators (KPIs) or metrics used to evaluate APS-ARTI, LLC's performance?

The provided data does not include specific Key Performance Indicators (KPIs) or metrics used to evaluate APS-ARTI, LLC's performance under this contract. Typically, such contracts would include metrics related to turnaround times for investigations, accuracy rates, completeness of reports, and adherence to security protocols. Without this information, a quantitative assessment of the contractor's performance effectiveness and value for money is not possible. The Department of State would have internal records or performance reports that are not publicly available in this dataset.

What is the track record of APS-ARTI, LLC with federal contracts, particularly with the Department of State?

The provided data indicates that APS-ARTI, LLC was awarded this specific contract by the Department of State. To assess their broader track record, one would need to examine federal procurement databases (like FPDS or SAM.gov) for other contracts awarded to APS-ARTI, LLC across different agencies and time periods. Information regarding past performance, contract modifications, disputes, or terminations would provide a more comprehensive view of their history as a federal contractor. This single award suggests they have experience serving the Department of State, but doesn't detail their overall performance history.

What was the rationale for awarding this contract as 'Firm Fixed Price'?

The 'Firm Fixed Price' (FFP) contract type was likely chosen because the scope and requirements of the security administrative support services were well-defined and unlikely to change significantly during the contract period. FFP contracts are advantageous for the government when risks of cost overruns are low and the contractor can accurately estimate their costs. This structure shifts the risk of cost overruns to the contractor, providing the government with budget certainty and predictability. For services like background checks and administrative support, where the tasks are relatively standard, FFP is a common and suitable pricing arrangement.

How did the duration of the contract (2225 days) impact its overall value and management?

A contract duration of 2225 days (approximately 6 years) indicates a long-term, sustained need for the security administrative support services by the Department of State. Such a long duration can offer benefits like contractor stability and potentially lower administrative burden compared to frequent re-competitions. However, it also necessitates robust oversight to ensure continued value and prevent complacency. For the government, a long-term FFP contract provides predictable costs over an extended period. For the contractor, it offers a stable revenue stream. The extended period also allows for deeper integration and understanding of the agency's specific needs, potentially leading to more tailored and efficient service delivery over time.

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: NEGOTIATED PROPOSAL/QUOTE

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: $11,875,483

Exercised Options: $11,875,483

Current Obligation: $11,875,483

Parent Contract

Parent Award PIID: SAQMPD07D0030

IDV Type: IDC

Timeline