State Department's $10.8M security support contract to APS-ARTI, LLC awarded in 2007, ending 2015

Contract Overview

Contract Amount: $10,824,837 ($10.8M)

Contractor: Aps-Arti, LLC

Awarding Agency: Department of State

Start Date: 2007-04-24

End Date: 2015-06-30

Contract Duration: 2,989 days

Daily Burn Rate: $3.6K/day

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SECURITY SUPPORT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22219, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $10.8 million to APS-ARTI, LLC for work described as: SECURITY SUPPORT SERVICES Key points: 1. Contract awarded for investigation and personal background check services, indicating a focus on personnel security. 2. The contract duration of nearly 8 years suggests a long-term need for these specialized services. 3. Awarded as a Firm Fixed Price contract, which typically provides cost certainty for the government. 4. The single award indicates a specific capability or relationship may have been prioritized. 5. The North American Industry Classification System (NAICS) code 561611 points to a niche market for security services. 6. The contract was administered by the Department of State, highlighting its internal security requirements.

Value Assessment

Rating: fair

The total award amount of $10.8 million over approximately 8 years averages to about $1.35 million annually. Without specific performance metrics or comparable contract data, it is difficult to definitively assess value for money. However, the firm-fixed-price nature of the contract suggests a degree of cost control. Further analysis would require benchmarking against similar background check services procured by other federal agencies during the same period.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source contract, meaning it was not competed among multiple vendors. Sole-source awards are typically justified when only one vendor possesses the required capabilities, or for specific reasons of urgency or national security. The lack of competition may limit price discovery and potentially lead to higher costs compared to a fully competed contract.

Taxpayer Impact: For taxpayers, a sole-source award means there was no opportunity to benefit from competitive bidding, which could have driven down the price. This necessitates a strong justification for the sole-source nature to ensure public funds were used efficiently.

Public Impact

The primary beneficiaries are likely Department of State personnel requiring security clearances and background checks. The services delivered include investigation and personal background checks, crucial for maintaining security protocols. The geographic impact is primarily within the United States, supporting the Department of State's domestic operations and personnel vetting. Workforce implications include the need for skilled investigators and analysts within the contracting firm.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced incentive for contractor efficiency.
The long contract duration without clear performance benchmarks could mask inefficiencies or declining service quality over time.
Sole-source awards can create a perception of favoritism or lack of transparency in government contracting.

Positive Signals

Firm-fixed-price contract structure provides budget certainty for the government.
The specialized nature of background investigation services may justify a sole-source award if only one vendor meets stringent requirements.
The contract's administration by the Department of State suggests alignment with critical agency security needs.

Sector Analysis

The security and investigation services sector is a critical component of government operations, particularly for agencies dealing with sensitive information and personnel. This contract falls under the broader professional, scientific, and technical services industry. The market for background check services is competitive, but specialized government requirements can sometimes lead to sole-source or limited competition awards. Benchmarking would involve comparing pricing and service levels for similar background investigation contracts across federal agencies.

Small Business Impact

There is no indication from the provided data that this contract involved small business set-asides or subcontracting opportunities. The sole-source nature further suggests that small businesses were likely not considered in the initial award process. Further investigation into the contractor's own subcontracting practices would be needed to assess any indirect impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of State. As a sole-source award, scrutiny might be higher to ensure the justification remains valid and the contractor is meeting performance expectations. Transparency is limited due to the lack of competitive bidding, and specific Inspector General jurisdiction would depend on the nature of any reported issues or audits.

Related Government Programs

Federal Background Investigation Services
Department of State Security Contracts
Personnel Security Vetting Services
Government Investigation Contracts

Risk Flags

Sole-source award may limit price competition.
Lack of detailed performance metrics hinders value assessment.
Contract duration is substantial, requiring ongoing oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $10.8 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 $10.8 million.

What is the period of performance?

Start: 2007-04-24. End: 2015-06-30.

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

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available or capable of meeting the agency's requirements. This could be due to unique technical capabilities, proprietary technology, or specific security clearances held by the contractor. For a contract of this nature, the Department of State would have had to document why other potential vendors could not fulfill the requirement for investigation and personal background check services. Without this documentation, it's difficult to fully assess the necessity of the sole-source approach and its implications for cost-effectiveness.

How does the per-year cost of this contract compare to similar background investigation services procured by other federal agencies during the same period?

The total award of $10.8 million over approximately 8 years (2007-2015) equates to an average annual expenditure of roughly $1.35 million. To benchmark this against similar contracts, one would need to identify other federal procurements for investigation and personal background check services (NAICS 561611) awarded between 2007 and 2015. Key comparison points would include the number of background checks performed, the depth of those investigations (e.g., Tier 1, Tier 4), and the specific services provided. Without access to detailed contract data from other agencies, a precise comparison is not possible. However, the firm-fixed-price nature suggests a predetermined cost structure, which can be a useful point of comparison if the scope of work is similar.

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

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. For investigation and personal background check services, typical KPIs might include turnaround time for investigations, accuracy rates, completeness of reports, and adherence to specific investigative standards set by the government. The absence of this information makes it challenging to evaluate the contractor's performance and the overall effectiveness of the services rendered. A thorough review would require accessing the contract's statement of work and any associated performance metrics or quality assurance surveillance plans.

What is the track record of APS-ARTI, LLC in performing federal contracts, particularly those involving security services?

APS-ARTI, LLC was awarded this sole-source contract by the Department of State for security support services, specifically investigation and personal background check services, from April 2007 to June 2015. The total award value was approximately $10.8 million. Without access to a comprehensive contract database or performance reviews, it is difficult to provide a detailed track record. However, the duration of the contract (nearly 8 years) suggests a level of satisfaction or continued need by the agency. Further research into other contracts awarded to APS-ARTI, LLC, their performance ratings (if available), and any past performance issues would be necessary for a complete assessment of their track record.

Were there any significant issues, disputes, or contract modifications during the life of this contract?

The provided summary data does not indicate any significant issues, disputes, or contract modifications for this contract. A contract awarded as sole-source and lasting nearly eight years might typically undergo modifications for various reasons, such as changes in scope, adjustments to pricing based on economic factors, or extensions of the period of performance. The absence of reported issues could suggest a smooth execution, or it could mean that such details are not captured in this summary data. A deeper dive into contract modification history and any associated documentation would be required to confirm the absence of significant issues.

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

Contractor Details

Address: 1555 KING STREET #100, ALEXANDRIA, VA, 22314

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

Financial Breakdown

Contract Ceiling: $13,510,532

Exercised Options: $13,398,465

Current Obligation: $10,824,837

Parent Contract

Parent Award PIID: SAQMPD07D0030

IDV Type: IDC

Timeline