News Release

OPM - DoD Announce Consolidation of Background Investigation Services

With Change OPM to Conduct the Vast Majority of Federal Government Background Investigations

Washington, D.C. - Today, Kay Coles James, Director of the U.S. Office of Personnel Management, and Paul Wolfowitz, Deputy Secretary of Defense announced an agreement to consolidate responsibility for personnel security investigations to the Office of Personnel Management (OPM). James stated, "OPM and the Department of Defense have developed a solid working relationship with regard to this essential service. Our agreement represents the next logical step in the process. This agency is deeply committed to homeland security and efforts to effectively increase the ability of this nation to protect our interests and the safety of all Americans. OPM is well suited to manage personnel services such as background investigations and this move frees up the Department of Defense to focus more fully on its core mission of protecting our Nation from aggression."

As part of the FY 2004 budget to be presented to Congress, the Defense Security Service (DSS) who conduct background investigations for the Department of Defense (DoD), will be transferred to OPM. Partnering with OPM's contract investigative workforce, these Federal investigators will conduct all personnel security investigations for DoD, as well as a wider range of Federal agencies that have always been a part of OPM's customer base. With the increase in workload, OPM will be responsible for conducting a vast percentage of Federal background investigations. In addition, OPM will be using its new nationwide Federal investigator workforce to strengthen relationships with State and local law enforcement agencies and participate in joint task forces developed in support of homeland security.

James stated, "I am pleased to welcome DSS employees as a valued part of our team. We understand the importance of their work to protect America. They will thrive under the results-oriented leadership in place at OPM." James continued, "We will work diligently to ensure the transition of DSS employees into OPM is completed as smoothly as possible."

OPM will create a dedicated website address for employees affected by the transfer to ensure that they are fully informed about the process.

Currently, OPM's Investigations Service (IS), with its operations headquarters in Boyers, Pennsylvania, supports thousands of DoD and non-DoD Federal agency security offices worldwide. IS's automated support systems have demonstrated high volume processing capability, handling over 2 million requests for some level of background investigation during FY 2002.

Combining and centralizing the services provided by OPM and DoD under one leadership team provides tremendous benefits for national security because it enables OPM to apply all available resources to meet the Government's most pressing clearance needs. As new critical needs are identified, OPM will be able to redirect resources quickly to meet those challenges.

In addition, consolidating processing of investigations completed by both groups using one automated processing system will save the Government and taxpayers millions of dollars in the cost of developing and maintaining separate processing systems. For many years, each program has invested heavily in the development of automation support systems. By bringing both programs together under one processing format, the best of both development efforts will be combined to maximize efficiency.

Consolidation will establish OPM as the central buyer for investigative services from commercial providers, thus creating a more competitive market while ensuring that national investigative and quality standards continue to be met. Private sector firms that support both OPM and DoD investigations programs will also benefit from this consolidation. Previously, these companies had to compete for work for both agencies, often with different performance and product requirements. This will allow one format for competition and a much larger workload base to support.

Further, Defense agencies that used both OPM and DSS will now have one contact point to request, confirm and receive investigation/clearance information. These agencies will now be presented with data that follows a consistent format.

OPM is the project leader for five e-Government Initiatives within the President's Management Agenda. The consolidation of background investigations will significantly increase the progress on the "e-Clearance" initiative by supporting one integrated processing system, from application through adjudication, used interchangeably throughout the DoD and non-DoD personnel security community.

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OPM oversees the federal work force and provides the American public with up-to-date employment information. OPM also supports U.S. agencies with personnel services and policy leadership including staffing tools, guidance on labor-management relations and programs to improve work force performance.

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