USIS loses government contracts
WASHINGTON — The federal Office of Personnel Management will not renew its contracts with USIS, which has offices in Boyers and Grove City.
The contracts, which expire Sept. 30, were to do background checks for prospective federal employees.
The three offices in Boyers and Grove City employ a total of 1,500 of the company’s 6,000 workers.
It is unclear how this change will impact workers in the Butler County area.
“We are deeply disappointed with OPM’s decision, particularly given the excellent work our employees have delivered on these contracts. While we disagree with the decision and are reviewing it, we intend to fulfill our obligations to ensure an orderly transition. The company continues to provide high quality service to its many other valued government customers,” said the company in a statement.
USIS officials declined further comment beyond the statement.
This comes on the heels of a federal complaint filed by the U.S. Department of Justice in January alleging that the company at the Grove City and Boyers offices did at least 665,000 incomplete background checks for OPM between 2008 and 2012.
According to the complaint, USIS management began working out ways to avoid the quality control reviews to increase profits. The practice was known internally as “dumping” or “flushing.” Workers initially began to “dump” manually, but later a software program was developed.
The background investigations involved included those for the Justice Department, the Department of Homeland Security, the Defense Department, the Defense Intelligence Agency, the Department of Health and Human Services, the Transportation Department and the Treasury Department.
From 2008 to 2010, USIS received $11.7 million in bonus payments from the government, which, the complaint said, would not have been awarded if it was aware of the dumping.
USIS, based in Falls Church, Va., said in a statement that no current employee has any connection to the complaint, and said that it installed an entirely new leadership team since learning of the allegations. The company also said that it is cooperating with the Department of Justice.
Sen. Jon Tester, D-Montana, sent a letter earlier this month to OPM asking for increased accountability in background checks, and he said he was concerned with USIS.
“If companies have consistently been unable to fulfill previous contractual obligations, and if there are questions as to whether they can fulfill basic contractual obligations for stronger accountability and greater transparency, I would strongly urge OPM to consider not extending or renewing those contracts,” Tester wrote.
In August, USIS discovered an external cyber attack in its corporate network.
U.S. Rep. Mike Kelly, R-3rd, of Butler and U.S. Senators Pat Toomey and Bob Casey could not be reached for comment this morning.
