Cutting off USIS could present a major logistical quagmire for the nation’s already-jammed security clearance process. The federal government relies heavily on contractors to approve workers for some of its most sensitive jobs in defense and intelligence. Falls Church-based USIS is the largest single private provider for government background checks.
The inspector general of OPM, working with the Justice Department, is examining whether USIS failed to meet a contractual obligation that it would conduct reviews of all background checks the company performed on behalf of government agencies, the people familiar with the matter said, speaking on the condition of anonymity because the investigation has not yet been resolved.
After conducting an initial background check of a candidate for employment, USIS was required to perform a second review to make sure no important details had been missed. From 2008 through 2011, USIS allegedly skipped this second review in up to 50 percent of the cases. But it conveyed to federal officials that these reviews had, in fact, been performed.
The shortcut made it appear that USIS was more efficient than it actually was and may have triggered incentive awards for the company, the people briefed on the matter said. Investigators, who have briefed lawmakers on the allegations, think the strategy may have originated with senior executives, the people said.
Ray Howell, director of corporate communications at USIS, declined to comment on Thursday.
In a statement last week, USIS said it received a subpoena from the inspector general of OPM in January 2012. “USIS complied with that subpoena and has cooperated fully with the government’s civil investigative efforts,” the statement said. The company would not comment on the Snowden case.
It is not known whether USIS did anything improper on its 2011 background check of Snowden, the 30-year-old who leaked documents about the inner workings of the NSA and is now the subject of a global drama. He gained access to those documents after he was cleared to work at NSA contractor Booz Allen Hamilton.
Last week, Patrick E. McFarland, the inspector general of OPM, said he has concerns about Snowden’s background check. “We do believe that there may be some problems,” he said.
The broader concerns about background checks are not limited to USIS. McFarland’s office has 47 open investigations into alleged wrongdoing by individuals in the background checks industry, according to a statement from the inspector general's office. Separately, since 2006, the watchdog has won convictions in 18 cases in which employees claimed to have verified information that ultimately turned out to be false or not even checked.