USIS (company)

USIS (US Investigation Services)
Company type	Subsidiary
Industry	Security services, background investigations
Founded	1996
Headquarters	Falls Church, Virginia, United States
Area served	United States and abroad
Owner	Providence Equity Partners
Parent	Altegrity Inc.

Adapted from the English Wikipedia article USIS (company), available under CC BY-SA 4.0Updated 25 July 2025

USIS (US Investigation Services) was an American company specializing in security-related information and service solutions, catering to both governmental and corporate clients within the United States and abroad. The firm’s main office was located in Falls Church, Virginia, part of the Washington, D.C. metropolitan region, with additional training facilities situated in Boyers, Pennsylvania. USIS functioned as a subsidiary under Altegrity Inc., itself owned by the private equity group Providence Equity Partners.

History

Established in 1996 following the privatization of the Federal Investigative Service within the United States Office of Personnel Management (OPM), USIS emerged as part of a downsizing effort led by then-Vice President Al Gore aimed at reducing civil service size. Originally launched as US Investigations Services Inc., it started out as a company owned by its employees.

The company’s expansion was significantly influenced by investments from private equity firms: The Carlyle Group was an early investor, with Welsh, Carson, Anderson & Stowe joining in 2003. In 2007, The Carlyle Group divested USIS to Providence Equity Partners for $1.5 billion, marking a major transaction within the sector.

By the fiscal year 2012, USIS held a dominant position in OPM contract awards, receiving $253 million—representing 67% of OPM’s total contract expenditures—underscoring its prominent role in government background investigation services.

Aaron Alexis background check

In 2007, a field investigator contracted through USIS conducted the OPM-FIS background investigation on Aaron Alexis, who later committed a mass shooting at the Naval Sea Systems Command (NAVSEA) headquarters inside the Washington Navy Yard on September 16, 2013, resulting in 12 fatalities and three injuries.

Edward Snowden investigation

In 2011, OPM contract investigators employed by USIS carried out the fieldwork for Edward Snowden’s security clearance re-investigation. Snowden subsequently leaked classified information beginning June 5, 2013.

A joint Senate Homeland Security subcommittee hearing held on June 18, 2013 examined USIS’s involvement. Michelle B. Schmitz, assistant inspector general for investigations at OPM, testified that USIS had been subject to an inquiry since late 2011 concerning a "complex contract fraud case." Additionally, Patrick McFarland, OPM inspector general, acknowledged there were potential issues with Snowden’s clearance re-investigation but did not elaborate further.

USIS response to allegations related to Alexis and Snowden

On September 8, 2014, USIS issued a statement responding to what it described as "inaccurate and misleading public allegations," asserting its continued commitment as a responsible government contractor. The company refuted accusations of mishandling OPM background investigations involving Aaron Alexis and Edward Snowden. According to sworn Congressional testimony referenced by USIS, the Alexis file was "complete and complied with all investigative standards." The firm emphasized strict adherence to all OPM procedures during Snowden’s investigation and clarified that granting security clearances is exclusively within the authority of federal agencies requesting them. While USIS performed background checks and secondary compliance reviews, final clearance adjudication remained the responsibility of government entities.

Fraud investigation and charges

In June 2013, Senator Claire McCaskill's office revealed that USIS was "subject to an active criminal investigation." Initially, USIS claimed no knowledge of any criminal inquiry but confirmed its full cooperation with ongoing civil investigations. As the leading U.S. government contractor for background screening services, USIS secured $253 million in contract awards that year.

On January 23, 2014, the U.S. Department of Justice brought fraud allegations against USIS. The lawsuit, filed by whistleblower Blake Percival, accused USIS management of deliberately circumventing mandatory quality checks on finalized background investigations from at least March 2008 through September 2012 to increase revenue and profits. USIS maintained that the misconduct was limited to a small group during a defined timeframe. In August 2015, Altegrity, the parent company of USIS, agreed to relinquish $30 million in government payments as part of a settlement with the DOJ.

Cyber attack

On July 7, 2014, USIS announced it had suffered a major cyber attack, prompting the U.S. government to halt its contracts with the company. Security professionals, including John Nolan, USIS’s Lead Information Security Engineer, identified indicators of a state-sponsored intrusion. The investigation uncovered that attackers exploited an SAP system operated by a third-party vendor to gain unauthorized access to USIS systems.

OPM drops USIS

The Office of Personnel Management (OPM) declared on September 9, 2014, that it would not renew contracts with USIS after their expiration later that month. This decision affected approximately 3,000 employees responsible for handling around 21,000 background investigations each month and represented about $320 million in fees generated during the previous fiscal year. USIS expressed profound disappointment regarding the termination of these contracts.

Bankruptcy

In early 2015, Altegrity—USIS’s parent company also known as Corporate Risk Holdings—filed for bankruptcy protection, marking a major downturn in the company’s financial standing.