May 3, 1996

First ESOP Privatization Completed

NCEO founder and senior staff member

The first privatization of a federal agency to its employees will soon be completed. The newly formed US Investigations Services, Inc., will employ about 700 people currently working for the Office of Personnel Management's background investigation unit. The company has signed a sole-source contract with the agency to continue the background checks and will also seek private contracts. The company will be nearly 100% owned by an ESOP.