If failed bi, what entities see and what details

If the background check is denied at tier1 level, does the contractor company know why or are they just informed that the prospective employee failed? Likewise does the hiring manager know the specifics? Does this differ for direct hire positions? Thank you for your support!

Nobody will know, but some may speculate. However there is no official reply sent to the hiring company other than you were not cleared. They may get an indication that you will receive a “Statement of Reasons” (SOR) as to why your clearance was denied, but they will not see the contents.