DOJ's $37.7M BPA Call to MindPoint Group for IT services shows fair value, but limited competition raises concerns

Contract Overview

Contract Amount: $37,732,377 ($37.7M)

Contractor: Mindpoint Group LLC

Awarding Agency: Department of Justice

Start Date: 2020-09-23

End Date: 2026-09-22

Contract Duration: 2,190 days

Daily Burn Rate: $17.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: CSS POLICY, AUDIT, AND ADMINISTRATION BPA CALL

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $37.7 million to MINDPOINT GROUP LLC for work described as: CSS POLICY, AUDIT, AND ADMINISTRATION BPA CALL Key points: 1. Value for money appears reasonable given the scope of IT support services. 2. Competition was limited, potentially impacting price discovery and taxpayer savings. 3. Risk indicators are moderate, with a long contract duration and time-and-materials pricing. 4. Performance context is within IT policy, audit, and administration support. 5. Sector positioning is in IT services, specifically Other Computer Related Services. 6. The contract's value is significant within its specific service category.

Value Assessment

Rating: good

The contract's total value of $37.7 million over its duration suggests a substantial investment in IT support. Benchmarking against similar contracts for IT policy, audit, and administration services is challenging without more specific service details. However, the time-and-materials pricing structure, while flexible, can sometimes lead to higher costs if not managed closely. The number of bids received (4) indicates some level of interest, but the ultimate price paid will be the key determinant of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. Four bids were received, suggesting a moderate level of competition. While four bidders is better than a sole-source award, a higher number of bids could potentially drive prices down further and encourage more innovative solutions.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it fosters a competitive environment that can lead to better pricing and service quality. The presence of four bidders suggests that the government received multiple options, increasing the likelihood of a fair market price.

Public Impact

The Department of Justice benefits from enhanced IT policy, audit, and administration capabilities. Services delivered include crucial support for the agency's operational efficiency and compliance. The geographic impact is primarily within the Department of Justice's operational areas. Workforce implications include support for IT professionals and administrative staff within the DOJ.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and materials pricing can lead to cost overruns if not closely monitored.
The contract duration of 2190 days (approx. 6 years) presents long-term cost exposure.
Limited competition, despite being full and open, might have constrained optimal pricing.
The specific nature of 'Other Computer Related Services' can be broad, potentially leading to scope creep.

Positive Signals

Awarded through full and open competition, ensuring a broad range of potential offerors.
The contract supports critical IT functions within a major federal agency.
The BPA Call structure allows for task orders, providing flexibility in service acquisition.
A significant number of bids (4) were received, indicating market interest.

Sector Analysis

This contract falls within the Information Technology sector, specifically under the 'Other Computer Related Services' category (NAICS 541519). This is a broad category encompassing a wide range of IT support, consulting, and implementation services. The market for such services is highly competitive, with numerous large and small businesses offering specialized expertise. The contract's value of $37.7 million is substantial for a single BPA Call, indicating a significant need for these services within the Department of Justice. Comparable spending benchmarks would depend heavily on the specific services rendered, but this value suggests a long-term, high-impact engagement.

Small Business Impact

This contract was not set aside for small businesses (SB=false) and there is no indication of specific subcontracting requirements for small businesses in the provided data. This means that opportunities for small businesses to participate in this contract are likely limited to those that can compete directly with larger firms or are not explicitly included in the subcontracting plan. The absence of a small business set-aside or specific subcontracting goals may limit the direct economic impact on the small business IT ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract would primarily reside within the Department of Justice's contracting and program management offices. The contract's performance would be monitored through task order reviews, performance metrics, and regular reporting. Transparency is facilitated by the contract being awarded under full and open competition, with its details likely available through federal procurement databases. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

IT Policy Support Services
Audit and Administration IT Services
Computer Related Services Contracts
Department of Justice IT Procurement
Blanket Purchase Agreement (BPA) Calls

Risk Flags

Long contract duration increases long-term cost exposure.
Time and Materials pricing model carries inherent risk of cost overruns.
Moderate competition level may limit optimal price discovery.
Broad service category ('Other Computer Related Services') could lead to scope creep if not well-defined in task orders.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $37.7 million to MINDPOINT GROUP LLC. CSS POLICY, AUDIT, AND ADMINISTRATION BPA CALL

Who is the contractor on this award?

The obligated recipient is MINDPOINT GROUP LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $37.7 million.

What is the period of performance?

Start: 2020-09-23. End: 2026-09-22.

What is the track record of MindPoint Group LLC with federal contracts, particularly with the Department of Justice?

MindPoint Group LLC has a history of federal contracting, primarily within the IT services domain. Analyzing their past performance with the Department of Justice and other agencies is crucial. This includes examining the types of services they have provided, their performance ratings on previous contracts, and any instances of contract modifications, disputes, or terminations. A review of their award history can reveal patterns in their service offerings and their ability to meet federal requirements. Understanding their past success rates and client satisfaction levels provides insight into their capability to deliver on this current $37.7 million BPA Call.

How does the pricing structure (Time and Materials) compare to other IT service contracts of similar scope within the federal government?

Time and Materials (T&M) pricing is common for IT services where the scope of work can be variable or difficult to define precisely upfront. However, T&M contracts carry a higher risk of cost overruns compared to fixed-price contracts. Federal agencies often use T&M for tasks like system maintenance, troubleshooting, or projects with evolving requirements. When comparing, it's essential to look at the blended hourly rates for different labor categories against government-wide IT service schedules (like GSA Schedules) or other agency-specific T&M awards. The ceiling amount of $37.7 million provides a benchmark, but the actual expenditure will depend on the hours worked and the rates applied. Agencies typically implement strict oversight and reporting requirements for T&M contracts to manage costs effectively.

What are the specific IT policy, audit, and administration services covered under this BPA Call, and how critical are they to DOJ operations?

The description 'CSS POLICY, AUDIT, AND ADMINISTRATION BPA CALL' suggests services related to the development, implementation, and oversight of IT policies, support for internal and external audits of IT systems and processes, and administrative functions related to IT management. These services are critical for ensuring the Department of Justice maintains compliance with federal regulations (like FISMA, HIPAA), protects sensitive data, optimizes IT investments, and operates efficiently. Without specific task orders, the exact nature of services remains broad, but their criticality lies in supporting the foundational IT governance and operational integrity of a large federal agency.

Given the $37.7 million value and 6-year duration, what are the potential long-term risks associated with this contract?

The long duration (2190 days) and substantial value of this contract present several long-term risks. Firstly, the risk of cost escalation is inherent in Time and Materials (T&M) contracts, especially over six years, as labor rates and other costs can increase. Secondly, technological obsolescence is a concern; IT needs and solutions evolve rapidly, and a six-year contract might lock the DOJ into outdated technologies or methodologies if not managed proactively. Thirdly, there's a risk of vendor lock-in, where the contractor becomes deeply integrated into DOJ's systems, making future transitions costly and complex. Finally, performance degradation over time or a decline in the contractor's responsiveness are also potential long-term risks that require continuous monitoring.

How does the number of bids (4) impact the government's ability to achieve competitive pricing for these IT services?

Receiving four bids for this BPA Call indicates a moderate level of competition. While this is generally positive compared to sole-source or limited competition scenarios, it may not represent the most aggressive pricing possible. A higher number of bidders, particularly from diverse market segments (large, small, specialized firms), often drives down prices more effectively as companies vie for the contract. With four bidders, the government has options, but there's a possibility that more intense competition could have yielded even better value. The agency's negotiation strategy and the specific details of the bids received would further influence the final pricing achieved.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 6203 CARDINAL BROOK CT, SPRINGFIELD, VA, 22152

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $79,703,479

Exercised Options: $74,101,473

Current Obligation: $37,732,377

Actual Outlays: $67,343,270

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 15JPSS20A00000263

IDV Type: BPA

Timeline