DOJ's $45M Cybersecurity BPA Call to MINDPOINT GROUP LLC shows strong competition and fair value

Contract Overview

Contract Amount: $45,035,886 ($45.0M)

Contractor: Mindpoint Group LLC

Awarding Agency: Department of Justice

Start Date: 2020-10-01

End Date: 2026-09-30

Contract Duration: 2,190 days

Daily Burn Rate: $20.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: CYBER SECURITY ASSESSMENT AND MANAGEMENT (CSAM), AND SECURITY POSTURE DASHBOARD AND REPORTS (SPDR) BPA CALL

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $45.0 million to MINDPOINT GROUP LLC for work described as: CYBER SECURITY ASSESSMENT AND MANAGEMENT (CSAM), AND SECURITY POSTURE DASHBOARD AND REPORTS (SPDR) BPA CALL Key points: 1. Value for money appears reasonable given the scope of cybersecurity services. 2. Full and open competition suggests a healthy market for these services. 3. Contract duration and task order structure indicate potential for ongoing needs. 4. The use of Time and Materials pricing requires careful monitoring of labor hours. 5. This contract supports critical IT infrastructure and security posture management. 6. The contractor has a significant presence in the federal cybersecurity space.

Value Assessment

Rating: good

The contract's total value of approximately $45 million over its period of performance suggests a substantial investment in cybersecurity. Benchmarking against similar cybersecurity support contracts within the Department of Justice and other federal agencies indicates that the overall value is within a reasonable range. The Time and Materials pricing structure, while common for IT services, necessitates diligent oversight to ensure efficient use of resources and prevent cost overruns. Without specific task order details, a precise per-unit cost comparison is difficult, but the aggregate value aligns with the critical nature of the services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a Blanket Purchase Agreement (BPA) Call, which itself was established through full and open competition. This indicates that multiple vendors were likely considered or had the opportunity to bid on the underlying BPA, and subsequently, this call order. The presence of three bidders for this specific call order suggests a competitive environment, which generally leads to better price discovery and potentially more favorable terms for the government. The level of competition is a positive indicator for achieving value.

Taxpayer Impact: The full and open competition ensures that taxpayers benefit from a market-driven price, as multiple qualified vendors vied for this work, driving down costs through competitive pressures.

Public Impact

The Department of Justice benefits from enhanced cybersecurity assessment and management capabilities. Services delivered include security posture dashboards and reports, crucial for risk management. The contract supports the ongoing operational security of DOJ's IT infrastructure. Workforce implications are likely related to specialized cybersecurity personnel supporting DOJ.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the Time and Materials pricing model.
Reliance on a single BPA call order could limit flexibility if needs evolve significantly.
Effectiveness of cybersecurity measures relies heavily on contractor performance and DOJ oversight.

Positive Signals

Awarded through a competitive BPA call, indicating market validation.
Contract duration allows for sustained cybersecurity support.
Focus on critical cybersecurity functions aligns with agency priorities.

Sector Analysis

The federal cybersecurity market is a rapidly growing sector driven by increasing digital threats and the need to protect sensitive government data. This contract falls within the IT services category, specifically focusing on cybersecurity assessment and management. The market includes a wide range of providers, from large system integrators to specialized cybersecurity firms. Spending benchmarks for similar cybersecurity support services within federal agencies can vary widely based on scope, but contracts in the tens of millions are common for comprehensive solutions.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, and the prime contractor, MINDPOINT GROUP LLC, is not explicitly identified as a small business in this context. Therefore, the direct impact on small business set-asides is likely minimal. However, the prime contractor may engage small businesses as subcontractors to fulfill specific aspects of the work, contributing to the broader small business ecosystem. Further analysis of subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of Justice's contracting officers and program managers. Accountability measures would be embedded in the contract's performance work statement, requiring adherence to service level agreements and reporting requirements. Transparency is facilitated through contract award data and reporting mechanisms. Inspector General jurisdiction would apply to any potential fraud, waste, or abuse related to the contract.

Related Government Programs

Cybersecurity Services
IT Professional Services
IT Management Consulting Services
Information Security Services
IT BPA Calls

Risk Flags

Potential for cost overruns due to T&M pricing.
Need for robust oversight to manage contractor performance.
Reliance on specific task orders under a BPA.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $45.0 million to MINDPOINT GROUP LLC. CYBER SECURITY ASSESSMENT AND MANAGEMENT (CSAM), AND SECURITY POSTURE DASHBOARD AND REPORTS (SPDR) 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 $45.0 million.

What is the period of performance?

Start: 2020-10-01. End: 2026-09-30.

What is the track record of MINDPOINT GROUP LLC in performing similar cybersecurity contracts for the federal government?

MINDPOINT GROUP LLC has a notable presence in the federal cybersecurity contracting space. While specific details on past performance for this exact type of BPA call require deeper investigation into contract databases and performance reviews, the company's engagement with the Department of Justice suggests a level of established capability and trust. Federal procurement data often shows companies like MINDPOINT GROUP LLC performing a range of IT and cybersecurity services across various agencies. A thorough review would involve examining past contract awards, their values, durations, and any reported performance metrics or issues to ascertain their reliability and expertise in delivering cybersecurity assessment and management solutions.

How does the pricing structure (Time and Materials) compare to other cybersecurity contracts of similar scope and duration?

Time and Materials (T&M) pricing is a common model for IT services, including cybersecurity, especially when the scope of work can be variable or evolve during performance. Compared to fixed-price contracts, T&M offers flexibility but carries a higher risk of cost overruns if not managed diligently. For cybersecurity contracts of similar scope and duration (e.g., multi-year BPA calls valued in the tens of millions), T&M is frequently observed. However, agencies often implement strict controls, such as labor hour ceilings and detailed reporting requirements, to mitigate the risks associated with T&M. The 'fairness' of the T&M rate is benchmarked against prevailing market rates for the specific labor categories and skill sets required.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

The primary risks associated with this contract include potential cost overruns due to the Time and Materials (T&M) pricing model, where the final cost is dependent on the hours worked. Another risk is the potential for scope creep, where the project's requirements expand beyond the initial agreement without corresponding adjustments to cost or schedule. Performance risk, related to the contractor's ability to deliver the promised cybersecurity services effectively, is also a concern. Mitigation strategies typically involve robust government oversight, including detailed monitoring of labor hours and expenditures, clearly defined performance metrics and deliverables, regular progress reviews, and strong contract management practices to ensure adherence to the Statement of Work.

How effective has the competition been in driving down costs for this type of cybersecurity service within the DOJ?

The fact that this BPA Call was awarded under full and open competition with three bidders suggests a healthy competitive environment. In theory, competition is a primary mechanism for driving down costs. When multiple qualified vendors vie for a contract, they are incentivized to offer competitive pricing to win the award. The presence of three bidders indicates that the market has sufficient capacity and interest in providing these cybersecurity services to the DOJ. While the specific cost savings achieved through this competition cannot be quantified without a baseline or comparison to a sole-source award, the competitive process itself is a strong indicator that the government is likely receiving fair market value for the services rendered.

What is the historical spending pattern for cybersecurity assessment and management services within the Department of Justice?

Historical spending patterns for cybersecurity assessment and management services within the Department of Justice (DOJ) generally show a consistent and increasing trend, reflecting the growing importance of cybersecurity. The DOJ, like other large federal agencies, allocates significant resources to protect its vast network infrastructure and sensitive data. This includes spending on a variety of services such as vulnerability assessments, penetration testing, security monitoring, incident response, and compliance management. The aggregate spending on these services can fluctuate year-to-year based on evolving threats, new technology adoption, and specific program initiatives. Contracts like the one with MINDPOINT GROUP LLC represent a portion of this overall cybersecurity investment.

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: 3

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: $50,726,263

Exercised Options: $47,797,945

Current Obligation: $45,035,886

Actual Outlays: $40,200,120

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 15JPSS20A00000263

IDV Type: BPA

Timeline