DOJ's $25M Cybersecurity Contract Awarded to Mindpoint Group LLC for Operations Support

Contract Overview

Contract Amount: $24,954,614 ($25.0M)

Contractor: Mindpoint Group LLC

Awarding Agency: Department of Justice

Start Date: 2023-08-17

End Date: 2024-03-31

Contract Duration: 227 days

Daily Burn Rate: $109.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: CYBERSECURITY OPERATIONS SUPPORT SERVICES

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $25.0 million to MINDPOINT GROUP LLC for work described as: CYBERSECURITY OPERATIONS SUPPORT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger contract vehicle, indicating potential for follow-on work. 3. The use of Time and Materials pricing may present cost control challenges if not closely managed. 4. The contract duration of 227 days is relatively short, suggesting a focused scope of work. 5. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services. 6. The small business set-aside flag is false, meaning large businesses were eligible and likely participated.

Value Assessment

Rating: good

The contract value of approximately $25 million for a 227-day period appears reasonable for specialized cybersecurity operations support. Benchmarking against similar contracts for IT support services within federal agencies is crucial for a definitive value assessment. The Time and Materials (T&M) pricing model, while flexible, necessitates robust oversight to ensure cost efficiency and prevent scope creep. Without specific performance metrics or comparison data, it's difficult to definitively assess value for money, but the competitive award process is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but the competitive nature of the award suggests that multiple companies vied for this opportunity. This level of competition is generally expected to drive down prices and encourage innovation, leading to better value for the government.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by fostering a marketplace where contractors compete on price and quality. This process helps prevent inflated costs that can occur with less competitive or sole-source awards.

Public Impact

The Department of Justice (DOJ) benefits from enhanced cybersecurity operations, crucial for protecting sensitive government data and national security. The contract supports the delivery of essential cybersecurity services, likely including threat detection, incident response, and security monitoring. The geographic impact is primarily within the DOJ's operational areas, likely concentrated in Virginia where the awardee is located. Workforce implications include the potential for skilled cybersecurity professionals to be engaged through Mindpoint Group LLC, contributing to the federal cybersecurity workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing if not meticulously managed.
The short contract duration might indicate a need for rapid onboarding and potential for follow-on contracts, which could lead to vendor lock-in if not managed.
Dependence on a single contractor for critical cybersecurity operations could pose a risk if performance falters or if the contractor faces unforeseen challenges.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process and competitive pricing.
The contractor, Mindpoint Group LLC, is likely experienced in providing cybersecurity services, as evidenced by winning a competitive federal contract.
The contract supports a critical government function (cybersecurity operations), indicating alignment with national security priorities.

Sector Analysis

The cybersecurity services market is a rapidly growing sector within the broader IT services industry, driven by increasing digital threats and the need for robust defense mechanisms. Federal agencies are significant spenders in this area, seeking to protect critical infrastructure and sensitive data. This contract for cybersecurity operations support fits within the segment of IT services focused on managed security services and operational defense, a key area for government IT spending.

Small Business Impact

This contract was not set aside for small businesses, and the 'sb' flag is false. This indicates that the competition was open to all eligible businesses, including large corporations. While this specific contract may not directly benefit small businesses through a set-aside, large prime contractors often engage small businesses as subcontractors. The extent of small business subcontracting, if any, would need further investigation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Justice's Offices, Boards and Divisions. Accountability measures are inherent in the contract terms, including performance standards and payment schedules tied to deliverables. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Cybersecurity Services
IT Operations Support
Information Technology Professional Services
Managed Security Services

Risk Flags

Potential for cost overruns due to T&M pricing.
Need for robust oversight to manage scope and efficiency.
Short contract duration may imply need for follow-on work or rapid ramp-up.
Dependence on a single vendor for critical operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $25.0 million to MINDPOINT GROUP LLC. CYBERSECURITY OPERATIONS SUPPORT SERVICES

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 $25.0 million.

What is the period of performance?

Start: 2023-08-17. End: 2024-03-31.

What is Mindpoint Group LLC's track record with federal cybersecurity contracts?

Mindpoint Group LLC has a history of securing federal contracts, particularly within the cybersecurity and IT services domain. A review of federal procurement data indicates prior awards for similar services to various agencies. Their experience likely includes providing a range of cybersecurity solutions, from threat analysis and incident response to security architecture and compliance. The specific performance history on past contracts, including any past performance evaluations or awards/debarments, would provide a more detailed understanding of their reliability and capability. However, winning a competitive contract with the Department of Justice suggests a level of established competence and a positive track record in serving federal clients.

How does the $25 million contract value compare to similar cybersecurity operations support contracts?

The $25 million contract value for approximately 7.5 months of cybersecurity operations support is substantial, reflecting the critical nature of these services. To benchmark effectively, one would compare this to other delivery orders or prime contracts for similar scope and duration awarded by agencies like the Department of Homeland Security, Department of Defense, or other intelligence community components. Factors such as the specific services required (e.g., 24/7 monitoring vs. specialized analysis), the level of security clearance required for personnel, and the complexity of the DOJ's IT environment would influence comparability. Generally, contracts in the tens of millions for specialized IT and cybersecurity support are common within federal agencies, but the precise value-for-money assessment depends on detailed service level agreements and performance outcomes.

What are the primary risks associated with a Time and Materials (T&M) contract for cybersecurity?

Time and Materials (T&M) contracts, like the one awarded to Mindpoint Group LLC, carry inherent risks, primarily related to cost control. The government pays for the actual labor hours and material costs incurred by the contractor, plus a fixed fee or percentage for profit. This structure can lead to cost overruns if the scope of work is not clearly defined or if the contractor's efficiency is low, as there is less incentive to complete tasks quickly. For cybersecurity operations, this could mean extended incident response times or prolonged analysis periods, driving up costs. Effective risk mitigation requires stringent oversight, detailed tracking of hours and resources, and clear definition of 'best efforts' or 'level of effort' to manage expectations and control expenditures.

How effective is full and open competition in ensuring value for taxpayer money in cybersecurity contracts?

Full and open competition is widely considered the most effective method for ensuring value for taxpayer money in federal contracting, including for cybersecurity services. By allowing all responsible sources to compete, the government maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive bids. This competitive pressure typically drives down prices, encourages innovation in service delivery, and ensures that the government selects the offeror providing the best overall value (considering both price and technical merit). While the administrative effort to manage a full and open competition can be higher, the potential savings and improved service quality generally outweigh these costs, especially for critical and high-value contracts like cybersecurity operations support.

What is the historical spending pattern for cybersecurity operations support services at the Department of Justice?

Historical spending patterns for cybersecurity operations support services at the Department of Justice (DOJ) would reveal trends in contract awards, total expenditure, and the types of services procured over time. Analyzing past data would indicate whether the DOJ has consistently relied on external contractors for these services, the average duration and value of such contracts, and the primary awardees. This analysis could also highlight shifts in technology or threat landscapes that have influenced spending. For instance, an increase in spending might correlate with heightened cyber threats or expansion of the DOJ's digital footprint. Understanding these patterns helps in forecasting future needs and budgeting more accurately, and it can also reveal if spending has been consistent or subject to significant fluctuations.

Industry Classification

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

Product/Service Code: IT AND TELECOM - SECURITY AND COMPLIANCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

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: $24,954,614

Exercised Options: $24,954,614

Current Obligation: $24,954,614

Actual Outlays: $24,980,733

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F018BA

IDV Type: FSS

Timeline