Treasury's $28.8M cyber defense contract awarded to Mindpoint Group LLC for 5 years

Contract Overview

Contract Amount: $28,798,171 ($28.8M)

Contractor: Mindpoint Group LLC

Awarding Agency: Department of the Treasury

Start Date: 2021-09-30

End Date: 2026-05-30

Contract Duration: 1,703 days

Daily Burn Rate: $16.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 23

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CYBER DEFENSE, ENGINEERING AND RISK MANAGEMENT SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20219

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $28.8 million to MINDPOINT GROUP LLC for work described as: CYBER DEFENSE, ENGINEERING AND RISK MANAGEMENT SUPPORT SERVICES Key points: 1. Contract value represents a significant investment in cybersecurity resilience. 2. Full and open competition suggests a potentially competitive pricing environment. 3. Long-term nature of the contract allows for sustained support and relationship building. 4. Fixed-price contract type shifts performance risk to the contractor. 5. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. Focus on cyber defense, engineering, and risk management aligns with critical government needs.

Value Assessment

Rating: good

The contract's value of approximately $28.8 million over its 5-year period suggests a substantial commitment to cybersecurity services. Benchmarking against similar large-scale cyber defense contracts is challenging without more specific service details. However, the firm-fixed-price structure indicates that the contractor bears the risk of cost overruns, which can be a positive indicator of value if the contractor performs efficiently. The duration allows for deep integration and understanding of the agency's specific cyber posture.

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. With 23 bids received, the level of competition appears robust. A higher number of bidders generally suggests a more competitive environment, which can lead to better pricing and service offerings for the government. The agency likely benefited from a wide range of potential solutions and price points.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely drove down prices and encouraged innovative solutions, ensuring the government receives maximum value for its investment in critical cybersecurity services.

Public Impact

The Office of the Comptroller of the Currency (OCC) benefits from enhanced cyber defense capabilities. Services delivered include engineering, risk management, and cyber defense support. The contract's impact is primarily within the District of Columbia, where the OCC is headquartered. The contract supports specialized cybersecurity professionals, potentially impacting the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the long-term nature and specialized services.
Reliance on a single contractor for critical cyber defense functions could pose a risk if performance degrades.
Ensuring continuous alignment with evolving cyber threats and agency needs over the contract's lifespan.

Positive Signals

Award to a single contractor under full and open competition can lead to focused expertise and streamlined support.
Firm-fixed-price contract type provides cost certainty for the government.
The long duration allows for the development of deep institutional knowledge and proactive security measures.

Sector Analysis

The cybersecurity services market is a rapidly growing sector within the broader IT services industry, driven by increasing digital threats and regulatory requirements. Government agencies, particularly financial regulators like the OCC, are significant spenders in this area due to the sensitive data they handle. This contract fits within the 'Other Computer Related Services' NAICS code, indicating a focus on specialized IT support beyond standard software or hardware. Comparable spending benchmarks would typically be found within large IDIQ vehicles for IT and cybersecurity support.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of small business subcontracting requirements. This suggests that the primary award went to a large business, and opportunities for small businesses would likely be through subcontracting if mandated or pursued by the prime contractor. Further analysis would be needed to determine if small business participation is a significant component of the overall service delivery.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Office of the Comptroller of the Currency. Performance reviews, regular reporting, and adherence to the contract's terms and conditions would be key accountability measures. Transparency is generally maintained through contract award databases and public reporting mechanisms, though specific performance metrics may be internal.

Related Government Programs

Cybersecurity Services
IT Support Services
Risk Management Services
Engineering Services
Federal IT Contracts
Department of the Treasury Contracts

Risk Flags

Long-term reliance on a single vendor.
Potential for technology obsolescence if contractor does not adapt.
Ensuring consistent performance over the contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $28.8 million to MINDPOINT GROUP LLC. CYBER DEFENSE, ENGINEERING AND RISK MANAGEMENT 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 the Treasury (Office of the Comptroller of the Currency).

What is the total obligated amount?

The obligated amount is $28.8 million.

What is the period of performance?

Start: 2021-09-30. End: 2026-05-30.

What is the track record of Mindpoint Group LLC in delivering similar cyber defense and risk management services to federal agencies?

Mindpoint Group LLC has a history of providing cybersecurity, risk management, and IT support services to various federal agencies. Their experience often includes areas like security operations, incident response, vulnerability management, and compliance. Analyzing their past performance on similar contracts, particularly those with significant scope and duration, would provide insight into their capability to meet the demands of this Treasury contract. Specific details on past performance metrics, client satisfaction, and any past performance issues would be crucial for a comprehensive assessment. Their presence in the federal contracting space suggests they are familiar with government procurement processes and security requirements.

How does the awarded value of $28.8 million compare to similar cyber defense contracts awarded by the Treasury or other financial regulatory bodies?

The $28.8 million value over five years, averaging roughly $5.76 million annually, places this contract in the mid-to-large tier for specialized cybersecurity support. Comparing it directly requires identifying contracts with similar scope (cyber defense, engineering, risk management) and duration within the Treasury or agencies like the SEC, CFPB, or Federal Reserve. Contracts for broader IT services or basic IT support would not be directly comparable. The full and open competition with 23 bidders suggests the market has multiple players capable of handling such requirements, which can help moderate pricing. Without access to detailed service level agreements and specific deliverables for comparison contracts, a precise value-for-money assessment remains challenging.

What are the primary risks associated with a long-term (5-year) firm-fixed-price contract for cyber defense services?

A primary risk with a long-term, firm-fixed-price cyber defense contract is the potential for the contractor's proposed solution or pricing to become misaligned with rapidly evolving cyber threats and technologies over the contract's lifespan. While the fixed price shifts cost overrun risk to the contractor, it can also disincentivize innovation if not structured with clear performance incentives and review mechanisms. Another risk is vendor lock-in, where the agency becomes heavily reliant on the contractor's specific methodologies and tools, making future transitions difficult or costly. Ensuring the contractor maintains a high level of expertise and adapts to new threats throughout the five years is critical. Performance degradation over time is also a concern that requires robust oversight.

What is the expected effectiveness of these cyber defense services in protecting the Office of the Comptroller of the Currency's sensitive data and systems?

The effectiveness of these cyber defense services hinges on several factors, including the specific capabilities outlined in the contract's statement of work, the contractor's execution, and the agency's own security posture and cooperation. Services typically encompass threat detection, incident response, vulnerability management, and security engineering, all crucial for protecting sensitive financial data. The contract's duration and firm-fixed-price nature suggest a commitment to sustained, proactive defense. However, true effectiveness is measured by metrics such as reduced incident rates, faster response times, successful mitigation of threats, and compliance with security standards. Without specific performance data and threat intelligence, assessing the precise level of protection is speculative, but the investment indicates a high priority placed on security.

How has federal spending on cybersecurity services, particularly within financial regulatory agencies, trended over the past five years?

Federal spending on cybersecurity services has seen a consistent and significant upward trend over the past five years, driven by increasing cyber threats, high-profile breaches, and executive mandates prioritizing cybersecurity. Financial regulatory agencies, like the OCC, are particularly sensitive to these trends due to the critical nature of the financial system and the sensitive data they manage. Spending in this sector has likely grown annually as agencies upgrade systems, implement advanced threat detection and response capabilities, and enhance their overall security posture. This specific contract award aligns with that broader trend of increased federal investment in cybersecurity.

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 › IT AND TELECOM - SECURITY AND COMPLIANCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 2031JW21Q00089

Offers Received: 23

Pricing Type: FIRM FIXED PRICE (J)

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: $36,733,663

Exercised Options: $28,798,171

Current Obligation: $28,798,171

Actual Outlays: $25,947,012

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F018BA

IDV Type: FSS

Timeline