DOJ's $29.4M ITSS contract to Mindpoint Group LLC shows fair value, but limited competition raises concerns

Contract Overview

Contract Amount: $29,374,543 ($29.4M)

Contractor: Mindpoint Group LLC

Awarding Agency: Department of Justice

Start Date: 2014-10-31

End Date: 2020-09-22

Contract Duration: 2,153 days

Daily Burn Rate: $13.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 24

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IGF::OT::IGF ITSS TECHNICAL SUPPORT SERVICES

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $29.4 million to MINDPOINT GROUP LLC for work described as: IGF::OT::IGF ITSS TECHNICAL SUPPORT SERVICES Key points: 1. Contract value of $29.4M over its period of performance suggests a significant investment in IT support. 2. The contract was awarded under full and open competition, indicating an effort to solicit broad market interest. 3. However, the exclusion of sources clause suggests potential limitations or specific requirements that narrowed the field. 4. The duration of the contract (over 2000 days) points to a long-term need for these technical support services. 5. The primary service category is 'Other Computer Related Services', a broad area within the IT sector. 6. The contract's performance spanned from late 2014 to late 2020, providing a substantial period for evaluation.

Value Assessment

Rating: fair

The contract's total value of $29.4M over approximately six years averages to about $4.9M annually. Benchmarking this against similar IT support contracts requires detailed analysis of scope and service levels. Without specific performance metrics or comparable contract data, it's challenging to definitively assess value for money. However, the duration and scope suggest a substantial, ongoing need that the awarded price aimed to meet.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while the initial solicitation was open, certain sources may have been excluded based on specific criteria or prior relationships. The number of bidders is not explicitly stated, but the 'exclusion of sources' clause suggests that the competitive pool might have been smaller than a truly unrestricted full and open competition.

Taxpayer Impact: The 'exclusion of sources' aspect could potentially limit price discovery and may not have yielded the most competitive pricing for taxpayers compared to a completely open bid process.

Public Impact

The Department of Justice benefits from continuous technical support for its IT infrastructure. Essential IT services are delivered to support the operational needs of various offices, boards, and divisions within the DOJ. The geographic impact is primarily within the DOJ's operational areas, likely supporting federal employees and operations nationwide. Workforce implications include the potential for direct employment by the contractor and indirect support for DOJ IT personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause warrants further investigation to understand the rationale and potential impact on competition.
Lack of specific performance metrics makes it difficult to fully assess the value delivered for the $29.4M spent.
The broad NAICS code (541519) could encompass a wide range of services, making direct comparisons challenging.

Positive Signals

Awarded under full and open competition, suggesting an attempt to leverage market capabilities.
The contract's long duration indicates a stable and reliable IT support solution for the DOJ.
The contract was awarded to a single entity, potentially allowing for streamlined management and consistent service delivery.

Sector Analysis

The IT services sector is vast and highly competitive. This contract falls under 'Other Computer Related Services,' a broad category that includes IT consulting, system integration, and technical support. The market size for government IT services is substantial, with agencies like the Department of Justice being significant spenders. This contract represents a portion of the federal government's overall IT spending, aiming to ensure the smooth functioning of critical justice systems.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from a set-aside. The prime contractor, Mindpoint Group LLC, is likely a mid-to-large sized business given the contract value. Analysis of their subcontracting plans, if any, would be necessary to understand broader small business impact.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's internal contracting and program management offices. The Inspector General's office for the DOJ would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract. Transparency is generally facilitated through contract award databases like FPDS, though detailed performance reports are often internal.

Related Government Programs

Department of Justice IT Support Contracts
Federal IT Services Procurement
Technical Support Services Contracts
Information Technology Management Services

Risk Flags

Potential for limited competition due to 'exclusion of sources' clause.
Lack of detailed performance metrics makes value assessment difficult.
Broad NAICS code may obscure specific service details and comparability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $29.4 million to MINDPOINT GROUP LLC. IGF::OT::IGF ITSS TECHNICAL 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 $29.4 million.

What is the period of performance?

Start: 2014-10-31. End: 2020-09-22.

What was the specific rationale for excluding certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award?

The rationale for excluding certain sources under the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause is not detailed in the provided data. Typically, such exclusions might stem from specific technical requirements, security clearances, prior performance issues with certain vendors, or a desire to leverage existing infrastructure or expertise that only a limited number of firms possess. Without further documentation from the Department of Justice's procurement file, the precise reasons remain speculative. This clause suggests that while the competition was intended to be broad, it was not entirely unrestricted, potentially impacting the diversity of bidders and the ultimate price competitiveness.

How does the $29.4M contract value compare to similar IT support contracts awarded by the DOJ or other federal agencies?

Comparing the $29.4M contract value requires analyzing the scope, duration, and specific services rendered. This contract, spanning approximately six years (late 2014 to late 2020), represents an average annual expenditure of roughly $4.9M. This figure is moderate for large-scale federal IT support contracts. Agencies like the Department of Homeland Security or the General Services Administration often award IT support contracts ranging from tens to hundreds of millions of dollars, depending on the complexity and scale. To provide a precise benchmark, one would need to compare the labor categories, service level agreements, and geographic coverage against similar contracts within the federal IT services market.

What are the key performance indicators (KPIs) used to measure the success of Mindpoint Group LLC's technical support services under this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or performance metrics used to evaluate Mindpoint Group LLC's services. Federal IT support contracts typically include metrics related to response times for service requests, resolution rates, system uptime, user satisfaction, and adherence to security protocols. The effectiveness and value for money of this $29.4M contract would be assessed against these defined KPIs. Without access to the contract's statement of work and performance-based metrics, a thorough assessment of service quality and contractor performance is not possible from this data alone.

What is the historical spending pattern for IT support services within the Department of Justice, and how does this contract fit in?

The provided data focuses on a single contract ($29.4M from 2014-2020). To understand the historical spending pattern, one would need to examine the DOJ's IT procurement history over several years, identifying trends in contract types, service providers, and overall IT budgets. This $29.4M contract represents a significant, but likely not the entirety, of the DOJ's IT support expenditure during its performance period. Analyzing past and subsequent contracts would reveal whether the DOJ has consistently relied on similar service providers, maintained similar contract values, or shifted its strategy towards different IT support models or technologies.

What are the potential risks associated with a long-term IT support contract like this, and how might they have been mitigated?

Long-term IT support contracts carry risks such as vendor lock-in, potential for cost overruns if not managed tightly, technological obsolescence, and decreased flexibility to adapt to evolving IT needs. For this $29.4M contract, risks might include the contractor's ability to maintain expertise with rapidly changing technology, ensure robust cybersecurity, and provide cost-effective services over its six-year span. Mitigation strategies typically involve clearly defined service level agreements, regular performance reviews, contract modification clauses for scope changes, and competitive re-solicitation processes. The 'exclusion of sources' clause, however, could potentially limit the mitigation of vendor lock-in if it restricted the pool of potential future providers.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 24

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 7800 ROSE GARDEN LN, SPRINGFIELD, VA, 22153

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: $29,374,543

Exercised Options: $29,374,543

Current Obligation: $29,374,543

Actual Outlays: $8,134,228

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline