HHS Cybersecurity Support Services Contract Exceeds $126 Million with CenterPoint LLC

Contract Overview

Contract Amount: $126,561,579 ($126.6M)

Contractor: Centerpoint LLC

Awarding Agency: Department of the Interior

Start Date: 2020-06-22

End Date: 2025-12-21

Contract Duration: 2,008 days

Daily Burn Rate: $63.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 19

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: CYBERSECURITY SUPPORT SERVICES (CSS) FOR THE U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES (HHS), OFFICE OF THE CHIEF INFORMATION OFFICER (OCIO)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20201

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Interior obligated $126.6 million to CENTERPOINT LLC for work described as: CYBERSECURITY SUPPORT SERVICES (CSS) FOR THE U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES (HHS), OFFICE OF THE CHIEF INFORMATION OFFICER (OCIO) Key points: 1. Contract awarded to CenterPoint LLC for cybersecurity support services. 2. Significant spending of over $126 million allocated for these services. 3. Contract duration spans from June 2020 to December 2025. 4. Services fall under 'Other Computer Related Services' NAICS code 541519. 5. Awarded under full and open competition.

Value Assessment

Rating: fair

The contract's total value of $126.5 million over approximately 5.5 years suggests a substantial investment. Benchmarking against similar large-scale cybersecurity support contracts would be necessary to determine if this pricing is competitive, especially given the Time and Materials pricing structure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which generally promotes competitive pricing. However, the Time and Materials (T&M) pricing model can sometimes lead to higher costs if not carefully managed and monitored for scope creep.

Taxpayer Impact: The use of full and open competition is positive for taxpayer value. However, the T&M structure requires diligent oversight to ensure costs remain reasonable and do not escalate beyond initial expectations.

Public Impact

Ensures critical cybersecurity infrastructure and services for HHS, protecting sensitive health data. Supports the operational continuity of the Office of the Chief Information Officer. Potential for long-term reliance on a single vendor for essential IT security functions. Impacts the broader healthcare sector by safeguarding patient information systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost overruns.
Lack of specific performance metrics in provided data.
No indication of small business participation.

Positive Signals

Awarded through full and open competition.
Long-term contract provides stability for essential services.
Supports a critical government function (cybersecurity).

Sector Analysis

Cybersecurity services are a critical and growing sector within government IT spending. Benchmarks for similar contracts vary widely based on scope, duration, and specific services, but a $126 million contract over 5.5 years indicates a significant, long-term commitment to a core function.

Small Business Impact

The provided data indicates that this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.

Oversight & Accountability

The contract was awarded by the Department of the Interior on behalf of HHS OCIO. Oversight would involve monitoring the T&M expenditures, ensuring adherence to contract terms, and verifying the effectiveness of the cybersecurity services provided.

Related Government Programs

Other Computer Related Services
Department of the Interior Contracting
Departmental Offices Programs

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Lack of transparency on specific service costs and benchmarks.
No clear indication of small business subcontracting.
Reliance on a single vendor for critical cybersecurity functions.
Effectiveness metrics not provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $126.6 million to CENTERPOINT LLC. CYBERSECURITY SUPPORT SERVICES (CSS) FOR THE U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES (HHS), OFFICE OF THE CHIEF INFORMATION OFFICER (OCIO)

Who is the contractor on this award?

The obligated recipient is CENTERPOINT LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $126.6 million.

What is the period of performance?

Start: 2020-06-22. End: 2025-12-21.

What is the estimated cost per hour or per service unit under this Time and Materials contract, and how does it compare to industry benchmarks?

The provided data does not include specific hourly rates or unit costs, making a direct comparison to industry benchmarks impossible. Time and Materials contracts are inherently variable. To assess value, a detailed review of the labor categories, rates, and any established ceilings or cost controls within the contract would be required. Without this granular data, determining cost-effectiveness is challenging.

What are the specific cybersecurity risks mitigated by this contract, and what is the potential impact if these services fail or are inadequate?

This contract likely addresses a broad range of cybersecurity risks, including network intrusion, data breaches, malware protection, and vulnerability management for HHS systems. Inadequate service could lead to significant data breaches of sensitive health information, compromising patient privacy, violating HIPAA, and potentially causing severe reputational damage and financial penalties for HHS.

How effectively are these cybersecurity services contributing to the overall security posture of HHS, and are there measurable outcomes or KPIs?

The effectiveness of these services cannot be determined from the provided data alone. While the contract's duration and value suggest a significant effort, key performance indicators (KPIs) and measurable outcomes related to threat detection rates, incident response times, and reduction in security vulnerabilities are crucial for assessing effectiveness. Regular performance reviews and audits would be necessary.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 19

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 8201 GREENSBORO DR STE 435, MC LEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $128,522,811

Exercised Options: $128,522,811

Current Obligation: $126,561,579

Actual Outlays: $125,976,523

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F515DA

IDV Type: FSS

Timeline