DOJ awards $2.2M for records management, raising questions about competition and value

Contract Overview

Contract Amount: $2,203,786 ($2.2M)

Contractor: Mindboard, Inc.

Awarding Agency: Department of Justice

Start Date: 2021-01-01

End Date: 2026-06-30

Contract Duration: 2,006 days

Daily Burn Rate: $1.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RECORDS MANAGEMENT SUPPORT SERVICES

Place of Performance

Location: CHANTILLY, LOUDOUN County, VIRGINIA, 20152

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $2.2 million to MINDBOARD, INC. for work described as: RECORDS MANAGEMENT SUPPORT SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The contract duration of over 5 years suggests a long-term need for these services. 3. The administrative management consulting NAICS code indicates a broad range of potential services. 4. Lack of competition raises concerns about whether the government secured the best possible price. 5. The firm fixed-price contract type provides cost certainty but may not incentivize efficiency. 6. The contractor, MINDBOARD, INC., has a single award of this size. 7. The contract is managed by the Bureau of Alcohol, Tobacco, Firearms and Explosives.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of publicly available comparable contract data for similar records management support services awarded on a sole-source basis. The firm fixed-price structure offers predictability, but without competitive bidding, it's difficult to ascertain if the $2.2 million price tag represents a fair market value or if a more competitive process could have yielded significant savings for taxpayers. Further analysis would require access to internal government cost estimates and pricing data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not publicly competed. This typically occurs when only one responsible source is available or when a compelling justification for other than full and open competition exists. The lack of multiple bidders means there was no direct price competition, which can lead to higher costs for the government compared to a fully competed contract. The specific justification for this sole-source award is not detailed here.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to drive down prices, potentially resulting in higher expenditures for taxpayers. Without a competitive bidding process, there is less assurance that the selected contractor's pricing is the most cost-effective available.

Public Impact

The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is the primary beneficiary, receiving essential records management support. Services include administrative management and general management consulting, crucial for efficient agency operations. The contract is geographically focused within Virginia, where the services are likely performed or managed. The contract supports the operational efficiency of a key law enforcement agency, indirectly benefiting public safety.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Long contract duration (over 5 years) may lock in potentially suboptimal pricing.
Lack of transparency regarding the justification for sole-source award.
Firm fixed-price contract may not incentivize contractor efficiency beyond meeting minimum requirements.

Positive Signals

Firm fixed-price contract provides cost certainty for the agency.
Contract supports essential administrative functions for a critical law enforcement agency.
Contract duration indicates a stable, long-term need being met.

Sector Analysis

The Administrative Management and General Management Consulting Services sector (NAICS 541611) is a broad category encompassing a wide range of advisory and assistance services. Federal spending in this sector is substantial, supporting various agency functions from strategic planning to operational efficiency. This contract for records management support fits within this sector, addressing a fundamental need for information organization and accessibility within the Department of Justice. Comparable spending benchmarks are difficult to establish without more specific service details and competition data.

Small Business Impact

There is no indication that this contract included a small business set-aside. The contract was awarded to MINDBOARD, INC., a single entity. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this records management support services contract.

Oversight & Accountability

Oversight for this contract would primarily reside with the Bureau of Alcohol, Tobacco, Firearms and Explosives Acquisition and Property Management Division within the Department of Justice. As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. Transparency regarding the sole-source justification and performance metrics would be key to assessing accountability. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

Department of Justice Records Management
ATF Administrative Support Contracts
Federal Consulting Services
Sole-Source Contract Awards

Risk Flags

Sole-source award raises concerns about competition and potential overpayment.
Limited contractor history in federal space.
Lack of detailed service scope makes value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $2.2 million to MINDBOARD, INC.. RECORDS MANAGEMENT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is MINDBOARD, INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Bureau of Alcohol, Tobacco, Firearms and Explosives Acquisition and Property Management Division).

What is the total obligated amount?

The obligated amount is $2.2 million.

What is the period of performance?

Start: 2021-01-01. End: 2026-06-30.

What is the specific justification provided by the ATF for awarding this records management support contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified under circumstances such as only one responsible source being available, or in situations where the government's needs can only be met by a unique source. For this contract, the justification could stem from unique expertise required, proprietary technology, or a critical need that could not be met through a competitive process within the necessary timeframe. Without the official justification document (e.g., a Justification and Approval - J&A), it is impossible to definitively state the reason for the sole-source award.

How does the $2.2 million contract value compare to similar records management support services contracts awarded by the federal government?

Direct comparison of the $2.2 million contract value for records management support services is difficult without more specific details on the scope of work and the contract type. However, considering this is a sole-source award over approximately five years (January 2021 to June 2026), the annual value is roughly $440,000. This falls into a mid-range for federal support service contracts. Fully competed contracts for similar services often yield lower prices due to competitive pressures. The lack of competition for this specific contract makes a direct value-for-money assessment challenging without access to internal government cost analyses or pricing benchmarks for sole-source awards.

What are the potential risks associated with awarding a long-term contract like this on a sole-source basis?

The primary risk associated with a sole-source award, especially for a long-term contract (over 5 years in this case), is the lack of competitive pressure to ensure the best possible price and service quality. This can lead to inflated costs for taxpayers, as the contractor may not feel compelled to offer the most competitive rates or to innovate beyond the contract's minimum requirements. Another risk is vendor lock-in, where the agency becomes dependent on a single provider, making it difficult and costly to switch even if better alternatives emerge. Furthermore, without a competitive process, there's a reduced opportunity to discover new or more capable vendors in the market.

What is the track record of MINDBOARD, INC. with federal contracts, particularly in records management support?

Based on the provided data, MINDBOARD, INC. has received one federal contract award, which is this specific $2.2 million contract with the Department of Justice's Bureau of Alcohol, Tobacco, Firearms and Explosives. This suggests that this is their primary or only significant federal contract identified in this dataset. Therefore, their track record with federal contracts, particularly in records management support, is limited to the performance and execution of this single engagement. Further investigation into other contract databases or government accountability office reports might reveal additional contract history.

How does the firm fixed-price (FFP) contract type influence the risk and value proposition for this records management support services contract?

The Firm Fixed-Price (FFP) contract type shifts most of the risk to the contractor, MINDBOARD, INC. This means the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. For the government, this provides cost certainty, as the total expenditure is known upfront ($2.2 million). However, the value proposition can be diminished if the FFP price was not established through robust competition. While FFP prevents cost overruns for the government, it doesn't inherently guarantee the most economical price if awarded sole-source. The contractor has an incentive to control their costs to maximize profit, but without competition, the pressure to offer the lowest possible price is absent.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 15A00021R00000013

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mindboard Inc.

Address: 43676 TRADE CTR PL STE 235, STERLING, VA, 20166

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,203,786

Exercised Options: $2,203,786

Current Obligation: $2,203,786

Actual Outlays: $934,019

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline