State Department awards $21.6M cybersecurity task order to CenterPoint LLC under a large BPA

Contract Overview

Contract Amount: $21,580,784 ($21.6M)

Contractor: Centerpoint LLC

Awarding Agency: Department of State

Start Date: 2021-09-29

End Date: 2026-06-28

Contract Duration: 1,733 days

Daily Burn Rate: $12.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: IT

Official Description: AWARD OF TASK ORDER FOR CYBERSECURITY.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $21.6 million to CENTERPOINT LLC for work described as: AWARD OF TASK ORDER FOR CYBERSECURITY. Key points: 1. Task order awarded under a broader Blanket Purchase Agreement (BPA), suggesting potential for future task orders. 2. Cybersecurity services are critical for government operations, indicating a high-demand sector. 3. The contract duration extends over five years, implying a long-term need for these services. 4. The award was made under full and open competition, which typically fosters competitive pricing. 5. The contractor, CenterPoint LLC, is a relatively small player in the federal contracting space based on this award size. 6. The specific NAICS code (541519) covers a broad range of computer-related services, requiring further detail to assess specialization.

Value Assessment

Rating: fair

Benchmarking the value of this $21.6 million task order requires comparison to similar cybersecurity contracts awarded by the Department of State or other agencies. Without specific deliverables or labor rates, it's difficult to definitively assess value for money. However, the five-year duration suggests a consistent need for these services. The award was made under a BPA, which can sometimes offer pre-negotiated rates, but the ultimate value depends on the specific terms of this task order.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded through full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of two bids (no: 2) suggests a moderate level of competition for this specific task order. While full and open competition is generally preferred, a low number of bids can sometimes limit price discovery and potentially lead to higher costs than if more vendors had participated.

Taxpayer Impact: Taxpayers benefit from the assurance that the government sought the best possible offer through a competitive process. However, with only two bids, there's a possibility that a more robust competition could have yielded even better pricing.

Public Impact

The Department of State benefits from enhanced cybersecurity capabilities to protect its sensitive data and operations. The services delivered are expected to bolster the agency's defenses against cyber threats. The geographic impact is primarily within the Department of State's operational footprint, which is global. Workforce implications may include the direct employment of cybersecurity professionals by CenterPoint LLC and potentially indirect benefits to the cybersecurity sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bids) may have resulted in a higher price than a more competitive scenario.
The broad NAICS code (541519) could indicate a less specialized service, potentially impacting effectiveness if highly specialized skills are needed.
The contract duration of nearly five years might lock the government into a specific solution, potentially missing out on newer technologies if not managed carefully.

Positive Signals

Awarded under full and open competition, ensuring a fair process.
Cybersecurity is a critical and high-demand service, indicating a necessary investment.
The contract is part of a larger BPA, which can streamline future procurements.

Sector Analysis

The federal cybersecurity market is a rapidly growing and essential sector, driven by increasing digital threats. Agencies across the government rely on a wide range of IT services, including cybersecurity, to protect their infrastructure and data. This contract fits within the broader IT services category, specifically focusing on computer-related services. Comparable spending benchmarks for cybersecurity services vary widely based on scope and complexity, but this award represents a significant investment for a single task order.

Small Business Impact

This contract was not awarded as a small business set-aside (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by this specific award. The primary contractor, CenterPoint LLC, is not identified as a small business in the provided data, but its size relative to the federal market is not detailed. The impact on the small business ecosystem is neutral, as there was no specific set-aside provision.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. Accountability measures are typically embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of State IT Services
Federal Cybersecurity Contracts
BPA Call Awards
IT Professional Services

Risk Flags

Limited Competition
Broad NAICS Code
Long Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $21.6 million to CENTERPOINT LLC. AWARD OF TASK ORDER FOR CYBERSECURITY.

Who is the contractor on this award?

The obligated recipient is CENTERPOINT LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $21.6 million.

What is the period of performance?

Start: 2021-09-29. End: 2026-06-28.

What is the specific nature of the cybersecurity services being provided under this task order?

The provided data indicates the NAICS code is 541519, which covers 'Other Computer Related Services.' This is a broad category that can encompass a wide range of IT support, including cybersecurity. However, without more specific details within the task order itself, it is difficult to ascertain the exact nature of the cybersecurity services. These could range from network security monitoring, vulnerability assessments, penetration testing, incident response, to the implementation of security controls. The 'LABOR HOURS' (pt: LABOR HOURS) contract type suggests that the contractor will be paid based on the time spent by their personnel, which is common for service-based contracts where the scope might evolve.

How does the pricing of this task order compare to similar cybersecurity contracts awarded by the Department of State?

Direct comparison of pricing is challenging without access to the specific labor rates or fixed-price components of this task order. The total award amount of $21,580,784.46 over approximately 5 years (September 29, 2021, to June 28, 2026) averages to roughly $4.3 million per year. To benchmark effectively, one would need to compare this to other Department of State cybersecurity task orders of similar scope, duration, and complexity. Factors like the number of personnel, required certifications, and the criticality of the systems being protected heavily influence pricing. The fact that it was awarded under a BPA might imply pre-negotiated rates, but the competitiveness of those rates is not evident from the provided summary data.

What are the potential risks associated with CenterPoint LLC as the contractor for this cybersecurity task order?

The primary risk indicator from the provided data is the limited competition, with only two bids received. This could suggest that the task order was highly specialized, the incumbent contractor had a strong advantage, or the pricing was not perceived as competitive by other potential bidders. Another potential risk is the broad NAICS code (541519), which might mean CenterPoint LLC is not a highly specialized cybersecurity firm, potentially impacting the quality or depth of services. Without further information on CenterPoint LLC's past performance, financial stability, and specific cybersecurity expertise, it's difficult to fully assess their track record and associated risks for this critical function.

How effective is the current cybersecurity posture of the Department of State, and how does this contract contribute to it?

The effectiveness of the Department of State's overall cybersecurity posture is not directly measurable from this single contract award. However, awarding a significant task order for cybersecurity services indicates a proactive approach to addressing evolving threats. The contribution of this contract is to provide necessary resources and expertise to enhance the agency's defenses. The long duration suggests a commitment to sustained security improvements. The effectiveness will ultimately depend on the quality of services delivered by CenterPoint LLC, the alignment of those services with the Department's specific security needs, and the agency's ability to integrate these services into its broader security framework.

What are the historical spending patterns for cybersecurity services at the Department of State, and how does this award fit in?

This award of $21.6 million represents a substantial investment in cybersecurity for the Department of State. To understand its place within historical spending, one would need to analyze the agency's total IT and cybersecurity budgets over several fiscal years. Cybersecurity spending has generally been increasing across federal agencies due to heightened threats. This task order, awarded in late 2021 with an end date in mid-2026, falls within a period of significant federal focus on cybersecurity. It is likely part of a larger, ongoing strategy to maintain and improve the department's digital defenses, rather than an isolated expenditure.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

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: $22,949,520

Exercised Options: $21,580,784

Current Obligation: $21,580,784

Actual Outlays: $9,825,241

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 19AQMM20A0582

IDV Type: BPA

Timeline