Department of State awards $5.5M IT services contract to Centerpoint LLC under full and open competition

Contract Overview

Contract Amount: $5,501,536 ($5.5M)

Contractor: Centerpoint LLC

Awarding Agency: Department of State

Start Date: 2025-12-27

End Date: 2026-12-28

Contract Duration: 366 days

Daily Burn Rate: $15.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: ---------- COMMENTS: APPROVED ON BEHALF OF THE DEPARTMENT CIO - MCKENNONCP FOR MARTINSX NOTE: THIS APPROVAL PERTAINS SOLELY TO IT PORTFOLIO ALIGNMENT AND DOES NOT CONSTITUTE A FINANCIAL COMMITMENT OR OBLIGATION OF FUNDS. UII ALIGNMENT REVIEWED - INV

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $5.5 million to CENTERPOINT LLC for work described as: ---------- COMMENTS: APPROVED ON BEHALF OF THE DEPARTMENT CIO - MCKENNONCP FOR MARTINSX NOTE: THIS APPROVAL PERTAINS SOLELY TO IT PORTFOLIO ALIGNMENT AND DOES NOT CONSTITUTE A FINANCIAL COMMITMENT OR OBLIGATION OF FUNDS. UII ALIGNMENT REVIEWED - INV Key points: 1. Contract awarded to Centerpoint LLC for IT services. 2. Full and open competition was utilized. 3. Contract duration is 366 days. 4. The contract is for 'Other Computer Related Services'.

Value Assessment

Rating: fair

The contract is a Time and Materials type, which can lead to cost overruns if not managed closely. The total award amount is $5,501,536.46. Benchmarking against similar contracts for 'Other Computer Related Services' is difficult without more specific service details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. The use of a BPA Call indicates a pre-competed agreement, which can streamline procurement but may limit direct price negotiation at the call level.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which aims to secure fair market prices for the IT services provided.

Public Impact

Ensures the Department of State has necessary IT support. Competition promotes efficiency and potentially lower costs. Transparency in government contracting is maintained. Potential for service disruptions if vendor performance is poor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost uncertainty.
Limited duration may necessitate future re-competition or extension.
Specific IT services are not detailed, hindering precise evaluation.

Positive Signals

Awarded under full and open competition.
Clear end date for services.
Alignment with IT portfolio reviewed by CIO.

Sector Analysis

This contract falls under the Information Technology sector, specifically 'Other Computer Related Services'. Spending in this area is substantial across government agencies, with benchmarks varying widely based on service complexity and duration.

Small Business Impact

The data does not indicate whether small businesses were involved in the competition or subcontracting opportunities. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The CIO's office has reviewed and approved the IT portfolio alignment, indicating a level of oversight. However, the approval explicitly states it does not constitute a financial commitment, suggesting financial oversight rests elsewhere.

Related Government Programs

Other Computer Related Services
Department of State Contracting
Department of State Programs

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Lack of specific service details hinders comprehensive risk assessment.
Limited contract duration may lead to future procurement inefficiencies.
Dependence on a single vendor for critical IT services.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $5.5 million to CENTERPOINT LLC. ---------- COMMENTS: APPROVED ON BEHALF OF THE DEPARTMENT CIO - MCKENNONCP FOR MARTINSX NOTE: THIS APPROVAL PERTAINS SOLELY TO IT PORTFOLIO ALIGNMENT AND DOES NOT CONSTITUTE A FINANCIAL COMMITMENT OR OBLIGATION OF FUNDS. UII ALIGNMENT REVIEWED - INV

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 $5.5 million.

What is the period of performance?

Start: 2025-12-27. End: 2026-12-28.

What specific IT services will Centerpoint LLC provide under this contract, and how do these align with the Department of State's strategic IT goals?

The provided data categorizes the services as 'Other Computer Related Services' (NAICS 541519). To assess strategic alignment, a detailed statement of work is required. This would outline tasks such as IT support, system maintenance, or specialized consulting, allowing for a comparison against the department's documented IT modernization and operational objectives.

What is the projected cost per hour or per deliverable for the Time and Materials component, and how does it compare to industry standards for similar IT services?

The Time and Materials (T&M) pricing structure means costs are based on actual labor hours and material expenses. Without specific labor rates or material markups, a direct per-unit cost benchmark is impossible. A thorough review would involve comparing the proposed hourly rates for different labor categories against government-wide IT service rate ceilings or industry surveys.

How will the Department of State ensure effective performance management and accountability for Centerpoint LLC, given the T&M contract type and limited duration?

Effective performance management will rely on clearly defined performance metrics and regular progress reviews. The Department should establish a robust contract surveillance plan to monitor labor hours, material costs, and service delivery against expectations. Given the T&M nature, close oversight of the scope and necessity of work performed is crucial to prevent cost creep and ensure value.

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

Offers Received: 1

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: $10,205,205

Exercised Options: $10,205,205

Current Obligation: $5,501,536

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 19AQMM20A0582

IDV Type: BPA

Timeline