Treasury awards $11.3M task order for cybersecurity operations to ShorePoint LLC under PROTECTS BPA

Contract Overview

Contract Amount: $11,313,669 ($11.3M)

Contractor: Shorepoint LLC

Awarding Agency: Department of the Treasury

Start Date: 2025-09-24

End Date: 2026-09-23

Contract Duration: 364 days

Daily Burn Rate: $31.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS IS TO AWARD TASK ORDER #1, TREASURY SHARED SERVICES SECURITY OPERATIONS CENTER (TSSOC), OFF THE PROVIDING TREASURY ENTERPRISE CYBERSECURITY TECHNOLOGY & SERVICES (PROTECTS).

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20010

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $11.3 million to SHOREPOINT LLC for work described as: THIS IS TO AWARD TASK ORDER #1, TREASURY SHARED SERVICES SECURITY OPERATIONS CENTER (TSSOC), OFF THE PROVIDING TREASURY ENTERPRISE CYBERSECURITY TECHNOLOGY & SERVICES (PROTECTS). Key points: 1. This award represents a significant investment in safeguarding Treasury's digital infrastructure. 2. The contract is a call-off from a broader Enterprise Cybersecurity Technology & Services (PROTECTS) BPA, suggesting a pre-vetted vendor pool. 3. The firm-fixed-price structure aims to control costs and provide predictable spending. 4. The duration of one year indicates a focus on immediate operational needs rather than long-term strategic development. 5. Cybersecurity services are critical for government operations, making this a high-priority area. 6. The contract's value is substantial, reflecting the complexity and importance of the services.

Value Assessment

Rating: good

The $11.3 million award for a one-year cybersecurity operations task order appears reasonable given the critical nature of the services. Benchmarking against similar government-wide cybersecurity contracts would provide a more precise value-for-money assessment. The firm-fixed-price contract type helps in cost predictability. The contract is a call-off from a larger BPA, which implies some level of pre-competition and pricing negotiation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This approach generally fosters competitive pricing and encourages innovation. The specific number of bidders for this task order is not provided, but the underlying BPA likely had a competitive process. The full and open nature suggests a healthy market for these services.

Taxpayer Impact: Taxpayers benefit from a competitive process that is expected to yield fair pricing and high-quality services for essential cybersecurity operations.

Public Impact

The primary beneficiaries are the Department of the Treasury and its constituent agencies, including the IRS, who will receive enhanced security operations. The services delivered will include the operation of a Security Operations Center (SOC) to monitor, detect, and respond to cyber threats. The geographic impact is primarily within the District of Columbia, where the Treasury operates, but the cybersecurity services protect national financial data. Workforce implications may include the utilization of specialized cybersecurity personnel by the contractor, ShorePoint LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if this BPA is heavily relied upon for future cybersecurity needs.
Dependence on a single task order for critical SOC functions could pose a risk if performance issues arise.
The one-year duration might necessitate frequent re-competition or extensions, leading to potential transition costs or disruptions.

Positive Signals

Awarded under a competitive BPA, indicating a pre-qualified and vetted vendor.
Firm-fixed-price contract provides cost certainty for the government.
Focus on essential cybersecurity operations addresses a critical government need.
ShorePoint LLC's specialization in cybersecurity likely brings relevant expertise.

Sector Analysis

The cybersecurity services market for the federal government is robust and highly competitive, with significant spending allocated to protecting sensitive data and critical infrastructure. This contract fits within the broader IT services sector, specifically focusing on cybersecurity operations. The Treasury Enterprise Cybersecurity Technology & Services (PROTECTS) BPA likely consolidates various cybersecurity needs, allowing for efficient procurement. Comparable spending benchmarks would involve looking at other large federal cybersecurity contracts and task orders for SOC services.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no small business participation (ss: false, sb: false). This suggests that the primary award went to a larger entity, ShorePoint LLC. While this specific task order may not directly benefit small businesses through set-asides, the prime contractor may engage small businesses for subcontracting opportunities, though this is not explicitly detailed in the provided data. The overall impact on the small business ecosystem for cybersecurity services would depend on subcontracting plans.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officers and program managers within the Department of the Treasury and the IRS. As a task order under a BPA, the underlying BPA likely has established oversight mechanisms. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract's performance or execution.

Related Government Programs

Treasury Shared Services
Treasury Enterprise Cybersecurity Technology & Services (PROTECTS)
Cybersecurity Operations Center (SOC)
Federal Information Security Management Act (FISMA) compliance
Department of the Treasury IT Modernization efforts

Risk Flags

Critical Infrastructure Protection
Cybersecurity Operations
Single Vendor Reliance Risk
Contract Duration Limitations

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $11.3 million to SHOREPOINT LLC. THIS IS TO AWARD TASK ORDER #1, TREASURY SHARED SERVICES SECURITY OPERATIONS CENTER (TSSOC), OFF THE PROVIDING TREASURY ENTERPRISE CYBERSECURITY TECHNOLOGY & SERVICES (PROTECTS).

Who is the contractor on this award?

The obligated recipient is SHOREPOINT LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $11.3 million.

What is the period of performance?

Start: 2025-09-24. End: 2026-09-23.

What is ShorePoint LLC's track record with the Department of the Treasury and other federal agencies for cybersecurity services?

ShorePoint LLC has a history of providing cybersecurity services to various federal agencies. While specific details for this task order are limited, their presence on the PROTECTS BPA suggests they have undergone a vetting process. A deeper dive into their contract history with Treasury and other departments would reveal their performance on similar cybersecurity operations, SOC management, and incident response contracts. Analyzing past performance reviews and any reported issues would provide a clearer picture of their reliability and expertise in delivering these critical services. Their ability to secure and manage complex cybersecurity environments is a key factor in assessing their suitability for this role.

How does the $11.3 million value for this one-year task order compare to similar government cybersecurity operations contracts?

The $11.3 million value for a one-year task order focused on Treasury's Security Operations Center (TSSOC) is substantial, reflecting the critical and continuous nature of cybersecurity monitoring and response. To benchmark this effectively, one would compare it against other federal task orders or contracts for similar SOC services, incident response, and threat intelligence. Factors such as the scope of services (e.g., 24/7 monitoring, specific technologies used, number of systems protected), the complexity of the environment, and the level of threat sophistication influence pricing. Given the scale of the Department of the Treasury, this figure appears to be within a reasonable range for comprehensive cybersecurity operations, assuming it covers a wide array of assets and threats.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential performance deficiencies by the contractor, leading to gaps in cybersecurity monitoring and response. Another risk is the reliance on a single vendor for critical SOC functions, which could create vulnerabilities if the vendor fails to perform or experiences disruptions. The one-year duration also presents a risk of transition challenges if the contract is not renewed or if a new vendor is brought on board. Mitigation strategies likely involve robust performance metrics and service level agreements (SLAs) within the contract, regular performance reviews by Treasury officials, and contingency planning for potential vendor failures. The firm-fixed-price nature also mitigates cost overrun risks for the government.

How effective is the PROTECTS BPA in ensuring competitive pricing and access to high-quality cybersecurity services for the Treasury?

The PROTECTS BPA (Providing Treasury Enterprise Cybersecurity Technology & Services) is designed to streamline the procurement of cybersecurity solutions for the Treasury, aiming to achieve both competitive pricing and access to qualified vendors. By establishing a pre-competed pool of vendors, it reduces the time and effort required for individual task order awards. The effectiveness in ensuring competitive pricing depends on the number of vendors on the BPA and the specific competition conducted for each task order. For this $11.3 million task order, it was awarded under full and open competition, suggesting a competitive process. The quality of services is generally assured through the initial vetting process for BPA vendors and ongoing performance monitoring.

What is the historical spending pattern for cybersecurity operations within the Department of the Treasury, and how does this award fit in?

Historical spending on cybersecurity operations within the Department of the Treasury has likely been significant and steadily increasing, mirroring trends across all federal agencies due to escalating cyber threats. This $11.3 million task order represents a specific allocation for the Treasury Shared Services Security Operations Center (TSSOC) for a one-year period. It fits into the broader pattern of sustained investment in cybersecurity infrastructure and services. Analyzing past years' spending on SOC operations, incident response, and related cybersecurity functions would provide context on whether this award represents an increase, decrease, or stable level of investment for this particular function. The existence of the PROTECTS BPA suggests a strategic approach to managing and consolidating these expenditures.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 25PRSSPDIR0395

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12901 WORLDGATE DR, HERNDON, VA, 20170

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $90,801,913

Exercised Options: $11,313,669

Current Obligation: $11,313,669

Actual Outlays: $3,457,246

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 2032H525A00009

IDV Type: BPA

Timeline