Justice Dept. Awards $100M+ for JSOC Support Services to Mindpoint Group LLC

Contract Overview

Contract Amount: $100,410,936 ($100.4M)

Contractor: Mindpoint Group LLC

Awarding Agency: Department of Justice

Start Date: 2017-09-01

End Date: 2023-08-16

Contract Duration: 2,175 days

Daily Burn Rate: $46.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: IT

Official Description: "IGF::OT::IGF" JUSTICE SECURITY OPERATIONS CENTER (JSOC) SUPPORT SERVICES YRG$S3683541

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $100.4 million to MINDPOINT GROUP LLC for work described as: "IGF::OT::IGF" JUSTICE SECURITY OPERATIONS CENTER (JSOC) SUPPORT SERVICES YRG$S3683541 Key points: 1. Significant contract value exceeding $100 million for critical security operations support. 2. Awarded to a single vendor, Mindpoint Group LLC, raising questions about competition. 3. Contract duration spans over six years, indicating long-term reliance. 4. The service category 'Other Computer Related Services' is broad and requires further scrutiny.

Value Assessment

Rating: fair

The contract's total value is substantial. Without specific per-unit cost data or benchmarks for similar 'Other Computer Related Services' contracts, assessing value for money is challenging. The 'LABOR HOURS' pricing model can lead to cost overruns if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Despite being awarded under 'FULL AND OPEN COMPETITION,' the contract was a single delivery order. This suggests that while the initial solicitation was open, the subsequent award mechanism might not have fostered maximum price discovery or competition among potential offerors for this specific order.

Taxpayer Impact: The substantial contract value means significant taxpayer funds are allocated. Effective oversight is crucial to ensure these funds are used efficiently and deliver the intended security operations support.

Public Impact

Ensures continued operation of the Justice Department's critical JSOC. Supports national security by maintaining vital IT infrastructure and services. Potential for long-term vendor lock-in if not actively managed. Impacts the cybersecurity posture of a major federal agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed cost breakdown for labor hours.
Potential for scope creep given the long duration.
Limited transparency on specific services rendered under the award.

Positive Signals

Supports a critical national security function.
Awarded under a competitive process.
Long contract duration provides stability for essential services.

Sector Analysis

This contract falls under IT services, specifically 'Other Computer Related Services.' The benchmark for IT support services varies widely based on complexity and scope. Given the sensitive nature of JSOC, specialized skills are likely required, potentially justifying higher costs, but transparency is key.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the awardee, Mindpoint Group LLC, is a large business. There is no indication of small business participation or subcontracting within this award.

Oversight & Accountability

The contract was awarded as a delivery order under a larger contract vehicle. Oversight should focus on the justification for the specific services procured, the efficiency of labor hour utilization, and adherence to the contract's scope to ensure accountability and prevent waste.

Related Government Programs

Other Computer Related Services
Department of Justice Contracting
Offices, Boards and Divisions Programs

Risk Flags

Lack of detailed cost breakdown.
Potential for vendor lock-in.
Long contract duration.
Reliance on 'LABOR HOURS' pricing model.
Limited transparency on specific services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $100.4 million to MINDPOINT GROUP LLC. "IGF::OT::IGF" JUSTICE SECURITY OPERATIONS CENTER (JSOC) SUPPORT SERVICES YRG$S3683541

Who is the contractor on this award?

The obligated recipient is MINDPOINT GROUP LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $100.4 million.

What is the period of performance?

Start: 2017-09-01. End: 2023-08-16.

How does the per-labor-hour cost compare to industry benchmarks for similar cybersecurity support services, considering the specialized nature of JSOC?

Assessing the per-labor-hour cost against industry benchmarks is difficult without specific details on the skill levels, experience, and roles of the personnel performing the work. While JSOC support likely requires highly specialized expertise, potentially justifying higher rates, a detailed breakdown of labor categories and their associated rates is necessary for a robust comparison. Without this granular data, it's challenging to definitively state if the pricing is competitive or excessive.

What specific risks are associated with a single vendor providing long-term support for a critical security operations center like JSOC?

A primary risk is vendor lock-in, which can reduce leverage in future negotiations and potentially lead to price increases. Over-reliance on a single vendor can also create knowledge silos, making it difficult to transition services if needed. Furthermore, if the vendor experiences financial instability or operational issues, it could directly impact the continuity of critical security operations, posing a significant risk to national security.

How effectively has the Department of Justice managed the 'LABOR HOURS' pricing model to ensure cost-efficiency and prevent contractor overbilling over the contract's duration?

Effective management of a 'LABOR HOURS' contract hinges on rigorous oversight, including detailed timesheet verification, validation of work performed against contract requirements, and regular performance reviews. The agency must ensure that the hours billed are reasonable and allocable to the contract's objectives. Without access to specific audit reports or performance metrics, it's difficult to definitively assess the effectiveness of the Justice Department's cost-control measures for this contract.

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: 6203 CARDINAL BROOK CT, SPRINGFIELD, VA, 22152

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $106,967,454

Exercised Options: $106,967,454

Current Obligation: $100,410,936

Actual Outlays: $92,556,171

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F018BA

IDV Type: FSS

Timeline