DOJ's $47.9M pharmacy cabinets contract awarded to Four Points Technology, LLC

Contract Overview

Contract Amount: $47,907 ($47.9K)

Contractor: Four Points Technology, L.L.C.

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $132/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY26 B1 FOUR POINTS PHARMACY CABINETS

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $47,906.76 to FOUR POINTS TECHNOLOGY, L.L.C. for work described as: FY26 B1 FOUR POINTS PHARMACY CABINETS Key points: 1. Contract awarded for pharmacy cabinets, a critical component for secure medication storage and dispensing. 2. The contract value of $47.9 million over one year indicates a significant investment in healthcare infrastructure. 3. Awarded under full and open competition, suggesting a robust market for these specialized cabinets. 4. The fixed-price contract type aims to control costs and provide predictability for the government. 5. The vendor, Four Points Technology, LLC, is positioned to supply essential equipment to federal facilities. 6. The contract duration of one year allows for flexibility in future procurement decisions.

Value Assessment

Rating: good

The contract value of $47.9 million for a one-year period for pharmacy cabinets appears reasonable given the specialized nature of the equipment and the federal agency involved. Benchmarking against similar federal contracts for medical and surgical equipment manufacturing (NAICS 339112) suggests that pricing for high-security, specialized cabinets can range significantly. Without specific details on the cabinet features, quantity, and installation requirements, a precise value-for-money assessment is challenging. However, the fixed-price nature of the contract provides cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. The specific exclusion of sources clause suggests that while competition was open, certain pre-qualified or specialized vendors might have been initially considered or that specific requirements limited the pool. The number of bidders is not specified, but the 'full and open' designation generally implies a competitive environment conducive to price discovery.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better value. It ensures that the government is not limited to a single provider, increasing the likelihood of obtaining goods and services at market-competitive rates.

Public Impact

Federal Prison System facilities will benefit from enhanced security and efficiency in medication management. The contract ensures the supply of essential pharmacy cabinets, supporting the operational needs of the Bureau of Prisons. The geographic impact is likely nationwide, covering various federal correctional institutions. The contract supports the healthcare workforce within federal prisons by providing necessary equipment for pharmacy operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited vendor pool if 'exclusion of sources' clause significantly narrowed initial competition.
Reliance on a single awardee for a critical supply chain item could pose risks if the vendor faces production or delivery issues.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Fixed-price contract type helps manage and control costs for the government.
The contract supports a critical function within the Bureau of Prisons, ensuring operational continuity.

Sector Analysis

The market for surgical and medical instruments (NAICS 339112) is diverse, encompassing a wide range of products from basic supplies to highly specialized equipment. Federal spending in this sector is substantial, driven by the needs of agencies like the Department of Justice (Bureau of Prisons), Department of Defense, and Department of Veterans Affairs. This contract for pharmacy cabinets fits within the broader category of medical equipment manufacturing, where factors like product specialization, security features, and compliance with healthcare regulations influence market dynamics and pricing. Comparable spending benchmarks would typically be found within federal procurement data for similar medical storage solutions.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The primary contractor, Four Points Technology, L.L.C., is not explicitly identified as a small business in the provided data. The focus of this contract is on the delivery of goods rather than services that might typically involve a larger small business subcontracting component.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Justice, specifically the Bureau of Prisons, which is responsible for managing and monitoring contract performance. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is facilitated through federal procurement databases where contract awards are recorded. While an Inspector General may have jurisdiction depending on the nature of any potential issues, day-to-day oversight is typically handled by the contracting officer and the agency's program management team.

Related Government Programs

Federal Prison System Medical Supplies
Bureau of Prisons Equipment Procurement
Department of Justice Healthcare Contracts
Surgical and Medical Instrument Manufacturing Contracts
Federal Pharmacy Operations Equipment

Risk Flags

Potential for limited competition due to 'exclusion of sources' clause.
Reliance on a single vendor for critical equipment.
Need for clear performance standards and monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $47,906.76 to FOUR POINTS TECHNOLOGY, L.L.C.. FY26 B1 FOUR POINTS PHARMACY CABINETS

Who is the contractor on this award?

The obligated recipient is FOUR POINTS TECHNOLOGY, L.L.C..

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $47,906.76.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is the track record of Four Points Technology, L.L.C. in supplying similar pharmacy cabinets or medical equipment to federal agencies?

A review of federal procurement data would be necessary to fully assess Four Points Technology, L.L.C.'s track record. Key indicators would include the number of previous contracts awarded to the company for similar items, their performance history on those contracts (e.g., on-time delivery, quality compliance), and any reported issues or disputes. Understanding their experience with the specific requirements of federal pharmacy cabinets, including security features and regulatory compliance, is crucial. Past performance evaluations and contract close-out reports, if available, would provide valuable insights into their reliability and capability to fulfill this $47.9 million award.

How does the $47.9 million contract value compare to historical spending on pharmacy cabinets by the Bureau of Prisons or similar agencies?

To benchmark the $47.9 million contract value, historical spending data for pharmacy cabinets or comparable secure medical storage solutions procured by the Bureau of Prisons (BOP) and other federal healthcare providers (e.g., VA, DoD) would need to be analyzed. This analysis should consider the contract duration (one year in this case) and the specific features and quantities of cabinets procured. If previous contracts for similar items were significantly lower or higher, it would warrant further investigation into factors such as inflation, changes in technology, increased security requirements, or shifts in procurement strategies. A substantial deviation from historical norms could indicate either exceptional value or potential overspending.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks for this contract include potential supply chain disruptions affecting the delivery of cabinets, quality control issues that could lead to non-compliance with federal standards, and potential cost overruns if the fixed-price contract does not adequately account for all contingencies. Mitigation strategies typically involve robust contract management by the agency, including regular progress reviews, site inspections, and clear communication channels with the contractor. The 'full and open competition' aspect helps mitigate the risk of relying on a single, potentially underperforming vendor. The fixed-price nature itself is a risk mitigation tool against cost escalation, provided the initial pricing was accurate.

How effective is the 'full and open competition after exclusion of sources' approach in ensuring competitive pricing for specialized equipment like pharmacy cabinets?

The 'full and open competition after exclusion of sources' approach aims to balance broad market access with the need for specialized capabilities. While 'full and open' suggests maximum competition, the 'exclusion of sources' clause implies that certain criteria or pre-qualifications were applied, potentially narrowing the initial pool of eligible bidders. This can be effective if the exclusions are justified by legitimate technical requirements, ensuring that only capable vendors participate. However, if the exclusions are overly restrictive, they could inadvertently limit competition and potentially lead to higher prices than a truly unrestricted open competition. The effectiveness hinges on the justification and scope of the excluded sources.

What are the performance metrics and quality standards expected for these pharmacy cabinets, and how are they monitored?

Performance metrics and quality standards for federal contracts are typically detailed in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). For pharmacy cabinets, these would likely include specifications related to material durability, security features (e.g., locking mechanisms, tamper resistance), capacity, dimensions, compliance with healthcare regulations (e.g., HIPAA for data security if applicable, FDA if relevant), and finish. Monitoring is usually conducted by the Contracting Officer's Representative (COR) through inspections, acceptance testing, and review of contractor-submitted documentation. Failure to meet these standards could result in contract remedies, including rejection of goods or financial penalties.

What is the anticipated impact of this contract on the operational efficiency and security of federal prison pharmacies?

The acquisition of new pharmacy cabinets is expected to significantly enhance the operational efficiency and security of federal prison pharmacies. Modern cabinets often feature improved organization, better inventory management capabilities, and enhanced security features to prevent diversion or unauthorized access to medications. This can lead to more streamlined dispensing processes, reduced errors, and improved compliance with storage regulations. By ensuring secure and efficient medication management, the contract directly supports the healthcare mission within correctional facilities, contributing to the overall safety and well-being of both inmates and staff.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical and Medical Instrument Manufacturing

Product/Service Code: IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 15BPCC25Q00000025

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13221 WOODLAND PARK RD, HERNDON, VA, 20171

Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $47,907

Exercised Options: $47,907

Current Obligation: $47,907

Actual Outlays: $11,977

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15BPCC25D00000025

IDV Type: IDC

Timeline