DOJ awards $34M contract for surgical instruments, with 4-month duration and firm-fixed-price terms

Contract Overview

Contract Amount: $34,152 ($34.2K)

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: $94/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: B1 - FY26 FOUR POINTS - 4 MONTHS ONLY SAM OK

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $34,152 to FOUR POINTS TECHNOLOGY, L.L.C. for work described as: B1 - FY26 FOUR POINTS - 4 MONTHS ONLY SAM OK Key points: 1. Contract awarded to FOUR POINTS TECHNOLOGY, L.L.C. for surgical and medical instruments. 2. The contract has a firm-fixed-price type, indicating predictable costs for the government. 3. This is a delivery order under a larger contract, suggesting a phased approach to procurement. 4. The contract duration is 364 days, covering a full year of service. 5. The procurement method was 'Full and Open Competition After Exclusion of Sources', requiring justification. 6. The contract is categorized under Surgical and Medical Instrument Manufacturing. 7. The award is for the Federal Prison System / Bureau of Prisons within the Department of Justice.

Value Assessment

Rating: fair

The contract value of $34.15 million for a 364-day period for surgical and medical instruments appears to be within a reasonable range for federal procurements of this nature. However, without specific details on the exact instruments or quantities, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for the Bureau of Prisons or other federal healthcare providers would be necessary to determine if the pricing is competitive. The firm-fixed-price structure helps manage cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. This indicates that while the competition was intended to be open, specific sources were excluded, and a justification for this exclusion would be required. The number of bidders is not specified, but the 'exclusion of sources' suggests a potentially limited competitive pool compared to true full and open competition.

Taxpayer Impact: The exclusion of certain sources, even with an initial intent for open competition, may limit the government's ability to secure the most competitive pricing and potentially reduce overall value for taxpayers.

Public Impact

The primary beneficiaries are inmates within the Federal Prison System, who will receive necessary medical care supported by these instruments. The contract ensures the availability of essential surgical and medical instruments for the Bureau of Prisons' healthcare facilities. The geographic impact is national, covering facilities managed by the Bureau of Prisons across the United States. This contract supports the healthcare workforce within federal prisons by providing them with the tools needed for patient care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Justification for exclusion of sources in a 'full and open competition' scenario needs scrutiny to ensure fair market access.
Lack of specific details on instruments and quantities hinders a thorough value-for-money analysis.
The limited competition indicated by 'exclusion of sources' could lead to suboptimal pricing.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Award to a single vendor for a defined period ensures supply chain continuity for essential medical items.
The contract duration of nearly a year suggests a stable supply for the Bureau of Prisons.

Sector Analysis

The market for surgical and medical instruments is a significant segment of the healthcare industry, characterized by innovation and a wide range of specialized products. Federal agencies, particularly those managing large healthcare systems like the Bureau of Prisons, are substantial purchasers. This contract fits within the broader federal strategy to ensure adequate medical supplies for correctional facilities, often relying on established manufacturers and distributors. Comparable spending benchmarks would involve analyzing other large federal healthcare procurements for similar instrument categories.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. There is no explicit mention of subcontracting goals for small businesses. This suggests that the primary focus was on securing the required instruments through the most advantageous competitive process, rather than specifically targeting small business engagement for this particular award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Bureau of Prisons contracting and program management officials. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated by the contract award notice, though further details on performance and specific instrument specifications would enhance public scrutiny. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Prison System Medical Supplies
Bureau of Prisons Equipment Procurement
Department of Justice Healthcare Contracts
Surgical Instrument Federal Supply Schedule
Medical Device Procurement for Government Facilities

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Need for detailed justification for source exclusion.
Quality assurance concerns inherent in fixed-price contracts for critical medical items.
Potential supply chain risks impacting delivery timelines.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $34,152 to FOUR POINTS TECHNOLOGY, L.L.C.. B1 - FY26 FOUR POINTS - 4 MONTHS ONLY SAM OK

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 $34,152.

What is the period of performance?

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

What specific types of surgical and medical instruments are covered under this contract, and what are their intended uses within the Bureau of Prisons?

The contract, valued at $34.15 million, is broadly categorized under 'Surgical and Medical Instrument Manufacturing' (NAICS 339112). However, the specific types of instruments are not detailed in the provided award data. These could range from basic examination tools and diagnostic equipment to more specialized surgical instruments required for minor procedures or emergency medical interventions within correctional facilities. The intended uses are to support the healthcare services provided to inmates, ensuring they have access to necessary medical equipment for diagnosis, treatment, and ongoing care. A deeper dive into the contract's statement of work or line item details would be required to ascertain the precise inventory of instruments.

How does the 'Full and Open Competition After Exclusion of Sources' process impact the potential for competitive pricing compared to standard full and open competition?

The 'Full and Open Competition After Exclusion of Sources' is a less common procurement method that implies an initial intent for broad competition, but with specific, justified exclusions of certain potential offerors. This exclusion, if not based on objective criteria that genuinely limit the market, can restrict the number of viable bidders. A reduced number of bidders typically leads to less intense price competition, potentially resulting in higher prices for the government compared to a scenario where all qualified sources could participate without restriction. The justification for excluding sources is critical; if it's weak, it raises concerns about whether the government secured the best possible value and if the competition was truly as robust as possible.

What is the typical spending pattern for surgical and medical instruments by the Bureau of Prisons, and how does this $34M award compare?

The Bureau of Prisons (BOP) consistently procures a wide array of medical supplies and equipment to serve its inmate population. Annual spending on medical services and supplies can run into hundreds of millions of dollars. A single delivery order of $34.15 million for surgical and medical instruments, while substantial, likely represents a portion of the BOP's overall annual medical expenditure. To provide a precise comparison, one would need to analyze historical BOP spending data for similar instrument categories over several fiscal years. This would reveal if this award is an outlier, a typical procurement size, or indicative of an increased need for these specific items.

What are the potential risks associated with a firm-fixed-price contract for medical instruments, especially concerning quality and availability?

Firm-fixed-price (FFP) contracts are generally favored for their cost certainty. However, for medical instruments, there can be risks. If the FFP is set too low without adequate market research, the contractor might be incentivized to cut corners on quality, use less durable materials, or substitute components, potentially compromising patient safety. Conversely, if the price is set too high, the government overpays. Another risk is availability; if the contractor faces unforeseen production issues or supply chain disruptions, they are still obligated to deliver under the FFP, which could lead to delays or the contractor seeking contract modifications. Robust quality assurance and inspection clauses are crucial to mitigate these risks.

What is the track record of FOUR POINTS TECHNOLOGY, L.L.C. in fulfilling federal contracts, particularly for medical supplies?

Information regarding the specific track record of FOUR POINTS TECHNOLOGY, L.L.C. in fulfilling federal contracts, especially for medical supplies, is not detailed in the provided award data. A comprehensive assessment would require accessing federal procurement databases (like SAM.gov or FPDS) to review their past performance history, including contract values, types of goods/services provided, on-time delivery rates, and any reported performance issues or awards. Understanding their experience with similar agencies (like the BOP) and product categories would provide crucial insight into their reliability and capability to meet the demands of this $34 million contract.

Industry Classification

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

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

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: $34,152

Exercised Options: $34,152

Current Obligation: $34,152

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15BPCC25D00000025

IDV Type: IDC

Timeline