DOJ awards $9.29M for endpoint management, with 5 bidders competing for a 3-year contract

Contract Overview

Contract Amount: $9,292,338 ($9.3M)

Contractor: Four LLC

Awarding Agency: Department of Justice

Start Date: 2023-10-01

End Date: 2026-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $8.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PSS - FY24 BIGFIX ENDPOINT MANAGER

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $9.3 million to FOUR LLC for work described as: PSS - FY24 BIGFIX ENDPOINT MANAGER Key points: 1. The contract value represents a moderate investment in IT infrastructure support. 2. Competition was robust, suggesting potential for competitive pricing. 3. The fixed-price contract type shifts performance risk to the contractor. 4. This award falls within the broader IT services sector, crucial for agency operations. 5. The contractor, FOUR LLC, has a track record that warrants further examination. 6. The duration of the contract allows for sustained service delivery.

Value Assessment

Rating: good

The contract's value of $9.29 million over three years for endpoint management services appears reasonable given the scope. Benchmarking against similar IT support contracts for federal agencies of this size suggests a competitive pricing structure. The firm fixed-price nature of the award indicates that the contractor bears the risk of cost overruns, which is generally favorable for the government. Further analysis would involve comparing the specific services delivered against industry standards and the pricing of individual components.

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 multiple vendors were allowed to bid. With five bidders participating, the level of competition appears healthy. This suggests that the agency sought a broad range of solutions and that market forces likely played a significant role in determining the final price. A higher number of bidders generally correlates with better price discovery and potentially lower costs for the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely drove down the price and ensured the government received a competitive offer for essential IT services.

Public Impact

The Department of Justice (DOJ) benefits from enhanced endpoint security and management. Federal employees across various offices will experience improved IT stability and support. The services delivered will ensure the smooth functioning of critical IT infrastructure. The geographic impact is primarily within the DOJ's operational locations, likely nationwide. Workforce implications include ensuring IT staff have the necessary tools and support to perform their duties effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized.
Dependence on a single contractor for critical IT infrastructure support.
Need for ongoing performance monitoring to ensure service level agreements are met.

Positive Signals

Award to a single contractor allows for streamlined management and accountability.
Firm fixed-price contract incentivizes contractor efficiency and cost control.
Full and open competition suggests a competitive market for these services.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on endpoint management and related computer services. The market for such services is large and competitive, with numerous vendors offering solutions to government and commercial clients. The DOJ's spending on endpoint management is a critical component of its overall IT budget, aimed at securing and maintaining the vast network of devices used by its personnel. Comparable spending benchmarks for similar federal agencies indicate that this award is within a typical range for the scope of services and duration.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. This suggests that the primary focus was on securing the best overall solution and price from the available market. The absence of small business set-asides means that opportunities for small businesses to directly participate in this specific contract may be limited, though they could potentially be involved as subcontractors if the prime contractor chooses to engage them.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer's representative (COR) within the relevant DOJ office. Performance will be monitored against the terms and conditions of the firm fixed-price delivery order, including service level agreements. Transparency is facilitated through federal procurement databases where contract awards are reported. While specific Inspector General (IG) jurisdiction for this particular award isn't detailed, the DOJ OIG generally has oversight over agency spending and program effectiveness.

Related Government Programs

IT Infrastructure Support Services
Endpoint Security Solutions
Software Licensing and Maintenance
IT Managed Services
Computer Network Support

Risk Flags

Contractor Performance Risk
Cybersecurity Vulnerability
Vendor Lock-in Potential
Budget Overrun Risk (if fixed-price is not managed well)
Service Level Agreement Non-compliance

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $9.3 million to FOUR LLC. PSS - FY24 BIGFIX ENDPOINT MANAGER

Who is the contractor on this award?

The obligated recipient is FOUR 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 $9.3 million.

What is the period of performance?

Start: 2023-10-01. End: 2026-09-30.

What is the track record of FOUR LLC in delivering similar IT services to federal agencies?

Assessing the track record of FOUR LLC requires a review of their past performance on federal contracts, particularly those involving endpoint management and IT support. Information from sources like the Federal Procurement Data System (FPDS) or Contractor Performance Assessment Reporting System (CPARS) would be crucial. Key indicators to examine include on-time delivery, adherence to budget, quality of service, and any past disputes or contract terminations. A history of successful contract completions with positive performance reviews would indicate a lower risk for this current award. Conversely, a pattern of performance issues or contract modifications due to contractor-related problems would raise concerns about their capability to meet the DOJ's requirements effectively.

How does the per-unit cost of this contract compare to industry benchmarks for endpoint management?

To benchmark the per-unit cost, we would need to break down the total contract value ($9.29 million) by the number of endpoints managed or the specific services provided over the contract's 1095-day duration. For example, if the contract covers 10,000 endpoints, the average annual cost per endpoint would be approximately $283. Comparing this figure to industry reports from IT research firms (e.g., Gartner, Forrester) or data from similar government contracts would reveal if it is competitive. Factors like the complexity of the environment, the specific software used (e.g., BigFix Endpoint Manager), and the level of support required influence these costs. A cost significantly above or below the benchmark might warrant further investigation into the scope or pricing structure.

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

The primary risks associated with this contract include potential performance failures by the contractor (FOUR LLC), cybersecurity vulnerabilities within the managed endpoints, and the risk of vendor lock-in. Mitigation strategies are embedded within the contract structure and oversight. The firm fixed-price nature shifts financial risk to the contractor, incentivizing performance. The full and open competition process aims to select a capable vendor. Cybersecurity risks are typically addressed through specific security requirements, compliance mandates (e.g., NIST standards), and regular security audits outlined in the contract. Vendor lock-in can be mitigated by ensuring clear contract exit clauses and data portability provisions, allowing for a smooth transition to a new vendor if necessary.

How effective is the chosen endpoint management solution (BigFix) in meeting federal cybersecurity requirements?

The effectiveness of IBM's BigFix Endpoint Manager in meeting federal cybersecurity requirements is generally considered robust, provided it is properly configured and maintained. BigFix is known for its capabilities in patch management, security configuration enforcement, and software inventory across large, complex networks, which are critical for federal agencies. Its ability to automate compliance checks and remediation actions helps agencies meet mandates like those from NIST. However, effectiveness is highly dependent on the specific implementation, the skills of the personnel managing it, and its integration with other security tools. Regular updates, adherence to best practices, and ongoing monitoring are essential to ensure BigFix continues to provide adequate protection against evolving cyber threats within the DOJ's environment.

What is the historical spending trend for endpoint management services within the Department of Justice?

Analyzing historical spending trends for endpoint management within the DOJ would involve examining procurement data over several fiscal years. This would reveal whether spending has been consistent, increasing, or decreasing, and identify the primary contractors and contract types utilized. Such analysis can highlight shifts in technology adoption, changes in agency needs, or the impact of budget fluctuations. For instance, a steady increase might indicate growing reliance on digital infrastructure or expansion of services, while a decrease could suggest consolidation or efficiency gains. Understanding these trends provides context for the current $9.29 million award, helping to determine if it aligns with past investment patterns or represents a significant change in strategy.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2303 DULLES STATION BLVD STE 105, HERNDON, VA, 20171

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,900,024

Exercised Options: $9,292,338

Current Obligation: $9,292,338

Actual Outlays: $9,292,338

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC73B

IDV Type: GWAC

Timeline