Labor Renews Zscaler Licenses for Zero Trust Architecture for $17.1M

Contract Overview

Contract Amount: $17,073,220 ($17.1M)

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

Awarding Agency: Department of Labor

Start Date: 2024-03-01

End Date: 2027-02-28

Contract Duration: 1,094 days

Daily Burn Rate: $15.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SOFTWARE: THE PURPOSE OF THIS REQUIREMENT IS TO PROCURE/RENEW ZSCALER LICENSES IN SUPPORT OF OCIO'S TRANSITION TO ZERO TRUST ARCHITECTURE IN ACCORDANCE WITH EXECUTIVE ORDER 14028. THE PERIOD OF PERFORMANCE IS FOR ONE TWELVE (12) MONTH BASE PERI

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Labor obligated $17.1 million to FOUR POINTS TECHNOLOGY, L.L.C. for work described as: SOFTWARE: THE PURPOSE OF THIS REQUIREMENT IS TO PROCURE/RENEW ZSCALER LICENSES IN SUPPORT OF OCIO'S TRANSITION TO ZERO TRUST ARCHITECTURE IN ACCORDANCE WITH EXECUTIVE ORDER 14028. THE PERIOD OF PERFORMANCE IS FOR ONE TWELVE (12) MONTH BASE PERI Key points: 1. This contract is for Zscaler licenses, crucial for the Department of Labor's Zero Trust Architecture transition, aligning with Executive Order 14028. 2. The contract was awarded through full and open competition after exclusion of sources, indicating a competitive bidding process. 3. The total value over the base period and potential option periods is significant, requiring careful monitoring of cost-effectiveness. 4. The IT sector, particularly cybersecurity solutions like Zscaler, is experiencing high demand and investment due to evolving threats.

Value Assessment

Rating: good

The contract value of $17.1M for a 12-month base period appears reasonable given the critical nature of cybersecurity software and the current market for such solutions. Benchmarking against similar large-scale cybersecurity procurements would provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources.' This suggests that while competition was sought, specific criteria or circumstances led to the exclusion of some potential bidders, which could impact price discovery.

Taxpayer Impact: The expenditure of $17.1M supports a critical cybersecurity initiative, potentially safeguarding sensitive government data and operations, thus representing a necessary investment for national security and operational integrity.

Public Impact

Enhances federal cybersecurity posture in line with Executive Order 14028. Supports the transition to a modern Zero Trust Architecture, reducing attack surfaces. Ensures continuity of operations for the Department of Labor's IT infrastructure. Potential for improved data protection and reduced risk of breaches.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in subsequent option periods.
Dependence on a single vendor for critical security infrastructure.
Ensuring effective implementation and utilization of Zscaler capabilities.

Positive Signals

Directly addresses a key cybersecurity mandate (EO 14028).
Awarded through a competitive process.
Supports a critical agency function (Zero Trust Architecture).

Sector Analysis

This procurement falls within the IT sector, specifically focusing on cybersecurity software. Spending in this area has surged due to increasing cyber threats and government mandates. Benchmarks for similar enterprise-level cybersecurity solutions can vary widely based on features and user base.

Small Business Impact

The contract was awarded to FOUR POINTS TECHNOLOGY, L.L.C. Further analysis is needed to determine if this prime contractor is a small business or if subcontracting opportunities exist for small businesses within this large IT procurement.

Oversight & Accountability

The award is a Delivery Order under an existing contract. Oversight should focus on the vendor's performance, adherence to contract terms, and the ongoing effectiveness of the Zscaler solution in meeting Zero Trust objectives.

Related Government Programs

Other Computer Related Services
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Potential for vendor lock-in.
Reliance on a single vendor for critical security.
Complexity of Zero Trust implementation.
Budgetary impact of recurring software license costs.
Ensuring adequate technical expertise for management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $17.1 million to FOUR POINTS TECHNOLOGY, L.L.C.. SOFTWARE: THE PURPOSE OF THIS REQUIREMENT IS TO PROCURE/RENEW ZSCALER LICENSES IN SUPPORT OF OCIO'S TRANSITION TO ZERO TRUST ARCHITECTURE IN ACCORDANCE WITH EXECUTIVE ORDER 14028. THE PERIOD OF PERFORMANCE IS FOR ONE TWELVE (12) MONTH BASE PERI

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 Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $17.1 million.

What is the period of performance?

Start: 2024-03-01. End: 2027-02-28.

What is the projected cost per user or per endpoint for the Zscaler licenses, and how does this compare to industry benchmarks for similar Zero Trust solutions?

The provided data does not include per-unit cost details. To assess value, a breakdown of licenses (e.g., per user, per endpoint) and their associated costs is necessary. This information would allow for a direct comparison with industry benchmarks for Zscaler or comparable Zero Trust solutions, revealing potential overspending or cost efficiencies.

What specific risks are associated with the 'exclusion of sources' in the competition method, and how are these risks being mitigated to ensure fair pricing?

Excluding sources, even in a 'full and open' context, can limit competitive pressure, potentially leading to higher prices or less innovation. Mitigation strategies should include robust negotiation, market research to validate pricing, and clear justification for any source exclusions to ensure the government is not disadvantaged.

How will the effectiveness of the Zscaler implementation in achieving Zero Trust Architecture goals be measured and verified throughout the contract period?

Effectiveness measurement requires defining clear Key Performance Indicators (KPIs) related to Zero Trust objectives, such as reduced incident response times, successful threat containment, and compliance with security policies. Regular performance reviews and independent assessments should verify that the Zscaler solution is actively contributing to these goals.

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

Solicitation ID: 1605TB-24-Q-00020

Offers Received: 1

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: $17,073,220

Exercised Options: $17,073,220

Current Obligation: $17,073,220

Actual Outlays: $10,168,775

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD22B

IDV Type: GWAC

Timeline