State Department awards $25.8M contract for computer services to FOUR LLC, highlighting IT infrastructure needs
Contract Overview
Contract Amount: $25,884,964 ($25.9M)
Contractor: Four LLC
Awarding Agency: Department of State
Start Date: 2023-04-10
End Date: 2026-04-09
Contract Duration: 1,095 days
Daily Burn Rate: $23.6K/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: PALO ALTO PRODUCTS
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of State obligated $25.9 million to FOUR LLC for work described as: PALO ALTO PRODUCTS Key points: 1. Contract value of $25.8M over three years suggests a significant investment in IT support. 2. The 'Other Computer Related Services' NAICS code indicates a broad scope of potential IT functions. 3. A single award for this amount warrants scrutiny regarding the competitive landscape and pricing. 4. The contract's duration of 1095 days aligns with typical IT service agreements. 5. Fixed-price contract type aims to control costs, but requires careful scope management. 6. The exclusion of sources in the competition type raises questions about the procurement process.
Value Assessment
Rating: fair
The contract value of $25.8 million over three years for 'Other Computer Related Services' is substantial. Benchmarking this against similar IT service contracts for federal agencies is crucial. Without specific details on the services rendered, it's difficult to definitively assess value for money. However, the fixed-price nature suggests an attempt to cap costs, which is a positive indicator if the scope is well-defined and achievable within budget.
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, potentially limiting the pool of bidders. The number of bidders is not provided, making it difficult to assess the true level of competition. This procurement method can sometimes lead to less competitive pricing if the exclusion criteria are not well-justified.
Taxpayer Impact: The exclusion of sources may limit the potential for achieving the lowest possible price for taxpayers. A more open competition could have attracted a wider range of vendors, potentially driving down costs through aggressive bidding.
Public Impact
The Department of State benefits from enhanced IT infrastructure and support services. Federal employees and contractors will likely receive improved IT support, increasing operational efficiency. The contract supports the agency's mission by ensuring reliable and secure IT systems. Workforce implications may include the need for specialized IT personnel within FOUR LLC to fulfill the contract requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to exclusion of sources could result in higher costs.
- The broad NAICS code 'Other Computer Related Services' may obscure the specific deliverables and associated risks.
- Lack of transparency on the number of bidders makes it hard to gauge true market price.
Positive Signals
- Firm Fixed Price contract type provides cost certainty for the government.
- The contract duration of three years allows for stable IT support and planning.
- Awarding to a single vendor can streamline management and reduce administrative overhead.
Sector Analysis
The IT services sector is a critical component of federal operations, with agencies consistently investing in hardware, software, and support. This contract falls within the broader IT services market, which is characterized by a mix of large prime contractors and specialized small businesses. The 'Other Computer Related Services' category is diverse, encompassing everything from network management to cybersecurity and cloud solutions. Federal spending in this area is substantial, driven by the need to modernize systems, enhance cybersecurity, and support remote workforces.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). There is no information provided regarding subcontracting plans. This means that opportunities for small businesses to participate in this contract are likely limited to potential subcontracting roles, which are not guaranteed. The absence of a small business set-aside suggests the agency may have determined that larger, more specialized firms were best suited for the required services.
Oversight & Accountability
Oversight for this contract will primarily reside with the Department of State's contracting officers and program managers. The firm fixed-price nature of the contract provides a degree of cost control. Transparency regarding performance metrics and deliverables would be enhanced by public reporting. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.
Related Government Programs
- Department of State IT Modernization Programs
- Federal Civilian Agency IT Services Contracts
- Cybersecurity Support Services
- Cloud Computing Services for Government
Risk Flags
- Limited competition due to exclusion of sources.
- Broad NAICS code may lack specificity.
- Contractor's past performance not detailed.
Tags
it-services, department-of-state, full-and-open-competition-after-exclusion-of-sources, firm-fixed-price, large-contract, computer-related-services, federal-agency, information-technology, virginia, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $25.9 million to FOUR LLC. PALO ALTO PRODUCTS
Who is the contractor on this award?
The obligated recipient is FOUR LLC.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $25.9 million.
What is the period of performance?
Start: 2023-04-10. End: 2026-04-09.
What specific services are included under 'Other Computer Related Services' for this contract?
The NAICS code 541519, 'Other Computer Related Services,' is a broad category that can encompass a wide range of IT support functions. Without the specific contract statement of work (SOW), it is difficult to determine the exact services. These could include IT infrastructure management, network administration, help desk support, cybersecurity services, software installation and maintenance, data management, or IT consulting. The Department of State likely has detailed requirements outlined in the SOW that specify the scope, deliverables, and performance standards for FOUR LLC.
How does the $25.8 million contract value compare to similar IT service contracts awarded by the Department of State?
To assess the value, we would need to compare this $25.8 million contract to other IT service contracts awarded by the Department of State over a similar period and for comparable services. Federal procurement data can reveal average contract values for specific NAICS codes and agencies. If this contract is significantly higher or lower than the average for similar services, it would warrant further investigation into the scope, duration, and market conditions. Without access to a comprehensive database of comparable contracts, a precise benchmark is challenging.
What are the potential risks associated with awarding a contract of this size with 'exclusion of sources' in the competition?
The primary risk associated with 'exclusion of sources' is reduced competition, which can lead to higher prices and potentially less innovation. If legitimate reasons for excluding certain sources are not clearly documented and justified, it could also raise concerns about fairness and transparency in the procurement process. This approach might also limit the government's access to the best available technology or expertise if highly qualified vendors were excluded. It is crucial that the agency has a strong justification for this procurement method to mitigate these risks.
What is the track record of FOUR LLC in performing federal IT service contracts?
Information on the track record of FOUR LLC in performing federal IT service contracts is not provided in the given data. A thorough analysis would require examining past performance reviews, contract history, and any reported issues or successes with previous government awards. Understanding their experience with similar scope, scale, and complexity of IT services is essential for assessing their capability to successfully execute this $25.8 million contract for the Department of State.
How does the firm fixed price (FFP) contract type impact cost control and risk for this IT services award?
A Firm Fixed Price (FFP) contract is generally advantageous for the government in terms of cost control because the price is set and not subject to adjustment based on the contractor's cost experience. This shifts the risk of cost overruns to the contractor. For the Department of State, this means they know the total cost upfront, assuming the scope of work is well-defined. However, if the scope is ambiguous or changes frequently, the contractor may face challenges, potentially leading to disputes or requests for modification, which could negate some of the FFP benefits.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - IT MANAGEMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
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: $32,356,205
Exercised Options: $25,884,964
Current Obligation: $25,884,964
Actual Outlays: $6,471,241
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC73B
IDV Type: GWAC
Timeline
Start Date: 2023-04-10
Current End Date: 2026-04-09
Potential End Date: 2028-04-09 00:00:00
Last Modified: 2026-03-27
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