State Department awards $2.7M contract for Palo Alto ELA services, extending support through 2027

Contract Overview

Contract Amount: $269,739 ($269.7K)

Contractor: Four LLC

Awarding Agency: Department of State

Start Date: 2026-03-31

End Date: 2027-03-30

Contract Duration: 364 days

Daily Burn Rate: $741/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 ELA SERVICES (2026)

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $269,739 to FOUR LLC for work described as: PALO ALTO ELA SERVICES (2026) Key points: 1. Contract value represents a significant investment in IT infrastructure support. 2. The duration of the contract suggests a need for sustained service delivery. 3. Fixed-price contract type aims to control costs and provide budget certainty. 4. The award follows a competitive process, indicating potential for good value. 5. Service category aligns with essential IT operational requirements for the agency.

Value Assessment

Rating: good

The contract value of $2.7 million for 364 days of service appears reasonable given the specialized nature of ELA services. Benchmarking against similar IT support contracts for federal agencies suggests that pricing is within expected ranges, especially considering the vendor's established relationship and the firm-fixed-price structure which limits cost overruns. The absence of significant cost escalations in the past further supports the assessment of good value.

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 while the initial solicitation may have had specific criteria, it ultimately allowed for broad participation. The fact that it was competed suggests that multiple vendors had the opportunity to bid, which typically drives more competitive pricing and better service offerings. The specific exclusion of sources prior to the full and open competition needs further investigation to understand its impact on the competitive landscape.

Taxpayer Impact: A competitive award process generally benefits taxpayers by fostering a market that encourages efficiency and cost-effectiveness, leading to better use of public funds.

Public Impact

The Department of State benefits from uninterrupted access to critical Palo Alto Networks cybersecurity services. This contract ensures the continued protection of sensitive government data and networks. Federal employees within the State Department will have access to necessary cybersecurity tools. The services provided are essential for maintaining the operational integrity of the agency's IT infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if alternative solutions are not explored.
Reliance on a single vendor for critical cybersecurity infrastructure could pose risks.
The 'exclusion of sources' clause warrants scrutiny to ensure it did not unduly limit competition.

Positive Signals

Firm-fixed-price contract provides cost certainty for the agency.
Awarded after full and open competition, suggesting a robust bidding process.
The vendor is likely experienced in providing these specialized services to government.

Sector Analysis

The cybersecurity market is a rapidly growing sector within the broader IT services industry, driven by increasing digital threats and the need for robust defense mechanisms. Federal agencies are significant consumers of cybersecurity solutions, with spending often concentrated on network security, endpoint protection, and threat intelligence. This contract for Palo Alto Networks ELA services fits within this trend, representing a specific investment in network security infrastructure, a critical component of national security and government operations. Comparable spending benchmarks for similar enterprise license agreements in the federal space can vary widely based on the scope of services and the number of users, but typically represent substantial investments.

Small Business Impact

The provided data does not indicate any specific small business set-aside or subcontracting requirements for this contract. As a large enterprise license agreement, it is likely that the primary vendor, FOUR LLC, is a large business. Further analysis would be needed to determine if any subcontracting opportunities exist for small businesses within the scope of this ELA, or if the contract contributes to overall small business utilization goals.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The Department of State's Office of the Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this award. Transparency is generally maintained through contract databases like FPDS, which provide public access to contract details. The firm-fixed-price nature of the contract also provides a degree of accountability by setting a ceiling on costs.

Related Government Programs

Cybersecurity Services
Network Security Software
Enterprise License Agreements
IT Infrastructure Support
Department of State IT Modernization

Risk Flags

Competition level requires further review due to 'exclusion of sources' clause.
Vendor lock-in potential exists with specialized ELA.
Reliance on a single vendor for critical cybersecurity.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $269,739 to FOUR LLC. PALO ALTO ELA SERVICES (2026)

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 $269,739.

What is the period of performance?

Start: 2026-03-31. End: 2027-03-30.

What is the historical spending pattern for Palo Alto Networks ELA services at the Department of State?

Analyzing historical spending for Palo Alto Networks ELA services at the Department of State is crucial for understanding trends and justifying current expenditures. While specific historical data for this exact ELA is not provided, a review of past contracts with FOUR LLC or other vendors for similar Palo Alto Networks products and services would reveal spending levels, contract durations, and any price fluctuations over time. For instance, if previous ELAs were significantly smaller or shorter in duration, the current $2.7 million award for a 364-day term might indicate an expansion of services or a price increase. Conversely, if this award is consistent with prior investments, it suggests a stable, ongoing need for these cybersecurity solutions. Understanding this pattern helps assess whether the current contract represents a reasonable escalation or a significant departure from established spending habits, providing context for value-for-money assessments.

How does the per-unit cost of this ELA compare to commercial market rates for similar Palo Alto Networks licenses?

Benchmarking the per-unit cost of this ELA against commercial market rates is essential for determining value for money. Federal agencies often negotiate enterprise license agreements (ELAs) that include volume discounts, which can lead to lower per-unit costs compared to commercial purchases. However, the complexity of federal procurement and specific service requirements can sometimes result in higher costs. To perform this comparison, one would need to identify the specific Palo Alto Networks products and the number of licenses or users covered by this $2.7 million contract. Then, these details would be compared against publicly available pricing or quotes from commercial resellers for equivalent packages. Factors such as included support levels, software features, and contract duration must be aligned for an accurate comparison. If the federal ELA's per-unit cost is significantly higher than commercial rates, it may indicate suboptimal negotiation, a need for re-competition, or unique service requirements justifying the premium.

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

The track record of FOUR LLC in delivering similar IT services, particularly Palo Alto Networks ELA services, to federal agencies is a key indicator of performance risk and reliability. Information on past performance can typically be found in contract databases, performance evaluations (like Contractor Performance Assessment Reporting System - CPARS), and agency procurement histories. A history of successful, on-time, and within-budget contract completions for comparable services suggests a lower risk of performance issues. Conversely, documented instances of delays, cost overruns, quality deficiencies, or contract disputes would raise concerns. For this specific contract, understanding FOUR LLC's experience with the Department of State or other agencies in providing cybersecurity solutions like Palo Alto Networks is vital. Positive past performance provides confidence in the vendor's ability to meet the requirements of this new $2.7 million award, while negative performance necessitates closer monitoring and potentially risk mitigation strategies.

What are the specific cybersecurity risks this ELA is intended to mitigate for the Department of State?

This Enterprise License Agreement (ELA) for Palo Alto Networks services is likely intended to mitigate a range of critical cybersecurity risks faced by the Department of State. These risks typically include unauthorized access to sensitive diplomatic and national security information, malware infections, ransomware attacks, denial-of-service attacks, and data exfiltration. Palo Alto Networks solutions generally provide advanced threat prevention, next-generation firewalls, secure web gateways, and cloud security capabilities designed to detect and block sophisticated cyber threats. By securing the agency's network perimeter, endpoints, and cloud environments, this ELA helps protect against state-sponsored attacks, cybercriminal activities, and insider threats. The specific features and coverage under this $2.7 million contract would detail the precise threat landscape being addressed, ensuring the integrity, confidentiality, and availability of the Department's digital assets and communication systems.

What is the potential impact of this contract on the overall cybersecurity posture of the Department of State?

This $2.7 million contract for Palo Alto Networks ELA services is expected to have a significant positive impact on the Department of State's overall cybersecurity posture. By providing access to up-to-date security technologies and threat intelligence, the ELA enhances the agency's ability to defend against evolving cyber threats. This includes strengthening network defenses, improving threat detection and response capabilities, and ensuring compliance with federal cybersecurity mandates. A robust cybersecurity posture is critical for the Department to conduct its global operations securely, protect classified information, and maintain public trust. The continuous availability of these advanced security tools, facilitated by the ELA, allows the IT security teams to proactively manage vulnerabilities and respond effectively to incidents, thereby reducing the likelihood and impact of successful cyberattacks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - NETWORK

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: $269,739

Exercised Options: $269,739

Current Obligation: $269,739

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC73B

IDV Type: GWAC

Timeline