IRS awards $3.6M cloud-based emergency communication system contract to Four Points Technology

Contract Overview

Contract Amount: $3,641,369 ($3.6M)

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

Awarding Agency: Department of the Treasury

Start Date: 2022-09-20

End Date: 2026-09-20

Contract Duration: 1,461 days

Daily Burn Rate: $2.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE INTERNAL REVENUE SERVICE (IRS) HAS APPROXIMATELY 90,000 EMPLOYEES AT 500 LOCATIONS NATION-WIDE. THE IRS COMMUNICATES CRITICAL WEATHER AND SAFETY MESSAGES TO EMPLOYEES VIA THE PROPRIETARY BLACKBERRY ATHOC CLOUD-BASED SYSTEM, WHICH MEETS FEDRAMP SE

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $3.6 million to FOUR POINTS TECHNOLOGY, L.L.C. for work described as: THE INTERNAL REVENUE SERVICE (IRS) HAS APPROXIMATELY 90,000 EMPLOYEES AT 500 LOCATIONS NATION-WIDE. THE IRS COMMUNICATES CRITICAL WEATHER AND SAFETY MESSAGES TO EMPLOYEES VIA THE PROPRIETARY BLACKBERRY ATHOC CLOUD-BASED SYSTEM, WHICH MEETS FEDRAMP SE Key points: 1. The contract leverages a cloud-based system for critical employee communications, enhancing safety and operational continuity. 2. Utilizing a FedRAMP-authorized platform ensures a baseline level of security for sensitive government data. 3. The procurement method, 'Full and Open Competition After Exclusion of Sources,' suggests a specific justification for limiting initial bidders. 4. The contract duration of approximately four years allows for sustained service delivery and system integration. 5. This spending supports the IRS's need for reliable internal communication infrastructure, particularly during emergencies.

Value Assessment

Rating: good

The contract value of $3.64 million over four years appears reasonable for a cloud-based communication system with FedRAMP authorization. Benchmarking against similar government contracts for emergency notification systems or secure cloud services would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs for the government.

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 may have been excluded based on pre-defined criteria or prior arrangements. Further details on the exclusion justification are needed to fully assess the competitive landscape and its impact on price discovery.

Taxpayer Impact: This procurement method may limit the number of potential bidders, potentially impacting the government's ability to secure the lowest possible price compared to a truly unrestricted full and open competition.

Public Impact

IRS employees nationwide will benefit from timely and reliable weather and safety messages. The system ensures operational continuity for the IRS by maintaining communication channels during critical events. This contract supports the IRS's mission-critical functions by providing a secure and robust communication platform. The use of a cloud-based system allows for scalability and accessibility across the IRS's 500 locations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' aspect of the competition warrants further investigation to ensure fair market access and optimal pricing.
Lack of detailed performance metrics in the provided data makes it difficult to assess the system's effectiveness beyond its basic functionality.

Positive Signals

The use of a FedRAMP-authorized cloud platform demonstrates a commitment to security and compliance.
The firm-fixed-price contract type provides cost certainty for the government.
The contract duration allows for stable service provision and potential for long-term system optimization.

Sector Analysis

This contract falls within the Other Computer Related Services sector, specifically focusing on cloud-based communication platforms. The market for such services is robust, driven by increasing demand for secure, scalable, and reliable communication solutions across government agencies. FedRAMP authorization is a key differentiator and requirement for cloud services used by federal entities, indicating a mature and regulated market segment.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting requirements for this contract. Further analysis would be needed to determine if small businesses were involved in the competition or if opportunities exist for subcontracting.

Oversight & Accountability

Oversight of this contract would typically fall under the Department of the Treasury and the Internal Revenue Service's contracting and program management offices. The use of a FedRAMP-authorized system implies adherence to federal security and operational standards. Transparency would be enhanced by public reporting of performance metrics and any modifications to the contract.

Related Government Programs

Emergency Notification Systems
Cloud Computing Services
FedRAMP Authorized Software
Internal Communications Platforms

Risk Flags

Limited Competition Justification
Lack of Detailed Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $3.6 million to FOUR POINTS TECHNOLOGY, L.L.C.. THE INTERNAL REVENUE SERVICE (IRS) HAS APPROXIMATELY 90,000 EMPLOYEES AT 500 LOCATIONS NATION-WIDE. THE IRS COMMUNICATES CRITICAL WEATHER AND SAFETY MESSAGES TO EMPLOYEES VIA THE PROPRIETARY BLACKBERRY ATHOC CLOUD-BASED SYSTEM, WHICH MEETS FEDRAMP SE

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 the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $3.6 million.

What is the period of performance?

Start: 2022-09-20. End: 2026-09-20.

What specific criteria led to the exclusion of certain sources in this 'Full and Open Competition After Exclusion of Sources' award?

The designation 'Full and Open Competition After Exclusion of Sources' implies that while the competition was intended to be open, specific vendors or types of vendors were deliberately excluded from the bidding process. This exclusion typically occurs when there's a specific, documented justification, such as a need for a proprietary system already in use, unique technical capabilities possessed by only a few vendors, or a prior contractual relationship that necessitates a follow-on award under specific conditions. Without access to the Justification for Other than Full and Open Competition (JOFOC) or similar documentation, it is impossible to determine the precise reasons for exclusion. This lack of transparency can raise concerns about whether the government secured the best possible value and whether all qualified vendors had a fair opportunity to compete.

How does the cost of this contract compare to similar FedRAMP-authorized cloud communication systems for federal agencies?

Direct cost comparison is challenging without specific performance tiers and feature sets of comparable systems. However, the average annual cost of approximately $910,000 for a nationwide emergency communication system with FedRAMP authorization appears within a reasonable range for government contracts of this nature. Factors influencing cost include the number of users, data storage requirements, feature set (e.g., two-way messaging, alert customization, reporting), and the level of support provided. To conduct a thorough benchmark, one would need to identify contracts for similar services (e.g., mass notification systems, secure messaging platforms) awarded to other federal agencies, analyze their total contract values, durations, and the scope of services, and then normalize these figures for a meaningful comparison.

What are the key performance indicators (KPIs) used to measure the success and effectiveness of this communication system?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for an emergency communication system, KPIs would focus on reliability (uptime percentage), message delivery success rate (percentage of messages successfully sent and received), message delivery speed (average time from initiation to delivery), user adoption/engagement rates, and system security compliance. The IRS, as the contracting agency, would be responsible for defining and monitoring these KPIs to ensure the system effectively meets its objectives of disseminating critical weather and safety messages to employees promptly and reliably. Regular performance reviews and reporting against these KPIs are crucial for accountability.

What is the track record of Four Points Technology, L.L.C. in delivering similar cloud-based communication solutions to federal agencies?

Four Points Technology, L.L.C. is a government contractor that has secured various federal awards. While the provided data doesn't detail their specific experience with emergency communication systems or cloud platforms, their ability to win this contract suggests they possess the necessary qualifications and certifications, such as FedRAMP authorization capabilities, to serve federal clients. A deeper dive into their contract history, client testimonials, and past performance evaluations (available through resources like the Federal Procurement Data System - FPDS) would provide a more comprehensive understanding of their track record in delivering similar solutions and their overall performance reliability.

How does this spending align with the IRS's overall IT modernization and security initiatives?

This contract aligns with broader federal and IRS initiatives focused on IT modernization and enhancing cybersecurity. The adoption of a FedRAMP-authorized cloud-based system signifies a move towards more secure, scalable, and modern infrastructure, away from potentially legacy or on-premise solutions. Such systems are crucial for ensuring business continuity, protecting sensitive employee information, and enabling efficient communication, especially during disruptive events. Investing in robust internal communication tools is a fundamental aspect of maintaining operational resilience and supporting the IRS's complex mission, contributing to its overall IT security posture.

Industry Classification

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

Product/Service Code: COMM/DETECT/COHERENT RADIATION

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: 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: $4,220,991

Exercised Options: $3,641,369

Current Obligation: $3,641,369

Actual Outlays: $3,641,369

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD22B

IDV Type: GWAC

Timeline