SSA Funds Cloud Services Option Year 4 for $28M with Four Points Technology
Contract Overview
Contract Amount: $28,000,000 ($28.0M)
Contractor: Four Points Technology, L.L.C.
Awarding Agency: Social Security Administration
Start Date: 2025-04-28
End Date: 2026-04-30
Contract Duration: 367 days
Daily Burn Rate: $76.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CALL ORDER TO FUND OPTION YEAR 4 FOR CLOUD SERVICES - 28321321A00040003
Place of Performance
Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21235
State: Maryland Government Spending
Plain-Language Summary
Social Security Administration obligated $28.0 million to FOUR POINTS TECHNOLOGY, L.L.C. for work described as: CALL ORDER TO FUND OPTION YEAR 4 FOR CLOUD SERVICES - 28321321A00040003 Key points: 1. Spending focuses on cloud services, a critical area for government IT infrastructure. 2. The contract is with Four Points Technology, LLC, a known IT service provider. 3. The primary risk is potential overspending if market rates for cloud services decrease. 4. This falls under 'Other Computer Related Services', a broad IT category.
Value Assessment
Rating: good
The $28 million for one year of cloud services appears reasonable given the duration and the nature of the services. Benchmarking against similar large-scale cloud service contracts 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, indicating a competitive bidding process. This method generally leads to better price discovery and potentially more favorable pricing for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential cloud services.
Public Impact
Ensures continuity of critical cloud services for the Social Security Administration. Supports the agency's digital transformation and data management capabilities. Potential for cost savings through competitive procurement of IT services.
Waste & Efficiency Indicators
Waste Risk Score: 70 / 10
Warning Flags
- Potential for price increases in future option years if not re-competed.
- Dependence on a single vendor for critical cloud infrastructure.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type provides cost certainty.
- Option year funding ensures service continuity.
Sector Analysis
This contract for cloud services falls within the broader IT services sector. Government spending on cloud solutions continues to grow as agencies modernize their infrastructure, with benchmarks varying widely based on service type and scale.
Small Business Impact
While the award was made to Four Points Technology, LLC, the data does not indicate whether this is a small business or if small business subcontracting goals were met. Further investigation is needed to assess small business participation.
Oversight & Accountability
The contract was awarded by the Social Security Administration, which has established procurement processes. Oversight would involve monitoring service delivery, performance, and adherence to contract terms throughout the option year.
Related Government Programs
- Other Computer Related Services
- Social Security Administration Contracting
- Social Security Administration Programs
Risk Flags
- Vendor lock-in potential
- Price escalation in future years
- Cybersecurity risks associated with cloud services
- Dependence on a single awardee for critical infrastructure
Tags
other-computer-related-services, social-security-administration, md, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Social Security Administration awarded $28.0 million to FOUR POINTS TECHNOLOGY, L.L.C.. CALL ORDER TO FUND OPTION YEAR 4 FOR CLOUD SERVICES - 28321321A00040003
Who is the contractor on this award?
The obligated recipient is FOUR POINTS TECHNOLOGY, L.L.C..
Which agency awarded this contract?
Awarding agency: Social Security Administration (Social Security Administration).
What is the total obligated amount?
The obligated amount is $28.0 million.
What is the period of performance?
Start: 2025-04-28. End: 2026-04-30.
What is the specific nature of the cloud services being procured and how do they align with SSA's mission objectives?
The cloud services procured likely support SSA's core functions, such as data storage, processing, application hosting, and disaster recovery. These services are crucial for maintaining the operational continuity of systems that manage Social Security benefits and citizen data, directly aligning with the agency's mission to provide essential services and support.
What are the key performance indicators (KPIs) for this cloud services contract and how is performance being measured?
Key performance indicators typically include service availability (uptime), response times, data security compliance, and incident resolution times. The Social Security Administration would be monitoring these metrics against agreed-upon service level agreements (SLAs) to ensure the vendor is meeting contractual obligations and providing reliable, secure cloud services.
Are there plans to re-compete this requirement in the future to ensure continued competitive pricing and access to innovative solutions?
Given this is an option year, it's likely that the agency is evaluating future needs. Re-competing the requirement after the current period would allow for market research, assessment of new technologies, and potentially securing more competitive pricing, ensuring long-term value for taxpayer dollars.
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 - STORAGE
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
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: $28,000,000
Exercised Options: $28,000,000
Current Obligation: $28,000,000
Actual Outlays: $12,989,687
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 28321321A00040003
IDV Type: BPA
Timeline
Start Date: 2025-04-28
Current End Date: 2026-04-30
Potential End Date: 2030-10-31 00:00:00
Last Modified: 2026-01-22
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