Social Security Administration awards $5.36M for CrowdStrike software, extending services through November 2026

Contract Overview

Contract Amount: $5,356,792 ($5.4M)

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

Awarding Agency: Social Security Administration

Start Date: 2026-01-05

End Date: 2026-11-30

Contract Duration: 329 days

Daily Burn Rate: $16.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CALL ORDER FOR CROWDSTRIKE SOFTWARE - BLANKET PURCHASE AGREEMENT 28321321A00040003

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21235

State: Maryland Government Spending

Plain-Language Summary

Social Security Administration obligated $5.4 million to FOUR POINTS TECHNOLOGY, L.L.C. for work described as: CALL ORDER FOR CROWDSTRIKE SOFTWARE - BLANKET PURCHASE AGREEMENT 28321321A00040003 Key points: 1. The contract represents a significant investment in endpoint security solutions for the agency. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The firm-fixed-price contract type aims to provide cost certainty for the government. 4. The duration of the call order is approximately 1 year and 3 months. 5. This award falls under the 'Other Computer Related Services' category, indicating a focus on IT infrastructure support.

Value Assessment

Rating: good

The award amount of $5.36 million for CrowdStrike software appears reasonable given the nature of cybersecurity solutions and the duration of the call order. Benchmarking against similar government procurements for endpoint detection and response (EDR) software would provide a more precise value-for-money assessment. However, the firm-fixed-price structure suggests the agency has negotiated a set cost, which is generally favorable for budget predictability. Without specific per-unit pricing or detailed feature comparisons, a definitive value assessment is challenging, but the overall investment aligns with the critical need for robust cybersecurity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This approach typically fosters a competitive environment, potentially leading to better pricing and innovative solutions. The number of bidders is not specified, but the use of full and open competition suggests that the agency sought to maximize market participation. This method is generally preferred for ensuring fair access and achieving the best value for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of vendors to compete, which can drive down prices and improve the quality of services received, ultimately leading to more efficient use of public funds.

Public Impact

The Social Security Administration's IT infrastructure and sensitive data are protected by advanced cybersecurity software. Federal employees and contractors working with SSA systems benefit from enhanced security measures. The contract supports the agency's mission to provide social security services by ensuring operational continuity and data integrity. The geographic impact is primarily within the operational scope of the Social Security Administration's IT network.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if renewal is not competitively bid.
Reliance on a single software solution may create vulnerabilities if the vendor's product has systemic issues.
Ensuring adequate training and integration support for agency personnel is crucial for effective utilization.

Positive Signals

CrowdStrike is a recognized leader in the cybersecurity market, suggesting a high-quality solution.
The firm-fixed-price contract provides cost predictability for the agency.
Full and open competition indicates a commitment to leveraging market forces for best value.

Sector Analysis

The cybersecurity market is a rapidly growing sector within the broader IT industry, driven by increasing digital threats and the need for robust data protection. Endpoint security, specifically, is a critical component of any organization's defense strategy. Government agencies, like the Social Security Administration, are significant consumers of these solutions due to the sensitive nature of the data they handle and regulatory requirements. Spending in this area is substantial, with agencies continually investing in advanced threat detection and response capabilities to stay ahead of evolving cyber risks. This contract fits within the trend of government agencies prioritizing cybersecurity investments.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a result, the primary contractor, Four Points Technology, L.L.C., is likely a larger entity or a reseller that may or may not have significant subcontracting plans with small businesses. The absence of a small business set-aside means that opportunities for small businesses to directly participate in this specific award are limited, though they might be involved further down the supply chain if Four Points Technology engages in subcontracting. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract is a Blanket Purchase Agreement (BPA) Call Order, which falls under the purview of the Social Security Administration's internal procurement oversight. The firm-fixed-price contract type provides a degree of financial oversight by establishing a set cost. Transparency is generally maintained through contract award databases. Specific oversight mechanisms would typically involve contract performance reviews, financial audits, and adherence to federal acquisition regulations. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Cybersecurity Software Procurement
Endpoint Detection and Response (EDR) Solutions
IT Services Contracts
Blanket Purchase Agreements (BPAs)
Federal Information Security Management Act (FISMA) Compliance

Risk Flags

Potential for vendor lock-in
Integration complexity with existing systems
Adequacy of training and user adoption

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $5.4 million to FOUR POINTS TECHNOLOGY, L.L.C.. CALL ORDER FOR CROWDSTRIKE SOFTWARE - BLANKET PURCHASE AGREEMENT 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 $5.4 million.

What is the period of performance?

Start: 2026-01-05. End: 2026-11-30.

What is the historical spending pattern for CrowdStrike software or similar endpoint security solutions by the Social Security Administration?

Analyzing historical spending by the Social Security Administration (SSA) on CrowdStrike or comparable endpoint security solutions is crucial for understanding trends and value. Without direct historical data for this specific BPA call order, we can infer potential patterns from broader government IT spending. Agencies like the SSA typically have multi-year contracts for critical software. If this is a renewal or expansion, previous spending would likely show a similar investment level, adjusted for inflation and increased scope. The total value of $5.36 million over approximately 1.3 years suggests an annual spend of roughly $4.1 million. Comparing this to previous years' cybersecurity budgets and specific EDR procurements would reveal if this represents an increase, decrease, or stable investment. It's also important to note that cybersecurity threats evolve, often necessitating increased spending to maintain adequate protection, which could explain a rising trend in spending over time.

How does the pricing of this CrowdStrike software award compare to other federal agencies procuring similar solutions?

Benchmarking the pricing of this $5.36 million CrowdStrike software award against similar federal procurements is essential for assessing value for money. CrowdStrike is a widely used solution, and its pricing can vary based on the specific modules, number of endpoints, and contract duration. Federal agencies often leverage government-wide acquisition contracts (GWACs) or participate in large-scale enterprise agreements to secure volume discounts. Without knowing the exact configuration and quantity of licenses procured by the Social Security Administration (SSA), a direct comparison is difficult. However, if the SSA secured this through a competitive process or a pre-negotiated government contract vehicle, the pricing is likely aligned with market rates for federal agencies. Variations in pricing could arise from different support levels, feature sets, or the specific terms negotiated. A detailed analysis would require comparing the per-endpoint cost or the total cost for equivalent feature sets across multiple agency contracts.

What are the specific cybersecurity risks the SSA is aiming to mitigate with this CrowdStrike software purchase?

The Social Security Administration (SSA) is likely procuring CrowdStrike software to mitigate a range of sophisticated cybersecurity risks inherent in managing vast amounts of sensitive personal and financial data. CrowdStrike is a leading provider of endpoint detection and response (EDR) and extended detection and response (XDR) solutions, designed to combat advanced threats such as ransomware, malware, fileless attacks, and nation-state-sponsored intrusions. For the SSA, key risks include unauthorized access to citizen data, disruption of critical services, data breaches leading to identity theft, and compromise of internal systems. The software's capabilities in threat hunting, real-time monitoring, and incident response are crucial for detecting and neutralizing threats before they can cause significant damage. By investing in this technology, the SSA aims to enhance its overall security posture, ensure the integrity and availability of its systems, and maintain public trust by safeguarding sensitive information.

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

Four Points Technology, L.L.C. has a history of providing IT solutions and services to federal agencies, often through various contract vehicles. As a reseller and integrator, their track record is often tied to the successful delivery and support of products from major technology manufacturers, including cybersecurity solutions. Examining their past performance on similar contracts, particularly those involving endpoint security or broader IT infrastructure support for agencies of similar size and complexity to the SSA, would provide insight into their capabilities. Key aspects to consider include their ability to meet delivery timelines, provide effective technical support, manage complex deployments, and ensure customer satisfaction. Government contract databases and past performance reviews can offer valuable information regarding their reliability and expertise in fulfilling federal IT requirements.

What are the potential performance risks associated with this CrowdStrike software contract for the SSA?

Potential performance risks associated with this CrowdStrike software contract for the Social Security Administration (SSA) primarily revolve around successful implementation, integration, and ongoing operational effectiveness. A key risk is ensuring seamless integration with the SSA's existing IT infrastructure and security ecosystem. Incompatibility or complex integration challenges could delay deployment and hinder the software's ability to provide comprehensive protection. Another risk is the adequacy of training and user adoption; if SSA personnel are not adequately trained on how to utilize CrowdStrike's features effectively, its full potential may not be realized, leaving gaps in threat detection and response. Furthermore, the dynamic nature of cyber threats means the software must be continuously updated and configured to address emerging risks, posing an ongoing management challenge. Finally, reliance on a single vendor, even a reputable one like CrowdStrike, carries inherent risks if the vendor experiences service disruptions or if vulnerabilities are discovered in their platform.

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: $16,689,384

Exercised Options: $5,356,792

Current Obligation: $5,356,792

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 28321321A00040003

IDV Type: BPA

Timeline