National Gallery of Art awards $4.55M cloud services contract to Four Points Technology, LLC

Contract Overview

Contract Amount: $4,550,273 ($4.6M)

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

Awarding Agency: National Gallery of Art

Start Date: 2022-02-07

End Date: 2027-02-06

Contract Duration: 1,825 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: AMAZON WEB SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20535

State: District of Columbia Government Spending

Plain-Language Summary

National Gallery of Art obligated $4.6 million to FOUR POINTS TECHNOLOGY, L.L.C. for work described as: AMAZON WEB SERVICES Key points: 1. Contract awarded for cloud computing services, indicating a shift towards modern IT infrastructure. 2. The contract duration of 5 years suggests a long-term commitment to cloud solutions. 3. The award was made under full and open competition, implying a robust bidding process. 4. The fixed-price contract type aims to provide cost certainty for the agency. 5. The specific NAICS code (541519) covers other computer-related services, suggesting a broad scope. 6. The contract is not set aside for small businesses, potentially limiting direct participation.

Value Assessment

Rating: good

The contract value of $4.55 million over five years averages to approximately $910,000 annually. Benchmarking this against similar cloud service contracts for federal agencies of comparable size and scope is challenging without more specific service details. However, the firm fixed-price structure suggests the agency has a clear understanding of its needs and has negotiated a price deemed acceptable. The absence of extensive modifications or change orders in the initial award phase would further support a 'good' value assessment.

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 the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. The presence of only one bid (no: 1) is a notable point, which could suggest either a highly specialized market where only one vendor could meet the requirements, or potential issues with the solicitation's reach or attractiveness to potential bidders. Further investigation into the market landscape for these specific cloud services would be beneficial.

Taxpayer Impact: While full and open competition is generally favorable for taxpayers by encouraging competitive pricing, the single bid received warrants attention to ensure the price reflects true market value and not a lack of viable alternatives.

Public Impact

The National Gallery of Art benefits from enhanced cloud computing capabilities, potentially improving data storage, accessibility, and processing power. Services delivered likely include cloud infrastructure, platform, or software as a service, supporting the gallery's digital operations. The geographic impact is primarily within the District of Columbia, where the National Gallery of Art is located. Workforce implications may involve IT staff training or reallocation to manage and leverage the new cloud environment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Single bid received under full and open competition raises questions about the breadth of market engagement.
The specific cloud services and their performance metrics are not detailed, making it difficult to assess value for money comprehensively.
Potential for vendor lock-in if the chosen cloud platform is highly proprietary.

Positive Signals

Awarded under full and open competition, which is a positive indicator for fair market access.
Firm fixed-price contract provides budget certainty for the National Gallery of Art.
Long contract duration (5 years) suggests a stable and reliable service provision.

Sector Analysis

The Information Technology sector, specifically cloud computing services, is a rapidly growing and essential component of federal agency operations. Agencies are increasingly migrating to cloud solutions to enhance flexibility, scalability, and cost-efficiency. The market for cloud services is dominated by a few large providers, but specialized services and support can be offered by a range of companies. This contract fits within the broader trend of federal agencies adopting cloud-first strategies to modernize their IT infrastructure and improve service delivery.

Small Business Impact

This contract was not set aside for small businesses (sb: false). Therefore, there is no direct set-aside benefit for small businesses. The prime contractor, Four Points Technology, LLC, may have subcontracting opportunities for small businesses, but this is not explicitly detailed in the provided data. The absence of a small business set-aside means that larger, established companies were likely the primary focus of the competition.

Oversight & Accountability

Oversight for this contract would typically fall under the National Gallery of Art's contracting office and program managers. The firm fixed-price nature of the contract provides a degree of accountability by fixing the cost. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

Cloud Computing Services
IT Infrastructure Modernization
Digital Services Contracts
General Services Administration (GSA) Schedules (potential vehicle used)
National Gallery of Art IT Procurement

Risk Flags

Single Bid Received
Limited Publicly Available Performance Data
Potential Vendor Lock-in

Frequently Asked Questions

What is this federal contract paying for?

National Gallery of Art awarded $4.6 million to FOUR POINTS TECHNOLOGY, L.L.C.. AMAZON WEB SERVICES

Who is the contractor on this award?

The obligated recipient is FOUR POINTS TECHNOLOGY, L.L.C..

Which agency awarded this contract?

Awarding agency: National Gallery of Art (National Gallery of Art).

What is the total obligated amount?

The obligated amount is $4.6 million.

What is the period of performance?

Start: 2022-02-07. End: 2027-02-06.

What is the track record of Four Points Technology, LLC in providing cloud services to federal agencies?

Four Points Technology, LLC has a history of providing IT solutions and services to government agencies. While specific details on their cloud service delivery performance for other federal contracts are not provided in this data snippet, their ability to win this contract with the National Gallery of Art suggests they possess the necessary qualifications and experience. A deeper dive into their contract history, past performance reviews, and any reported issues on other federal awards would offer a more comprehensive understanding of their track record in cloud services.

How does the awarded price compare to market rates for similar cloud services?

The provided data does not include specific details about the cloud services being procured (e.g., storage capacity, compute instances, specific software features), making a direct price-to-market comparison difficult. The total contract value of $4.55 million over five years equates to an average annual cost of $910,000. To benchmark this effectively, one would need to compare it against the pricing of similar service level agreements (SLAs) offered by major cloud providers (like AWS, Azure, Google Cloud) or other government contractors for comparable scope and scale. The 'good' value rating is based on the assumption that the agency conducted due diligence in its pricing analysis.

What are the primary risks associated with this cloud services contract?

Key risks include potential vendor lock-in, where the National Gallery of Art might become heavily reliant on Four Points Technology's specific cloud solutions, making future transitions costly or complex. Performance risks exist if the cloud services do not meet the agency's uptime, security, or speed requirements, potentially impacting operations. Cybersecurity risks are inherent in cloud environments, requiring robust security measures from the contractor. Furthermore, the single bid received could indicate a risk of suboptimal pricing or limited innovation due to a lack of competitive pressure.

How effective is the competition level in ensuring value for the National Gallery of Art?

The contract was awarded under 'Full and Open Competition,' which is designed to maximize competition and achieve best value. However, only one bid was received. This single bid scenario presents a mixed picture for value. On one hand, the competitive process was initiated. On the other hand, the lack of multiple bids might suggest that the price offered is not as aggressively competitive as it could have been with more bidders. The agency's evaluation process would have been critical in determining if the single offer represented fair and reasonable pricing.

What is the historical spending pattern for cloud services at the National Gallery of Art?

The provided data does not contain historical spending patterns for cloud services at the National Gallery of Art. This specific contract, valued at $4.55 million over five years, represents a significant investment. To understand historical trends, one would need to analyze past contracts for IT services, data storage, and computing infrastructure awarded by the agency. This would reveal whether this is a new adoption of cloud services or an expansion/consolidation of existing cloud usage, and how spending has evolved over time.

What are the implications of the 'DEFINITIVE CONTRACT' award type?

A 'Definitive Contract' is a fixed-price contract that is fully funded and legally binding upon signing. For the National Gallery of Art, this means the terms, conditions, and price are set for the duration of the contract (five years in this case), barring any formal modifications. This provides significant budget certainty and reduces the administrative burden associated with managing multiple task orders or funding actions, as might be seen with other contract types like indefinite-delivery/indefinite-quantity (IDIQ) contracts.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ALTERNATIVE SOURCES

Solicitation ID: 333011-22-RRP-0006

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14900 CONFERENCE CENTER DR STE 100, CHANTILLY, VA, 20151

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Service Disabled Veteran Owned Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $29,664,352

Exercised Options: $14,382,120

Current Obligation: $4,550,273

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline