VA Awards $38.19M Cisco Security Enterprise License to Four Points Technology
Contract Overview
Contract Amount: $38,187,440 ($38.2M)
Contractor: Four Points Technology, L.L.C.
Awarding Agency: Department of Veterans Affairs
Start Date: 2022-07-01
End Date: 2025-07-01
Contract Duration: 1,096 days
Daily Burn Rate: $34.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CISCO SECURITY ENTERPRISE LICENSE AGREEMENT
Place of Performance
Location: AUSTIN, TRAVIS County, TEXAS, 78744
State: Texas Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $38.2 million to FOUR POINTS TECHNOLOGY, L.L.C. for work described as: CISCO SECURITY ENTERPRISE LICENSE AGREEMENT Key points: 1. Significant investment in cybersecurity infrastructure for the VA. 2. Competition method suggests potential for price optimization. 3. Risk of vendor lock-in and reliance on a single provider. 4. IT services sector sees continued government spending.
Value Assessment
Rating: fair
The contract value of $38.19 million over three years appears substantial for enterprise security licenses. Benchmarking against similar large-scale Cisco agreements would be necessary to assess true value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition after exclusion of sources, indicating a competitive bidding process. This method aims to ensure fair pricing and access for qualified vendors.
Taxpayer Impact: Taxpayer funds are being used for essential cybersecurity services to protect veteran data and VA systems.
Public Impact
Ensures continued access to critical cybersecurity software for the VA. Supports the operational security of veteran health and benefits data. Potential for enhanced network protection against cyber threats.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on a single vendor for critical security software.
- Potential for price increases in future renewals.
- Ensuring effective implementation and utilization of the licenses.
Positive Signals
- Competitive award process.
- Long-term contract provides stability for security operations.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on cybersecurity software licensing. Government spending in this area remains high due to increasing cyber threats.
Small Business Impact
The contract was awarded to Four Points Technology, L.L.C. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should apply.
Related Government Programs
- Other Computer Related Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Vendor lock-in
- Potential for uncompetitive renewals
- Effectiveness of deployed security solutions
- Data breach risk if security is compromised
Tags
other-computer-related-services, department-of-veterans-affairs, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $38.2 million to FOUR POINTS TECHNOLOGY, L.L.C.. CISCO SECURITY ENTERPRISE LICENSE AGREEMENT
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 Veterans Affairs (Department of Veterans Affairs).
What is the total obligated amount?
The obligated amount is $38.2 million.
What is the period of performance?
Start: 2022-07-01. End: 2025-07-01.
What is the specific Cisco security product suite covered by this agreement and its criticality to VA operations?
The agreement covers Cisco's enterprise security licenses, likely including firewalls, intrusion detection/prevention systems, VPNs, and endpoint security solutions. These are critical for protecting the VA's vast network infrastructure and sensitive veteran data from cyberattacks, ensuring continuity of services and data integrity.
How does the per-unit cost of these licenses compare to industry benchmarks for similar government contracts?
Without specific unit breakdowns, a direct per-unit cost comparison is difficult. However, the total contract value of $38.19 million over three years suggests a significant investment. Benchmarking against other federal or large enterprise Cisco agreements would reveal if the VA is receiving competitive pricing for the scope of licenses acquired.
What measures are in place to ensure the VA maximizes the value and effectiveness of these security licenses?
Effective value realization depends on robust IT asset management, regular security assessments, and ongoing training for VA personnel. The VA should have processes to monitor license utilization, ensure compliance, and adapt security configurations to evolving threats, maximizing the return on this substantial investment.
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 - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
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: $59,767,000
Exercised Options: $38,187,440
Current Obligation: $38,187,440
Actual Outlays: $26,234,039
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SD22B
IDV Type: GWAC
Timeline
Start Date: 2022-07-01
Current End Date: 2025-07-01
Potential End Date: 2027-06-30 00:00:00
Last Modified: 2025-06-25
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