VA awards $11.5M IT services contract to Four Points Technology, LLC for 3 years

Contract Overview

Contract Amount: $11,499,845 ($11.5M)

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

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-14

End Date: 2026-09-13

Contract Duration: 1,095 days

Daily Burn Rate: $10.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NNG15SD22B 36C10B23F0289

Place of Performance

Location: EATONTOWN, MONMOUTH County, NEW JERSEY, 07724

State: New Jersey Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $11.5 million to FOUR POINTS TECHNOLOGY, L.L.C. for work described as: NNG15SD22B 36C10B23F0289 Key points: 1. Contract value represents a significant investment in IT support for the VA. 2. Competition was open, suggesting a potentially competitive pricing environment. 3. The contract duration of three years allows for sustained service delivery. 4. Fixed-price contract type shifts performance risk to the contractor. 5. The award is for 'Other Computer Related Services,' a broad category. 6. The contractor's performance history will be key to assessing value. 7. Geographic location of the contractor (NJ) may influence local support capabilities.

Value Assessment

Rating: good

The contract value of $11.5 million over three years averages to $3.83 million annually. Without specific benchmarks for 'Other Computer Related Services' for the VA, a direct comparison is difficult. However, the fixed-price nature of the contract suggests that the contractor is expected to deliver services within a defined budget, which can be a positive indicator of value if performance targets are met. Further analysis would require comparing the scope of services to similar contracts awarded by other agencies or within the VA.

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 multiple bids were likely considered. The specific exclusion of sources clause might suggest a prior relationship or specific capability requirement that was addressed during the open competition phase. The level of competition, while not explicitly stated in terms of bidder numbers, is presumed to be robust given the 'full and open' designation.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation from multiple vendors, leading to better value for government spending.

Public Impact

Veterans Affairs (VA) personnel will benefit from improved IT services. The contract supports the delivery of 'Other Computer Related Services,' crucial for the VA's operational efficiency. The geographic impact is primarily focused on supporting the VA's operations, likely nationwide, though the contractor is based in New Jersey. The contract may have implications for the IT workforce, potentially creating or sustaining jobs within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if 'Other Computer Related Services' is not clearly defined.
Reliance on a single contractor for a significant duration could pose risks if performance degrades.
The 'after exclusion of sources' clause warrants a closer look to ensure no potential bidders were unfairly excluded.

Positive Signals

Full and open competition suggests a healthy market response and potential for competitive pricing.
Firm fixed-price contract type provides cost certainty for the government.
The multi-year duration allows for stable IT support and potential for long-term improvements.

Sector Analysis

The IT services sector is a vast and critical component of federal spending. This contract falls under the 'Other Computer Related Services' category (NAICS 541519), which encompasses a wide range of IT support, consulting, and integration services. Federal spending in this area is consistently high, driven by the need for modern, secure, and efficient IT infrastructure across all agencies. Benchmarking this contract would involve comparing its value and scope to similar IT service contracts awarded to other agencies or within the VA's own historical spending patterns for comparable services.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications mandated by a small business set-aside. The award to a single entity, Four Points Technology, L.L.C., means that the primary focus will be on their direct service delivery. The impact on the broader small business ecosystem is indirect; while this specific contract doesn't prioritize small businesses, the overall federal IT market remains a significant area for small business participation through other contracting vehicles and opportunities.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are typically embedded within the contract's performance work statement (PWS) and require the contractor to meet specific service level agreements (SLAs). Transparency is facilitated through contract databases like FPDS, where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

IT Professional Services
Information Technology Support Services
Computer Systems Design Services
Federal IT Procurement
Department of Veterans Affairs IT Contracts

Risk Flags

Potential for limited competition due to 'exclusion of sources' clause.
Performance risk if contractor fails to meet service level agreements.
Scope definition clarity for 'Other Computer Related Services'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $11.5 million to FOUR POINTS TECHNOLOGY, L.L.C.. NNG15SD22B 36C10B23F0289

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 $11.5 million.

What is the period of performance?

Start: 2023-09-14. End: 2026-09-13.

What is the track record of Four Points Technology, L.L.C. with federal contracts, particularly with the Department of Veterans Affairs?

A review of federal procurement data (e.g., FPDS) would be necessary to assess Four Points Technology, L.L.C.'s track record. This would involve examining past contract awards, their values, the agencies they served, and their performance ratings, if available. Particular attention should be paid to any prior contracts with the Department of Veterans Affairs to understand their experience and success in supporting the agency's specific IT needs. A history of successful contract completions, positive performance reviews, and minimal disputes would indicate a reliable contractor. Conversely, a pattern of contract terminations, poor performance ratings, or significant disputes would raise concerns about their capability to fulfill the current $11.5 million award effectively over the next three years.

How does the awarded price compare to market rates for similar 'Other Computer Related Services'?

Determining the value-for-money requires benchmarking the $11.5 million contract against market rates for 'Other Computer Related Services.' This involves researching industry pricing for comparable services, considering factors like the specific IT functions required, the level of expertise needed, and the geographic scope of support. Analyzing data from similar federal contracts awarded by other agencies or even within the VA for similar services can provide a comparative baseline. If the awarded price is significantly higher than market benchmarks or comparable contracts, it could indicate potential overpricing or a less competitive bidding process than initially suggested. Conversely, a price below market rates might signal aggressive bidding or potentially a narrower scope than anticipated.

What are the specific risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' contract type?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation suggests that while the competition was intended to be broad, certain potential sources were explicitly excluded from consideration. This exclusion clause warrants scrutiny. The primary risk is that the exclusion may have inadvertently limited the pool of qualified bidders, potentially reducing the overall competitiveness and leading to a less optimal price or solution for the government. It's crucial to understand the justification for excluding specific sources. If the exclusion was based on legitimate technical requirements or past performance issues, it might be justifiable. However, if the exclusion was arbitrary or poorly documented, it could raise questions about fairness and potentially lead to protests or perceptions of a less-than-fully-competitive process, ultimately impacting the value received by taxpayers.

What is the expected effectiveness of these IT services in supporting the VA's mission?

The effectiveness of these 'Other Computer Related Services' in supporting the VA's mission hinges on the clarity and scope of the Performance Work Statement (PWS) and the contractor's ability to meet those requirements. These services are fundamental to the VA's operations, impacting everything from patient record management to administrative functions and communication systems. If the services are well-defined, executed efficiently, and align with the VA's strategic IT goals, they can significantly enhance operational efficiency, improve data security, and ultimately contribute to better service delivery for veterans. Conversely, poorly defined services, inadequate performance, or a mismatch between the services provided and the VA's needs could hinder the agency's mission.

How has federal spending on 'Other Computer Related Services' evolved, and how does this contract fit into that trend?

Federal spending on 'Other Computer Related Services' (NAICS 541519) has generally trended upwards over the past decade, reflecting the increasing reliance of government agencies on sophisticated IT solutions. This category often captures a diverse range of services that don't fit neatly into more specialized IT categories, such as IT consulting, system integration, and specialized technical support. This $11.5 million contract with the VA is a significant award within this category, indicating a substantial need for such services within the agency. Its value aligns with the broader trend of increasing federal investment in IT to modernize infrastructure, enhance cybersecurity, and improve service delivery. Understanding the historical spending patterns for this specific NAICS code within the VA can provide context for whether this award represents a typical investment or a notable increase.

Industry Classification

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

Product/Service Code: IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 36C10B23Q0412

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: $22,210,009

Exercised Options: $11,499,845

Current Obligation: $11,499,845

Actual Outlays: $10,815,647

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD22B

IDV Type: GWAC

Timeline