VA awards $18.7M for VATAS software licensing to Four Points Technology, LLC

Contract Overview

Contract Amount: $18,721,810 ($18.7M)

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

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-07-29

End Date: 2026-07-28

Contract Duration: 729 days

Daily Burn Rate: $25.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: VATAS SOFTWARE LICENSING

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $18.7 million to FOUR POINTS TECHNOLOGY, L.L.C. for work described as: VATAS SOFTWARE LICENSING Key points: 1. Contract value of $18.7 million over two years suggests a significant investment in IT infrastructure. 2. The contract was awarded under full and open competition, indicating a competitive bidding process. 3. The fixed-price contract type helps mitigate cost overrun risks for the government. 4. The North American Industry Classification System (NAICS) code 541519 points to a broad range of IT services. 5. The contract duration of 729 days provides a stable period for service delivery. 6. The award is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract value of $18.7 million for VATAS software licensing over two years appears reasonable given the scope of IT services. Benchmarking against similar software licensing agreements within the federal government would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator for cost control. Without specific details on the software's criticality and market alternatives, a definitive value assessment is challenging, but the competitive award process suggests a fair market price was likely achieved.

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,' which indicates that the solicitation was made available to all responsible sources, and any responsible source was permitted to submit a bid. The presence of two bids suggests a moderate level of competition for this specific award. While more bidders could potentially drive prices lower, full and open competition generally ensures a fair market price discovery process.

Taxpayer Impact: Taxpayers benefit from the assurance that the contract was awarded through a competitive process, which is intended to secure the best value and prevent inflated pricing.

Public Impact

Veterans Affairs (VA) personnel will benefit from access to the VATAS software, likely improving administrative efficiency and service delivery. The services delivered are critical for the VA's IT infrastructure and operational capabilities. The geographic impact is primarily within the VA's operational footprint across the United States. The contract supports the IT workforce involved in software maintenance, support, and potentially development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if VATAS is a proprietary system with limited interoperability.
Dependence on a single vendor for critical software licensing and support could pose continuity risks.
The specific functionalities and performance metrics of the VATAS software are not detailed, making it difficult to assess its true impact.
The contract's reliance on a specific software solution may limit the VA's ability to adopt more innovative or cost-effective alternatives in the future.

Positive Signals

The use of a firm fixed-price contract provides cost certainty for the VA.
Awarding under full and open competition suggests a robust procurement process aimed at achieving best value.
The contract duration of two years allows for stable operations and planning.
The vendor, Four Points Technology, L.L.C., is likely experienced in providing IT solutions to the federal government.

Sector Analysis

The federal IT services sector is vast and highly competitive, with significant spending on software licensing and maintenance. This contract falls within the broader category of IT services, specifically focusing on software solutions for administrative and operational purposes within a large federal agency. Comparable spending benchmarks for similar software licensing agreements within the VA or other large agencies would be necessary for a precise comparison, but the $18.7 million value over two years indicates a substantial, mission-critical IT investment.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss: false' and 'sb: false'. The prime contractor, Four Points Technology, L.L.C., is not explicitly identified as a small business. Therefore, the direct impact on small business set-asides is minimal. However, the prime contractor may engage small businesses for subcontracting opportunities, which would need to be assessed through subcontracting plans if applicable.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified software licenses and support. 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

Federal Information Technology Acquisition Reform Act (FITARA) initiatives
VA IT Modernization Efforts
Software Enterprise Licenses and Services
Cloud Computing Services (if VATAS is cloud-based)

Risk Flags

Potential for vendor lock-in
Dependence on single software solution
Lack of detailed performance metrics in award data

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $18.7 million to FOUR POINTS TECHNOLOGY, L.L.C.. VATAS SOFTWARE LICENSING

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 $18.7 million.

What is the period of performance?

Start: 2024-07-29. End: 2026-07-28.

What specific functionalities does the VATAS software provide to the Department of Veterans Affairs?

The provided data does not specify the exact functionalities of the VATAS software. However, given the NAICS code 541519 (Other Computer Related Services) and the awarding agency (Department of Veterans Affairs), it is likely related to administrative, operational, or data management systems crucial for VA operations. This could encompass areas such as patient management, benefits processing, human resources, or internal IT system management. Further investigation into the contract's statement of work or related documentation would be required to ascertain the precise capabilities and benefits the software offers to the VA's mission.

How does the $18.7 million contract value compare to historical spending on VATAS software or similar systems by the VA?

The provided data does not include historical spending figures for VATAS software or comparable systems. To assess this, one would need to analyze past contract awards for the VA related to this specific software or its functional equivalents. Comparing the current $18.7 million award over two years (approximately $9.35 million annually) against previous expenditures would reveal whether this represents an increase, decrease, or stable level of investment. Such a comparison is crucial for understanding spending trends and identifying potential cost efficiencies or escalations over time.

What is the track record of Four Points Technology, L.L.C. in delivering similar IT software licensing and support services to federal agencies?

The provided data indicates that Four Points Technology, L.L.C. was awarded this contract. To assess their track record, one would need to examine their past performance on federal contracts, particularly those involving software licensing and IT services. Resources like the Federal Procurement Data System (FPDS) or contractor performance databases could provide insights into their delivery history, customer satisfaction ratings, and any past performance issues. A strong track record with similar contracts would increase confidence in their ability to successfully execute this award.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this VATAS software licensing contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, such contracts would include metrics related to software availability, uptime, response times for technical support, patch management, and potentially user satisfaction. These KPIs and SLAs are crucial for measuring the contractor's performance and ensuring the VA receives the expected value and functionality from the VATAS software. A review of the contract's statement of work or performance work statement would be necessary to identify these specific metrics.

Are there any identified risks associated with the implementation or ongoing use of the VATAS software by the VA?

Without specific details on the VATAS software, potential risks can be inferred based on general IT software implementations. These could include integration challenges with existing VA systems, data security vulnerabilities, user adoption hurdles, vendor viability concerns, or the risk of the software becoming obsolete. The firm fixed-price nature of the contract helps mitigate cost overrun risks, but performance risks related to software functionality, reliability, and vendor support remain. A thorough risk assessment would typically be conducted as part of the contract's lifecycle management.

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: 2

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: $53,890,710

Exercised Options: $18,721,810

Current Obligation: $18,721,810

Actual Outlays: $18,705,110

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD22B

IDV Type: GWAC

Timeline