GSA Awards $4.1M for AWS Services to Four Points Technology, LLC via Full and Open Competition
Contract Overview
Contract Amount: $4,130,441 ($4.1M)
Contractor: Four Points Technology, L.L.C.
Awarding Agency: General Services Administration
Start Date: 2023-01-07
End Date: 2024-01-06
Contract Duration: 364 days
Daily Burn Rate: $11.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: LOGIN.GOV - AWS CALL ORDER
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20405
Plain-Language Summary
General Services Administration obligated $4.1 million to FOUR POINTS TECHNOLOGY, L.L.C. for work described as: LOGIN.GOV - AWS CALL ORDER Key points: 1. The contract is for AWS services, a critical component of federal IT infrastructure. 2. Four Points Technology, LLC secured the award, indicating a competitive landscape for cloud services. 3. The contract's Time and Materials pricing model presents a potential risk for cost overruns. 4. Spending in the IT sector, particularly for cloud services, continues to grow significantly.
Value Assessment
Rating: fair
The Time and Materials pricing structure for this $4.1M contract raises concerns about cost control. Without fixed price elements, the final cost is highly dependent on the hours worked and material used, making direct comparison to similar fixed-price contracts difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the Time and Materials (T&M) pricing type may limit the effectiveness of competition in controlling the final cost, as it incentivizes more billable hours.
Taxpayer Impact: While competition was utilized, the T&M pricing could lead to higher-than-anticipated costs for taxpayers if not closely monitored and managed.
Public Impact
Federal agencies rely on cloud services like AWS for operational efficiency and data management. The use of Time and Materials contracts requires diligent oversight to ensure fair pricing and prevent waste. This award highlights the ongoing trend of federal IT modernization and cloud adoption.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing
- Lack of Small Business participation noted
- Potential for cost overruns
Positive Signals
- Full and Open Competition
- Supports critical IT infrastructure
Sector Analysis
This contract falls within the IT sector, specifically cloud computing services. Federal spending on IT, particularly cloud solutions, has been on a steady upward trajectory as agencies modernize their infrastructure and seek greater flexibility and scalability.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as the 'sb' field is false. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The use of a Time and Materials contract necessitates strong oversight from the General Services Administration (GSA) to ensure that the hours billed and materials used are reasonable and necessary for the scope of work.
Related Government Programs
- Computer and Computer Peripheral Equipment and Software Merchant Wholesalers
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Time and Materials pricing model
- Potential for cost overruns
- Lack of explicit small business participation
- Requires significant contract oversight
Tags
computer-and-computer-peripheral-equipme, general-services-administration, dc, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $4.1 million to FOUR POINTS TECHNOLOGY, L.L.C.. LOGIN.GOV - AWS CALL ORDER
Who is the contractor on this award?
The obligated recipient is FOUR POINTS TECHNOLOGY, L.L.C..
Which agency awarded this contract?
Awarding agency: General Services Administration (Federal Acquisition Service).
What is the total obligated amount?
The obligated amount is $4.1 million.
What is the period of performance?
Start: 2023-01-07. End: 2024-01-06.
What is the estimated total cost if the contract were fixed-price, and how does it compare to the current T&M projections?
Without specific labor rates and material cost breakdowns, it's challenging to provide an exact fixed-price estimate. However, T&M contracts inherently carry a higher risk of cost escalation compared to fixed-price agreements. A fixed-price contract would offer greater budget certainty for the government and taxpayers, assuming a well-defined scope of work.
What measures are in place to mitigate the risks associated with the Time and Materials pricing structure?
Effective mitigation requires robust contract surveillance, including detailed review of timesheets, validation of labor categories and rates, and justification for all materials purchased. Establishing clear ceiling prices and requiring regular progress reports with cost projections are also crucial to prevent uncontrolled spending and ensure accountability.
How does the performance of Four Points Technology, LLC on similar contracts inform the assessment of this award's effectiveness?
Assessing past performance is key. If Four Points Technology has a history of delivering quality services within budget on similar T&M contracts, it suggests a lower risk for this award. Conversely, any past issues with cost overruns or performance deficiencies would raise concerns about the effectiveness and value for money of this current contract.
Industry Classification
NAICS: Wholesale Trade › Professional and Commercial Equipment and Supplies Merchant Wholesalers › Computer and Computer Peripheral Equipment and Software Merchant Wholesalers
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
Offers Received: 4
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 13221 WOODLAND PARK RD, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $4,130,441
Exercised Options: $4,130,441
Current Obligation: $4,130,441
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS35F0553P
IDV Type: FSS
Timeline
Start Date: 2023-01-07
Current End Date: 2024-01-06
Potential End Date: 2024-07-06 00:00:00
Last Modified: 2026-03-04
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