DOT Awards $53.2M for Amazon Web Services via Full and Open Competition
Contract Overview
Contract Amount: $53,233,792 ($53.2M)
Contractor: Four Points Technology, L.L.C.
Awarding Agency: Department of Transportation
Start Date: 2019-05-13
End Date: 2025-11-30
Contract Duration: 2,393 days
Daily Burn Rate: $22.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THE PURPOSE OF THIS DELIVERY ORDER IS TO PROCURE AMAZON WEB SERVICES ON A DOT ENTERPRISE BASIS.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20590
Plain-Language Summary
Department of Transportation obligated $53.2 million to FOUR POINTS TECHNOLOGY, L.L.C. for work described as: THE PURPOSE OF THIS DELIVERY ORDER IS TO PROCURE AMAZON WEB SERVICES ON A DOT ENTERPRISE BASIS. Key points: 1. Significant investment in cloud infrastructure for the Federal Highway Administration. 2. Competition method indicates a deliberate effort to ensure fair pricing. 3. Potential for cost savings and improved service delivery through cloud adoption. 4. Focus on 'Other Computer Related Services' highlights a specific IT need.
Value Assessment
Rating: good
The contract value of $53.2M over approximately 2 years appears reasonable for enterprise-wide cloud services. Benchmarking against similar large-scale cloud procurements would provide a more precise assessment.
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,' suggesting a competitive process was initiated. This method generally promotes price discovery and value for the government.
Taxpayer Impact: The competitive award aims to ensure taxpayer funds are used efficiently for essential cloud services.
Public Impact
Enables modernization of Federal Highway Administration IT systems. Supports data storage, processing, and application hosting for critical government functions. Potential for enhanced scalability and flexibility in IT service delivery.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential vendor lock-in with cloud service providers.
- Security and data privacy considerations for cloud environments.
Positive Signals
- Leverages established cloud infrastructure for efficiency.
- Competitive award process suggests potential for cost-effectiveness.
- Long-term contract duration provides stability for service planning.
Sector Analysis
The procurement falls within the IT sector, specifically cloud computing services. Spending benchmarks for enterprise cloud solutions vary widely based on scope and provider, but $53.2M for a federal agency is a substantial investment.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
The award is a Delivery Order under a larger contract vehicle. Oversight would typically involve monitoring performance, adherence to terms, and financial expenditures by the Federal Highway Administration.
Related Government Programs
- Other Computer Related Services
- Department of Transportation Contracting
- Federal Highway Administration Programs
Risk Flags
- Potential for cost overruns if usage exceeds projections.
- Dependency on a single cloud service provider.
- Complexity in managing and optimizing cloud spend.
- Data migration challenges and potential downtime.
Tags
other-computer-related-services, department-of-transportation, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $53.2 million to FOUR POINTS TECHNOLOGY, L.L.C.. THE PURPOSE OF THIS DELIVERY ORDER IS TO PROCURE AMAZON WEB SERVICES ON A DOT ENTERPRISE BASIS.
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 Transportation (Federal Highway Administration).
What is the total obligated amount?
The obligated amount is $53.2 million.
What is the period of performance?
Start: 2019-05-13. End: 2025-11-30.
What is the specific breakdown of services being procured under Amazon Web Services, and how do these align with the Federal Highway Administration's strategic IT goals?
The provided data specifies 'Amazon Web Services on a DOT Enterprise Basis' under 'Other Computer Related Services.' A detailed breakdown of services (e.g., compute, storage, database, analytics) and their direct alignment with the FHWA's strategic IT modernization plans, digital transformation initiatives, and specific mission objectives would be crucial for a comprehensive value assessment.
Given the nature of cloud services, what are the primary security risks and mitigation strategies employed by the Department of Transportation for this contract?
Key security risks include data breaches, unauthorized access, compliance violations (e.g., FedRAMP), and denial-of-service attacks. Mitigation strategies typically involve robust access controls, encryption (at rest and in transit), regular security audits, continuous monitoring, incident response plans, and adherence to specific government security frameworks mandated by agencies like CISA and NIST.
How does the 'Full and Open Competition After Exclusion of Sources' method ensure optimal price discovery and long-term cost-effectiveness compared to other competitive strategies?
This method, while competitive, implies that initial sources might have been limited or pre-qualified before a broader competition. It aims to ensure fair pricing by allowing multiple vendors to bid, but the 'exclusion of sources' aspect warrants scrutiny to confirm it didn't unduly limit the competitive landscape and thus the potential for the best possible price discovery and value.
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 › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 693JJ319Q000004
Offers Received: 4
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: $59,671,897
Exercised Options: $59,671,897
Current Obligation: $53,233,792
Actual Outlays: $51,743,776
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC74B
IDV Type: GWAC
Timeline
Start Date: 2019-05-13
Current End Date: 2025-11-30
Potential End Date: 2025-11-30 00:00:00
Last Modified: 2026-02-02
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