ICE Cloud Infrastructure Hosting Support contract awarded to Four Points Technology for over $18M

Contract Overview

Contract Amount: $18,030,592 ($18.0M)

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

Awarding Agency: Department of Homeland Security

Start Date: 2023-08-08

End Date: 2024-08-15

Contract Duration: 373 days

Daily Burn Rate: $48.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ICE CLOUD INFRASTRUCTURE HOSTING SUPPORT FOR ICE/OCIO

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $18.0 million to FOUR POINTS TECHNOLOGY, L.L.C. for work described as: ICE CLOUD INFRASTRUCTURE HOSTING SUPPORT FOR ICE/OCIO Key points: 1. The contract value of $18.03 million for approximately 1.25 years suggests a significant investment in cloud infrastructure. 2. The award to Four Points Technology, L.L.C. indicates a specific market player chosen for this critical service. 3. The 'Other Computer Related Services' NAICS code points to a broad category, requiring further detail on specific services rendered. 4. The contract type 'BPA CALL' suggests it's a call against a Blanket Purchase Agreement, implying pre-negotiated terms. 5. The fixed price contract structure aims to control costs, but the value needs benchmarking against similar cloud hosting services. 6. The duration of 373 days (approx. 1.25 years) is relatively short for a cloud infrastructure contract, potentially indicating a bridge or specific project need.

Value Assessment

Rating: fair

The contract value of $18.03 million for approximately 1.25 years for cloud infrastructure hosting support appears substantial. Without specific performance metrics or detailed service breakdowns, it is difficult to definitively benchmark the value for money. However, the fixed-price nature of the contract is a positive indicator for cost control. Comparison to similar cloud hosting contracts for government agencies of comparable size and scope would be necessary for a more precise assessment of pricing and value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but the 'full-and-open' designation generally suggests a competitive environment. This approach is intended to foster price discovery and ensure the government receives the best possible value by considering a wide range of potential providers.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it is designed to drive down prices through market forces and encourage innovation among bidders, ultimately leading to more cost-effective solutions.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) and the broader Department of Homeland Security (DHS), who will receive enhanced cloud infrastructure hosting support. The services delivered are crucial for the operational continuity and data management of ICE's systems. The geographic impact is primarily within the United States, supporting federal agency operations. The contract likely supports a workforce skilled in cloud computing, IT infrastructure, and cybersecurity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the true value for money.
The relatively short duration might indicate a temporary solution or a need for future re-competition, potentially leading to transition costs.
The broad NAICS code (541519) requires further investigation into the specific services being procured to ensure they align with market rates and best practices.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
The contract is firm fixed price, which helps in managing and predicting costs.
The agency is DHS, a major federal entity, implying adherence to stringent procurement standards.

Sector Analysis

The IT services sector, particularly cloud infrastructure hosting, is a rapidly growing and critical component of government operations. This contract falls within the broader category of IT services, which includes a wide range of support, from basic computer maintenance to complex cloud solutions. The market for cloud hosting is competitive, with numerous providers offering various service models (IaaS, PaaS, SaaS). Government spending in this area has been steadily increasing as agencies migrate from on-premises data centers to more flexible and scalable cloud environments. Benchmarking this contract's value would require comparing its per-unit costs for specific cloud services (e.g., compute, storage, networking) against industry standards and other government cloud contracts.

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 or specific benefits for the small business ecosystem stemming from this particular award. The focus appears to be on larger, established providers capable of meeting the scale and complexity of ICE's cloud infrastructure needs.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's internal procurement and program management offices. The Inspector General for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency is facilitated by public contract databases like FPDS, which provide basic award details. However, detailed performance reports and specific oversight mechanisms are typically internal to the agency.

Related Government Programs

DHS Cloud Computing Services
Federal Civilian IT Modernization
ICE IT Infrastructure Support
General Services Administration (GSA) Cloud Contracts
Department of Homeland Security IT Services

Risk Flags

Lack of detailed performance metrics.
Limited information on specific cloud services procured.
Short contract duration may indicate a temporary solution.
Need for further benchmarking against market rates.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $18.0 million to FOUR POINTS TECHNOLOGY, L.L.C.. ICE CLOUD INFRASTRUCTURE HOSTING SUPPORT FOR ICE/OCIO

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 Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $18.0 million.

What is the period of performance?

Start: 2023-08-08. End: 2024-08-15.

What specific cloud services are being provided under this contract, and how do they align with ICE's long-term IT strategy?

The provided data indicates the NAICS code is 541519 (Other Computer Related Services) and the description is 'ICE CLOUD INFRASTRUCTURE HOSTING SUPPORT FOR ICE/OCIO'. This suggests services related to the hosting and management of cloud-based IT infrastructure. However, the specific services (e.g., Infrastructure as a Service - IaaS, Platform as a Service - PaaS, specific cloud providers like AWS, Azure, GCP, managed services, security services) are not detailed. Understanding ICE's long-term IT strategy is crucial to assess if this contract represents a strategic investment in cloud adoption, a temporary solution, or a component of a larger modernization effort. Without this context, it's difficult to evaluate the strategic alignment and potential future implications of this spending.

How does the per-unit cost of this cloud hosting compare to similar government contracts or commercial offerings?

The provided data does not include per-unit cost breakdowns for specific cloud services (e.g., cost per virtual machine hour, per gigabyte of storage, per network transfer). The total award amount is $18,030,592.30 for a duration of 373 days. To benchmark effectively, we would need to know the quantity and type of cloud resources consumed. For instance, if this contract provides a certain level of compute and storage, we could compare the effective hourly or monthly rate to similar government BPA calls or commercial cloud provider price lists. Without this granular data, a direct per-unit cost comparison is not feasible, making it challenging to assess if the government is receiving competitive pricing for the cloud resources utilized.

What is the track record of Four Points Technology, L.L.C. in delivering cloud infrastructure hosting services to federal agencies?

Four Points Technology, L.L.C. has a history of federal contracting, often acting as a reseller or prime contractor for various IT solutions. Their experience with cloud infrastructure hosting specifically for agencies like ICE would need to be reviewed through past performance evaluations and contract databases. While the 'BPA CALL' award suggests they are capable of fulfilling a call against a pre-existing agreement, the depth of their direct experience in managing large-scale, complex cloud environments for critical government operations is a key factor. Assessing their past performance, client satisfaction, and any history of contract issues or successes would provide crucial insight into their reliability for this specific requirement.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

The provided data does not specify the Key Performance Indicators (KPIs) or the performance measurement framework for this contract. For cloud infrastructure hosting, typical KPIs might include uptime/availability (e.g., 99.99%), latency, security compliance adherence, response times for support requests, and successful deployment of resources. The effectiveness of the contract hinges on whether these metrics are clearly defined, measurable, and actively monitored by ICE. Without this information, it's impossible to determine if the contractor is meeting expectations or if the agency is achieving the desired outcomes from this significant investment.

What is the historical spending trend for ICE's cloud infrastructure hosting support, and how does this award compare?

The provided data only includes details for this specific contract award (2023-08-08 to 2024-08-15, $18.03M). To understand historical spending trends, one would need to analyze previous contracts awarded by ICE or DHS for similar cloud hosting services over several fiscal years. This would involve querying databases like FPDS for contracts with relevant NAICS codes and descriptions. Comparing this $18.03 million award to prior spending levels would reveal whether ICE's investment in cloud hosting is increasing, decreasing, or remaining stable. It would also help identify any shifts in contracting strategies or vendor relationships over time.

Industry Classification

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

Product/Service Code: IT AND TELECOM - COMPUTE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70CTD023Q00000103

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: $18,030,592

Exercised Options: $18,030,592

Current Obligation: $18,030,592

Actual Outlays: $17,974,303

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70CTD022A00000004

IDV Type: BPA

Timeline