DHS awards $24.1M for ICE cloud infrastructure support, highlighting a need for robust AWS environment management

Contract Overview

Contract Amount: $24,105,505 ($24.1M)

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

Awarding Agency: Department of Homeland Security

Start Date: 2025-09-08

End Date: 2026-09-07

Contract Duration: 364 days

Daily Burn Rate: $66.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AWARD PROVIDES CLOUD INFRASTRUCTURE RESOURCES IN THE ICE CLOUD INFRASTRUCTURE HOSTING SUPPORT FOR THE AMAZON WEB SERVICES ENVIRONMENT FOR IMMIGRATION AND CUSTOMS ENFORCEMENT/OFFICE OF THE CHIEF INFORMAITON OFFICER

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $24.1 million to FOUR POINTS TECHNOLOGY, L.L.C. for work described as: AWARD PROVIDES CLOUD INFRASTRUCTURE RESOURCES IN THE ICE CLOUD INFRASTRUCTURE HOSTING SUPPORT FOR THE AMAZON WEB SERVICES ENVIRONMENT FOR IMMIGRATION AND CUSTOMS ENFORCEMENT/OFFICE OF THE CHIEF INFORMAITON OFFICER Key points: 1. The contract focuses on essential cloud infrastructure hosting, indicating a strategic reliance on AWS for ICE's IT operations. 2. Competition was full and open, suggesting a healthy market for cloud infrastructure services and potential for competitive pricing. 3. The firm-fixed-price structure aims to control costs and provide predictable spending for cloud hosting services. 4. This award represents a significant investment in maintaining and supporting critical cloud resources for a key law enforcement agency. 5. The duration of one year with potential for extensions suggests ongoing needs for cloud support beyond the initial term. 6. The contract's value is moderate within the context of large federal IT procurements, but critical for ICE's operational continuity.

Value Assessment

Rating: good

The award of $24.1 million for one year of cloud infrastructure hosting for ICE appears reasonable given the scope of supporting AWS environments. Benchmarking against similar federal contracts for cloud services indicates that pricing for managed services and infrastructure can vary widely based on specific requirements, support levels, and the cloud provider. Without detailed service level agreements and specific resource allocations, a precise per-unit cost comparison is challenging. However, the firm-fixed-price nature suggests an effort to establish predictable costs for these essential services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were eligible to bid. The solicitation process likely involved a competitive bidding period where interested parties submitted proposals. The number of bidders is not specified, but full and open competition generally fosters a more robust price discovery process and encourages vendors to offer competitive terms to secure the award. This approach is intended to ensure the government receives the best value through market forces.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to a wider range of innovative solutions. This process helps ensure that federal funds are used efficiently by driving down costs and improving service quality.

Public Impact

Immigration and Customs Enforcement (ICE) personnel will benefit from reliable and secure cloud infrastructure, enabling efficient operations. The services delivered will ensure the continuous availability and performance of critical IT systems hosted on Amazon Web Services. The geographic impact is national, supporting ICE's nationwide mission through robust IT infrastructure. Workforce implications include the need for skilled IT professionals to manage and maintain the AWS environment, potentially supporting jobs in cloud computing and cybersecurity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific AWS services become deeply integrated without clear exit strategies.
Reliance on a single cloud provider (AWS) introduces concentration risk for critical government functions.
Ensuring adequate cybersecurity measures are in place to protect sensitive data within the cloud environment.
The need for continuous monitoring and adaptation to evolving cloud security threats and best practices.

Positive Signals

Leveraging a leading cloud provider (AWS) offers scalability, reliability, and access to advanced services.
The firm-fixed-price contract provides cost certainty for a critical IT service.
Full and open competition suggests a competitive market, potentially leading to better value.
The contract supports essential functions for a major law enforcement agency, ensuring operational continuity.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on cloud computing and infrastructure hosting services. The federal government's spending on cloud services has been steadily increasing as agencies migrate from traditional data centers to more flexible and scalable cloud environments. This contract with ICE for AWS hosting is consistent with the broader trend of federal agencies adopting cloud solutions to modernize their IT infrastructure and improve service delivery. Comparable spending benchmarks for cloud infrastructure support can vary significantly based on the scale of services, support levels, and specific cloud provider utilized.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, large businesses are the primary recipients of this award. While there is no direct small business set-aside, the prime contractor, Four Points Technology, L.L.C., may engage small businesses as subcontractors to fulfill specific aspects of the contract. The extent of subcontracting to small businesses will depend on the prime contractor's strategy and the specific requirements of the cloud hosting services. Analysis of subcontracting plans would be necessary to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers within the Department of Homeland Security. The firm-fixed-price contract structure provides a degree of accountability by defining the scope and cost upfront. Transparency is facilitated through federal procurement databases like FPDS, which record contract awards. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise concerning the contract's performance or execution.

Related Government Programs

DHS Cloud Computing Services
ICE IT Modernization Programs
Amazon Web Services (AWS) Government Contracts
Federal Cloud Infrastructure Hosting
Information Technology Support Services

Risk Flags

Cybersecurity Risk
Vendor Performance
Scope Creep Potential
Reliance on Single Cloud Provider

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $24.1 million to FOUR POINTS TECHNOLOGY, L.L.C.. AWARD PROVIDES CLOUD INFRASTRUCTURE RESOURCES IN THE ICE CLOUD INFRASTRUCTURE HOSTING SUPPORT FOR THE AMAZON WEB SERVICES ENVIRONMENT FOR IMMIGRATION AND CUSTOMS ENFORCEMENT/OFFICE OF THE CHIEF INFORMAITON OFFICER

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 $24.1 million.

What is the period of performance?

Start: 2025-09-08. End: 2026-09-07.

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

Four Points Technology, L.L.C. has a history of providing IT solutions and services to the federal government, including cloud services. Their contract history indicates experience with various federal agencies, often focusing on technology reselling and managed services. To assess their specific track record for AWS cloud infrastructure hosting, a deeper dive into their past performance evaluations and contract awards related to similar scopes of work would be beneficial. This would include examining client feedback, successful project completions, and any reported issues or challenges in delivering cloud hosting support. Their experience with BPA calls and firm-fixed-price contracts suggests familiarity with federal procurement mechanisms.

How does the awarded amount of $24.1 million compare to other federal contracts for similar AWS cloud infrastructure support services?

The awarded amount of $24.1 million for a one-year contract for ICE's AWS cloud infrastructure support is within a typical range for federal IT services of this nature. However, direct comparisons are complex due to variations in service scope, support levels, resource utilization, and contract duration. Larger, multi-year contracts for comprehensive cloud migration and management can reach hundreds of millions or even billions of dollars. Smaller, more specialized support contracts might be in the low millions. This $24.1 million award suggests a significant but not exceptionally large requirement, likely focused on ongoing operational support and maintenance of an established AWS environment rather than a full-scale migration or extensive new development.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential cybersecurity vulnerabilities inherent in cloud environments, vendor performance issues, and the possibility of cost overruns if the scope expands beyond the initial fixed-price agreement (though less likely with FFP). Another risk is vendor lock-in with AWS. Mitigation strategies typically involve robust cybersecurity protocols mandated by DHS, clear performance metrics and service level agreements (SLAs) within the contract, and regular performance reviews. The firm-fixed-price structure itself mitigates cost overrun risks for the defined scope. For cybersecurity, adherence to federal standards like NIST and continuous monitoring are crucial. The government also retains the right to audit and enforce contract terms.

How effective is the firm-fixed-price (FFP) contract type in ensuring value for money for cloud infrastructure hosting?

The firm-fixed-price (FFP) contract type is generally effective in ensuring value for money when the scope of work is well-defined and unlikely to change significantly. For cloud infrastructure hosting, where resource consumption can fluctuate, FFP provides cost certainty to the government for the agreed-upon services. This shifts the risk of cost overruns to the contractor. It encourages the contractor to manage resources efficiently to maintain profitability. However, if the scope is not precisely defined or if unforeseen technical requirements emerge, an FFP contract might lead to the contractor being less flexible in accommodating changes, potentially requiring change orders or a new contract. For ongoing operational support, FFP is a common and often effective choice.

What are the historical spending patterns for cloud infrastructure support services within ICE or DHS?

Historical spending patterns for cloud infrastructure support within ICE and DHS show a clear trend towards increased cloud adoption and associated spending over the past decade. Agencies are actively migrating workloads to cloud platforms like AWS, Azure, and Google Cloud to leverage scalability, cost-efficiency, and advanced capabilities. This has led to a rise in contracts for cloud hosting, management, migration, and security services. Specific figures for ICE's cloud spending would require detailed analysis of their procurement data, but it is consistent with the broader DHS and federal government strategy to modernize IT infrastructure through cloud solutions. This $24.1 million award is part of that ongoing investment.

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: 70CTD025Q00000076

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: $24,105,505

Exercised Options: $24,105,505

Current Obligation: $24,105,505

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70CTD022A00000004

IDV Type: BPA

Timeline