DHS awards $23.9M AWS cloud compliance contract to Four Points Technology, LLC

Contract Overview

Contract Amount: $23,916,764 ($23.9M)

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

Awarding Agency: Department of Homeland Security

Start Date: 2022-12-07

End Date: 2023-12-06

Contract Duration: 364 days

Daily Burn Rate: $65.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE PURPOSE OF THIS PURCHASE REQUEST IS TO CREATE A NEW TASK ORDER FOR AWS SERVICES TO PROVIDE FEDRAMP COMPLIANCE TO THE PUBLIC INFRASTRUCTURE AS A SERVICE (IAAS) CLOUD SERVICES FOR SDD.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20405

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $23.9 million to FOUR POINTS TECHNOLOGY, L.L.C. for work described as: THE PURPOSE OF THIS PURCHASE REQUEST IS TO CREATE A NEW TASK ORDER FOR AWS SERVICES TO PROVIDE FEDRAMP COMPLIANCE TO THE PUBLIC INFRASTRUCTURE AS A SERVICE (IAAS) CLOUD SERVICES FOR SDD. Key points: 1. Contract aims to ensure FedRAMP compliance for public cloud infrastructure. 2. Competition was full and open after exclusion of sources. 3. Contract duration is one year, with a firm fixed price. 4. The North American Industry Classification System (NAICS) code is 541519. 5. The contract is for Other Computer Related Services. 6. The award was made by the Department of Homeland Security's Office of Procurement Operations. 7. The contract is a delivery order with a single award. 8. The contract is not a small business set-aside.

Value Assessment

Rating: good

The contract value of $23.9 million for one year of AWS cloud compliance services appears reasonable given the scope. Benchmarking against similar FedRAMP compliance contracts is challenging without more specific service details, but the firm fixed-price structure suggests a defined scope of work. The pricing is likely competitive due to the full and open competition.

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.' While the specific reasons for excluding certain sources are not detailed, the 'full and open' designation implies that all responsible sources were permitted to submit offers. The number of bidders is not specified, but the competitive nature of this award should have driven price discovery.

Taxpayer Impact: The full and open competition is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and a wider range of innovative solutions.

Public Impact

The primary beneficiaries are government agencies requiring secure and compliant cloud infrastructure. The service delivered is crucial for maintaining the security and integrity of public cloud services. The geographic impact is national, supporting federal IT infrastructure across the United States. The contract supports the federal workforce involved in cloud security and IT operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the 'exclusion of sources' could mask limited competition.
The reliance on a single cloud provider (AWS) may present vendor lock-in risks.
The complexity of FedRAMP compliance can lead to unforeseen costs or delays.

Positive Signals

Awarding to a single vendor for a specific task order simplifies management.
The firm fixed-price contract provides cost certainty for the government.
The focus on FedRAMP compliance enhances the security posture of federal IT systems.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on cloud computing and cybersecurity compliance. The market for FedRAMP-compliant cloud services is growing rapidly as federal agencies increasingly migrate to cloud environments. Spending benchmarks for similar compliance services can vary widely based on the specific cloud services and the level of compliance required, but this award represents a significant investment in securing federal data.

Small Business Impact

This contract was not a small business set-aside, nor is there information indicating subcontracting opportunities for small businesses. The award to a larger entity suggests that the primary focus was on specialized expertise in cloud compliance rather than promoting small business participation. Further analysis would be needed to determine if any subcontracting plans exist.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Homeland Security. Accountability is established through the firm fixed-price contract terms and performance metrics. Transparency is facilitated by the public nature of federal contract awards, though specific performance details may be internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Cloud Computing Services
Information Technology Professional Services
Cybersecurity Services
FedRAMP Compliance
Infrastructure as a Service (IaaS)

Risk Flags

Competition justification unclear
Potential vendor lock-in
Scope creep risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $23.9 million to FOUR POINTS TECHNOLOGY, L.L.C.. THE PURPOSE OF THIS PURCHASE REQUEST IS TO CREATE A NEW TASK ORDER FOR AWS SERVICES TO PROVIDE FEDRAMP COMPLIANCE TO THE PUBLIC INFRASTRUCTURE AS A SERVICE (IAAS) CLOUD SERVICES FOR SDD.

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 (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $23.9 million.

What is the period of performance?

Start: 2022-12-07. End: 2023-12-06.

What is the specific nature of the AWS services being procured for FedRAMP compliance?

The data indicates the procurement is for 'AWS Services to provide FedRAMP Compliance to the Public Infrastructure as a Service (IaaS) Cloud Services for SDD.' This suggests the contract is focused on ensuring that the AWS IaaS environment used by the SDD (presumably a specific program or office within DHS) meets the Federal Risk and Authorization Management Program (FedRAMP) security standards. This would likely involve configuration, auditing, documentation, and potentially continuous monitoring services to achieve and maintain a FedRAMP authorization. The exact services could range from security assessments and penetration testing to policy development and incident response planning, all tailored to the AWS IaaS platform.

How does the $23.9 million value compare to similar FedRAMP compliance contracts?

Directly comparing the $23.9 million value to similar FedRAMP compliance contracts is difficult without more granular data on the scope of services, the specific AWS services utilized (e.g., EC2, S3, specific regions), and the level of authorization (e.g., Moderate, High). However, for a one-year duration, this value suggests a comprehensive effort. Larger agencies or those handling highly sensitive data often incur higher compliance costs. Contracts for achieving initial FedRAMP authorization can range from hundreds of thousands to several million dollars, while ongoing monitoring and maintenance contracts can also be substantial. This award appears to be on the higher end for a single-year task order, potentially indicating a complex environment or a significant scope of work.

What are the potential risks associated with this contract?

Several risks are associated with this contract. Firstly, the 'full and open competition after exclusion of sources' phrasing, while indicating an open process, requires scrutiny to ensure that the exclusion criteria were justified and did not unduly limit competition. Secondly, reliance on a single cloud service provider (AWS) inherently carries vendor lock-in risks, making future transitions potentially costly and complex. Thirdly, the dynamic nature of cybersecurity threats and evolving FedRAMP requirements mean that the scope of work could expand, potentially leading to cost overruns if not managed tightly, despite the firm fixed-price structure. Finally, the successful execution of FedRAMP compliance is highly dependent on the expertise of the contractor and the cooperation of the agency.

What is the track record of Four Points Technology, LLC in federal contracting, particularly for cloud services?

Four Points Technology, LLC is a federal IT solutions provider that has secured numerous government contracts. While specific details on their track record for AWS FedRAMP compliance services are not provided in the given data, their history suggests experience in delivering IT solutions to government agencies. A deeper dive into their past performance evaluations, contract vehicles (like GSA schedules), and any past issues or successes related to cloud or compliance contracts would be necessary for a thorough assessment. Their ability to win this contract implies they met the qualifications set forth by DHS for this specific requirement.

How does this spending align with broader federal trends in cloud adoption and cybersecurity?

This contract aligns directly with major federal trends. The US government has been actively encouraging cloud adoption through initiatives like the Cloud Smart strategy, aiming for more efficient, secure, and modern IT infrastructure. FedRAMP is the cornerstone of this strategy, providing a standardized approach to security assessment, authorization, and continuous monitoring for cloud products and services. Spending on FedRAMP compliance, therefore, is not just a single contract but a necessary investment supporting the broader federal push towards secure cloud migration. This $23.9 million award reflects the significant resources dedicated to ensuring these cloud environments meet stringent security requirements.

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 - COMPUTE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14900 CONFERENCE CENTER DR STE 100, CHANTILLY, VA, 20151

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: $24,999,995

Exercised Options: $23,916,764

Current Obligation: $23,916,764

Actual Outlays: $23,916,764

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSHQDC13D00003

IDV Type: IDC

Timeline