HHS FDA Awards $38.6M IaaS Cloud Services Contract to Four Points Technology

Contract Overview

Contract Amount: $38,613,587 ($38.6M)

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

Awarding Agency: Department of Health and Human Services

Start Date: 2023-12-21

End Date: 2025-07-23

Contract Duration: 580 days

Daily Burn Rate: $66.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: INFRASTRUCTURE AS A SERVICE (IAAS)CLOUD SERVICES TO 7

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $38.6 million to FOUR POINTS TECHNOLOGY, L.L.C. for work described as: INFRASTRUCTURE AS A SERVICE (IAAS)CLOUD SERVICES TO 7 Key points: 1. Contract awarded for Infrastructure as a Service (IaaS) cloud services. 2. Four Points Technology, LLC is the primary contractor. 3. The contract has a duration of 580 days. 4. The award falls under the Department of Health and Human Services (HHS) umbrella. 5. The Food and Drug Administration (FDA) is the specific agency. 6. This is a Time and Materials contract type.

Value Assessment

Rating: fair

The contract is a BPA Call under a larger agreement. Pricing is based on Time and Materials, which can lead to cost overruns if not managed carefully. Benchmarking against similar IaaS contracts is difficult without detailed service level agreements and usage data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, as a BPA Call, it leverages an existing agreement, which may limit the scope of direct competition for this specific task order.

Taxpayer Impact: Taxpayer funds are being used for essential cloud infrastructure services. The Time and Materials pricing model necessitates close monitoring to ensure cost-effectiveness and prevent overspending.

Public Impact

Ensures continued operation of critical FDA IT systems through cloud services. Supports the FDA's mission in public health and safety. Provides flexibility for scaling IT resources as needed. Potential for cost savings through cloud adoption compared to on-premise solutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost uncertainty.
Contract duration is relatively short, requiring potential future re-competition.
Limited information on specific service levels and performance metrics.

Positive Signals

Awarded under full and open competition.
Supports critical government functions.
Leverages existing BPA for potential efficiency.

Sector Analysis

This contract falls within the Information Technology sector, specifically for cloud computing services (IaaS). Government spending on cloud services has been steadily increasing as agencies modernize their infrastructure and seek greater flexibility and scalability.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors or partners in this award. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

As a BPA Call, oversight is likely managed under the parent BPA agreement. The FDA and HHS are responsible for ensuring the contractor meets performance requirements and that funds are used appropriately.

Related Government Programs

Computer and Computer Peripheral Equipment and Software Merchant Wholesalers
Department of Health and Human Services Contracting
Food and Drug Administration Programs

Risk Flags

Cost overruns due to Time and Materials pricing.
Potential for vendor lock-in with cloud services.
Dependence on contractor performance for critical IT functions.
Need for ongoing monitoring of service levels and security.
Short contract duration may lead to frequent re-procurement efforts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $38.6 million to FOUR POINTS TECHNOLOGY, L.L.C.. INFRASTRUCTURE AS A SERVICE (IAAS)CLOUD SERVICES TO 7

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 Health and Human Services (Food and Drug Administration).

What is the total obligated amount?

The obligated amount is $38.6 million.

What is the period of performance?

Start: 2023-12-21. End: 2025-07-23.

What is the estimated cost per unit for the IaaS services provided under this contract?

The provided data does not specify a per-unit cost for the IaaS services. The contract is awarded on a Time and Materials basis, meaning costs are based on labor hours and materials used. A detailed breakdown of service usage and associated costs would be required to establish unit pricing benchmarks.

What are the primary risks associated with the Time and Materials contract type for this IaaS award?

The primary risk of a Time and Materials contract for IaaS is cost uncertainty. Without fixed pricing for specific services or usage levels, there's a potential for costs to escalate beyond initial estimates if not closely monitored. This necessitates robust oversight to ensure efficient resource utilization and prevent scope creep.

How does this contract contribute to the FDA's overall IT modernization and effectiveness?

This contract provides essential Infrastructure as a Service, enabling the FDA to host and manage critical IT systems in a scalable and flexible cloud environment. This supports modernization efforts by allowing the agency to adopt newer technologies, improve data accessibility, and potentially enhance the resilience and performance of its digital services.

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 - COMPUTE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 75F40124Q00030

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: $38,613,587

Exercised Options: $38,613,587

Current Obligation: $38,613,587

Actual Outlays: $38,613,587

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 75F40118A10038

IDV Type: BPA

Timeline