FDA awards $23.8M AWS Task Order to Four Points Technology for ODT Cloud Services

Contract Overview

Contract Amount: $23,811,627 ($23.8M)

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

Awarding Agency: Department of Health and Human Services

Start Date: 2025-06-26

End Date: 2026-06-19

Contract Duration: 358 days

Daily Burn Rate: $66.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: AWS TASK ORDER 1 UNDER FDA CLOUD SERVICES BPA FOR ODT

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $23.8 million to FOUR POINTS TECHNOLOGY, L.L.C. for work described as: AWS TASK ORDER 1 UNDER FDA CLOUD SERVICES BPA FOR ODT Key points: 1. Significant award for cloud services supporting the Office of Digital Transformation (ODT). 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk appears moderate given the task order nature under an existing BPA. 4. IT services sector, specifically cloud computing and related IT support.

Value Assessment

Rating: good

The award amount of $23.8M for a 1-year duration appears reasonable for cloud services. Benchmarking against similar large-scale cloud service contracts would provide further context on value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. This method typically leads to more competitive pricing compared to limited or sole-source procurements.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, likely resulting in a fair market price for essential IT services.

Public Impact

Enhances FDA's cloud infrastructure capabilities for ODT. Supports critical digital transformation initiatives within the agency. Potential for improved data management and accessibility. Ensures continuity of essential IT services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in Time and Materials contract.
Vendor lock-in concerns with cloud service providers.
Dependence on a single vendor for critical cloud infrastructure.

Positive Signals

Awarded under a competitive BPA call.
Supports agency's digital transformation goals.
Clear period of performance.

Sector Analysis

This award falls within the IT services sector, specifically cloud computing. Spending benchmarks for similar cloud service contracts vary widely based on scope and provider, but $23.8M for a year of comprehensive services is substantial.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the awardee is not listed as a small business. Further analysis would be needed to determine if small businesses were subcontractors.

Oversight & Accountability

The award was made under an existing BPA, suggesting prior oversight. The task order itself is for a defined period, allowing for performance monitoring. However, ongoing oversight of cloud service performance and cost management is crucial.

Related Government Programs

Other Computer Related Services
Department of Health and Human Services Contracting
Food and Drug Administration Programs

Risk Flags

Time and Materials contract type can lead to cost overruns.
Potential for vendor lock-in with cloud services.
Dependence on a single cloud provider (AWS).
Need for robust performance and cost monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $23.8 million to FOUR POINTS TECHNOLOGY, L.L.C.. AWS TASK ORDER 1 UNDER FDA CLOUD SERVICES BPA FOR ODT

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 $23.8 million.

What is the period of performance?

Start: 2025-06-26. End: 2026-06-19.

What specific AWS services are included in this task order, and how do their costs compare to market rates?

The provided data does not specify the exact AWS services procured under this task order. A detailed breakdown of services (e.g., EC2, S3, RDS, specific managed services) and their associated costs is necessary to benchmark against market rates and assess value for money. Understanding the utilization metrics and pricing models (on-demand, reserved instances, savings plans) is also key.

What are the key performance indicators (KPIs) for this task order, and how will they be monitored to ensure effectiveness?

The data does not specify the KPIs for this task order. Effective oversight requires clearly defined KPIs related to service availability, performance, security, and cost efficiency. The FDA should have a robust monitoring mechanism in place to track these KPIs and ensure the vendor meets contractual obligations, allowing for timely intervention if performance degrades.

What is the strategy for managing potential cost overruns or unexpected increases in cloud service consumption?

Given this is a Time and Materials contract, a proactive strategy for managing cost overruns is essential. This should include regular budget reviews, consumption monitoring, implementing cost optimization measures (e.g., rightsizing instances, utilizing spot instances where appropriate), and clear communication channels with the vendor regarding potential cost impacts of changes or increased demand.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 75F40125Q00261

Pricing Type: TIME AND MATERIALS (Y)

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: $23,811,627

Exercised Options: $23,811,627

Current Obligation: $23,811,627

Actual Outlays: $13,969,905

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 75F40125A00015

IDV Type: BPA

Timeline