HHS awards $28.4M for InterSystems software, licenses, and support to Four Points Technology
Contract Overview
Contract Amount: $28,402,914 ($28.4M)
Contractor: Four Points Technology, L.L.C.
Awarding Agency: Department of Health and Human Services
Start Date: 2025-03-25
End Date: 2027-03-29
Contract Duration: 734 days
Daily Burn Rate: $38.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: INTERSYSTEMS SOFTWARE BUNDLE LICENSES AND PRODUCT SUPPORT SERVICES
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $28.4 million to FOUR POINTS TECHNOLOGY, L.L.C. for work described as: INTERSYSTEMS SOFTWARE BUNDLE LICENSES AND PRODUCT SUPPORT SERVICES Key points: 1. The contract value of $28.4 million over approximately two years represents a significant investment in critical health IT infrastructure. 2. Competition details are limited, but the award was made under full and open competition, suggesting potential for multiple bidders. 3. The primary risk lies in ensuring the software bundle meets evolving healthcare data management needs and that support services are effective. 4. This spending falls within the broader IT sector, specifically focusing on specialized software and support for healthcare applications.
Value Assessment
Rating: good
The contract's value of $28.4 million for a two-year period appears reasonable for specialized software licenses and ongoing product support. Benchmarking against similar enterprise software bundles and support contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value offering.
Taxpayer Impact: The use of full and open competition aims to secure competitive pricing, maximizing the value of taxpayer dollars spent on essential software and support services.
Public Impact
Ensures continued access to critical InterSystems software for the Indian Health Service. Supports the operational needs of healthcare providers within the IHS. Potential for improved data management and patient care through updated software and services. The contract duration of over two years provides stability for essential IT services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with specialized software.
- Reliance on a single vendor for both licenses and support.
- Ensuring adequate service level agreements for product support.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type limits cost uncertainty.
- Long-term contract provides stability for critical services.
Sector Analysis
This contract falls within the Information Technology sector, specifically for specialized healthcare software and support services. Spending benchmarks for similar enterprise software bundles and support contracts in the federal government can vary widely based on scope and vendor.
Small Business Impact
While the contract was awarded under full and open competition, there is no specific indication that small businesses were prime contractors or significant subcontractors on this particular award. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The Department of Health and Human Services, through the Indian Health Service, is responsible for overseeing this contract. Standard contract management practices, including performance monitoring and adherence to service level agreements, would be in place to ensure accountability.
Related Government Programs
- Other Computer Related Services
- Department of Health and Human Services Contracting
- Indian Health Service Programs
Risk Flags
- Potential for vendor lock-in.
- Reliance on a single vendor for critical software and support.
- Ensuring adequate service levels for product support.
- Complexity of enterprise software integration.
- Long-term sustainment and upgrade costs.
Tags
other-computer-related-services, department-of-health-and-human-services, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $28.4 million to FOUR POINTS TECHNOLOGY, L.L.C.. INTERSYSTEMS SOFTWARE BUNDLE LICENSES AND PRODUCT SUPPORT SERVICES
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 (Indian Health Service).
What is the total obligated amount?
The obligated amount is $28.4 million.
What is the period of performance?
Start: 2025-03-25. End: 2027-03-29.
What is the specific InterSystems software bundle being procured, and how does it align with the IHS's current and future technological roadmap?
The specific InterSystems software bundle is not detailed in the provided data. However, InterSystems is known for its health information management platforms, including databases and integration engines. Understanding the exact components is crucial to assess if they meet the IHS's evolving needs for data interoperability, analytics, and patient care delivery. Alignment with the IHS's IT roadmap ensures that this significant investment supports long-term strategic goals rather than being a short-term solution.
What are the key performance indicators (KPIs) for the product support services, and how will their effectiveness be measured to ensure value for money?
Key performance indicators for product support services typically include response times for issue resolution, uptime guarantees for the software, availability of technical expertise, and successful implementation of updates or patches. Effectiveness will be measured through regular performance reviews, user feedback, and tracking of service level agreement (SLA) compliance. The IHS will likely monitor these metrics to ensure Four Points Technology is meeting its contractual obligations and providing adequate support, thereby justifying the $28.4 million expenditure.
Given the firm fixed price nature of the contract, what mechanisms are in place to manage potential scope creep or unforeseen technical challenges that could impact the overall value?
A firm fixed price contract generally places the risk of cost overruns on the contractor. However, mechanisms to manage scope creep include clearly defined contract statements of work, change control processes requiring formal modification and approval for any deviations, and robust project management oversight. Unforeseen technical challenges might be addressed through contract clauses that allow for equitable adjustments under specific, pre-defined circumstances, or through collaborative problem-solving within the existing framework to find cost-effective solutions.
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 - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
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: $85,652,875
Exercised Options: $28,402,914
Current Obligation: $28,402,914
Actual Outlays: $13,722,510
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HHSN316201500034W
IDV Type: GWAC
Timeline
Start Date: 2025-03-25
Current End Date: 2027-03-29
Potential End Date: 2030-03-29 00:00:00
Last Modified: 2026-03-18
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