HHS Awards $5.68M AWS Hosting Services Contract to Four Points Technology
Contract Overview
Contract Amount: $5,679,000 ($5.7M)
Contractor: Four Points Technology, L.L.C.
Awarding Agency: Department of Health and Human Services
Start Date: 2025-09-08
End Date: 2026-09-16
Contract Duration: 373 days
Daily Burn Rate: $15.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: AMAZON WEB SERVICES (AWS) HOSTING SERVICES
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $5.7 million to FOUR POINTS TECHNOLOGY, L.L.C. for work described as: AMAZON WEB SERVICES (AWS) HOSTING SERVICES Key points: 1. The contract is for Amazon Web Services (AWS) hosting services, a critical component for government IT infrastructure. 2. Four Points Technology, L.L.C. secured the award, indicating a competitive landscape for cloud hosting providers. 3. The contract duration extends into late 2026, suggesting a need for sustained cloud support. 4. The 'Other Computer Related Services' NAICS code points to a broad range of IT support functions.
Value Assessment
Rating: good
The award amount of $5.68 million appears reasonable for hosting services over the contract period. Benchmarking against similar cloud hosting contracts would provide a more definitive assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing for the government.
Taxpayer Impact: The competitive award process is expected to yield fair pricing, maximizing taxpayer value for essential IT hosting services.
Public Impact
Ensures continued access to cloud-based services for the Department of Health and Human Services. Supports critical health data and operational functions through reliable AWS infrastructure. Provides a foundation for potential future cloud service expansions or upgrades.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if usage exceeds projections.
- Vendor lock-in with AWS could limit future flexibility.
- Cybersecurity risks associated with cloud data storage.
Positive Signals
- Leverages established AWS infrastructure for reliability.
- Full and open competition promotes competitive pricing.
- Supports critical government health functions.
Sector Analysis
This contract falls within the IT services sector, specifically cloud hosting. Spending benchmarks for similar government cloud contracts vary widely based on scope and provider, but this award appears within a typical range for dedicated hosting services.
Small Business Impact
The data does not indicate if small businesses were involved in the subcontracting opportunities for this award. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The award is a delivery order under a larger contract, suggesting existing oversight mechanisms are in place. The duration and value warrant continued monitoring of performance and spending.
Related Government Programs
- Other Computer Related Services
- Department of Health and Human Services Contracting
- Office of the Assistant Secretary for Administration Programs
Risk Flags
- Potential for vendor lock-in with AWS.
- Reliance on a single cloud provider.
- Cybersecurity risks associated with cloud data.
- Need for robust performance monitoring.
Tags
other-computer-related-services, department-of-health-and-human-services, va, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $5.7 million to FOUR POINTS TECHNOLOGY, L.L.C.. AMAZON WEB SERVICES (AWS) HOSTING 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 (Office of the Assistant Secretary for Administration).
What is the total obligated amount?
The obligated amount is $5.7 million.
What is the period of performance?
Start: 2025-09-08. End: 2026-09-16.
What is the projected cost per user or per service unit, and how does it compare to industry standards?
The provided data does not include specific per-unit cost breakdowns. A detailed analysis of the contract's line items and usage metrics would be necessary to establish a per-unit cost benchmark. Comparing this to industry standards for AWS services, considering government-specific discounts and support levels, is crucial for assessing true value for money.
What are the key performance indicators (KPIs) for this contract, and how will they be measured to ensure effectiveness?
The contract details do not specify the KPIs. Effective oversight would require clearly defined metrics related to uptime, performance, security, and response times. Regular performance reviews against these KPIs, documented by the agency, are essential to ensure the hosting services meet HHS's operational needs and deliver the expected value.
What is the potential for cost savings or efficiency gains through this AWS hosting contract compared to on-premise solutions?
Migrating to AWS hosting can offer significant cost savings and efficiency gains by reducing the need for capital expenditure on hardware, data center maintenance, and IT staff for infrastructure management. The pay-as-you-go model allows for scalability, aligning costs with actual usage and potentially leading to greater efficiency than fixed on-premise investments.
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
Solicitation ID: 75P00125Q00060
Offers Received: 1
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: $5,679,000
Exercised Options: $5,679,000
Current Obligation: $5,679,000
Actual Outlays: $1,464,741
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 47QTCA19D00MP
IDV Type: FSS
Timeline
Start Date: 2025-09-08
Current End Date: 2026-09-16
Potential End Date: 2026-09-16 00:00:00
Last Modified: 2026-02-18
More Contracts from Four Points Technology, L.L.C.
- Enterprise Cloud Capacity - Amazon WEB Services — $448.7M (Department of Veterans Affairs)
- Intersystems Maintenance and Software Licenses — $303.6M (Department of Veterans Affairs)
- This Contract IS for Requires Cloud Services From an Authorized Public Sector Reseller in Support of ALL Service Levels: Infrastructure AS a Service, Platform AS a Service, and Software AS a Service. These Cloud Services ARE Required to Allocate Memory, Processing, Storage, and Networking on Demand to Gain Access to a Suite of Secure, Scalable and Flexible Information Technology Capabilities to Enable Creation, Deletion, and Flexible Sizing of Virtual Data Centers and Virtual Machines — $236.7M (Department of Veterans Affairs)
- Cache Licensing and Maintenance Option Year 2. This Entry Represents the Total Award Value to Date — $188.8M (Department of Veterans Affairs)
- Call Order for Amazon WEB Services (AWS) Connect for Contact Center AS a Service (ccaas) - Blanket Purchase Agreement 28321321A00040003 — $150.4M (Social Security Administration)
Other Department of Health and Human Services Contracts
- Contact Center Operations (CCO) — $5.5B (Maximus Federal Services, Inc.)
- TAS::75 0849::TAS Oper of Govt R&D Goco Facilities — $4.8B (Leidos Biomedical Research Inc)
- THE Purpose of This Contract IS to Provide the Full Complement of Services Necessary to Care for UC in ORR Custody Including Facilities Set-Up, Maintenance, and Support Internal and Perimeter (IF Applicable) Security, Direct Care and Supervision Inc — $3.5B (Rapid Deployment Inc)
- Contact Center Operations — $2.6B (Maximus Federal Services, Inc.)
- Federal Contract — $2.4B (Leidos Biomedical Research Inc)
View all Department of Health and Human Services contracts →