DoD's $21.6M Cloud Credit Services Contract with Four Points Technology Faces Scrutiny Over Competition and Value
Contract Overview
Contract Amount: $21,657,945 ($21.7M)
Contractor: Four Points Technology, L.L.C.
Awarding Agency: Department of Defense
Start Date: 2020-07-29
End Date: 2024-07-31
Contract Duration: 1,463 days
Daily Burn Rate: $14.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CLOUD CREDIT SERVICES
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $21.7 million to FOUR POINTS TECHNOLOGY, L.L.C. for work described as: CLOUD CREDIT SERVICES Key points: 1. The contract awarded to Four Points Technology, L.L.C. for Cloud Credit Services totals $21.6 million. 2. Competition method was 'Full and Open Competition After Exclusion of Sources', raising questions about true market access. 3. The contract duration is 1463 days, ending in July 2024. 4. The specific service NAICS code is 541519 (Other Computer Related Services). 5. The contract type is Firm Fixed Price, indicating a set cost for services.
Value Assessment
Rating: questionable
The contract's value of $21.6 million for cloud credit services needs benchmarking against similar DoD contracts. Without specific per-unit data, assessing if this price represents good value is difficult, especially given the competition method.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method 'Full and Open Competition After Exclusion of Sources' suggests that while open, certain sources were initially excluded, potentially limiting the competitive pool and impacting price discovery. This method warrants further investigation to ensure maximum value.
Taxpayer Impact: The $21.6 million expenditure represents taxpayer funds. The effectiveness of the competition method in securing the best price directly impacts the overall taxpayer benefit.
Public Impact
Taxpayers may not have received the most competitive pricing due to the limited competition structure. The duration of the contract (over 3 years) means potential overpayment or underpayment could have a sustained impact. Lack of transparency in the exclusion of sources could lead to perceptions of unfairness in government contracting.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition method
- Lack of clear per-unit cost data for value assessment
- No indication of small business participation
Positive Signals
- Firm Fixed Price contract type provides cost certainty
- Awarded by a major agency (DoD)
Sector Analysis
This contract falls under IT services, specifically cloud credit management. Spending in this sector has surged, making competitive pricing and efficient contract vehicles crucial for agencies like DARPA to manage cloud resources effectively.
Small Business Impact
The data provided does not indicate any specific set-aside for small businesses, nor does it mention any small business participation. Further review is needed to determine if small businesses had an opportunity to compete or participate in this contract.
Oversight & Accountability
The 'Full and Open Competition After Exclusion of Sources' method requires careful oversight to ensure the exclusion was justified and that the competition, though limited, was fair and resulted in the best value. Accountability for the pricing and service delivery rests with DARPA.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Defense Advanced Research Projects Agency Programs
Risk Flags
- Limited competition raises value concerns.
- Lack of transparency in source exclusion.
- No clear small business participation noted.
- Potential for suboptimal pricing due to competition structure.
Tags
other-computer-related-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.7 million to FOUR POINTS TECHNOLOGY, L.L.C.. CLOUD CREDIT 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 Defense (Defense Advanced Research Projects Agency).
What is the total obligated amount?
The obligated amount is $21.7 million.
What is the period of performance?
Start: 2020-07-29. End: 2024-07-31.
What was the justification for excluding specific sources in this 'Full and Open Competition After Exclusion of Sources' award, and how did this impact the final price achieved?
The justification for excluding sources is critical. If exclusions were not well-founded, it could indicate a less competitive environment, potentially leading to higher prices than could have been achieved through broader competition. Understanding the rationale is key to assessing if the $21.6 million represents fair market value and taxpayer efficiency.
How does the per-unit cost of these cloud credits compare to industry benchmarks or other government contracts for similar services, given the $21.6 million total award?
Without specific per-unit cost data, a direct comparison is challenging. However, the total award of $21.6 million over approximately four years suggests a significant expenditure. Benchmarking against similar cloud credit service contracts, both within and outside the government, is essential to determine if the pricing is competitive and offers good value for taxpayer money.
What mechanisms are in place to ensure the effectiveness and efficiency of the cloud credit services provided under this contract, and how is performance measured?
Effectiveness is typically measured through performance metrics defined in the contract's statement of work. For cloud credit services, this could include uptime, cost savings realized, and adherence to usage policies. Oversight by DARPA should involve regular performance reviews and audits to ensure the services are meeting objectives and that the $21.6 million is being spent effectively.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
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: $23,156,382
Exercised Options: $23,156,382
Current Obligation: $21,657,945
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: NNG15SD22B
IDV Type: GWAC
Timeline
Start Date: 2020-07-29
Current End Date: 2024-07-31
Potential End Date: 2024-07-31 00:00:00
Last Modified: 2024-12-06
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