DoD's DARPA Spends $45.4M on Cloud Credits via Full and Open Competition
Contract Overview
Contract Amount: $45,417,455 ($45.4M)
Contractor: Four Points Technology, L.L.C.
Awarding Agency: Department of Defense
Start Date: 2021-12-20
End Date: 2026-07-31
Contract Duration: 1,684 days
Daily Burn Rate: $27.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: TECHNICAL OFFICE CLOUD CREDITS
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $45.4 million to FOUR POINTS TECHNOLOGY, L.L.C. for work described as: TECHNICAL OFFICE CLOUD CREDITS Key points: 1. Significant investment in cloud infrastructure for advanced research. 2. Competition method suggests potential for good pricing, but details are limited. 3. Risk of cost overruns exists with long-term cloud service contracts. 4. IT services sector, specifically cloud computing, is a growing area of government spending.
Value Assessment
Rating: good
The contract's firm-fixed-price structure provides cost certainty. However, without specific unit cost data or benchmarks for cloud credits, a precise value assessment is difficult. The total award value of $45.4M over nearly 7 years suggests a substantial, but not necessarily excessive, annual spend.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a competitive process was employed. This method aims to achieve fair market prices by allowing multiple vendors to bid, though the 'exclusion of sources' clause warrants further scrutiny.
Taxpayer Impact: The competitive nature of the award is intended to ensure taxpayer funds are used efficiently, driving down costs through market forces.
Public Impact
Supports advanced research and development initiatives within DARPA. Ensures access to scalable and flexible computing resources. Potential for innovation spurred by cloud-based technologies. Long-term commitment may impact future technology adoption strategies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (nearly 7 years) could lead to price increases or technology obsolescence.
- Reliance on a single vendor for cloud credits might create lock-in.
- Lack of specific performance metrics makes it hard to gauge efficiency.
Positive Signals
- Full and open competition generally leads to better pricing.
- Firm-fixed-price contract provides budget predictability.
- Cloud services enable agility and scalability for research projects.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on cloud computing services. Government spending on cloud services has been steadily increasing as agencies recognize the benefits of scalability, flexibility, and cost-efficiency compared to traditional on-premise infrastructure.
Small Business Impact
The data indicates the primary contractor is Four Points Technology, L.L.C. There is no explicit information provided regarding small business participation or subcontracting goals within this specific contract award. Further investigation would be needed to determine the extent of small business involvement.
Oversight & Accountability
The contract was awarded by DARPA, a high-level research agency within the Department of Defense. Oversight would typically involve program managers monitoring service delivery and adherence to contract terms. The 'exclusion of sources' clause suggests a specific justification was made, which should be documented and auditable.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Defense Advanced Research Projects Agency Programs
Risk Flags
- Potential for vendor lock-in due to long-term contract.
- Risk of price escalation over the contract's duration.
- Lack of detailed service specifics makes value assessment difficult.
- 'Exclusion of sources' requires careful justification and oversight.
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 $45.4 million to FOUR POINTS TECHNOLOGY, L.L.C.. TECHNICAL OFFICE CLOUD CREDITS
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 $45.4 million.
What is the period of performance?
Start: 2021-12-20. End: 2026-07-31.
What specific cloud services are being procured, and how do their costs compare to industry benchmarks for similar government or commercial contracts?
The data identifies the purchase as 'TECHNICAL OFFICE CLOUD CREDITS' but lacks specifics on the type of credits (e.g., compute, storage, specific platforms). Without this detail and comparable market data, it's challenging to definitively assess if the $45.4M award represents optimal value. Benchmarking against GSA schedules or other agency cloud BPA's would be necessary.
What risks are associated with the 'exclusion of sources' clause in this full and open competition, and how were they mitigated?
Excluding sources, even within a full and open framework, can limit competition and potentially increase prices if the exclusion isn't well-justified. Mitigation likely involved demonstrating a compelling reason for exclusion, such as unique capabilities or prior investment, to ensure the government still received fair value and met its requirements effectively.
How effectively are these cloud credits enabling DARPA's research objectives, and is there a mechanism to adjust spending based on research outcomes?
The effectiveness hinges on how well the cloud resources align with DARPA's project needs and timelines. While the firm-fixed-price structure offers budget certainty, it might lack flexibility if research pivots require different cloud resources or less capacity. Performance metrics and regular reviews would be key to ensuring alignment and value realization.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - STORAGE
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 7
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: $56,944,152
Exercised Options: $52,544,152
Current Obligation: $45,417,455
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: NNG15SC74B
IDV Type: GWAC
Timeline
Start Date: 2021-12-20
Current End Date: 2026-07-31
Potential End Date: 2026-07-31 00:00:00
Last Modified: 2026-01-15
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