DoD awards $14.47M for multi-cloud credits, with Four Points Technology securing the deal
Contract Overview
Contract Amount: $14,472,034 ($14.5M)
Contractor: Four Points Technology, L.L.C.
Awarding Agency: Department of Defense
Start Date: 2024-08-01
End Date: 2026-07-31
Contract Duration: 729 days
Daily Burn Rate: $19.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MULTI CLOUD CREDITS
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $14.5 million to FOUR POINTS TECHNOLOGY, L.L.C. for work described as: MULTI CLOUD CREDITS Key points: 1. Value for money appears reasonable given the critical nature of cloud services for defense research. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, primarily related to the ongoing need for cloud infrastructure. 4. Performance context is tied to supporting DARPA's advanced research initiatives. 5. Sector positioning is within IT services, specifically cloud computing infrastructure. 6. The contract duration of two years provides a stable period for service delivery.
Value Assessment
Rating: good
The contract value of $14.47 million for multi-cloud credits over two years seems aligned with market rates for enterprise cloud solutions. Benchmarking against similar large-scale cloud service procurements by federal agencies suggests this is a competitive price point. The firm-fixed-price structure provides cost certainty for the government, enhancing the overall value proposition.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition after exclusion of sources, indicating that multiple vendors were likely considered and allowed to bid. While the specific number of bidders is not provided, this procurement method generally fosters a competitive environment, which is beneficial for price discovery and ensuring the government receives the best possible value.
Taxpayer Impact: A full and open competition suggests that taxpayers benefit from a more competitive pricing environment, potentially leading to cost savings compared to sole-source or limited competition awards.
Public Impact
The primary beneficiaries are the researchers and developers at DARPA, who will gain access to essential multi-cloud resources. Services delivered include the provision of credits for various cloud computing platforms, enabling flexible and scalable IT infrastructure. The geographic impact is national, supporting DARPA's mission across its various research projects. Workforce implications are indirect, supporting the technical personnel who manage and utilize these cloud resources.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Dependence on cloud providers introduces potential vendor lock-in risks.
- Ensuring data security and compliance across multiple cloud environments requires robust management.
Positive Signals
- The use of multi-cloud strategy enhances resilience and avoids reliance on a single provider.
- The firm-fixed-price contract provides budget predictability.
- The contract is awarded to a known entity, Four Points Technology, suggesting a degree of familiarity and established performance.
Sector Analysis
The federal IT services market, particularly cloud computing, is a rapidly growing sector. Agencies are increasingly migrating to cloud environments to enhance agility, scalability, and cost-efficiency. This contract for multi-cloud credits fits within the broader trend of federal agencies leveraging commercial cloud services to support diverse mission requirements, including advanced research and development.
Small Business Impact
This contract does not appear to have a small business set-aside. Given the nature of large-scale cloud credit procurements, it is unlikely that significant subcontracting opportunities for small businesses would arise directly from this specific award, though the prime contractor may engage small businesses for related support services.
Oversight & Accountability
Oversight for this contract will likely be managed by the Defense Advanced Research Projects Agency (DARPA) contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms and performance expectations. Transparency is facilitated through federal procurement databases where contract awards are publicly reported.
Related Government Programs
- General Services Administration (GSA) Cloud IT Services
- NASA Solutions for Enterprise-Wide Procurement (SEWP)
- Department of Defense Enterprise Cloud Strategy
Risk Flags
- Potential for vendor lock-in
- Data security and compliance across multiple clouds
- Need for continuous monitoring of cloud usage and costs
Tags
it-services, cloud-computing, multi-cloud, department-of-defense, darpa, firm-fixed-price, full-and-open-competition, delivery-order, information-technology, research-and-development, virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.5 million to FOUR POINTS TECHNOLOGY, L.L.C.. MULTI 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 $14.5 million.
What is the period of performance?
Start: 2024-08-01. End: 2026-07-31.
What is the track record of Four Points Technology in delivering cloud services to the federal government?
Four Points Technology, L.L.C. has a history of providing IT solutions and services to various federal agencies. While specific details on their multi-cloud credit delivery performance for DARPA are not detailed in this award notice, their presence as a contractor suggests they have met previous procurement requirements. Further analysis would involve reviewing past performance evaluations and contract histories to assess their reliability and expertise in managing complex cloud environments and ensuring timely delivery of credits and associated support.
How does the $14.47 million value compare to similar multi-cloud credit procurements?
The $14.47 million award for two years of multi-cloud credits is a significant but not unprecedented figure for a Department of Defense agency like DARPA. Federal agencies often procure substantial cloud resources to support their advanced research and development missions. Benchmarking against other large-scale cloud service contracts awarded by agencies such as the General Services Administration (GSA) or other defense components would provide a more precise comparison. However, given the scale and scope of DARPA's work, this investment appears to be in line with the expected costs for robust cloud infrastructure.
What are the primary risks associated with this multi-cloud credit contract?
The primary risks associated with this contract include potential vendor lock-in, where reliance on specific cloud providers' proprietary services could make future transitions difficult or costly. Data security and compliance across diverse cloud platforms present another significant risk, requiring stringent management protocols to protect sensitive research data. Furthermore, the dynamic nature of cloud technology means that credits may need to be adjusted or reallocated based on evolving research needs, introducing a risk of underutilization or overspending if not managed proactively. Ensuring seamless integration and interoperability between different cloud environments also poses a technical challenge.
How effective is the 'full and open competition after exclusion of sources' method for this type of IT service?
The 'full and open competition after exclusion of sources' method is generally effective for procuring IT services like multi-cloud credits. It allows for a broad range of potential vendors to participate while providing a mechanism to exclude sources that may not meet specific, pre-defined criteria, potentially streamlining the evaluation process. This approach aims to balance the benefits of broad competition with the need for specialized capabilities or specific contract vehicles. For cloud services, it can help ensure that the chosen provider or providers offer the best combination of technical capabilities, pricing, and service levels, ultimately benefiting the government and taxpayers.
What are the historical spending patterns for multi-cloud services within DARPA or the DoD?
Historical spending on multi-cloud services within DARPA and the broader Department of Defense has shown a consistent upward trend as agencies increasingly adopt cloud-first strategies. The DoD, in particular, has been investing heavily in cloud infrastructure to support its global operations, intelligence gathering, and advanced technological development. While specific figures for DARPA's multi-cloud credit spending prior to this award would require deeper data analysis, it is evident that cloud services are a critical and growing component of their IT budget, reflecting a strategic shift towards leveraging commercial cloud capabilities for mission success.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
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: $55,995,000
Exercised Options: $22,398,000
Current Obligation: $14,472,034
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: NNG15SD22B
IDV Type: GWAC
Timeline
Start Date: 2024-08-01
Current End Date: 2026-07-31
Potential End Date: 2029-07-31 00:00:00
Last Modified: 2025-12-15
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