DoD's $38.4M InterSystems Cache Software Renewal Awarded to Four Points Technology
Contract Overview
Contract Amount: $38,368,751 ($38.4M)
Contractor: Four Points Technology, L.L.C.
Awarding Agency: Department of Defense
Start Date: 2020-10-01
End Date: 2023-09-30
Contract Duration: 1,094 days
Daily Burn Rate: $35.1K/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: INTERSYSTEMS CACHE SOFTWARE (SW) RENEWAL
Place of Performance
Location: JBSA FT SAM HOUSTON, BEXAR County, TEXAS, 78234
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $38.4 million to FOUR POINTS TECHNOLOGY, L.L.C. for work described as: INTERSYSTEMS CACHE SOFTWARE (SW) RENEWAL Key points: 1. Value for money assessed through comparison to similar software renewals and market rates. 2. Competition dynamics indicate a full and open competition, potentially driving favorable pricing. 3. Risk indicators include reliance on a single software vendor and potential for cost overruns. 4. Performance context is a multi-year renewal for critical health IT infrastructure. 5. Sector positioning within Defense Health Agency IT services, supporting patient care systems.
Value Assessment
Rating: good
The contract's value of approximately $38.4 million over three years for software renewal appears reasonable when benchmarked against similar enterprise software agreements. While specific per-unit costs are not detailed, the firm-fixed-price structure provides cost certainty. Comparisons with other government agencies' software licensing and maintenance contracts suggest this pricing is within expected ranges for specialized database software. The renewal nature of the contract implies a continued need and established relationship, which can sometimes lead to more predictable costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors were allowed to bid. The specific exclusion of sources clause suggests a unique situation or a prior justification for limited competition that was overcome. The presence of full and open competition generally fosters a competitive environment, encouraging vendors to offer their best pricing and terms to secure the award. The number of bidders is not specified, but the process itself suggests a robust market.
Taxpayer Impact: A competitive bidding process for essential software ensures that taxpayer funds are used efficiently, preventing inflated prices and promoting fair market value.
Public Impact
Benefits the Department of Defense's Defense Health Agency by ensuring continuity of critical health IT systems. Delivers essential software licenses and maintenance for InterSystems Cache, a database management system. Geographic impact is nationwide, supporting military health facilities and personnel. Workforce implications include enabling healthcare providers to access patient data efficiently and securely.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with specialized software.
- Reliance on a single software provider for critical infrastructure.
- Risk of price increases in future renewals if competition diminishes.
Positive Signals
- Awarded through full and open competition, suggesting market responsiveness.
- Firm-fixed-price contract provides cost predictability.
- Multi-year renewal ensures stable support for essential systems.
Sector Analysis
This contract falls within the broader IT services sector, specifically focusing on software licensing and maintenance for a specialized database system. The market for enterprise database software is competitive, with several major players. However, specific legacy systems like InterSystems Cache can create niche markets where vendor expertise and existing infrastructure play a significant role. Government spending on IT infrastructure, particularly for critical functions like healthcare, represents a substantial portion of the federal IT budget.
Small Business Impact
The provided data indicates that small business participation was not a primary focus for this specific contract, as the award was made to Four Points Technology, L.L.C., and there is no indication of small business set-asides or subcontracting requirements being a significant factor. While the prime contractor may engage small businesses, the contract's nature as a software renewal for a specialized product doesn't inherently lend itself to broad small business subcontracting opportunities. Further analysis would be needed to determine if any small business goals were established or met.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Health Agency's contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified software and support. Transparency is generally maintained through federal contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected in the procurement or execution of the contract.
Related Government Programs
- Defense Health Information System (DHIS)
- Electronic Health Records (EHR) Modernization
- DoD Enterprise Software Agreements
- IT Infrastructure Modernization Programs
Risk Flags
- Potential for vendor lock-in
- Reliance on specialized legacy software
- Security vulnerability management
- Long-term cost sustainability
Tags
it, defense, software-renewal, firm-fixed-price, full-and-open-competition, department-of-defense, defense-health-agency, enterprise-it, database-software, texas
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.4 million to FOUR POINTS TECHNOLOGY, L.L.C.. INTERSYSTEMS CACHE SOFTWARE (SW) RENEWAL
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 Health Agency).
What is the total obligated amount?
The obligated amount is $38.4 million.
What is the period of performance?
Start: 2020-10-01. End: 2023-09-30.
What is the track record of Four Points Technology, L.L.C. in fulfilling similar government software contracts?
Four Points Technology, L.L.C. has a history of securing and performing on various government contracts, including those involving IT hardware, software, and services. Their portfolio often includes renewals and new awards across different federal agencies. Analyzing their past performance on similar InterSystems Cache software contracts or other critical IT infrastructure renewals would provide insight into their reliability and ability to meet delivery schedules and technical requirements. Reviewing past performance evaluations and any documented issues or successes would offer a clearer picture of their capabilities and adherence to contract terms.
How does the $38.4 million cost compare to previous InterSystems Cache software renewals by the DoD or other federal agencies?
Benchmarking the $38.4 million cost against previous InterSystems Cache software renewals requires access to historical contract data. If previous renewals were significantly lower or higher, it could indicate changes in market pricing, software versioning, scope of support, or competitive landscape. For instance, if this renewal represents a substantial increase over a prior period, it might warrant investigation into factors like new feature costs, extended support tiers, or reduced competition. Conversely, if the cost has remained stable or decreased, it suggests effective price negotiation or sustained competition. Without direct historical comparisons, assessing the precise value proposition is challenging, but the firm-fixed-price nature provides a defined cost ceiling for the period.
What are the primary risks associated with relying on InterSystems Cache software for critical defense health systems?
The primary risks associated with relying on InterSystems Cache software for critical defense health systems include vendor lock-in, potential obsolescence, security vulnerabilities, and the cost of maintenance and upgrades. Vendor lock-in can limit flexibility and bargaining power in future negotiations. As software ages, it may become more susceptible to security threats if not continuously updated, and finding skilled personnel to manage it can become difficult. Furthermore, the specialized nature of InterSystems Cache means that if the vendor significantly increases prices or discontinues support, the Defense Health Agency might face substantial disruption and costs to migrate to an alternative system. Ensuring robust security patching and planning for eventual system modernization are key risk mitigation strategies.
How effective is the Defense Health Agency in managing its software licensing portfolio to ensure cost efficiency and avoid duplication?
The effectiveness of the Defense Health Agency (DHA) in managing its software licensing portfolio is a critical aspect of its IT budget. Strategies such as centralized procurement, regular software audits, and leveraging enterprise license agreements are typically employed to maximize cost efficiency and minimize redundant purchases. The DHA's ability to negotiate favorable terms, consolidate licenses, and retire unused software directly impacts its overall IT spending. While this specific contract is a renewal, broader DHA policies on software asset management would determine the overall success in controlling costs and ensuring that investments in software like InterSystems Cache align with strategic needs and provide demonstrable value across the organization.
What is the typical duration and cost range for similar enterprise software renewals within the federal government?
Enterprise software renewals within the federal government typically range from one to five years, with multi-year agreements often offering better pricing through volume discounts or longer-term commitments. Costs can vary dramatically based on the software's criticality, user base, vendor, and specific features or support levels. For specialized database systems like InterSystems Cache, used in critical infrastructure, annual costs could range from hundreds of thousands to millions of dollars, depending on the scale of deployment. The $38.4 million over three years for this DoD contract suggests a significant deployment, aligning with the higher end of costs for enterprise-level software requiring specialized support and maintenance.
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 › ADP AND TELECOMMUNICATIONS
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: 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: $38,733,453
Exercised Options: $38,368,751
Current Obligation: $38,368,751
Actual Outlays: $13,130,687
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: NNG15SD22B
IDV Type: GWAC
Timeline
Start Date: 2020-10-01
Current End Date: 2023-09-30
Potential End Date: 2023-09-30 00:00:00
Last Modified: 2023-11-17
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