DoD awards $18.1M for Intersystems Cache Software, raising questions on value and competition

Contract Overview

Contract Amount: $18,098,425 ($18.1M)

Contractor: Four Points Technology, L.L.C.

Awarding Agency: Department of Defense

Start Date: 2023-09-21

End Date: 2026-09-30

Contract Duration: 1,105 days

Daily Burn Rate: $16.4K/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

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $18.1 million to FOUR POINTS TECHNOLOGY, L.L.C. for work described as: INTERSYSTEMS CACHE SOFTWARE Key points: 1. The contract's value appears high relative to the limited scope of software licensing. 2. Competition was restricted, potentially limiting price discovery and taxpayer value. 3. Performance risks are moderate given the established nature of the software. 4. This contract supports critical defense health IT infrastructure. 5. The fixed-price nature offers some cost certainty but may limit flexibility. 6. The duration of the contract extends over three years, indicating a long-term need.

Value Assessment

Rating: questionable

Benchmarking the value of software licenses can be challenging without specific usage metrics. However, $18.1 million for Intersystems Cache software over three years suggests a significant investment. Compared to typical enterprise software agreements, this amount could be considered high if it primarily covers licensing and standard support. Without detailed breakdowns of included services or user counts, a precise value-for-money assessment is difficult. The fixed-price contract type provides cost predictability, but it's crucial to ensure the pricing reflects fair market value for the capabilities provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while a competitive process was intended, certain sources were excluded. This suggests that the initial solicitation may have had limitations or that only a subset of potential vendors were considered. The specific reasons for excluding other sources are not detailed, but this approach typically results in fewer bidders than a truly open competition. The limited number of bidders can impact the government's ability to secure the most competitive pricing.

Taxpayer Impact: Restricting the pool of potential bidders may lead to higher prices for taxpayers, as the government might not benefit from the full spectrum of market competition and innovation.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who rely on the supported health IT systems. The contract ensures continued access to and support for Intersystems Cache software, crucial for various defense health applications. Geographic impact is likely nationwide within DoD facilities utilizing these systems. Workforce implications may include IT support staff managing and maintaining the software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could result in inflated costs for taxpayers.
Lack of transparency in source exclusion hinders full value assessment.
Potential for vendor lock-in due to specialized software.

Positive Signals

Fixed-price contract provides cost certainty for the government.
Long-term contract indicates a stable and ongoing requirement.
Supports critical defense health information systems.

Sector Analysis

The market for specialized database and health IT software is competitive, with several large and niche players. Intersystems Cache is a high-performance, post-relational database often used in mission-critical applications, particularly in healthcare and financial services. The Defense Health Agency's spending on such software is part of a broader trend of increasing IT investments within the federal government to modernize systems and improve data management. Comparable spending benchmarks for enterprise software licenses can vary widely based on features, user counts, and support levels.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, Four Points Technology, L.L.C., is a small business, which is a positive signal for small business participation. However, the contract itself is not set aside for small businesses. Subcontracting opportunities for small businesses would depend on the prime contractor's strategy and the nature of the services required, which are not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Health Agency's contracting and program management offices. Accountability measures are inherent in the fixed-price contract type, requiring the contractor to deliver specified software and support. Transparency is facilitated through contract databases like FPDS, although detailed justifications for source exclusions are often not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Health Information Systems
DoD Enterprise Software Procurement
Healthcare IT Infrastructure
Database Management Systems
Federal IT Modernization Programs

Risk Flags

Limited competition may lead to suboptimal pricing.
Lack of detailed justification for source exclusion.
Potential for high cost without clear value metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.1 million to FOUR POINTS TECHNOLOGY, L.L.C.. INTERSYSTEMS CACHE SOFTWARE

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 $18.1 million.

What is the period of performance?

Start: 2023-09-21. End: 2026-09-30.

What is the specific Intersystems Cache software version and feature set being procured, and how does this align with current DoD health IT requirements?

The provided data does not specify the exact version or feature set of Intersystems Cache software. However, given its use in defense health applications, it likely supports critical functions such as electronic health records (EHRs), patient data management, and clinical decision support systems. The alignment with current requirements would necessitate a review of the Performance Work Statement (PWS) or Statement of Objectives (SOO) associated with the contract. Without this, it's difficult to ascertain if the procured software is the most current or if it includes advanced features that justify the $18.1 million cost. The contract's duration of over three years suggests a long-term need for this specific software platform.

How does the $18.1 million contract value compare to historical spending on Intersystems Cache software by the DoD or similar federal agencies?

Historical spending data for Intersystems Cache software by the DoD or similar agencies is not directly available in the provided snippet. To conduct a thorough comparison, one would need to access historical contract databases (e.g., FPDS) and search for previous awards for Intersystems Cache or comparable database solutions within defense or civilian health agencies. Factors such as contract duration, number of users, included support levels, and specific modules or features would be crucial for a meaningful comparison. A significant deviation from historical norms, especially without clear justification (like expanded scope or new features), could indicate potential issues with pricing or value.

What were the specific reasons for excluding other sources in this 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award?

The provided data indicates the contract type as 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' but does not detail the specific reasons for excluding other sources. Typically, such exclusions occur when only a limited number of vendors possess the necessary technical capabilities, security clearances, or existing infrastructure integration required for the specific requirement. Other reasons might include proprietary technology, urgent needs where only specific vendors can respond quickly, or previous performance history with a particular vendor. A formal justification document, often required for such contract types, would contain the precise rationale and would need to be reviewed for a complete understanding.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract to ensure effective delivery of Intersystems Cache software and support?

The provided data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. These are typically detailed within the Performance Work Statement (PWS) or contract clauses. For software licensing and support contracts, common KPIs might include software uptime, response times for technical support, patch and update delivery timeliness, and data integrity metrics. SLAs would define the expected level of service and potential remedies or penalties if those levels are not met. Without access to the PWS, it's impossible to assess the specific performance expectations and how contractor performance will be measured and enforced.

What is the potential impact of this contract on the broader Intersystems software ecosystem and its competitors within the federal market?

This $18.1 million award to Four Points Technology, L.L.C. for Intersystems Cache software signifies a substantial commitment by the Department of Defense to this particular platform. For the Intersystems ecosystem, it reinforces the software's position within a critical federal agency, potentially leading to further adoption or renewals. For competitors in the federal market, such as providers of other high-performance databases or specialized health IT solutions, this contract highlights a significant portion of the defense health IT budget allocated to a specific vendor. It may influence their own market strategies, pricing, and focus on demonstrating superior value or unique capabilities to capture future opportunities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HT001523Q0078

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: $23,004,873

Exercised Options: $18,098,425

Current Obligation: $18,098,425

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SD22B

IDV Type: GWAC

Timeline