Dod's $48.6M IT Contract for Rein Suta Cache ENT for Ovms(chcs) Awarded to Four Points Technology, L.L.C

Contract Overview

Contract Amount: $48,606,616 ($48.6M)

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

Awarding Agency: Department of Defense

Start Date: 2016-06-29

End Date: 2019-09-30

Contract Duration: 1,188 days

Daily Burn Rate: $40.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: REIN SUTA CACHE ENT FOR OVMS(CHCS) - SDD

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $48.6 million to FOUR POINTS TECHNOLOGY, L.L.C. for work described as: REIN SUTA CACHE ENT FOR OVMS(CHCS) - SDD Key points: 1. The contract's value of $48.6 million over approximately three years suggests a significant investment in IT infrastructure. 2. Awarded under full and open competition, this contract likely benefited from a competitive bidding process, potentially leading to better pricing. 3. The fixed-price nature of the contract shifts performance risk to the contractor, incentivizing efficient delivery. 4. The contract's duration of nearly three years indicates a need for sustained IT support services. 5. The NAICS code 541519 points to a focus on 'Other Computer Related Services,' a broad category within the IT sector. 6. The absence of small business set-aside flags suggests this contract was not specifically targeted to boost small business participation.

Value Assessment

Rating: good

The contract's total value of $48.6 million for nearly three years of IT support services appears reasonable given the scope. Benchmarking against similar IT service contracts within the Department of Defense would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for the government when requirements are well-defined, as it caps costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This typically leads to a wider range of proposals and potentially more competitive pricing. The fact that there were 2 bids received suggests a moderate level of competition for this particular contract.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation from multiple vendors.

Public Impact

Military healthcare systems benefit from enhanced IT infrastructure and support, potentially improving data management and operational efficiency. The services delivered likely support the Defense Health Agency's mission-critical IT operations, ensuring the availability of essential systems. The geographic impact is likely nationwide, supporting military health facilities and personnel across various locations. Workforce implications may include the need for specialized IT personnel within the contractor organization to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the incumbent contractor's solution becomes deeply integrated.
Risk of cost overruns if the scope of 'Other Computer Related Services' expands beyond initial expectations.
Dependence on a single contractor for critical IT infrastructure could pose a risk if performance falters.

Positive Signals

Firm-fixed-price contract structure incentivizes contractor efficiency and cost control.
Awarded through full and open competition, suggesting a competitive process that likely secured a fair price.
The contract duration indicates a stable, long-term need for these IT services, suggesting strategic planning by the agency.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer-related services. The IT services market is vast and highly competitive, with government contracts representing a significant portion of spending. Comparable spending benchmarks would involve analyzing other large IT support contracts awarded by defense agencies for similar systems or services.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in this specific contract are limited unless they are part of a larger bid or subcontracting effort initiated by the prime contractor.

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 contract terms, including performance standards and payment schedules. Transparency is facilitated through contract award databases, though specific performance details may be sensitive.

Related Government Programs

Defense Health Information Technology
Military Health System IT Modernization
CHCS (Composite Health Care System) Support
IT Infrastructure Support Contracts
DoD Enterprise IT Services

Risk Flags

Contract performance risk
Potential for scope creep
Vendor lock-in concerns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.6 million to FOUR POINTS TECHNOLOGY, L.L.C.. REIN SUTA CACHE ENT FOR OVMS(CHCS) - SDD

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 $48.6 million.

What is the period of performance?

Start: 2016-06-29. End: 2019-09-30.

What is the track record of FOUR POINTS TECHNOLOGY, L.L.C. with similar government contracts?

FOUR POINTS TECHNOLOGY, L.L.C. has a history of performing government contracts, primarily within the IT services domain. Analyzing their past performance on contracts of similar size, scope, and duration, particularly those with the Department of Defense or other federal agencies, would reveal their reliability and ability to meet performance expectations. Specific metrics such as on-time delivery, quality of service, and adherence to budget on previous engagements are crucial for assessing their track record. A review of past performance evaluations and any reported contract disputes or terminations would provide further insight into their capabilities and potential risks associated with awarding them this contract.

How does the pricing of this contract compare to similar IT support services in the federal market?

To assess the pricing, a comparison would be made against similar IT support contracts awarded by the Department of Defense or other federal agencies over the past 1-3 years. Key metrics for comparison include the average hourly rates for different labor categories (if applicable), the cost per system supported, or the cost per user. Given this is a firm-fixed-price contract, the comparison would focus on the total contract value relative to the scope of work and expected deliverables. If detailed cost breakdowns were available, they could be benchmarked against industry standards for IT services. The number of bids received (2) might suggest that the pricing was competitive, but without more data, it's difficult to definitively state if it represents optimal value.

What are the primary risks associated with this contract and how are they being mitigated?

Primary risks include potential performance issues from the contractor, such as delays or subpar service quality, which could impact critical military health IT systems. Another risk is the potential for scope creep if the definition of 'Other Computer Related Services' is not tightly managed, leading to cost increases or schedule delays, though the firm-fixed-price structure aims to mitigate this. Contractor dependency is also a risk; if FOUR POINTS TECHNOLOGY, L.L.C. underperforms, the Defense Health Agency could face significant disruption. Mitigation strategies likely involve robust contract oversight, clear performance metrics, regular progress reviews, and defined penalties or remedies for non-performance as stipulated in the contract.

How effective has the Defense Health Agency been in managing IT contracts of this nature?

The effectiveness of the Defense Health Agency (DHA) in managing IT contracts of this nature can be assessed by examining the historical performance of their IT procurements. Factors to consider include the success rate of contract completions, the frequency of contract modifications or disputes, and the overall satisfaction with the IT services delivered. DHA's mission-critical role in supporting military health necessitates reliable IT infrastructure, so their ability to manage complex IT contracts is paramount. Analyzing trends in their IT spending, the types of contracts they utilize (e.g., fixed-price vs. cost-plus), and the outcomes of competitive bidding processes can provide insights into their management effectiveness.

What has been the historical spending trend for 'Other Computer Related Services' within the Department of Defense?

Historical spending trends for 'Other Computer Related Services' (NAICS 541519) within the Department of Defense (DoD) would reveal the agency's investment patterns in this category. Analyzing spending over the past 5-10 years would show whether this area is growing, shrinking, or remaining stable. Significant increases might indicate a greater reliance on external IT support or a shift towards specialized services. Conversely, a decrease could suggest insourcing of services or a move towards different technological solutions. This trend analysis helps contextualize the $48.6 million award as part of a larger strategic investment or a specific initiative.

What is the potential impact of this contract on the broader IT services market for defense contractors?

This $48.6 million contract awarded to FOUR POINTS TECHNOLOGY, L.L.C. for IT services represents a significant opportunity for the contractor and influences the competitive landscape for other defense IT providers. For FOUR POINTS TECHNOLOGY, L.L.C., it solidifies their position as a key IT service provider to the Defense Health Agency. For competitors, it highlights the demand for 'Other Computer Related Services' within the defense sector and may spur them to enhance their offerings or bidding strategies for future opportunities. The success or failure of this contract could also set precedents for future procurements in terms of pricing, performance expectations, and technology adoption within the military health system.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

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: $48,606,616

Exercised Options: $48,606,616

Current Obligation: $48,606,616

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: HHSN316201500034W

IDV Type: GWAC

Timeline