VA Awards $303.6M for Intersystems Maintenance and Software Licenses Over 5 Years

Contract Overview

Contract Amount: $303,561,212 ($303.6M)

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

Awarding Agency: Department of Veterans Affairs

Start Date: 2012-10-01

End Date: 2017-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $166.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INTERSYSTEMS MAINTENANCE AND SOFTWARE LICENSES

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $303.6 million to FOUR POINTS TECHNOLOGY, L.L.C. for work described as: INTERSYSTEMS MAINTENANCE AND SOFTWARE LICENSES Key points: 1. Contract awarded to FOUR POINTS TECHNOLOGY, L.L.C. for essential IT maintenance and software. 2. Significant investment in IT infrastructure supporting veteran healthcare services. 3. Long-term contract duration suggests a critical and ongoing need for these services. 4. Fixed-price contract type aims to control costs over the performance period. 5. Competition level indicates a robust bidding process for this requirement. 6. This award represents a substantial portion of the agency's IT spending in this category.

Value Assessment

Rating: good

The contract value of $303.6 million over five years averages to approximately $60.7 million annually. Benchmarking this against similar IT maintenance and software licensing contracts within the federal government is challenging without specific service details. However, the scale of the award suggests a significant requirement. The firm fixed-price structure provides cost certainty for the VA, but the ultimate value-for-money depends on the negotiated rates and the efficiency of the services provided by FOUR POINTS TECHNOLOGY, L.L.C.

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 suggests a competitive environment where multiple vendors likely vied for the contract. The presence of full and open competition is generally favorable for price discovery and can lead to more competitive pricing as vendors strive to win the award.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which is expected to drive down costs and ensure the government receives fair market value for the IT maintenance and software licenses.

Public Impact

Veterans will benefit from reliable and up-to-date IT systems supporting their healthcare. Essential IT maintenance and software licenses ensure the continuity of critical VA operations. The contract supports IT infrastructure across the Department of Veterans Affairs. Workforce implications include the need for skilled IT professionals to manage and support these systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific proprietary software is heavily utilized.
Reliance on a single vendor for critical IT maintenance could pose continuity risks.
Ensuring ongoing cost-effectiveness of software licenses over the contract term.

Positive Signals

Award to a single vendor streamlines management and support for IT systems.
Firm fixed-price contract provides budget predictability.
Full and open competition suggests a well-vetted selection process.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on software licensing and maintenance. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and upgrading complex systems. This award represents a substantial investment in the VA's IT backbone, crucial for delivering healthcare services to veterans. Comparable spending benchmarks would typically involve analyzing IT support and software agreements across large federal agencies.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary awardee, FOUR POINTS TECHNOLOGY, L.L.C., is likely a large business. The absence of small business set-asides or subcontracting goals means there is no direct mechanism within this specific award to boost the small business ecosystem, though the prime contractor may engage small businesses independently.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract type, requiring the vendor to deliver specified services within the agreed budget. Transparency is generally facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Veterans Health Administration IT Modernization
Federal Civilian IT Procurement
Software Licensing and Maintenance Contracts
Department of Veterans Affairs Core Systems

Risk Flags

Potential for vendor lock-in
Risk of technological obsolescence
Dependence on critical IT infrastructure

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $303.6 million to FOUR POINTS TECHNOLOGY, L.L.C.. INTERSYSTEMS MAINTENANCE AND SOFTWARE LICENSES

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 Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $303.6 million.

What is the period of performance?

Start: 2012-10-01. End: 2017-09-30.

What specific software and maintenance services are covered under this $303.6 million contract?

The provided data indicates the contract is for 'INTERSYSTEMS MAINTENANCE AND SOFTWARE LICENSES.' InterSystems is a well-known provider of data management and integration technologies, often used in healthcare settings for electronic health records (EHR) and other critical systems. The maintenance likely covers support, updates, and patches for these software products, ensuring their continued operation and security. The software licenses grant the VA the right to use InterSystems' proprietary software. Without more detailed contract line item information, the exact scope of services and specific software products remain general, but it is clear the contract supports the core IT infrastructure enabling VA operations, particularly in healthcare data management.

How does the annual cost of this contract compare to other similar IT maintenance contracts within the VA or other federal agencies?

Directly comparing the annual cost of approximately $60.7 million ($303.6M / 5 years) without specific details on the scope of services, number of users, or specific software products is difficult. However, large federal agencies like the Department of Veterans Affairs often have substantial IT budgets due to the complexity and scale of their operations. Contracts for enterprise-level software licenses and comprehensive maintenance for critical systems, especially in healthcare, can run into tens or hundreds of millions of dollars annually. To provide a precise comparison, one would need to analyze contracts for similar InterSystems products or comparable EHR/data management solutions across agencies like HHS, DoD, or civilian departments, considering factors like user base, service level agreements, and contract duration.

What is the track record of FOUR POINTS TECHNOLOGY, L.L.C. in performing large federal IT contracts, particularly for the Department of Veterans Affairs?

FOUR POINTS TECHNOLOGY, L.L.C. has a history of performing federal contracts, including those with the Department of Veterans Affairs. The award of a $303.6 million contract for critical IT maintenance and software licenses indicates a level of trust and demonstrated capability by the VA. Analyzing their past performance on similar-sized contracts, especially those involving complex IT infrastructure and software support, would be crucial. Publicly available data often includes past performance evaluations and contract history, which would reveal their success rate, any past issues, and their experience with the specific technologies or services required. A review of their contract portfolio would likely show experience in IT services, potentially including hardware, software, and maintenance for government clients.

What are the potential risks associated with a five-year contract for IT maintenance and software licenses, and how are they mitigated?

Several risks are associated with long-term IT maintenance and software licensing contracts. One primary risk is technological obsolescence; the software or hardware supported might become outdated before the contract ends, requiring costly upgrades or replacements. Another risk is vendor lock-in, where the VA becomes heavily reliant on InterSystems' proprietary technology, making it difficult and expensive to switch providers. Cost escalation is also a concern, even with a fixed-price contract, if unforeseen issues arise or if the vendor's costs increase significantly. Mitigation strategies often include robust contract management, regular performance reviews, clear service level agreements (SLAs), options for technology refresh, and contingency planning for potential vendor issues or market changes. The VA would likely have clauses for addressing obsolescence and ensuring the vendor meets performance standards.

How does this contract align with the VA's broader IT modernization and digital transformation goals?

This contract for INTERSYSTEMS MAINTENANCE AND SOFTWARE LICENSES is fundamental to the VA's IT operations, particularly those related to data management and potentially electronic health records. Modernization and digital transformation efforts often rely on a stable and well-maintained foundational IT infrastructure. Ensuring the reliability and performance of core systems like those likely supported by InterSystems is a prerequisite for implementing new digital services or advanced analytics. While this contract focuses on maintenance and licensing, it provides the necessary stability and operational continuity that allows the VA to pursue more ambitious modernization projects. The effectiveness of this contract in supporting transformation depends on how well the maintained systems integrate with newer technologies and support evolving data needs.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

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: $380,001,505

Exercised Options: $303,561,212

Current Obligation: $303,561,212

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: NNG07DA16B

IDV Type: GWAC

Timeline