DoD's $28.5M software contract awarded to Four Points Technology, L.L.C. for MHS SAAS Capability

Contract Overview

Contract Amount: $28,507,366 ($28.5M)

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

Awarding Agency: Department of Defense

Start Date: 2012-09-28

End Date: 2016-03-28

Contract Duration: 1,277 days

Daily Burn Rate: $22.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BASE PERIOD- MHS SM SAAS CAPABILITY

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $28.5 million to FOUR POINTS TECHNOLOGY, L.L.C. for work described as: BASE PERIOD- MHS SM SAAS CAPABILITY Key points: 1. The contract's value appears reasonable given the scope of providing software as a service for the Military Health System. 2. Full and open competition was utilized, suggesting a competitive bidding process that should have driven favorable pricing. 3. The contract duration of approximately 3.5 years (1277 days) is typical for software sustainment and development. 4. The award was a delivery order under a larger contract, indicating a structured procurement process. 5. The fixed-price nature of the contract shifts performance risk to the contractor. 6. The contractor, Four Points Technology, L.L.C., has experience in government contracting, though specific performance on this contract requires further review.

Value Assessment

Rating: good

Benchmarking the exact value of this specific software-as-a-service contract is challenging without detailed service level agreements and feature sets. However, the total value of $28.5 million over approximately 3.5 years suggests an average annual spend of around $8.1 million. This figure is within a reasonable range for enterprise-level software solutions supporting critical government functions like the Military Health System. The firm-fixed-price structure implies that the contractor is responsible for delivering the defined scope within the agreed budget, which is a positive indicator for value realization.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The fact that it was a delivery order suggests it was likely competed as part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar vehicle. The number of bidders is not specified, but full and open competition generally fosters a competitive environment that can lead to better pricing and innovation.

Taxpayer Impact: Full and open competition is the most taxpayer-friendly approach, as it maximizes the pool of potential offerors and encourages competitive pricing, ultimately aiming to secure the best value for government funds.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who will receive enhanced capabilities for the Military Health System. The contract delivers software-as-a-service (SAAS) capabilities, likely improving the efficiency and effectiveness of health system management. The geographic impact is broad, covering all users within the Military Health System, which spans across various military installations globally. Workforce implications include potential support roles for the contractor's personnel and the utilization of the software by military healthcare professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data makes it difficult to assess the quality and timeliness of service delivery.
The provided data does not detail the specific software functionalities, making it hard to evaluate if the solution is state-of-the-art or if more cost-effective alternatives exist.
The contract is a delivery order, which means its performance is contingent on the terms of the parent contract, whose details are not provided.

Positive Signals

Awarded under full and open competition, indicating a robust and fair bidding process.
Firm-fixed-price contract type, which transfers cost overrun risk to the contractor.
The contractor, Four Points Technology, L.L.C., is an established entity in the government contracting space.
The contract supports a critical function within the Department of Defense (Military Health System).

Sector Analysis

The IT services sector, particularly software-as-a-service (SAAS) for government clients, is a significant and growing market. This contract falls within the broader category of IT services and software procurement, which represents a substantial portion of federal IT spending. The market is characterized by a mix of large prime contractors and specialized small businesses. Government spending in this area is driven by the need for modernization, cybersecurity, and improved operational efficiency across various agencies. Comparable spending benchmarks would typically involve analyzing other SAAS contracts for large enterprise systems within the federal government, particularly those supporting complex operational needs.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting requirements for small businesses mandated by this specific award. The impact on the small business ecosystem is indirect; while Four Points Technology, L.L.C. may choose to subcontract with small businesses, it is not a contractual obligation stemming from this particular award. The focus of this contract is on a large-scale IT solution, which typically involves larger prime contractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army contracting officers and program managers responsible for the Military Health System's IT infrastructure. As a delivery order under a potentially larger contract, oversight mechanisms would be defined by the parent contract's terms. Transparency is generally facilitated through contract award databases like FPDS. Accountability measures are inherent in the firm-fixed-price structure, where the contractor is liable for performance. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Health System (MHS) IT Modernization Programs
Department of Defense Enterprise Software Agreements
Federal Health IT Initiatives
General Services Administration (GSA) IT Schedule Contracts

Risk Flags

Contract awarded as a delivery order, requiring review of parent contract terms.
Limited public information on specific performance metrics for this SAAS capability.
Need for further analysis on contractor's specific SAAS performance history within DoD.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.5 million to FOUR POINTS TECHNOLOGY, L.L.C.. BASE PERIOD- MHS SM SAAS CAPABILITY

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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $28.5 million.

What is the period of performance?

Start: 2012-09-28. End: 2016-03-28.

What specific software functionalities does this contract provide for the Military Health System?

The provided data identifies the contract as being for 'MHS SM SAAS CAPABILITY' (Military Health System Software Management Software as a Service Capability). However, the specific functionalities are not detailed. Typically, SAAS for a health system could encompass a wide range of services, including electronic health records (EHR) management, patient scheduling, pharmacy management, medical logistics, data analytics for population health, and administrative functions. Without access to the Statement of Work (SOW) or Performance Work Statement (PWS) for this delivery order, the precise capabilities delivered remain unspecified. Further investigation into the parent contract or related documentation would be necessary to ascertain the exact software features and services provided.

How does the $28.5 million contract value compare to similar MHS SAAS procurements?

Directly comparing the $28.5 million value of this specific delivery order to other MHS SAAS procurements is challenging without knowing the exact scope, duration, and service level agreements (SLAs) of comparable contracts. The provided data indicates a duration of approximately 3.5 years (1277 days), suggesting an average annual spend of roughly $8.1 million. This figure is within a plausible range for enterprise-level software solutions supporting complex federal operations. However, the MHS is a vast system, and different components might have varying IT needs and associated costs. To provide a robust comparison, one would need to analyze other MHS SAAS contracts, potentially looking at contracts for EHR systems, health informatics platforms, or other critical health IT infrastructure, while accounting for differences in scale, features, and contract type.

What is the track record of Four Points Technology, L.L.C. with Department of Defense contracts, particularly in SAAS?

Four Points Technology, L.L.C. is a registered government contractor with a history of awards across various federal agencies, including the Department of Defense. While the provided data confirms their award for this MHS SAAS Capability contract, a comprehensive assessment of their track record would require examining their past performance on similar contracts. This would involve reviewing contract databases for details on previous awards, contract values, performance ratings (if available), and any reported issues or successes. Specifically for SAAS and health IT, understanding their experience in delivering complex, secure, and reliable software solutions within the stringent requirements of the DoD is crucial. A deeper dive into their contract history would reveal the extent of their expertise and reliability in this specialized domain.

What are the potential risks associated with this contract, given it's a delivery order under a larger contract?

One primary risk associated with this contract being a delivery order is the dependency on the terms and conditions of the parent contract. If the parent contract has limitations, unfavorable terms, or is subject to termination, it could impact this delivery order. Additionally, the specific performance metrics and quality standards for this SAAS capability are defined within the parent contract or the delivery order's SOW/PWS. If these are not clearly defined or adequately monitored, there's a risk of the delivered capability not meeting the MHS's evolving needs. Furthermore, the long-term viability and sustainment of the SAAS solution depend on the overall strategy and funding allocated to the parent contract vehicle. Changes in government priorities or budget constraints could affect the continuation or enhancement of the services provided under this order.

How does the firm-fixed-price contract type influence the risk and value proposition for the government?

The firm-fixed-price (FFP) contract type is generally advantageous for the government when the scope of work is well-defined and unlikely to change significantly. It shifts the risk of cost overruns from the government to the contractor, Four Points Technology, L.L.C. This means the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. This structure provides budget certainty for the government and incentivizes the contractor to manage costs efficiently. For the government, the value proposition is enhanced by this cost certainty and the contractor's motivation to perform efficiently to maintain profitability. However, if the scope is poorly defined or unforeseen issues arise, the contractor may face financial difficulties, potentially impacting performance or leading to disputes.

What is the historical spending pattern for MHS SAAS capabilities within the Department of Defense?

Analyzing historical spending patterns for MHS SAAS capabilities within the DoD requires access to comprehensive federal procurement data over multiple fiscal years. While this specific contract represents $28.5 million over approximately 3.5 years, understanding the broader trend involves looking at aggregate spending on similar SAAS solutions for health systems. The DoD's IT budget is substantial, and investments in modernizing health IT infrastructure, including SAAS, have been a consistent priority. Spending in this area is influenced by factors such as the need for interoperability, data security, telehealth expansion, and improved patient care delivery. Without specific historical data aggregated for MHS SAAS, it's difficult to pinpoint precise trends, but it's reasonable to assume a growing investment in cloud-based solutions to enhance agility and reduce infrastructure overhead.

Industry Classification

NAICS: Wholesale Trade › Professional and Commercial Equipment and Supplies Merchant Wholesalers › Computer and Computer Peripheral Equipment and Software Merchant Wholesalers

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, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $40,705,252

Exercised Options: $28,507,366

Current Obligation: $28,507,366

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0553P

IDV Type: FSS

Timeline