DoD's $30M BMC Software Contract Awarded to Four Points Technology Shows Moderate Value and Full Competition

Contract Overview

Contract Amount: $30,046,482 ($30.0M)

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

Awarding Agency: Department of Defense

Start Date: 2010-09-29

End Date: 2013-09-29

Contract Duration: 1,096 days

Daily Burn Rate: $27.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BMC ENTERPRISE SW AND MAINTENANCE SUPPORT

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $30.0 million to FOUR POINTS TECHNOLOGY, L.L.C. for work described as: BMC ENTERPRISE SW AND MAINTENANCE SUPPORT Key points: 1. The contract's value appears reasonable when benchmarked against similar IT support agreements. 2. Full and open competition was utilized, suggesting a healthy market dynamic for this type of software. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance duration of three years provides a stable support period for critical software. 5. This contract falls within the broader IT sector, specifically supporting enterprise software needs. 6. The award to a single vendor, Four Points Technology, indicates their competitive success in this bid.

Value Assessment

Rating: good

The total award of approximately $30 million over three years for BMC enterprise software and maintenance support appears to be within a reasonable range for similar government IT contracts. While specific per-unit costs for software licenses and maintenance are not detailed, the firm fixed-price structure suggests that the government secured predictable costs. Benchmarking against other large-scale enterprise software procurements indicates that this contract's overall value is competitive, especially considering the criticality of the software being supported.

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 a bid. The fact that it was competed suggests that multiple vendors were capable of providing the required BMC enterprise software and maintenance support. The specific number of bidders is not provided, but the competitive process is a positive indicator for price discovery and ensuring the government receives a fair market price.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that drives down prices and encourages innovation among vendors, leading to better value for public funds.

Public Impact

The Department of the Army is the primary beneficiary, receiving essential software and maintenance for its operations. This contract ensures the continued availability and support of critical BMC enterprise software, likely used for IT service management, operations, and automation. The geographic impact is primarily within the Department of the Army's operational footprint, supporting its IT infrastructure nationwide. Workforce implications include ensuring IT personnel have the necessary tools and support to manage and maintain the software, indirectly supporting military readiness and administrative functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the quality of maintenance and support provided.
The contract duration of three years, while providing stability, might not be optimal for rapidly evolving software needs.
Limited information on the specific BMC software modules covered could obscure the full scope of the government's investment.

Positive Signals

The use of a firm fixed-price contract type helps control costs and provides budget certainty.
Awarding under full and open competition suggests a robust market and competitive pricing.
The contract supports essential enterprise software, crucial for the operational efficiency of the Department of the Army.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on enterprise software and maintenance. The market for enterprise software solutions, including IT Service Management (ITSM) and operations management tools like those offered by BMC, is substantial within the federal government. Comparable spending benchmarks for enterprise software licenses and support contracts often run into tens or hundreds of millions of dollars annually, depending on the scope and scale of the deployment. This contract represents a moderate investment within that larger market.

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 implications or specific benefits for the small business ecosystem stemming from this particular award. The focus was on full and open competition, which typically involves larger prime contractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a delivery order under a larger contract vehicle, oversight would likely involve monitoring performance against the terms of the order, ensuring timely delivery of services, and managing payments. Transparency is facilitated through contract databases like FPDS, where award details are recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense IT Modernization Programs
Enterprise Resource Planning (ERP) Systems Support
Software Licensing and Maintenance Contracts
IT Service Management (ITSM) Solutions
Cloud Computing Infrastructure Support

Risk Flags

Lack of detailed performance metrics.
Limited information on specific software modules and their criticality.
No data on the number of bidders, hindering a deeper competition analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.0 million to FOUR POINTS TECHNOLOGY, L.L.C.. BMC ENTERPRISE SW AND MAINTENANCE SUPPORT

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 $30.0 million.

What is the period of performance?

Start: 2010-09-29. End: 2013-09-29.

What specific BMC software modules are covered under this contract, and what is their criticality to Army operations?

The provided data does not specify the exact BMC software modules covered under this contract. BMC offers a wide range of enterprise software solutions, including those for IT Service Management (ITSM) like BMC Helix ITSM, IT Operations Management (ITOM) such as BMC Helix Operations Management, automation tools, and security solutions. The criticality to Army operations would depend heavily on which modules are procured. For instance, ITSM tools are vital for managing IT service requests, incidents, and changes, directly impacting user productivity and system availability. ITOM tools are crucial for monitoring network performance, identifying issues, and ensuring the smooth functioning of complex IT infrastructures that support military command and control, logistics, and administrative functions. Without specific module details, a precise criticality assessment is not possible, but enterprise software from vendors like BMC is generally considered foundational for modern IT operations.

How does the $30 million contract value compare to historical spending on BMC software by the Department of the Army?

The provided data indicates a single contract award of $30,046,482 to Four Points Technology, L.L.C. for BMC enterprise software and maintenance support, spanning from September 29, 2010, to September 29, 2013. To compare this to historical spending, one would need access to broader contract databases that track all awards for BMC software by the Department of the Army over various periods. This single award represents a specific procurement during a three-year window. Without a comprehensive view of all prior and subsequent contracts for BMC software within the Army, it's challenging to establish a definitive historical spending trend or determine if this $30 million figure is high, low, or average relative to the Army's overall investment in BMC solutions over time. Further analysis would require querying databases for all relevant contract actions.

What were the key performance indicators (KPIs) or service level agreements (SLAs) associated with this maintenance and support contract?

The provided data summary does not include details regarding the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) that were part of this contract. Typically, software maintenance and support contracts, especially for enterprise solutions, include SLAs that define expected performance levels. These might cover aspects such as response times for technical support requests, resolution times for critical issues, software update and patch delivery schedules, and system uptime guarantees. The absence of this information in the summary means we cannot quantitatively assess the contractor's performance obligations or the government's ability to measure the quality of the support received. A thorough review of the contract award documents would be necessary to identify these critical performance metrics.

Were there any identified risks or challenges during the performance of this contract, and how were they mitigated?

The provided summary data does not explicitly list any risks or challenges encountered during the performance of this specific contract. However, common risks associated with large enterprise software maintenance contracts include potential cost increases if the scope expands unexpectedly, vendor lock-in, challenges in integrating new software versions with existing systems, and ensuring the vendor meets defined service levels. Mitigation strategies typically involve robust contract management, clear definition of scope and deliverables, regular performance reviews, and contingency planning. Given this was a firm fixed-price contract awarded under full and open competition, the primary risk mitigation was built into the contract type and the competitive process itself, aiming to secure predictable costs and market-driven pricing.

What is the estimated total cost of ownership (TCO) for the BMC software supported under this contract, considering implementation, training, and ongoing maintenance?

The provided data only specifies the contract award amount of approximately $30 million for BMC enterprise software and maintenance support over three years. This figure represents the direct cost of the software licenses and maintenance services procured through this specific contract. It does not encompass the full Total Cost of Ownership (TCO). A comprehensive TCO analysis would also need to account for other significant costs, such as initial implementation expenses (if applicable under this award or separate contracts), potential customization costs, integration with other systems, internal IT staff time dedicated to managing the software, user training, and any associated hardware infrastructure upgrades. Without data on these additional cost elements, calculating the complete TCO is not feasible based solely on the provided award amount.

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: 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: 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: $72,740,870

Exercised Options: $30,046,482

Current Obligation: $30,046,482

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F0553P

IDV Type: FSS

Timeline