Commerce Department's $23.87M IT Services Contract Awarded to Four Points Technology, L.L.C

Contract Overview

Contract Amount: $23,868,978 ($23.9M)

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

Awarding Agency: Department of Commerce

Start Date: 2021-01-06

End Date: 2026-07-05

Contract Duration: 2,006 days

Daily Burn Rate: $11.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: ITSM

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $23.9 million to FOUR POINTS TECHNOLOGY, L.L.C. for work described as: ITSM Key points: 1. Contract value represents a significant investment in IT support services. 2. Full and open competition suggests a potentially competitive pricing environment. 3. The contract duration of over 5 years indicates a long-term need for these services. 4. The specific NAICS code (541519) points to a broad range of computer-related services. 5. The award was made under a task order, suggesting it's part of a larger vehicle. 6. The contractor, Four Points Technology, L.L.C., is the recipient of this substantial award.

Value Assessment

Rating: good

Benchmarking the value of this $23.87 million contract requires comparison to similar IT services contracts awarded by the Department of Commerce and other federal agencies. The 'Other Computer Related Services' category is broad, making direct price comparisons challenging without more specific service details. However, the contract's duration of over five years suggests a sustained need, and the award amount should be evaluated against the scope of work and expected deliverables to determine overall value for money. The presence of 8 bidders in the competition phase (indicated by 'no': 8) suggests a reasonable level of market interest, which can contribute to fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that the solicitation was broadly advertised and all responsible sources were permitted to submit offers. The fact that there were 8 bidders suggests a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down prices and encouraged innovative solutions, ensuring the government receives the best possible value for its investment in IT services.

Public Impact

Federal employees within the U.S. Patent and Trademark Office will benefit from enhanced IT support. The contract ensures the delivery of essential computer-related services to facilitate USPTO operations. The primary geographic impact is within the agency's operational locations, likely concentrated in Virginia. The contract supports a workforce of IT professionals, both within the contractor's organization and potentially through subcontracting opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The broad nature of 'Other Computer Related Services' could lead to scope creep if not carefully managed.
Reliance on a single task order award for a significant duration may limit flexibility in adapting to future technological changes.
The 'TIME AND MATERIALS' contract type can sometimes lead to higher costs if not closely monitored for efficiency.

Positive Signals

The full and open competition process is a strong positive signal for achieving fair market pricing.
The award to a single contractor for a defined period provides stability and clear accountability for service delivery.
The contract's alignment with the agency's IT needs suggests a strategic investment in operational efficiency.

Sector Analysis

The IT services sector within the federal government is vast, encompassing a wide array of support, development, and maintenance activities. Contracts like this, falling under NAICS code 541519 (Other Computer Related Services), are crucial for agencies to maintain and modernize their technological infrastructure. Spending in this category is consistently high across government, reflecting the increasing reliance on digital systems. This contract fits within the broader trend of agencies outsourcing specialized IT functions to private sector providers to leverage expertise and manage costs.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses ('sb': false). While the primary award went to Four Points Technology, L.L.C., the implications for small businesses would depend on the contractor's subcontracting plans. Without specific subcontracting goals or reporting, it's difficult to assess the direct impact on the small business ecosystem. However, larger prime contracts often create opportunities for small businesses to participate as subcontractors, provided the prime contractor actively seeks them out.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Patent and Trademark Office's contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through contract award databases like FPDS. Inspector General oversight may be applicable depending on the specific nature of the services and any potential for fraud, waste, or abuse within the contract's execution.

Related Government Programs

IT Professional Services
Other Computer Related Services
IT Operations and Support
Cloud Computing Services
Cybersecurity Services

Risk Flags

Potential for scope creep due to broad service definition.
Risk of cost overruns with Time and Materials contract type.
Ensuring consistent performance over a long contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $23.9 million to FOUR POINTS TECHNOLOGY, L.L.C.. ITSM

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 Commerce (U.S. Patent and Trademark Office).

What is the total obligated amount?

The obligated amount is $23.9 million.

What is the period of performance?

Start: 2021-01-06. End: 2026-07-05.

What is the track record of Four Points Technology, L.L.C. in performing similar federal IT services contracts?

Assessing the track record of Four Points Technology, L.L.C. requires a review of their past performance on federal contracts, particularly those involving IT services and support. Information available through federal procurement databases (like FPDS) can reveal the types of contracts they have held, their performance ratings (if available), and any history of contract modifications, disputes, or terminations. A positive performance history on comparable contracts would indicate a lower risk for this current award. Conversely, any past issues could raise concerns about their ability to meet the requirements of this new $23.87 million contract effectively and efficiently. Further investigation into past performance evaluations and client feedback would provide a more comprehensive understanding of their capabilities and reliability.

How does the awarded price compare to market rates for similar IT services?

Determining if the awarded price of $23.87 million for this IT services contract is competitive requires benchmarking against market rates. This involves comparing the contract's specific services, labor categories, and geographic location against industry pricing data and rates paid for similar services by other federal agencies or commercial entities. Given the 'Other Computer Related Services' NAICS code and the 'TIME AND MATERIALS' contract type, a detailed analysis of labor rates, overhead, and other direct costs would be necessary. The fact that it was awarded under full and open competition with 8 bidders suggests that the market was engaged, which typically helps in achieving fair and reasonable pricing. However, without access to the specific negotiated rates and the detailed scope of work, a definitive comparison to market rates is challenging.

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

Key risks associated with this contract include potential scope creep due to the broad 'Other Computer Related Services' category, the possibility of cost overruns with the 'TIME AND MATERIALS' pricing structure, and ensuring the contractor maintains adequate performance levels over the contract's five-year duration. Mitigation strategies likely involve robust contract management by the U.S. Patent and Trademark Office, including detailed work breakdown structures, regular performance reviews, and strict change control processes. The 'TIME AND MATERIALS' type necessitates close monitoring of labor hours and rates to prevent inefficiencies. Furthermore, the competitive award process itself serves as a risk mitigation factor by selecting a contractor deemed capable of meeting the requirements. The agency's oversight mechanisms and the contractor's own quality assurance processes are critical for managing these risks.

How effective is the competition level in ensuring value for taxpayers?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' with 8 bidders is a strong indicator of effective competition, which directly benefits taxpayers. A larger pool of bidders typically drives down prices as companies vie for the contract award. It also encourages innovation and allows the government to select the offer that provides the best overall value, considering factors beyond just price, such as technical approach and past performance. This level of competition suggests that the government had a good selection of qualified vendors, increasing the likelihood that the negotiated price reflects fair market value and that the chosen contractor is motivated to perform well to maintain a positive record for future opportunities.

What is the historical spending pattern for similar IT services at the U.S. Patent and Trademark Office?

Analyzing historical spending patterns for similar IT services at the U.S. Patent and Trademark Office (USPTO) is crucial for context. This involves examining past contracts awarded by the USPTO for IT support, computer-related services, and related categories over several fiscal years. Understanding the volume, value, and types of IT services previously procured can reveal trends in agency needs, technology adoption, and spending levels. For instance, has spending in this area increased or decreased? Are there recurring contracts with specific vendors? Comparing the current $23.87 million award to historical figures helps determine if this represents a significant increase, a continuation of existing spending, or a shift in procurement strategy. This historical perspective aids in assessing the reasonableness of the current contract's value and its alignment with the agency's long-term IT strategy.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 8

Pricing Type: TIME AND MATERIALS (Y)

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: $29,617,962

Exercised Options: $23,868,978

Current Obligation: $23,868,978

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SD22B

IDV Type: GWAC

Timeline