Commerce Dept. Awards $17.4M Cloud Services Contract to Four Points Technology

Contract Overview

Contract Amount: $17,433,824 ($17.4M)

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

Awarding Agency: Department of Commerce

Start Date: 2024-04-01

End Date: 2027-03-31

Contract Duration: 1,094 days

Daily Burn Rate: $15.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CLOUD SERVICES

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $17.4 million to FOUR POINTS TECHNOLOGY, L.L.C. for work described as: CLOUD SERVICES Key points: 1. Contract Value: $17.4 million over approximately 3 years. 2. Competition: Full and open competition after exclusion of sources. 3. Risk: Firm fixed price contract mitigates some cost overrun risk. 4. Sector: Information Technology services.

Value Assessment

Rating: good

The contract value of $17.4 million for cloud services appears reasonable given the duration and scope. Benchmarking against similar large-scale cloud service procurements would provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, indicating a competitive process. This method generally promotes price discovery and ensures fair market value.

Taxpayer Impact: The competitive award process aims to secure cloud services at a fair price, maximizing taxpayer value.

Public Impact

Ensures access to essential cloud infrastructure for NIST research and operations. Supports government-wide cloud adoption initiatives. Provides critical IT services for data storage, processing, and analysis.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for vendor lock-in if not managed effectively.
  • Reliance on a single awardee for critical cloud infrastructure.

Positive Signals

  • Firm fixed price contract provides cost certainty.
  • Competitive award process suggests fair market pricing.

Sector Analysis

This contract falls within the IT services sector, specifically cloud computing. Spending in this area has grown significantly as agencies migrate to cloud-based solutions for scalability and efficiency.

Small Business Impact

The data does not indicate specific provisions or set-asides for small businesses in this particular award. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The award is managed by the Department of Commerce's National Institute of Standards and Technology. Standard oversight procedures for federal contracts would apply, including performance monitoring and compliance checks.

Related Government Programs

  • Other Computer Related Services
  • Department of Commerce Contracting
  • National Institute of Standards and Technology Programs

Risk Flags

  • Potential for vendor lock-in
  • Reliance on a single awardee
  • Broad NAICS code may obscure specific service details
  • Exclusion of sources could limit competition

Tags

other-computer-related-services, department-of-commerce, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $17.4 million to FOUR POINTS TECHNOLOGY, L.L.C.. CLOUD SERVICES

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 (National Institute of Standards and Technology).

What is the total obligated amount?

The obligated amount is $17.4 million.

What is the period of performance?

Start: 2024-04-01. End: 2027-03-31.

What is the specific scope of 'Other Computer Related Services' covered under this cloud contract?

The 'Other Computer Related Services' (NAICS 541519) designation is broad and can encompass a wide range of IT support. For this contract, it likely includes managed cloud hosting, infrastructure as a service (IaaS), platform as a service (PaaS), and potentially related technical support and consulting necessary for NIST's operations.

How does the 'exclusion of sources' clause impact the competitive landscape and pricing?

Excluding sources implies that certain vendors were not considered or eligible for this specific competition, potentially narrowing the field. While still 'full and open' among eligible entities, this could influence price discovery. The impact depends on the justification for exclusion and the number of remaining competitive bidders.

What are the key performance indicators (KPIs) used to measure the effectiveness of these cloud services?

Effectiveness is typically measured through KPIs such as service uptime/availability, response times for support, data security compliance, performance metrics (e.g., processing speed, storage capacity utilization), and adherence to Service Level Agreements (SLAs). NIST would monitor these to ensure the cloud services meet operational requirements.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesOther Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT AND TELECOM - STORAGE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1333ND24QNB180069

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $49,664,769

Exercised Options: $17,433,824

Current Obligation: $17,433,824

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD22B

IDV Type: GWAC

Timeline

Start Date: 2024-04-01

Current End Date: 2027-03-31

Potential End Date: 2029-03-31 00:00:00

Last Modified: 2026-03-23

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