DOJ's $60.5M medication dispensing contract awarded to Four Points Technology, L.L.C. for 364 days

Contract Overview

Contract Amount: $60,454 ($60.5K)

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

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $166/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: BD PYXIS AUTOMATED MEDICATION DISPENSING CABINETS

Place of Performance

Location: TALLAHASSEE, LEON County, FLORIDA, 32301

State: Florida Government Spending

Plain-Language Summary

Department of Justice obligated $60,454.08 to FOUR POINTS TECHNOLOGY, L.L.C. for work described as: BD PYXIS AUTOMATED MEDICATION DISPENSING CABINETS Key points: 1. The contract value represents a significant investment in automated medication dispensing technology for federal correctional facilities. 2. Competition dynamics for this contract are noted as 'Full and Open Competition After Exclusion of Sources,' suggesting a potentially complex procurement process. 3. The fixed-price contract type aims to provide cost certainty for the government. 4. The duration of the contract is one year, indicating a need for ongoing supply and maintenance of these critical systems. 5. The North American Industry Classification System (NAICS) code 339112 points to the surgical and medical instrument manufacturing sector. 6. The contract is a Delivery Order, implying it is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar overarching agreement.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the total value of the parent IDIQ contract or comparable recent awards for similar automated dispensing systems. The fixed-price nature suggests an attempt to control costs, but the per-unit cost and overall value should be assessed against market rates for similar technology and services. Without more detailed pricing breakdowns or comparative data, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This designation implies that while the competition was intended to be open, certain sources may have been excluded for specific reasons, potentially related to prior performance, technical capabilities, or other pre-defined criteria. The number of bidders and the specific rationale for excluding other sources would provide further clarity on the level of competition achieved and its impact on price discovery.

Taxpayer Impact: The 'after exclusion of sources' clause suggests that while competition was sought, it may not have been as broad as a purely 'full and open' competition, potentially impacting the government's ability to secure the lowest possible price.

Public Impact

Federal Prison System / Bureau of Prisons inmates will benefit from improved medication management and dispensing. The contract ensures the continued operation and supply of automated medication dispensing cabinets. The geographic impact is likely nationwide, supporting correctional facilities across the United States where these systems are deployed. This contract supports the healthcare workforce within federal prisons by providing essential medical equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to 'exclusion of sources' clause.
Lack of detailed pricing information makes value assessment difficult.
Dependence on a single vendor for a critical healthcare system.

Positive Signals

Fixed-price contract type helps manage cost certainty.
Automated dispensing systems can improve medication accuracy and efficiency.
Award to a single vendor may indicate specialized capabilities required.

Sector Analysis

The contract falls within the medical device manufacturing sector, specifically focusing on automated dispensing systems. This market is characterized by technological advancements aimed at improving patient safety, efficiency, and inventory management. The federal government, particularly agencies like the Department of Justice managing correctional facilities, represents a significant customer base for such specialized medical equipment, often procuring through large IDIQ vehicles or specific delivery orders.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific award. Therefore, the direct impact on small businesses through set-asides is likely minimal. However, the prime contractor, Four Points Technology, L.L.C., may have subcontracting plans that could involve small businesses, though this information is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's Bureau of Prisons procurement and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, requiring delivery of specified goods and services. Transparency is facilitated through contract award databases, though detailed performance metrics and specific oversight activities are often internal to the agency.

Related Government Programs

Federal Prison System Medical Services
Bureau of Prisons Pharmacy Operations
Automated Dispensing Cabinet Procurement
Medical Equipment for Correctional Facilities

Risk Flags

Potential for limited competition
Lack of detailed cost breakdown
Dependence on single vendor for critical system

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $60,454.08 to FOUR POINTS TECHNOLOGY, L.L.C.. BD PYXIS AUTOMATED MEDICATION DISPENSING CABINETS

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 Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $60,454.08.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is the track record of Four Points Technology, L.L.C. with federal contracts, particularly for medication dispensing systems?

Four Points Technology, L.L.C. has a history of federal contracting, often acting as a reseller or integrator for various technology and medical equipment. Their experience with medication dispensing systems would need to be evaluated based on specific past performance references, delivery success, and any documented issues on previous contracts. A review of their contract history within the Federal Prison System or other healthcare-related agencies would provide insight into their reliability and capability to fulfill this $60.5 million delivery order effectively. Information on past performance, including any awards or penalties, is crucial for assessing their suitability.

How does the awarded value of $60.5 million for 364 days compare to similar contracts for automated medication dispensing systems in the federal government?

Comparing the $60.5 million value for a 364-day delivery order requires context regarding the scope of services and the specific type and quantity of automated medication dispensing cabinets. If this represents the total value for a year's supply, maintenance, and potentially software licensing for numerous facilities, it could be within a reasonable range for large-scale federal deployments. However, without knowing the number of units, the specific functionalities (e.g., inventory management, security features), and the level of support included, a direct comparison to other contracts is difficult. Benchmarking against similar-sized contracts awarded by agencies like the Department of Veterans Affairs or other components of the Department of Defense would be necessary for a robust value assessment.

What are the primary risks associated with this contract, considering its 'Full and Open Competition After Exclusion of Sources' nature?

The primary risk associated with the 'Full and Open Competition After Exclusion of Sources' designation is the potential for reduced competition, which could lead to higher prices than might be achieved in a truly open market. This exclusion might stem from specific technical requirements that only a limited number of vendors can meet, or it could be due to past performance issues with certain contractors. Another risk is the potential for protests from excluded bidders, which could delay contract performance. Furthermore, reliance on a single vendor for a critical system like medication dispensing introduces supply chain and operational risks if the vendor faces financial difficulties or performance issues.

How effective are automated medication dispensing systems in improving patient safety and operational efficiency within federal correctional facilities?

Automated medication dispensing systems (AMDS) are generally considered effective tools for enhancing patient safety and operational efficiency in healthcare settings, including correctional facilities. By automating the dispensing process, AMDS can significantly reduce medication errors related to incorrect dosage, wrong medication, or missed doses, thereby improving patient safety. Operationally, these systems can streamline workflows for pharmacy staff, reduce the time spent on manual dispensing, improve inventory control, and provide better tracking and auditing capabilities. For federal correctional facilities, this translates to more secure and efficient medication management, which is critical given the unique challenges of managing large inmate populations.

What are the historical spending patterns for automated medication dispensing systems by the Department of Justice or the Federal Prison System?

Historical spending patterns for automated medication dispensing systems by the Department of Justice (DOJ) and the Federal Prison System (FPS) would reveal the agency's commitment to this technology over time. Analyzing past contract awards, their values, durations, and the vendors involved would indicate whether spending has been consistent, increasing, or fluctuating. This data can help determine if the current $60.5 million award represents a significant increase or a continuation of established procurement trends. Understanding historical spending also sheds light on the types of systems procured and the competitive landscape that has existed previously.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical and Medical Instrument Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 15BPCC25Q00000025

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: $60,454

Exercised Options: $60,454

Current Obligation: $60,454

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15BPCC25D00000025

IDV Type: IDC

Timeline