VA awards $10.26M contract for anti-fraud and risk management services to Four Points Technology, LLC

Contract Overview

Contract Amount: $10,263,836 ($10.3M)

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

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-09-30

End Date: 2026-09-30

Contract Duration: 730 days

Daily Burn Rate: $14.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE CONTRACTOR SHALL FURNISH ALL PERSONNEL TO PROVIDE SERVICES NECESSARY TO EXPAND AND MAINTAIN ANTI-FRAUD, WASTE, AND ABUSE (FWA) AND ENTERPRISE RISK STANDARD (ERM) ACTIVITIES.

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $10.3 million to FOUR POINTS TECHNOLOGY, L.L.C. for work described as: THE CONTRACTOR SHALL FURNISH ALL PERSONNEL TO PROVIDE SERVICES NECESSARY TO EXPAND AND MAINTAIN ANTI-FRAUD, WASTE, AND ABUSE (FWA) AND ENTERPRISE RISK STANDARD (ERM) ACTIVITIES. Key points: 1. Contract focuses on expanding and maintaining anti-fraud, waste, and abuse (FWA) and enterprise risk management (ERM) activities. 2. The contract value of $10.26 million over two years suggests a significant investment in risk mitigation. 3. Competition was conducted under 'full and open competition after exclusion of sources,' indicating a broad but potentially filtered bidding process. 4. The contract is a delivery order under a larger contract vehicle, suggesting potential for follow-on work or broader program integration. 5. The North American Industry Classification System (NAICS) code 541519 points to 'Other Computer Related Services,' implying a technology-centric approach to risk management. 6. The firm fixed-price contract type aims to control costs and provide predictable spending for the VA. 7. The contract duration of 730 days aligns with the project's scope for expanding and maintaining FWA and ERM activities.

Value Assessment

Rating: good

The contract value of $10.26 million for two years of anti-fraud and risk management services appears reasonable given the critical nature of these functions for the Department of Veterans Affairs (VA). While specific benchmarks for FWA and ERM services are difficult to ascertain without more granular data, the VA's commitment to these areas suggests a proactive approach to safeguarding taxpayer funds and ensuring operational integrity. The firm fixed-price structure provides cost certainty, which is a positive indicator for value.

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.' This indicates that the solicitation was broadly advertised, but certain sources may have been excluded based on pre-defined criteria. The number of bidders is not specified, but this type of competition generally aims to maximize the pool of qualified offerors, fostering price discovery and potentially leading to more competitive pricing. The exclusion of sources warrants further investigation to understand its impact on the breadth of competition.

Taxpayer Impact: This competitive approach, while potentially excluding some, aims to ensure that the VA receives the best value by considering a wide range of qualified vendors, ultimately benefiting taxpayers through potentially lower costs and higher quality services.

Public Impact

Veterans will benefit from improved protection against fraud, waste, and abuse within VA programs and services. The contract supports the delivery of enhanced enterprise risk management capabilities, leading to more stable and reliable VA operations. Services are likely to be delivered nationwide, impacting all VA facilities and beneficiaries. The contract may involve specialized personnel, potentially creating or sustaining jobs in the fields of cybersecurity, risk analysis, and compliance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause in the competition type requires further scrutiny to ensure it did not unduly limit competition.
The specific metrics for success in expanding and maintaining FWA and ERM activities are not detailed, making performance assessment challenging.
Reliance on a single delivery order under a larger contract vehicle could indicate a lack of dedicated, long-term funding for these critical functions.

Positive Signals

The firm fixed-price contract type provides cost certainty and encourages contractor efficiency.
The focus on anti-fraud, waste, and abuse demonstrates a commitment to fiscal responsibility and program integrity.
The contract duration of two years allows for sustained effort in building and maintaining risk management capabilities.

Sector Analysis

This contract falls within the broader IT and professional services sector, specifically focusing on specialized services related to risk management and compliance. The market for anti-fraud, waste, and abuse (FWA) and enterprise risk management (ERM) solutions is growing as government agencies and private organizations increasingly prioritize cybersecurity, data integrity, and operational resilience. Comparable spending benchmarks are difficult to establish without knowing the specific scope and deliverables, but investments in these areas are typically substantial due to their critical nature.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting requirements. Without this information, it is difficult to assess the direct impact on the small business ecosystem. However, the nature of specialized risk management services often requires specific expertise that may or may not be readily available within small businesses, potentially limiting their participation unless specifically targeted.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract type, which ties payment to the successful delivery of services. Transparency is generally facilitated through contract award databases and public reporting, though specific performance metrics and oversight reports may not always be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract itself is suspected.

Related Government Programs

VA Information Technology Programs
Federal Risk Management Services
Government Anti-Fraud Initiatives
Enterprise Resource Planning (ERP) Support
Cybersecurity Services Contracts

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Performance metrics for FWA/ERM effectiveness are not publicly detailed.
Contract is a delivery order, raising questions about long-term dedicated funding.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $10.3 million to FOUR POINTS TECHNOLOGY, L.L.C.. THE CONTRACTOR SHALL FURNISH ALL PERSONNEL TO PROVIDE SERVICES NECESSARY TO EXPAND AND MAINTAIN ANTI-FRAUD, WASTE, AND ABUSE (FWA) AND ENTERPRISE RISK STANDARD (ERM) ACTIVITIES.

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 Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $10.3 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-09-30.

What is the track record of Four Points Technology, LLC in providing anti-fraud, waste, and abuse (FWA) and enterprise risk management (ERM) services to federal agencies?

Information regarding Four Points Technology, LLC's specific track record in FWA and ERM services is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on similar contracts, client testimonials, and any performance evaluations or awards received. It is crucial to understand their experience in implementing and maintaining such programs within large federal agencies, particularly the Department of Veterans Affairs, to gauge their capability and reliability in fulfilling the current contract's objectives. Further due diligence would involve examining their portfolio of completed projects and their success in achieving risk mitigation and fraud prevention goals for other government entities.

How does the $10.26 million contract value compare to similar FWA and ERM service contracts awarded by the VA or other federal agencies?

Benchmarking the $10.26 million contract value for FWA and ERM services requires comparing it against similar contracts in terms of scope, duration, and complexity. Without specific details on the deliverables and the scale of FWA and ERM activities to be expanded and maintained, a precise comparison is challenging. However, given that this is a two-year contract, the annual value is approximately $5.13 million. This figure should be compared to other VA or agency contracts for enterprise-level risk management, cybersecurity, and compliance services. Factors such as the number of users supported, the breadth of systems covered, and the criticality of the risks addressed will influence the reasonableness of this price point. A higher annual value might be justified for contracts involving extensive system integration, advanced analytics, or high-security environments.

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

Primary risks associated with this contract include potential underperformance by the contractor in delivering effective FWA and ERM solutions, leading to continued vulnerabilities or undetected fraud. Another risk is the 'exclusion of sources' in the competition, which could limit the pool of innovative solutions or competitive pricing. Mitigation strategies likely include the firm fixed-price contract type, which incentivizes contractor efficiency and cost control. The VA's oversight mechanisms, including contract monitoring and performance reviews, are crucial for identifying and addressing performance issues. Clear performance metrics and regular reporting requirements will be essential for ensuring the contractor meets its obligations and for mitigating risks to the VA's operations and financial integrity.

How effective is the 'full and open competition after exclusion of sources' approach in ensuring value for money for the VA?

The 'full and open competition after exclusion of sources' approach aims to balance broad market reach with specific qualification requirements. It allows the VA to solicit bids from a wide range of potential contractors while ensuring that only those meeting certain pre-defined criteria participate. This can lead to value for money by attracting qualified vendors who can deliver specialized services effectively. However, the 'exclusion of sources' aspect introduces a potential risk if the exclusion criteria are overly restrictive or not clearly justified, which could inadvertently limit competition and potentially increase costs or reduce the diversity of solutions. The effectiveness hinges on the transparency and necessity of the exclusion criteria and the subsequent level of competition achieved.

What is the historical spending pattern of the VA on FWA and ERM services, and how does this contract fit into that trend?

Analyzing the VA's historical spending on FWA and ERM services would provide context for the $10.26 million award. If the VA has consistently invested significant resources in these areas, this contract may represent a continuation or expansion of existing efforts. Conversely, if this represents a substantial increase in spending, it could indicate a heightened focus on risk management or a response to specific emerging threats. Understanding past spending trends allows for an assessment of whether this contract aligns with the VA's strategic priorities and resource allocation for ensuring program integrity and operational security. A review of previous contract awards for similar services would reveal whether this is a typical investment or a notable shift.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 36C79124Q0026

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: $30,646,383

Exercised Options: $30,646,383

Current Obligation: $10,263,836

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD22B

IDV Type: GWAC

Timeline