DHS Awards $140M AWS Contract to Four Points Technology for CBP IT Services
Contract Overview
Contract Amount: $139,668,478 ($139.7M)
Contractor: Four Points Technology, L.L.C.
Awarding Agency: Department of Homeland Security
Start Date: 2024-07-01
End Date: 2026-06-30
Contract Duration: 729 days
Daily Burn Rate: $191.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: AMAZON WEB SERVICES FOR CBP.
Place of Performance
Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $139.7 million to FOUR POINTS TECHNOLOGY, L.L.C. for work described as: AMAZON WEB SERVICES FOR CBP. Key points: 1. Significant IT spending on cloud services for border protection. 2. Competition was full and open after exclusion of sources, suggesting a competitive process. 3. The contract value is substantial, warranting close monitoring for cost-effectiveness. 4. Focus on 'Other Computer Related Services' indicates a broad scope of IT support.
Value Assessment
Rating: good
The contract value of $139.7M over two years is significant. Benchmarking against similar large-scale cloud service contracts is necessary to confirm competitive pricing.
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 implies that while competition was sought, certain sources may have been excluded, potentially impacting the breadth of price discovery.
Taxpayer Impact: The use of a competitive process aims to secure fair pricing, but the exclusion of sources warrants scrutiny to ensure optimal taxpayer value.
Public Impact
Enhances critical IT infrastructure for U.S. Customs and Border Protection. Supports national security and trade facilitation through advanced cloud services. Potential for improved data processing and operational efficiency at the border.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential impact of source exclusion on competition.
- Ensuring long-term cost-effectiveness of cloud services.
Positive Signals
- Awarded under full and open competition.
- Supports critical national security functions.
- Utilizes modern cloud infrastructure.
Sector Analysis
This contract falls within the IT sector, specifically cloud computing services. Spending benchmarks for similar government cloud contracts vary widely based on scope and provider, but $140M over two years for a major agency like CBP is a substantial investment.
Small Business Impact
The data indicates the award went to Four Points Technology, L.L.C. Further analysis would be needed to determine if this prime contractor is a small business or if subcontracting opportunities exist for small businesses.
Oversight & Accountability
The Department of Homeland Security, through U.S. Customs and Border Protection, is responsible for oversight. The contract type (Firm Fixed Price) and duration suggest a need for ongoing performance monitoring and accountability.
Related Government Programs
- Other Computer Related Services
- Department of Homeland Security Contracting
- U.S. Customs and Border Protection Programs
Risk Flags
- Potential for vendor lock-in with cloud services.
- Cybersecurity risks associated with cloud infrastructure.
- Complexity in managing and optimizing cloud spending.
- Dependence on a single cloud provider (AWS).
Tags
other-computer-related-services, department-of-homeland-security, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $139.7 million to FOUR POINTS TECHNOLOGY, L.L.C.. AMAZON WEB SERVICES FOR CBP.
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 Homeland Security (U.S. Customs and Border Protection).
What is the total obligated amount?
The obligated amount is $139.7 million.
What is the period of performance?
Start: 2024-07-01. End: 2026-06-30.
What specific AWS services are being procured, and how do their costs compare to market rates?
The data specifies 'Other Computer Related Services' under NAICS code 541519, which is broad. A detailed breakdown of the specific Amazon Web Services (AWS) procured is essential. Benchmarking these specific services against commercial pricing and other government contracts would reveal if the $139.7M award represents good value and competitive pricing for the required cloud capabilities.
What was the rationale for excluding certain sources, and did it limit competitive pricing?
The contract states 'Full and Open Competition After Exclusion of Sources.' Understanding the specific reasons for excluding sources is crucial. If the exclusion was based on limited availability of specialized services or unique qualifications, it might be justifiable. However, if it unduly restricted the pool of potential bidders, it could have led to less competitive pricing and potentially higher costs for taxpayers.
How will the effectiveness of these AWS services be measured to ensure they meet CBP's operational needs?
Effectiveness will likely be measured through performance metrics defined in the contract, focusing on uptime, security, data processing speeds, and integration with existing CBP systems. Regular reviews and reporting by Four Points Technology, coupled with CBP's internal assessments, will be key to ensuring the AWS services deliver the intended operational benefits and justify the significant investment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - DATA CENTER
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
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: $205,775,000
Exercised Options: $139,668,478
Current Obligation: $139,668,478
Actual Outlays: $72,355,420
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SD22B
IDV Type: GWAC
Timeline
Start Date: 2024-07-01
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 10:08:19
Last Modified: 2026-02-10
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