DOJ's FBI awards $9.9M for Red Hat subscriptions and services, extending contract through August 2026

Contract Overview

Contract Amount: $9,945,477 ($9.9M)

Contractor: FCN, Inc.

Awarding Agency: Department of Justice

Start Date: 2025-08-31

End Date: 2026-08-31

Contract Duration: 365 days

Daily Burn Rate: $27.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: RED HAT SUBSCRIPTION RENEWAL/SERVICES

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Justice obligated $9.9 million to FCN, INC. for work described as: RED HAT SUBSCRIPTION RENEWAL/SERVICES Key points: 1. Contract value represents a significant investment in essential operating software. 2. Renewal suggests satisfaction with current vendor performance and service levels. 3. Fixed-price contract offers budget predictability for the FBI. 4. Long-term subscription model may indicate a strategic reliance on Red Hat's ecosystem. 5. The 'Other Computer Related Services' NAICS code covers a broad range of IT support.

Value Assessment

Rating: good

The contract value of $9.9 million for a 365-day period appears reasonable for enterprise-level software subscriptions and associated services. Benchmarking against similar large-scale IT renewals for federal agencies suggests this price point is within expected ranges, especially considering the critical nature of operating systems and support for law enforcement functions. The firm fixed-price structure further enhances value by mitigating cost overrun risks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. While the specific number of bidders is not provided, this competitive process is expected to drive favorable pricing and ensure the government receives the best value. The use of a BPA Call suggests it was likely sourced from an existing framework agreement, which itself was competitively awarded.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment among vendors.

Public Impact

Federal Bureau of Investigation (FBI) personnel benefit from reliable and secure operating system support. Ensures continuity of critical IT infrastructure supporting law enforcement and national security operations. The services delivered include subscription renewals and potentially technical support for Red Hat products. Geographic impact is nationwide, supporting FBI field offices and headquarters. Workforce implications include enabling IT staff to maintain and manage essential systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with long-term subscription renewals.
Reliance on a single vendor for critical operating system support could pose risks if the vendor faces disruptions.

Positive Signals

Firm fixed-price contract provides cost certainty.
Full and open competition suggests a competitive market was leveraged.
Renewal indicates a stable and likely satisfactory vendor relationship.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on software subscriptions and support. The market for enterprise Linux distributions and associated support is dominated by a few key players, including Red Hat. Federal spending in this category is substantial, driven by the need for secure, reliable, and scalable operating systems across various agencies. Comparable spending benchmarks would involve looking at other large federal IT procurements for operating systems and software maintenance.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, FCN, Inc., is likely a larger entity. There is no direct information on subcontracting plans for small businesses within this specific award, but large IT contracts often include subcontracting goals as part of broader federal small business initiatives.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. As a firm fixed-price contract awarded under full and open competition, it implies adherence to established procurement regulations. Transparency is facilitated by public contract databases. Oversight would typically involve contract officers, program managers within the FBI, and potentially the Government Accountability Office (GAO) or agency Inspectors General if performance issues or disputes arise.

Related Government Programs

General Services Administration (GSA) IT Schedule contracts
Department of Defense (DoD) Enterprise Software Agreements
Other agency-specific IT software and services procurements

Risk Flags

Potential vendor lock-in
Reliance on single vendor for critical OS
Cybersecurity of subscribed software

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $9.9 million to FCN, INC.. RED HAT SUBSCRIPTION RENEWAL/SERVICES

Who is the contractor on this award?

The obligated recipient is FCN, INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $9.9 million.

What is the period of performance?

Start: 2025-08-31. End: 2026-08-31.

What is the historical spending trend for Red Hat subscriptions and services at the FBI?

Analyzing historical spending data for Red Hat subscriptions and services at the FBI would provide crucial context for the current $9.9 million award. Without specific historical figures, it's difficult to determine if this represents an increase, decrease, or stable level of investment. Trends could reveal patterns of contract renewals, changes in service scope, or shifts in pricing over time. Understanding past expenditures allows for a more robust assessment of value for money and whether the current contract aligns with long-term budgetary strategies for IT infrastructure at the FBI. For instance, a consistent year-over-year increase might warrant closer scrutiny of price escalations, while a decrease could indicate consolidation or a shift to alternative solutions.

How does the per-unit cost of this Red Hat subscription compare to other federal agencies or commercial rates?

A detailed comparison of the per-unit cost for Red Hat subscriptions under this FBI contract against those of other federal agencies or commercial market rates is essential for a thorough value assessment. Federal agencies often leverage purchasing power through agreements like Multiple Award Schedules (MAS) or Blanket Purchase Agreements (BPAs) to secure discounted pricing. If this contract was awarded via a BPA Call, it likely draws from pre-negotiated rates. Benchmarking against publicly available commercial pricing for similar enterprise-level Red Hat subscriptions (e.g., Red Hat Enterprise Linux) and support tiers would reveal potential savings or overpayments. A significant deviation from established benchmarks, whether higher or lower, necessitates further investigation into the specific services included, the support level, and the overall contract structure.

What specific Red Hat products and services are covered under this $9.9 million contract?

The contract description 'RED HAT SUBSCRIPTION RENEWAL/SERVICES' is broad, and understanding the specific Red Hat products and services included is critical for assessing value and performance. This could range from core operating system licenses (e.g., RHEL) to middleware, cloud management tools, automation platforms (like Ansible), or security solutions. The 'services' component might encompass technical support (e.g., 24x7 support, specific response times), consulting, training, or implementation assistance. Knowing the exact product mix and service levels allows for a more accurate comparison with market offerings and helps determine if the FBI is procuring the necessary capabilities at a competitive price point. Without this detail, it's challenging to evaluate the necessity and cost-effectiveness of the entire package.

What is FCN, Inc.'s track record in providing Red Hat solutions to federal agencies?

FCN, Inc.'s track record in delivering Red Hat solutions to federal agencies is a key indicator of their capability and reliability for this $9.9 million contract. As a prime contractor, their past performance, including successful contract completions, client satisfaction ratings, and any history of performance issues or disputes, should be thoroughly reviewed. Information on previous Red Hat-related contracts awarded to FCN, Inc. by the FBI or other agencies, their value, duration, and scope would provide valuable insights. A strong performance history suggests a lower risk for the FBI, while a less robust record might raise concerns about potential delays, quality issues, or cost overruns. This information is typically considered during the source selection process.

Are there any identified risks associated with this contract, such as vendor lock-in or cybersecurity vulnerabilities?

Potential risks associated with this Red Hat subscription renewal contract include vendor lock-in and cybersecurity vulnerabilities. Vendor lock-in is a common concern with subscription-based software, where switching to a different vendor becomes costly and complex, potentially limiting future flexibility and negotiation power. Cybersecurity is paramount; the reliability and security posture of Red Hat's products are critical for the FBI's operations. Any vulnerabilities within the Red Hat ecosystem, if not promptly addressed through patches and updates provided under the subscription, could expose sensitive FBI data or systems. The FBI's internal IT security protocols and the vendor's responsiveness to security advisories are crucial mitigating factors. Furthermore, the concentration of spending with one vendor for core OS needs warrants ongoing risk assessment.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: SHOP-PR-25-001570

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12501 ARDENNES AVE, ROCKVILLE, MD, 20852

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $9,945,477

Exercised Options: $9,945,477

Current Obligation: $9,945,477

Actual Outlays: $9,912,228

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Parent Contract

Parent Award PIID: 15F06721A0003762

IDV Type: BPA

Timeline