Treasury's IRS awards $34.3M fixed-price contract for IT infrastructure PCs
Contract Overview
Contract Amount: $34,353,417 ($34.4M)
Contractor: FCN, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2018-09-30
End Date: 2019-09-29
Contract Duration: 364 days
Daily Burn Rate: $94.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: INFRASTRUCTURE PC PURCHASE FIXED PRICE DELIVERY ORDER
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $34.4 million to FCN, INC. for work described as: INFRASTRUCTURE PC PURCHASE FIXED PRICE DELIVERY ORDER Key points: 1. Contract value of $34.3M for IT infrastructure PCs. 2. Procured via full and open competition after exclusion of sources. 3. Risk of potential overpricing due to limited competition. 4. IT sector spending benchmark analysis needed for context.
Value Assessment
Rating: fair
The contract is a firm fixed-price delivery order. Without detailed cost breakdowns or benchmarks for similar IT infrastructure PC purchases, it's difficult to definitively assess pricing fairness. The reported 'br' value of 94378 might represent a benchmark or previous price, but its context is unclear.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition scenario. This method can sometimes lead to less competitive pricing compared to unrestricted full and open competition, as fewer potential bidders were considered.
Taxpayer Impact: The impact on taxpayers is moderate, as the limited competition may have resulted in a higher price than if all potential vendors had been allowed to bid.
Public Impact
Ensures necessary IT infrastructure for the IRS. Potential for higher costs due to limited vendor pool. Supports government's need for updated computer hardware.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may inflate costs.
- Lack of clear pricing benchmarks.
- Fixed-price contract risk if specifications change.
Positive Signals
- Addresses critical IT infrastructure needs.
- Firm fixed-price provides cost certainty if scope is stable.
Sector Analysis
This contract falls within the IT sector, specifically for computer-related services and hardware. IT spending within government agencies is substantial, and benchmarks for PC procurement vary widely based on quantity, specifications, and vendor agreements.
Small Business Impact
The data does not indicate whether small businesses were involved in this procurement. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract was awarded by the Department of the Treasury's Internal Revenue Service. Oversight would typically involve contract management by the agency to ensure delivery and adherence to terms. The 'no' field (6) might indicate the number of offers received.
Related Government Programs
- Other Computer Related Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Limited competition may lead to higher costs.
- Lack of transparency on pricing benchmarks.
- Potential for vendor lock-in if specific hardware is chosen.
- Unclear definition of 'exclusion of sources'.
Tags
other-computer-related-services, department-of-the-treasury, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $34.4 million to FCN, INC.. INFRASTRUCTURE PC PURCHASE FIXED PRICE DELIVERY ORDER
Who is the contractor on this award?
The obligated recipient is FCN, INC..
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $34.4 million.
What is the period of performance?
Start: 2018-09-30. End: 2019-09-29.
What is the 'br' value of 94378 and how does it relate to the total contract value and unit pricing?
The 'br' value of 94378 is unclear without further context. If it represents a benchmark price or a previous contract value, comparing it to the total award of $34.3M could offer insights into potential cost increases or savings. Understanding its origin is crucial for assessing value for money.
How did the 'exclusion of sources' in the competition impact the final price compared to a truly open bid?
Excluding sources, even within a 'full and open' framework, inherently limits the competitive landscape. This reduction in potential bidders can decrease downward pressure on pricing. Without knowing which sources were excluded and why, it's difficult to quantify the exact price impact, but it suggests a risk of paying more than the lowest possible price.
What is the expected lifespan and performance of these PCs, and how does this align with the $34.3M investment?
The provided data does not detail the specifications, expected lifespan, or performance metrics of the purchased PCs. To assess the value of the $34.3M investment, a thorough analysis of the hardware's capabilities, warranty, and projected useful life against industry standards and the IRS's operational requirements would be necessary.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 12501 ARDENNES AVE STE 101, ROCKVILLE, MD, 20852
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $34,353,417
Exercised Options: $34,353,417
Current Obligation: $34,353,417
Actual Outlays: $12,649,861
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: NNG15SC71B
IDV Type: GWAC
Timeline
Start Date: 2018-09-30
Current End Date: 2019-09-29
Potential End Date: 2020-04-30 00:00:00
Last Modified: 2020-10-13
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