IRS awards $49.7M for Riverbed SteelCentral platform, including hardware, software, and engineering support

Contract Overview

Contract Amount: $49,731,524 ($49.7M)

Contractor: FCN, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2019-09-11

End Date: 2024-09-10

Contract Duration: 1,826 days

Daily Burn Rate: $27.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 2032H5-19-F-00718 - RIVERBED STEELCENTRAL PLATFORM FOR UNS - HW, HW/SW MAINTENANCE, ENGINEERING SUPPORT AND AS NEEDED, ADDITIONAL SW LICENSES, HW, HW/SW MAINTENANCE TO SUPPORT THE IRS ENTERPRISE NETWORK.

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $49.7 million to FCN, INC. for work described as: 2032H5-19-F-00718 - RIVERBED STEELCENTRAL PLATFORM FOR UNS - HW, HW/SW MAINTENANCE, ENGINEERING SUPPORT AND AS NEEDED, ADDITIONAL SW LICENSES, HW, HW/SW MAINTENANCE TO SUPPORT THE IRS ENTERPRISE NETWORK. Key points: 1. The contract provides essential network management tools for the IRS enterprise. 2. It includes hardware, software licenses, maintenance, and engineering support. 3. The duration of the contract is 5 years, indicating a long-term need. 4. The award was made under full and open competition after exclusion of sources. 5. The contract type is Firm Fixed Price, offering cost certainty. 6. The primary contractor is FCN, INC. 7. The service is categorized under 'Other Computer Related Services'.

Value Assessment

Rating: good

The total contract value of $49.7 million over five years averages to approximately $9.94 million annually. Benchmarking this against similar large-scale IT infrastructure support contracts is challenging without more granular data on the specific services and hardware included. However, the firm-fixed-price structure suggests an effort to control costs. The contract's duration implies a stable, ongoing need for these services, which can sometimes lead to better pricing through economies of scale.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources.' This indicates that while the competition was intended to be broad, specific sources may have been excluded for documented reasons. The number of bidders is not provided, but the 'full and open' designation suggests a competitive process was initiated. The exclusion of sources, if not clearly justified, could potentially limit the breadth of competition and impact price discovery.

Taxpayer Impact: The 'full and open' competition aims to ensure taxpayers receive the best value by allowing a wide range of qualified vendors to bid. However, the exclusion of sources warrants scrutiny to ensure it did not unduly restrict competition and inflate costs.

Public Impact

The IRS benefits from enhanced network performance and stability, crucial for tax administration. The contract ensures the availability of critical IT infrastructure for tax processing and taxpayer services. The geographic impact is nationwide, supporting the IRS's distributed network infrastructure. Workforce implications include the need for skilled IT professionals to manage and support the platform.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition if source exclusions were not fully justified.
Reliance on a single vendor for critical network management hardware and software.
Risk of cost overruns if the scope of 'as needed' licenses expands significantly.

Positive Signals

Firm Fixed Price contract provides cost predictability for the IRS.
Long-term contract (5 years) suggests a stable and ongoing need, potentially leading to volume discounts.
Award to FCN, INC. indicates a trusted partner for essential IRS IT infrastructure.

Sector Analysis

The contract falls within the IT services sector, specifically focusing on network performance monitoring and management tools. The market for such solutions is competitive, with several established vendors offering comprehensive platforms. The IRS's spending on this contract represents a significant investment in maintaining its complex IT infrastructure, which is vital for its operations. Comparable spending benchmarks would typically involve analyzing other large federal agencies' investments in similar network management solutions.

Small Business Impact

The contract data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific award. There is no explicit mention of small business subcontracting goals. This suggests that the primary focus was on securing the best technical solution and price from a qualified vendor, rather than specifically promoting small business involvement in this particular contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Treasury and the Internal Revenue Service's contracting and program management offices. The firm-fixed-price nature provides a degree of financial oversight by fixing costs. Transparency is generally maintained through contract award databases like FPDS. The Inspector General for Tax Administration (TIGTA) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

IRS IT Infrastructure Modernization
Federal Network Management Solutions
Enterprise Software Licensing
IT Hardware Maintenance Contracts
Cybersecurity and Network Operations Support

Risk Flags

Potential for cost growth due to 'as needed' software licenses.
Dependence on a single vendor for critical network management infrastructure.
Need for clear justification for any excluded sources during competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $49.7 million to FCN, INC.. 2032H5-19-F-00718 - RIVERBED STEELCENTRAL PLATFORM FOR UNS - HW, HW/SW MAINTENANCE, ENGINEERING SUPPORT AND AS NEEDED, ADDITIONAL SW LICENSES, HW, HW/SW MAINTENANCE TO SUPPORT THE IRS ENTERPRISE NETWORK.

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 $49.7 million.

What is the period of performance?

Start: 2019-09-11. End: 2024-09-10.

What is the historical spending pattern for Riverbed SteelCentral platform support at the IRS?

Analyzing historical spending for this specific contract (2032H5-19-F-00718) reveals a total award of $49,731,524.18 over its 5-year duration (September 11, 2019, to September 10, 2024). This averages to approximately $9.95 million per year. Without access to prior contract vehicles or detailed spending reports for similar network management solutions at the IRS, it's difficult to establish a precise historical trend. However, the consistent annual expenditure suggests a sustained and critical need for these network management capabilities within the IRS's enterprise environment.

How does the pricing of this contract compare to similar federal IT support contracts?

Direct price comparison is challenging without knowing the exact scope of services, hardware configurations, and software licenses included in this $49.7 million contract. However, the firm-fixed-price (FFP) structure is generally favored for cost control. The annual average of approximately $9.95 million for comprehensive network management, hardware, software, and engineering support for a large federal agency like the IRS appears within a reasonable range for enterprise-level IT solutions. Benchmarking would require detailed analysis of comparable contracts for similar-sized agencies or specific components like advanced network monitoring software and hardware maintenance.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, for a contract of this nature supporting an enterprise network, typical KPIs would likely include network uptime and availability, system performance metrics (e.g., latency, throughput), response times for issue resolution, successful software/hardware updates and maintenance, and adherence to security protocols. The IRS would monitor these metrics to ensure the Riverbed SteelCentral platform effectively supports its critical tax administration functions and taxpayer services.

What is the track record of FCN, INC. in delivering similar IT services to federal agencies?

FCN, INC. has a significant track record of providing IT solutions and services to various federal agencies. While specific details on past performance for Riverbed SteelCentral platforms are not provided in this data, FCN is known to hold numerous prime contracts across different federal departments, including defense and civilian agencies. Their portfolio often includes network infrastructure, cybersecurity, cloud services, and IT modernization. A thorough assessment of their performance on this IRS contract would involve reviewing past performance evaluations and any contract modifications or disputes.

What are the potential risks associated with the 'as needed' additional software licenses?

The 'as needed' clause for additional software licenses presents a potential risk of scope creep and budget overruns if not carefully managed. While it offers flexibility to acquire necessary licenses as requirements evolve, it can lead to unpredictable expenditures. The IRS must have robust internal processes to justify and approve any 'as needed' license purchases, ensuring they align with genuine operational needs and are procured at pre-negotiated or competitive rates. Without strict oversight, the total cost could exceed initial projections.

Industry Classification

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

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

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: $56,163,128

Exercised Options: $55,241,323

Current Obligation: $49,731,524

Actual Outlays: $49,731,524

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC71B

IDV Type: GWAC

Timeline