Treasury's $465M IT hardware and software contract awarded to FCN, Inc. under full and open competition

Contract Overview

Contract Amount: $465,413 ($465.4K)

Contractor: FCN, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2021-09-15

End Date: 2022-09-14

Contract Duration: 364 days

Daily Burn Rate: $1.3K/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: CISCO BRAND NAME HARDWARE AND SOFTWARE PRODUCTS AND SERVICES

Place of Performance

Location: KEARNEYSVILLE, JEFFERSON County, WEST VIRGINIA, 25430

State: West Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $465,413.48 to FCN, INC. for work described as: CISCO BRAND NAME HARDWARE AND SOFTWARE PRODUCTS AND SERVICES Key points: 1. Contract value of $465.4M for IT hardware and software products and services. 2. Awarded to FCN, Inc. through full and open competition. 3. Delivery order issued under a larger contract vehicle. 4. Contract duration of 364 days. 5. Primarily supports operations in West Virginia. 6. Firm Fixed Price contract type indicates defined costs. 7. NAICS code 541519 suggests a focus on computer-related services.

Value Assessment

Rating: good

The contract value of $465.4 million for IT hardware and software is substantial. Benchmarking this against similar large-scale IT procurements would be necessary for a precise value-for-money assessment. However, the firm fixed-price nature of the contract suggests that the government has locked in costs, which can be beneficial. The absence of specific performance metrics in the provided data makes a detailed assessment of efficiency challenging, but the scale implies significant operational support.

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,' indicating that multiple bidders were allowed to participate after an initial exclusion of certain sources. With 3 bidders identified, the competition level appears moderate. This suggests that while not a completely unrestricted competition, there was an opportunity for multiple vendors to vie for the contract, which generally aids in price discovery and achieving competitive pricing.

Taxpayer Impact: The moderate level of competition suggests that taxpayers likely benefited from a reasonably competitive pricing environment, avoiding the potential overpricing associated with sole-source awards.

Public Impact

Provides essential IT hardware and software products and services to the Department of the Treasury. Supports the Internal Revenue Service's operational needs. Primarily impacts operations and personnel located in West Virginia. Ensures the continuity of critical IT infrastructure for tax administration. Likely supports a significant number of federal employees and contractors reliant on these IT resources.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific hardware/software is mandated.
Reliance on a single vendor (FCN, Inc.) for a large IT spend.
Risk of cost overruns if the scope of 'products and services' is not tightly managed.
Dependence on FCN, Inc.'s ability to provide timely and effective support for the duration.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Firm Fixed Price contract type provides cost certainty.
Supports critical government functions within the IRS.
Long-term relationship potential with a single vendor can streamline support.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer hardware, software, and related services. The IT services market is vast and highly competitive, with numerous vendors offering a wide range of solutions. Large government contracts like this represent a significant portion of the market, often requiring specialized capabilities and adherence to stringent security and performance standards. Comparable spending benchmarks would typically involve analyzing other large-scale IT procurements by federal agencies for similar product categories.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The primary contractor, FCN, Inc., would determine any subcontracting opportunities, which are not detailed here. The absence of a small business set-aside means the focus was on obtaining the best value from the broader market.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Treasury's Internal Revenue Service. Accountability measures are inherent in the Firm Fixed Price contract type, requiring delivery of specified goods and services. Transparency is facilitated by the contract award notice, which is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Hardware Procurement
Software Licensing and Maintenance
IT Services Contracts
Department of the Treasury IT Spending
Internal Revenue Service Technology Modernization

Risk Flags

Potential for vendor lock-in with specific brand name products.
Limited detail on specific performance metrics.
Scope creep risk in 'products and services'.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $465,413.48 to FCN, INC.. CISCO BRAND NAME HARDWARE AND SOFTWARE PRODUCTS AND SERVICES

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 $465,413.48.

What is the period of performance?

Start: 2021-09-15. End: 2022-09-14.

What is the track record of FCN, Inc. in delivering similar IT hardware and software contracts to federal agencies?

FCN, Inc. has a history of securing and performing on federal IT contracts. Analyzing their past performance on contracts of similar size and scope, particularly those involving hardware and software provision, is crucial. This includes examining past performance reviews, on-time delivery rates, and adherence to budget. A review of contract databases and federal procurement records would reveal the extent and success of their previous engagements, providing insight into their capability to manage a contract of this magnitude and complexity for the IRS.

How does the $465.4 million contract value compare to historical IT spending by the IRS for similar services?

To assess value, the $465.4 million contract value needs to be benchmarked against the IRS's historical IT spending patterns for comparable hardware, software, and services. This involves analyzing trends in IT procurement over the past several years to understand average costs, contract durations, and the types of services procured. If this contract represents a significant increase or decrease compared to previous spending levels for similar needs, it warrants further investigation into the reasons, such as expanded scope, new technology adoption, or improved procurement strategies.

What are the key performance indicators (KPIs) used to measure the success of this contract, and how has FCN, Inc. performed against them?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for IT hardware and software contracts, KPIs might include on-time delivery of products, software functionality meeting specifications, system uptime, response times for technical support, and adherence to security protocols. A thorough assessment would require access to the contract's statement of work and performance reports to evaluate FCN, Inc.'s performance against these metrics and determine if the contract is delivering the expected value and operational effectiveness.

What specific types of hardware and software products and services are included under this $465.4 million contract?

The contract description 'CISCO BRAND NAME HARDWARE AND SOFTWARE PRODUCTS AND SERVICES' indicates a focus on Cisco-related IT solutions. However, the precise breakdown of spending between hardware, software licenses, maintenance, and professional services is not detailed. A comprehensive analysis would require examining the contract's line items or statement of work to understand the allocation of funds. This would clarify whether the majority of the spend is on capital equipment, recurring software subscriptions, or support services, impacting its classification and long-term value.

What is the geographic distribution of the IT services and support provided under this contract, beyond the stated 'West Virginia' location?

While the contract notes 'ST: WV' and 'SN: WEST VIRGINIA', indicating a primary operational location or delivery point, the actual geographic reach of IT hardware and software support can be broader. Federal IT contracts often support distributed workforces and multiple agency locations. An analysis should investigate if FCN, Inc. provides remote support, services to other IRS facilities nationwide, or if the West Virginia location is merely administrative or a primary deployment site. Understanding the full geographic impact is key to assessing its national relevance.

Industry Classification

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

Product/Service Code: IT AND TELECOM - COMPUTE

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: 2600 TOWER OAKS BLVD STE 575, 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: $465,413

Exercised Options: $465,413

Current Obligation: $465,413

Actual Outlays: $465,413

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC71B

IDV Type: GWAC

Timeline