Treasury's IRS Awards $23.3M for eAuth SiteMinder Software Update to FCN, Inc
Contract Overview
Contract Amount: $23,273,554 ($23.3M)
Contractor: FCN, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2021-09-30
End Date: 2025-03-26
Contract Duration: 1,273 days
Daily Burn Rate: $18.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THIS IS A TASK ORDER TO ACQUIRE EAUTH SITEMINDER SOFTWARE UPDATE.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20224
Plain-Language Summary
Department of the Treasury obligated $23.3 million to FCN, INC. for work described as: THIS IS A TASK ORDER TO ACQUIRE EAUTH SITEMINDER SOFTWARE UPDATE. Key points: 1. The contract is for essential eAuth SiteMinder software updates, crucial for secure access management. 2. FCN, Inc. secured the award, indicating potential competition or specific expertise in this niche. 3. The fixed-price contract type helps manage cost certainty for the government. 4. The duration of over 1000 days suggests a long-term need for ongoing support and updates.
Value Assessment
Rating: fair
The award amount of $23.3M over approximately 4.25 years is difficult to benchmark without specific per-unit software licensing and support costs. However, for enterprise-level identity and access management solutions, this figure appears within a reasonable range for a multi-year, comprehensive update and support contract.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting that while competition was sought, certain sources were excluded, potentially limiting the competitive landscape. This method can impact price discovery if the excluded sources represent significant market players.
Taxpayer Impact: Taxpayers are impacted through the funding of essential IT infrastructure for tax administration. The fixed-price nature aims to control costs, but the limited competition could lead to a higher price than if broader competition were pursued.
Public Impact
Ensures secure and reliable access to IRS systems for employees and potentially taxpayers. Supports the ongoing modernization and security of critical government IT infrastructure. The contract's duration implies a sustained need for this software's functionality. Potential for disruption if software updates are not implemented effectively.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises concerns about optimal pricing.
- Reliance on a single vendor for critical software updates.
- Potential for scope creep in a long-duration contract.
Positive Signals
- Fixed-price contract provides cost certainty.
- Awarded to a single vendor, potentially streamlining management.
- Addresses a critical cybersecurity and access management need.
Sector Analysis
This contract falls under IT services, specifically software acquisition and maintenance. Spending in this sector is consistently high across government agencies for maintaining and upgrading complex systems. Benchmarks for similar enterprise software updates vary widely based on the specific software and vendor.
Small Business Impact
The data indicates that neither small business nor socio-economic status was a factor in this award, as 'sb' is false. This suggests the contract was not specifically set aside for small businesses and was awarded based on other criteria, potentially limiting opportunities for smaller IT firms.
Oversight & Accountability
The contract was awarded by the Department of the Treasury's Internal Revenue Service. Oversight would typically involve contract officers, program managers, and potentially IT security personnel to ensure deliverables meet requirements and costs remain within budget. The 'EXCLUSION OF SOURCES' clause warrants scrutiny regarding justification.
Related Government Programs
- Other Computer Related Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Limited competition may lead to suboptimal pricing.
- Potential for vendor lock-in due to specialized software.
- Long contract duration increases risk of technological obsolescence.
- Lack of small business participation.
Tags
other-computer-related-services, department-of-the-treasury, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $23.3 million to FCN, INC.. THIS IS A TASK ORDER TO ACQUIRE EAUTH SITEMINDER SOFTWARE UPDATE.
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 $23.3 million.
What is the period of performance?
Start: 2021-09-30. End: 2025-03-26.
What was the justification for excluding specific sources in the competition for this eAuth SiteMinder software update?
The justification for excluding sources under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' typically involves specific technical requirements, existing infrastructure compatibility, or prior performance issues with other vendors. A thorough review would be needed to confirm if these exclusions were well-documented and served the government's best interest in obtaining the required software update efficiently and effectively.
How does the $23.3M cost compare to industry benchmarks for similar enterprise identity and access management software updates and support?
Benchmarking this cost requires detailed knowledge of the specific SiteMinder software version, the scope of updates, and the level of support included. Generally, enterprise IAM solutions are costly, and multi-year contracts for updates and support can easily reach millions. Without specific details on licensing models and support tiers, a precise comparison is difficult, but the amount seems plausible for a large agency's needs.
What are the potential risks associated with a long-duration contract (1273 days) for critical software updates?
Long-duration contracts for critical software updates carry risks such as technological obsolescence, where the software or update becomes outdated before the contract ends. There's also the risk of vendor lock-in, reduced flexibility to adopt newer technologies, and potential cost inefficiencies if market prices decrease. Furthermore, maintaining consistent performance and security over an extended period requires diligent oversight.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
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: $23,273,554
Exercised Options: $23,273,554
Current Obligation: $23,273,554
Actual Outlays: $23,273,554
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC71B
IDV Type: GWAC
Timeline
Start Date: 2021-09-30
Current End Date: 2025-03-26
Potential End Date: 2025-03-26 08:35:07
Last Modified: 2025-04-18
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