Treasury's IRS Awards $4.6M for Software Licenses and Maintenance to FCN, Inc
Contract Overview
Contract Amount: $4,612,009 ($4.6M)
Contractor: FCN, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2022-09-27
End Date: 2025-09-29
Contract Duration: 1,098 days
Daily Burn Rate: $4.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SOFTWARE LICENSES AND MAINTENANCE FOR A BASE YEAR.
Place of Performance
Location: KEARNEYSVILLE, JEFFERSON County, WEST VIRGINIA, 25430
Plain-Language Summary
Department of the Treasury obligated $4.6 million to FCN, INC. for work described as: SOFTWARE LICENSES AND MAINTENANCE FOR A BASE YEAR. Key points: 1. The contract is for software licenses and maintenance, a common IT expenditure. 2. FCN, Inc. is the awardee under a full and open competition. 3. The contract duration is 1098 days, spanning over three years. 4. The total award value is $4,612,008.60. 5. The NAICS code 541519 suggests a broad range of computer-related services.
Value Assessment
Rating: good
The contract value of $4.6M over three years for software licenses and maintenance appears reasonable. Benchmarking against similar contracts for enterprise software solutions would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: The competitive award process is expected to ensure taxpayer funds are used efficiently for necessary software services.
Public Impact
IRS users will continue to have access to essential software. The contract ensures continuity of operations for critical IRS systems. Taxpayer data security is maintained through updated software and support. The award supports the government's IT infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with long-term software licenses.
- Risk of cost escalation for maintenance and future upgrades.
- Dependence on a single vendor for critical software functionality.
Positive Signals
- Competitive award process likely secured favorable pricing.
- Long-term contract provides budget stability for software needs.
- Ensures access to necessary software for IRS operations.
Sector Analysis
This contract falls within the IT sector, specifically software licensing and maintenance. Spending benchmarks for similar government IT contracts vary widely based on software type and scale, but $4.6M over three years for enterprise-level software is within a typical range.
Small Business Impact
The awardee, FCN, Inc., is not indicated as a small business. The contract was awarded under full and open competition, which does not preclude small business participation, but the prime awardee is not identified as such.
Oversight & Accountability
The contract was awarded by the Department of the Treasury, Internal Revenue Service. Standard government oversight processes for contract performance and financial management would apply.
Related Government Programs
- Other Computer Related Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Potential for vendor lock-in.
- Risk of cost escalation over contract term.
- Dependence on single vendor for critical software.
- Lack of small business prime awardee.
Tags
other-computer-related-services, department-of-the-treasury, wv, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $4.6 million to FCN, INC.. SOFTWARE LICENSES AND MAINTENANCE FOR A BASE YEAR.
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 $4.6 million.
What is the period of performance?
Start: 2022-09-27. End: 2025-09-29.
What specific software is covered by this contract, and what is its criticality to IRS operations?
The data does not specify the exact software titles. However, given the awardee and the agency (IRS), it likely pertains to core operational software, potentially including tax processing, data management, or internal administrative systems. The criticality is assumed to be high, as software maintenance ensures continued functionality and security of essential government services.
Are there any identified risks associated with the long-term nature of this software license and maintenance agreement?
Long-term software agreements can pose risks such as vendor lock-in, making it difficult and costly to switch providers. There's also a risk of price escalation for maintenance and future upgrades, and potential obsolescence if the software doesn't keep pace with technological advancements. Continuous monitoring and negotiation are key to mitigating these risks.
How does the pricing of this contract compare to industry benchmarks for similar software licenses and maintenance?
Without knowing the specific software, a precise benchmark is difficult. However, the $4.6M award over three years ($1.53M annually) for enterprise software licenses and maintenance is within a plausible range for government contracts. A detailed analysis would require comparing features, user counts, and support levels against commercial offerings and other government contracts.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - END USER
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
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, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $4,612,009
Exercised Options: $4,612,009
Current Obligation: $4,612,009
Actual Outlays: $4,612,009
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 47QTCA19D00CB
IDV Type: FSS
Timeline
Start Date: 2022-09-27
Current End Date: 2025-09-29
Potential End Date: 2025-09-29 11:23:57
Last Modified: 2026-03-26
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