IRS Spends $36.4M on VMware Tanzu Greenplum Software from FCN, Inc
Contract Overview
Contract Amount: $36,432,264 ($36.4M)
Contractor: FCN, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2023-07-28
End Date: 2026-07-31
Contract Duration: 1,099 days
Daily Burn Rate: $33.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 18
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: VMWARE TANZU GREENPLUM SOFTWARE FOR IRS
Place of Performance
Location: LEONARDTOWN, SAINT MARYS County, MARYLAND, 20650
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $36.4 million to FCN, INC. for work described as: VMWARE TANZU GREENPLUM SOFTWARE FOR IRS Key points: 1. Significant investment in specialized data management software. 2. FCN, Inc. is the sole awardee for this specific delivery order. 3. Potential risk associated with single-vendor reliance for critical infrastructure. 4. IT sector spending, specifically data analytics and management tools.
Value Assessment
Rating: fair
The contract value of $36.4M for a 3-year period appears substantial. Benchmarking against similar large-scale software licensing and support contracts is difficult without more granular data on features and user counts. The pricing is likely influenced by the specialized nature of the software and the vendor's unique position.
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 suggests that while competition was considered, specific circumstances or prior agreements may have restricted the pool of eligible bidders, potentially impacting price discovery.
Taxpayer Impact: Taxpayers are funding a significant expenditure for specialized software. The effectiveness and efficiency of this software in supporting IRS operations will determine the ultimate value for money.
Public Impact
Enhances IRS data analytics capabilities for tax processing and enforcement. Supports critical IT infrastructure for a major federal agency. Ensures continuity of operations for essential tax-related services. Potential for cost savings if the software improves operational efficiency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to higher costs.
- Vendor lock-in risk for critical software.
- Dependence on a single vendor for support and upgrades.
Positive Signals
- Acquisition of advanced data management capabilities.
- Supports modernization of IRS IT systems.
- Long-term contract provides budget stability.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on data management and analytics software. Spending benchmarks for similar large-scale enterprise software procurements can vary widely based on scope, features, and vendor. The $36.4M value over three years is a significant investment for specialized database technology.
Small Business Impact
The data indicates that this contract was not awarded to a small business. There is no specific information provided regarding subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The award was made by the Department of the Treasury to the Internal Revenue Service. Standard federal procurement oversight processes apply, including reviews by agency contracting officers and potentially the Government Accountability Office (GAO) if protests arise.
Related Government Programs
- Other Computer Related Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Limited competition raises cost concerns.
- Potential for vendor lock-in.
- Reliance on specialized, potentially proprietary software.
- Lack of small business participation noted.
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 $36.4 million to FCN, INC.. VMWARE TANZU GREENPLUM SOFTWARE FOR IRS
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 $36.4 million.
What is the period of performance?
Start: 2023-07-28. End: 2026-07-31.
What is the specific functionality and expected performance improvement from VMware Tanzu Greenplum software for the IRS?
The specific functionality likely involves advanced data warehousing, analytics, and large-scale data processing capabilities crucial for the IRS's mission. Expected performance improvements could include faster data analysis for tax fraud detection, improved reporting accuracy, and enhanced ability to manage vast datasets, ultimately leading to more efficient tax administration and enforcement.
What are the risks associated with a limited competition award for this critical software, and how are they mitigated?
Risks include potentially higher costs due to reduced vendor negotiation leverage and vendor lock-in, making future transitions difficult. Mitigation strategies might involve rigorous performance monitoring, negotiating favorable terms for future renewals or expansions, and actively exploring alternative solutions or open-source options for long-term strategic planning.
How does this $36.4M investment align with the IRS's overall IT modernization goals and taxpayer service objectives?
This investment likely aligns with modernization goals by providing a robust platform for data analytics, which is essential for improving taxpayer services through better insights and more efficient processing. The software's ability to handle large datasets could enable more personalized taxpayer interactions and proactive issue resolution, demonstrating a commitment to leveraging technology for improved service delivery.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - END USER
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 18
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: $36,432,264
Exercised Options: $36,432,264
Current Obligation: $36,432,264
Actual Outlays: $36,432,264
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC71B
IDV Type: GWAC
Timeline
Start Date: 2023-07-28
Current End Date: 2026-07-31
Potential End Date: 2026-07-31 07:46:26
Last Modified: 2025-08-15
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