IRS Criminal Investigation Buys Nutanix Hardware for $14.7M to Enhance Investigative Mission
Contract Overview
Contract Amount: $14,740,072 ($14.7M)
Contractor: FCN, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2023-09-28
End Date: 2026-09-27
Contract Duration: 1,095 days
Daily Burn Rate: $13.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THIS IS A DELIVERY ORDER TO PURCHASE NUTANIX HARDWARE PLATFORMS THAT INCLUDES SOFTWARE AND SUPPORT FOR THE LAW ENFORCEMENT INVESTIGATIVE MISSION OF THE INTERNAL REVENUE SERVICE (IRS) CRIMINAL INVESTIGATION (CI) DIVISION
Place of Performance
Location: KEARNEYSVILLE, JEFFERSON County, WEST VIRGINIA, 25430
Plain-Language Summary
Department of the Treasury obligated $14.7 million to FCN, INC. for work described as: THIS IS A DELIVERY ORDER TO PURCHASE NUTANIX HARDWARE PLATFORMS THAT INCLUDES SOFTWARE AND SUPPORT FOR THE LAW ENFORCEMENT INVESTIGATIVE MISSION OF THE INTERNAL REVENUE SERVICE (IRS) CRIMINAL INVESTIGATION (CI) DIVISION Key points: 1. Spending focuses on critical IT infrastructure for law enforcement investigations. 2. Competition method suggests potential for price discovery, but details are limited. 3. Risk of vendor lock-in and reliance on specific hardware platforms. 4. Sector is IT services, specifically computer hardware and related support.
Value Assessment
Rating: fair
The $14.7M price for Nutanix hardware, software, and support over three years appears within a reasonable range for enterprise-level IT solutions. However, without specific configuration details or comparable contract data, a precise valuation is difficult.
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 method may restrict the number of eligible bidders and potentially impact the final price achieved compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are being used for essential IT infrastructure to support IRS investigative functions. The efficiency of the procurement process and the value for money are key considerations for taxpayer impact.
Public Impact
Enhances IRS capabilities in complex financial investigations. Supports critical law enforcement technology infrastructure. Potential for improved data analysis and operational efficiency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to suboptimal pricing.
- Reliance on specific hardware could create future integration challenges.
- Long-term support costs are a potential concern.
Positive Signals
- Invests in critical IT for national security.
- Supports law enforcement's ability to combat financial crime.
Sector Analysis
This IT hardware and support contract falls within the broader computer-related services sector. Spending benchmarks for similar enterprise hardware deployments vary widely based on scale and specific technologies, but $14.7M represents a significant investment.
Small Business Impact
The contract data indicates this was not awarded to a small business. Analysis of subcontracting opportunities for small businesses is not available from the provided data.
Oversight & Accountability
Oversight is provided by the Department of the Treasury and the Internal Revenue Service. The firm-fixed-price contract type provides some cost certainty, but ongoing monitoring of performance and value is crucial.
Related Government Programs
- Other Computer Related Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Potential for vendor lock-in with proprietary hardware/software.
- Limited competition may have inflated costs.
- Long-term sustainment and upgrade costs are not fully detailed.
- Dependence on a single vendor for critical infrastructure.
Tags
other-computer-related-services, department-of-the-treasury, wv, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $14.7 million to FCN, INC.. THIS IS A DELIVERY ORDER TO PURCHASE NUTANIX HARDWARE PLATFORMS THAT INCLUDES SOFTWARE AND SUPPORT FOR THE LAW ENFORCEMENT INVESTIGATIVE MISSION OF THE INTERNAL REVENUE SERVICE (IRS) CRIMINAL INVESTIGATION (CI) DIVISION
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 $14.7 million.
What is the period of performance?
Start: 2023-09-28. End: 2026-09-27.
What is the specific breakdown of hardware, software, and support costs within the $14.7M award?
The provided data does not detail the cost breakdown between hardware, software licenses, and ongoing support. Understanding this allocation is crucial for assessing the value of each component and identifying potential areas for cost savings in future procurements or renewals.
What were the specific reasons for excluding other sources in this 'full and open competition after exclusion of sources' award?
The rationale for excluding other sources is not detailed in the provided data. Typically, such exclusions are based on factors like unique technical requirements, existing infrastructure compatibility, or specific performance needs that only a limited number of vendors can meet. Clarifying this would illuminate the necessity of the chosen procurement path.
How will the performance and effectiveness of this Nutanix hardware and software be measured to ensure it meets the IRS CI Division's investigative needs?
Performance metrics and effectiveness measures are not explicitly stated. The IRS CI Division should establish clear Key Performance Indicators (KPIs) related to system uptime, data processing speed, security compliance, and user satisfaction. Regular reviews against these KPIs will ensure the investment delivers the intended investigative capabilities.
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
Solicitation ID: 5000176591
Offers Received: 4
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: $23,106,131
Exercised Options: $14,740,072
Current Obligation: $14,740,072
Actual Outlays: $14,740,072
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC71B
IDV Type: GWAC
Timeline
Start Date: 2023-09-28
Current End Date: 2026-09-27
Potential End Date: 2028-09-27 16:04:37
Last Modified: 2025-09-30
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