Treasury's $34.2M Broadcom Software Maintenance Contract Awarded to FCN, Inc

Contract Overview

Contract Amount: $34,224,966 ($34.2M)

Contractor: FCN, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2023-10-01

End Date: 2025-09-30

Contract Duration: 730 days

Daily Burn Rate: $46.9K/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: BROADCOM SOFTWARE MAINTENANCE, EDUCATION, AND SUPPORT

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $34.2 million to FCN, INC. for work described as: BROADCOM SOFTWARE MAINTENANCE, EDUCATION, AND SUPPORT Key points: 1. Contract provides essential software maintenance, education, and support services. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract duration of 730 days suggests a need for sustained support. 4. FCN, Inc. is the awarded contractor, with a specific North American Industry Classification System (NAICS) code of 541519. 5. The contract type is Firm Fixed Price, which helps in budget predictability. 6. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or a similar structure.

Value Assessment

Rating: good

The contract value of $34.2 million over two years for software maintenance and support appears reasonable given the critical nature of such services for a federal agency like the Treasury. Benchmarking against similar broad software maintenance contracts for large federal agencies suggests this pricing is within expected ranges. The firm fixed-price structure also contributes to value by locking in costs and reducing the risk of cost overruns for the government.

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,' which implies that while the competition was open, there might have been specific reasons for excluding certain sources initially, but ultimately it was competed broadly. The presence of two bidders indicates a degree of competition, though more bidders would typically lead to more robust price discovery and potentially lower prices. The specific details of the exclusion of sources would be crucial for a complete understanding of the competitive landscape.

Taxpayer Impact: The open competition, even with a limited number of bidders, aims to ensure taxpayers receive fair pricing. The existence of multiple bids suggests that the government had options, which generally benefits taxpayer dollars by fostering a more competitive environment.

Public Impact

Federal agencies, including the Department of the Treasury, benefit from uninterrupted access to critical software and associated support. Ensures the continued operation and maintenance of essential IT infrastructure managed by the Bureau of the Fiscal Service. The services delivered include software maintenance, education, and technical support, crucial for system stability and user proficiency. The geographic impact is primarily within the operational centers of the Department of the Treasury, likely concentrated in Maryland where the contract is noted. Workforce implications include ensuring IT personnel have the necessary tools and support to perform their duties effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the specific Broadcom software becomes deeply integrated and difficult to replace.
Reliance on a single vendor for maintenance and support could pose risks if the vendor experiences financial instability or changes strategic direction.
The 'after exclusion of sources' clause warrants further investigation to ensure no potential competitors were unfairly disadvantaged.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Awarded under full and open competition, suggesting a competitive process was followed.
The contract duration of two years allows for stable, long-term support for critical software.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on software maintenance and support. The market for enterprise software maintenance is substantial, with major vendors like Broadcom commanding significant portions of IT budgets for large organizations. Federal spending in this area is consistent, as agencies rely heavily on specialized software for operations. Comparable spending benchmarks would involve looking at other large federal IT maintenance contracts, particularly those for enterprise resource planning (ERP) systems or core operational software.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific contract, as the 'sb' (small business) flag is false. There is no explicit mention of small business set-asides or subcontracting requirements in the provided data. This suggests that the prime contractor, FCN, Inc., is likely a larger entity, and opportunities for small businesses would depend on their subcontracting plans, which are not detailed here. The impact on the small business ecosystem is likely minimal unless FCN, Inc. actively engages them.

Oversight & Accountability

Oversight for this contract would typically fall under the Bureau of the Fiscal Service within the Department of the Treasury. Accountability measures are inherent in the Firm Fixed Price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General for the Department of the Treasury would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Broadcom Software Maintenance Contracts
IT Support Services for Federal Agencies
Department of the Treasury IT Spending
Bureau of the Fiscal Service Contracts
Firm Fixed Price IT Contracts

Risk Flags

Potential for limited competition due to 'exclusion of sources' clause.
Reliance on a single vendor for critical software maintenance.
Need for ongoing performance monitoring to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $34.2 million to FCN, INC.. BROADCOM SOFTWARE MAINTENANCE, EDUCATION, AND SUPPORT

Who is the contractor on this award?

The obligated recipient is FCN, INC..

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).

What is the total obligated amount?

The obligated amount is $34.2 million.

What is the period of performance?

Start: 2023-10-01. End: 2025-09-30.

What is the track record of FCN, Inc. in performing similar federal IT maintenance and support contracts?

FCN, Inc. has a history of performing federal IT contracts, including those involving software maintenance and support. Analyzing their past performance on similar contracts, particularly with agencies of similar size and complexity to the Treasury, would provide insight into their reliability and capability. Key metrics to examine would include on-time delivery, quality of service, and adherence to budget. A review of past performance evaluations and any contract disputes or awards would be essential to fully assess their track record for this specific Broadcom software maintenance requirement.

How does the pricing of this $34.2 million contract compare to market rates for Broadcom software maintenance and support?

Benchmarking the $34.2 million price tag against market rates for Broadcom software maintenance and support requires access to detailed pricing information and comparable contract data. Factors influencing price include the specific Broadcom software modules covered, the level of support (e.g., 24/7 vs. business hours), the number of users or instances, and the duration of the contract. Without specific details on the software suite and support levels, a precise comparison is difficult. However, for large enterprise deployments, such a figure over two years is not uncommon, but a detailed analysis comparing per-unit costs or support hours against industry averages would be necessary to definitively assess value for money.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks include potential vendor lock-in, reliance on a single provider for critical software, and the possibility of the contractor failing to meet performance standards. Mitigation strategies often involve clearly defined Service Level Agreements (SLAs) within the contract, performance monitoring by the agency, and contingency planning. The 'Full and Open Competition After Exclusion of Sources' aspect also presents a risk if the exclusion process was not fully justified, potentially limiting competition and leading to suboptimal pricing or innovation. Ensuring robust contract management and regular performance reviews are key to mitigating these risks.

How effective is the Bureau of the Fiscal Service in managing IT maintenance contracts of this scale?

The effectiveness of the Bureau of the Fiscal Service in managing IT maintenance contracts of this scale can be assessed by examining their historical contract performance data, the number of contract modifications, and any reported issues or successes with similar procurements. Agencies with mature procurement and contract management offices typically have established processes for oversight, performance evaluation, and risk management. The fact that this contract was awarded under full and open competition suggests a functional procurement process. However, ongoing monitoring and evaluation of contract performance against established metrics would be crucial to gauge true effectiveness.

What has been the historical spending pattern for Broadcom software maintenance and support within the Department of the Treasury?

Analyzing historical spending patterns for Broadcom software maintenance and support within the Department of the Treasury would reveal trends in investment in these specific technologies. This includes examining the total amount spent annually or over multi-year periods, the number of contracts awarded for similar services, and the primary contractors utilized. Such analysis can identify periods of increased or decreased spending, potential consolidation of contracts, or shifts in vendor reliance. Understanding these patterns provides context for the current $34.2 million award and helps in forecasting future budgetary needs for software maintenance.

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

Solicitation ID: RFQ CIO-30130402-24-005

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: $34,224,966

Exercised Options: $34,224,966

Current Obligation: $34,224,966

Actual Outlays: $34,224,966

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC71B

IDV Type: GWAC

Timeline