Treasury's IRS Awards $15.7M Splunk Contract to FCN, Inc. for Licensing and Support
Contract Overview
Contract Amount: $15,676,271 ($15.7M)
Contractor: FCN, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2026-01-22
End Date: 2027-01-20
Contract Duration: 363 days
Daily Burn Rate: $43.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: TO PROVIDE SPLUNK LICENSING AND SUPPORT SERVICES UNDER EXISTING BPA SPLUNK CONTRACT.
Place of Performance
Location: ATLANTA, DEKALB County, GEORGIA, 30341
State: Georgia Government Spending
Plain-Language Summary
Department of the Treasury obligated $15.7 million to FCN, INC. for work described as: TO PROVIDE SPLUNK LICENSING AND SUPPORT SERVICES UNDER EXISTING BPA SPLUNK CONTRACT. Key points: 1. Contract focuses on essential Splunk licensing and support, indicating ongoing reliance on the platform. 2. FCN, Inc. is the awardee under an existing BPA, suggesting a pre-established relationship. 3. The contract value of $15.7M over approximately one year warrants scrutiny for cost-effectiveness. 4. The 'Other Computer Related Services' NAICS code suggests a broad category, requiring further detail on specific services.
Value Assessment
Rating: fair
The award value of $15.7M for approximately one year of Splunk licensing and support appears to be within a reasonable range for enterprise-level software agreements. However, without specific per-unit cost data or detailed service breakdowns, a precise comparison to similar contracts is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is a positive indicator for price discovery. The use of a BPA call suggests that the initial competition for the BPA established a baseline, and this call leverages that framework.
Taxpayer Impact: Taxpayer funds are being used for essential IT infrastructure support. The full and open competition aims to ensure fair pricing, but ongoing monitoring is needed to confirm value for money.
Public Impact
Ensures continued operation of critical IRS systems relying on Splunk. Supports data analysis and security monitoring capabilities for tax administration. Potential for improved efficiency in tax processing and fraud detection. Impacts IRS's ability to manage and secure vast amounts of taxpayer data.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed service breakdown for cost validation.
- Potential for vendor lock-in with specialized software.
- Reliance on a single vendor for critical licensing and support.
Positive Signals
- Awarded under full and open competition.
- Leverages existing BPA for streamlined procurement.
- Contract duration aligns with operational needs.
Sector Analysis
This contract falls within the IT services sector, specifically 'Other Computer Related Services.' Spending on software licensing and support is a significant component of federal IT budgets, often driven by the need for data analytics, cybersecurity, and operational efficiency.
Small Business Impact
The data indicates that this contract was not awarded to a small business (ss: false, sb: false). While this specific award may not directly benefit small businesses, the initial BPA competition might have included small business participation, which should be reviewed.
Oversight & Accountability
The use of a BPA and subsequent calls allows for a degree of oversight through the initial competitive process. However, ongoing performance monitoring and contract management by the IRS are crucial to ensure the vendor meets service level agreements and provides value.
Related Government Programs
- Other Computer Related Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Lack of detailed service breakdown.
- Potential for cost creep if not managed closely.
- Reliance on a single vendor for critical software.
- Limited visibility into specific Splunk functionalities being procured.
Tags
other-computer-related-services, department-of-the-treasury, ga, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $15.7 million to FCN, INC.. TO PROVIDE SPLUNK LICENSING AND SUPPORT SERVICES UNDER EXISTING BPA SPLUNK CONTRACT.
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 $15.7 million.
What is the period of performance?
Start: 2026-01-22. End: 2027-01-20.
What specific Splunk modules or features are being licensed and supported under this contract, and how do these align with the IRS's current and future operational needs?
The provided data does not specify the exact Splunk modules or features covered. Understanding this detail is crucial for assessing if the licensing aligns with the IRS's current and future operational needs, such as data analytics, security monitoring, or compliance. Without this information, it's difficult to determine if the agency is acquiring only necessary components or if there's potential for over-licensing or under-utilization.
How does the per-unit cost of Splunk licenses and support under this BPA call compare to market benchmarks and previous IRS procurements for similar services?
The data lacks specific per-unit cost information, making a direct comparison difficult. While the total award value is provided, the absence of unit pricing prevents an accurate assessment against market benchmarks or historical IRS spending. This lack of detail hinders the ability to determine if the government is achieving competitive pricing for its Splunk investment.
What mechanisms are in place to ensure the effectiveness of Splunk's support services and to mitigate risks associated with potential service disruptions or performance issues?
The contract is firm fixed price, which shifts some performance risk to the contractor. However, the effectiveness of support relies on Service Level Agreements (SLAs) and ongoing performance monitoring by the IRS. Mechanisms like regular performance reviews, defined escalation procedures, and clear remedies for non-performance are essential to ensure the continued effectiveness of Splunk support.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 12501 ARDENNES AVE, 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: $89,248,439
Exercised Options: $89,248,439
Current Obligation: $15,676,271
Actual Outlays: $15,676,271
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 2032L225A00002
IDV Type: BPA
Timeline
Start Date: 2026-01-22
Current End Date: 2027-01-20
Potential End Date: 2031-01-20 13:45:36
Last Modified: 2026-02-27
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