VA awards $82.2M for McAfee software and support, with 6 delivery orders

Contract Overview

Contract Amount: $82,241,673 ($82.2M)

Contractor: FCN, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-05-16

End Date: 2026-05-15

Contract Duration: 1,825 days

Daily Burn Rate: $45.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MCAFEE SOFTWARE AND SUPPORT SERVICES

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $82.2 million to FCN, INC. for work described as: MCAFEE SOFTWARE AND SUPPORT SERVICES Key points: 1. Spending on McAfee software and support totals $82.2M. 2. FCN, Inc. is the sole awardee for this contract. 3. The contract spans 5 years, ending May 2026. 4. This is a Firm Fixed Price contract. 5. The NAICS code is 541519 (Other Computer Related Services).

Value Assessment

Rating: fair

The total award amount is $82.2M. Without specific per-unit pricing or comparison data for similar software licenses and support services across government agencies, it's difficult to definitively assess value. However, the duration and scope suggest a significant investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests that while competition was considered, specific circumstances led to limiting the pool of potential bidders. The impact on price discovery is unclear without knowing the reasons for exclusion.

Taxpayer Impact: Taxpayer funds are being used for this significant software and support expenditure. The effectiveness of the procurement process in securing competitive pricing directly impacts the value for taxpayers.

Public Impact

Veterans Affairs relies on this software for its operations. The contract ensures continued access to essential cybersecurity tools. Potential for cost savings if pricing was aggressively negotiated. Long-term commitment to a specific vendor's software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises questions about optimal pricing.
Reliance on a single vendor for critical software.
Potential for vendor lock-in.

Positive Signals

Long-term contract provides budget predictability.
Ensures continuity of essential services.
Clear award amount and duration.

Sector Analysis

The IT sector, particularly software licensing and support, represents a substantial portion of government spending. Benchmarks for similar contracts are highly variable based on software type, user volume, and support levels. This award falls within the typical range for enterprise-level software agreements.

Small Business Impact

The contract was awarded to FCN, Inc. There is no indication that small businesses were involved as subcontractors or partners in this specific award, which is common for large enterprise software contracts.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The contract's structure with multiple delivery orders allows for phased implementation and management. Accountability for performance and spending rests with the VA contracting officers.

Related Government Programs

Other Computer Related Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition may lead to higher costs.
Vendor lock-in risk with long-term software agreements.
Dependence on a single vendor for critical security functions.
Potential for unutilized licenses or services over the contract term.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $82.2 million to FCN, INC.. MCAFEE SOFTWARE AND SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is FCN, INC..

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $82.2 million.

What is the period of performance?

Start: 2021-05-16. End: 2026-05-15.

What specific cybersecurity needs does this McAfee software address for the VA, and how does it compare to alternative solutions in terms of effectiveness and cost?

The specific cybersecurity needs addressed by this McAfee software are not detailed in the provided data. To assess effectiveness and cost, a comparative analysis against alternative solutions like CrowdStrike, SentinelOne, or other endpoint security providers would be necessary. This would involve evaluating features, threat detection capabilities, management interfaces, and total cost of ownership over the contract's lifespan.

Given the 'limited' competition, what justification was provided for excluding other potential sources, and how was fair and reasonable pricing ensured?

The justification for excluding other sources under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is not provided. Typically, this requires a documented rationale, such as specific technical requirements, existing infrastructure compatibility, or urgent needs. Ensuring fair and reasonable pricing would involve market research, comparison to commercial prices, or historical data, even with limited bidders.

What is the projected return on investment or measurable benefit the VA expects from this $82.2M expenditure on McAfee software and support over five years?

The projected return on investment or measurable benefit is not specified. Typically, such benefits would be framed in terms of reduced security incidents, minimized data breaches, improved compliance posture, and enhanced operational efficiency through reliable software performance. Quantifying these benefits often involves metrics like incident response times, cost avoidance from breaches, and uptime percentages.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 36C10B21Q0243

Offers Received: 6

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: $281,772,444

Exercised Options: $82,241,673

Current Obligation: $82,241,673

Actual Outlays: $23,886,290

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC71B

IDV Type: GWAC

Timeline