CBP Spends $34.9M on Oracle Maintenance via Full and Open Competition
Contract Overview
Contract Amount: $34,870,697 ($34.9M)
Contractor: FCN, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2020-08-01
End Date: 2021-07-31
Contract Duration: 364 days
Daily Burn Rate: $95.8K/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: THE PURPOSE OF THIS DELIVERY ORDER IS FOR THE CONTRACTOR TO PROVIDE ANNUAL ORACLE HARDWARE AND SOFTWARE MAINTENANCE IN SUPPORT OF THE U.S. CUSTOMS AND BORDER PROTECTION (CBP) OFFICE OF INFORMATION AND TECHNOLOGY (OIT).
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852
State: Maryland Government Spending
Plain-Language Summary
Department of Homeland Security obligated $34.9 million to FCN, INC. for work described as: THE PURPOSE OF THIS DELIVERY ORDER IS FOR THE CONTRACTOR TO PROVIDE ANNUAL ORACLE HARDWARE AND SOFTWARE MAINTENANCE IN SUPPORT OF THE U.S. CUSTOMS AND BORDER PROTECTION (CBP) OFFICE OF INFORMATION AND TECHNOLOGY (OIT). Key points: 1. Significant expenditure on essential IT maintenance for Customs and Border Protection. 2. FCN, Inc. secured the contract through a competitive process. 3. Risk is moderate, tied to reliance on a single vendor for maintenance. 4. IT services sector, specifically software and hardware maintenance.
Value Assessment
Rating: good
The contract value of $34.9M for annual Oracle maintenance appears reasonable given the critical nature of CBP's IT infrastructure. Benchmarking against similar large-scale Oracle support contracts would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process was used. This method generally promotes price discovery and ensures fair market value.
Taxpayer Impact: Taxpayer funds are utilized for essential IT maintenance, ensuring the continuity of critical government operations. The competitive award aims to maximize value for the investment.
Public Impact
Ensures continued operation of critical U.S. Customs and Border Protection systems. Supports national security by maintaining vital border technology. Provides essential IT infrastructure for trade and travel facilitation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with Oracle products.
- Reliance on a single contractor for critical maintenance.
Positive Signals
- Awarded through full and open competition.
- Supports a vital government agency.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on software and hardware maintenance for enterprise systems. Spending benchmarks for similar government IT maintenance contracts vary widely based on the complexity and scale of the systems supported.
Small Business Impact
The contract was awarded to FCN, Inc. Analysis of subcontracting opportunities for small businesses is not available from the provided data. Further investigation would be needed to determine small business participation.
Oversight & Accountability
The Department of Homeland Security, through U.S. Customs and Border Protection, oversees this contract. Standard procurement regulations and oversight mechanisms are expected to be in place to ensure performance and accountability.
Related Government Programs
- Other Computer Related Services
- Department of Homeland Security Contracting
- U.S. Customs and Border Protection Programs
Risk Flags
- Reliance on a single vendor for critical IT maintenance.
- Potential for price increases in future contract renewals.
- Need for ongoing monitoring of contractor performance.
- Complexity of managing enterprise-level IT support contracts.
Tags
other-computer-related-services, department-of-homeland-security, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $34.9 million to FCN, INC.. THE PURPOSE OF THIS DELIVERY ORDER IS FOR THE CONTRACTOR TO PROVIDE ANNUAL ORACLE HARDWARE AND SOFTWARE MAINTENANCE IN SUPPORT OF THE U.S. CUSTOMS AND BORDER PROTECTION (CBP) OFFICE OF INFORMATION AND TECHNOLOGY (OIT).
Who is the contractor on this award?
The obligated recipient is FCN, INC..
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).
What is the total obligated amount?
The obligated amount is $34.9 million.
What is the period of performance?
Start: 2020-08-01. End: 2021-07-31.
What is the long-term strategy for managing Oracle software and hardware maintenance costs?
The long-term strategy for managing Oracle maintenance costs is crucial. Agencies should explore options like negotiating multi-year support agreements, optimizing license usage, considering alternative software solutions, or developing in-house expertise where feasible. Proactive planning can mitigate escalating costs and reduce reliance on single-vendor support.
What are the risks associated with relying on FCN, Inc. for ongoing Oracle maintenance?
The primary risk is potential vendor lock-in and the impact on future pricing if competition is limited in subsequent procurements. Dependence on a single contractor for critical IT maintenance could also lead to service disruptions if the contractor faces performance issues or financial instability. Ensuring robust contract management and performance monitoring is key.
How does this expenditure contribute to the overall effectiveness of CBP's mission?
This expenditure is vital for the effectiveness of CBP's mission by ensuring the uninterrupted operation of the hardware and software that underpin its critical functions. Reliable IT systems are essential for border security, trade facilitation, and law enforcement operations. Without this maintenance, system failures could significantly impede CBP's ability to perform its duties.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 12315 WILKINS AVE, 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: $34,870,697
Exercised Options: $34,870,697
Current Obligation: $34,870,697
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HSHQDC13D00017
IDV Type: IDC
Timeline
Start Date: 2020-08-01
Current End Date: 2021-07-31
Potential End Date: 2021-07-31 14:41:22
Last Modified: 2023-02-08
More Contracts from FCN, Inc.
- Broadcom Software License and Maint — $240.3M (Department of the Treasury)
- Base Award for IRS Cisco Catalog. Base Year 12 Months With Four 12-Month Option Periods — $233.1M (Department of the Treasury)
- Cisco Combined Services for the Internal Revenue Service User and Networks Service Organization (UNS) That Requires Consistent and Reliable Maintenance of the IRS Telecommunications Infrastructure — $129.2M (Department of the Treasury)
- Mcafee Software and Support Services — $82.2M (Department of Veterans Affairs)
- EA Bundle — $78.1M (Department of Defense)
Other Department of Homeland Security Contracts
- THE United States Coast Guard HAS a Requirement to Procure UP to Twenty-Six (26) Fast Response Cutters (frcs) on a Firm Fixed Price (FFP) Basis With an Economic Price Adjustment (EPA). Phase II of the FRC Program Will Complete the Fleet for a Total of 58 Cutters — $2.1B (Bollinger Shipyards Lockport, L.L.C.)
- Design and Construct NEW Vertical Barrier and Power Distribution, Lighting, Cameras, Equipment Shelters and Linear Ground Detection System (lgds) in Hildago County, NM — $1.8B (Fisher Sand & Gravel CO)
- Production&delivery of National Security Cutter (NSC) 6 — $1.7B (Huntington Ingalls Incorporated)
- YUM-2 Vertical Border and Waterborne Barrier Construction — $1.7B (Fisher Sand & Gravel CO)
- Construct Vertical Border Barrier — $1.6B (Fisher Sand & Gravel CO)