DHS awards $29.9M Oracle maintenance contract to FCN, Inc. for Customs and Border Protection

Contract Overview

Contract Amount: $29,913,509 ($29.9M)

Contractor: FCN, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2025-08-28

End Date: 2026-07-31

Contract Duration: 337 days

Daily Burn Rate: $88.8K/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: RENEWAL OF ORACLE HARDWARE AND SOFTWARE MAINTENANCE AND SUPPORT

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $29.9 million to FCN, INC. for work described as: RENEWAL OF ORACLE HARDWARE AND SOFTWARE MAINTENANCE AND SUPPORT Key points: 1. Contract focuses on essential hardware and software maintenance, ensuring operational continuity. 2. FCN, Inc. has secured this renewal, indicating a continued relationship for support services. 3. The contract's firm-fixed-price structure provides cost certainty for the duration. 4. This award represents a significant investment in maintaining critical IT infrastructure for border security. 5. The duration of the contract extends over a year, suggesting a need for sustained support. 6. The service category points to specialized IT support beyond standard software licensing.

Value Assessment

Rating: fair

Benchmarking the value of this renewal is challenging without detailed service level agreements and historical pricing trends. However, the firm-fixed-price nature suggests a degree of cost control. Comparing this to similar Oracle maintenance contracts across federal agencies would provide a clearer picture of whether the $29.9 million over approximately 23 months represents a competitive price for the scope of services.

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,' which implies a competitive process was initiated, but specific details on bidder numbers or the exclusion rationale are not provided. This designation suggests that while competition was sought, certain conditions or prior exclusions may have influenced the pool of potential bidders.

Taxpayer Impact: A full and open competition, even with prior exclusions, generally aims to achieve better pricing and value for taxpayers by allowing multiple vendors to bid.

Public Impact

This contract directly supports U.S. Customs and Border Protection's mission-critical IT systems. It ensures the continued operation of hardware and software essential for border security and trade facilitation. The services provided are vital for maintaining data integrity and system availability. The contract's impact is primarily within the federal IT infrastructure supporting national security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with specialized Oracle maintenance.
Reliance on a single vendor for critical hardware and software support.
Need for robust performance monitoring to ensure value for money.

Positive Signals

Firm-fixed-price contract provides budget predictability.
Renewal indicates satisfaction with current support levels.
Competition, even with exclusions, suggests an effort to secure fair pricing.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on hardware and software maintenance and support for Oracle products. The federal IT maintenance market is substantial, with agencies consistently investing in keeping their systems operational. This contract represents a portion of the broader federal spending on maintaining legacy and current IT infrastructure, ensuring the longevity and performance of critical systems.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. The primary contractor, FCN, Inc., may engage small businesses as subcontractors, but this is not mandated by the contract's structure.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's internal procurement and program management offices. The contract's firm-fixed-price nature simplifies some aspects of financial oversight. Transparency is generally maintained through contract award databases like FPDS. Specific performance metrics and reporting requirements would be detailed in the contract's statement of work, subject to agency review.

Related Government Programs

Oracle Software Maintenance
IT Hardware Maintenance
Federal IT Infrastructure Support
Customs and Border Protection IT Systems
Department of Homeland Security IT Contracts

Risk Flags

Potential for vendor lock-in
Reliance on single vendor for critical support
Need for robust performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $29.9 million to FCN, INC.. RENEWAL OF ORACLE HARDWARE AND SOFTWARE MAINTENANCE AND SUPPORT

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 $29.9 million.

What is the period of performance?

Start: 2025-08-28. End: 2026-07-31.

What is the historical spending trend for Oracle hardware and software maintenance and support by U.S. Customs and Border Protection?

Analyzing historical spending on Oracle maintenance by U.S. Customs and Border Protection (CBP) is crucial for understanding the long-term investment in these systems. While specific historical data for this exact contract renewal is not provided, federal agencies typically renew maintenance contracts annually or multi-year periods. Trends often show consistent spending on essential software and hardware support, with potential increases due to system upgrades, expanded usage, or price adjustments by the vendor. Without access to CBP's detailed procurement history for Oracle support, it's difficult to pinpoint exact year-over-year changes. However, the current award of approximately $29.9 million over roughly 23 months suggests a significant and ongoing commitment to maintaining these Oracle systems, likely reflecting their criticality to CBP operations.

How does the per-unit cost of this contract compare to similar Oracle maintenance contracts for federal agencies?

Determining the precise per-unit cost for this Oracle maintenance contract is challenging without a breakdown of what constitutes a 'unit' (e.g., per server, per user license, per support hour). The total award of $29.9 million over approximately 23 months averages to about $1.3 million per month. To benchmark this effectively, one would need to compare it against similar Oracle hardware and software maintenance contracts awarded to other federal agencies, considering factors like the specific Oracle products covered (e.g., database, applications, middleware), the level of support (e.g., 24/7, business hours), and the volume of licenses or hardware supported. Agencies often negotiate different rates based on volume and contract duration. A comprehensive comparison would require access to a database of comparable federal contracts and their associated pricing structures.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this Oracle hardware and software maintenance and support contract. Typically, such contracts include clauses defining expected performance standards, such as response times for critical issues, resolution times for different severity levels of problems, system uptime guarantees, and availability of technical support personnel. These KPIs are crucial for ensuring that FCN, Inc. delivers the contracted services effectively and that the U.S. Customs and Border Protection receives adequate support for its Oracle systems. The contract's statement of work would outline these specific metrics and any associated penalties or incentives for performance.

What is FCN, Inc.'s track record with providing Oracle maintenance and support to federal agencies?

FCN, Inc. has a history of providing IT solutions and services to the federal government, including contracts related to hardware, software, and maintenance. Their track record with Oracle maintenance and support specifically would need to be assessed by examining their past performance on similar contracts. This includes evaluating client feedback, on-time delivery rates, adherence to contract terms, and overall satisfaction reported by agencies they have served. While this award indicates they were selected for this renewal, a deeper dive into their performance on previous Oracle support contracts would provide a more comprehensive understanding of their capabilities and reliability in this specialized area.

What are the potential risks associated with renewing a sole-source or limited-competition contract for critical IT maintenance?

While this contract was awarded under 'Full and Open Competition After Exclusion of Sources,' the question addresses risks of limited competition. Renewing critical IT maintenance under limited competition can pose several risks. Firstly, it may lead to higher costs for taxpayers, as reduced competition can lessen the incentive for vendors to offer the most competitive pricing. Secondly, it can stifle innovation, as agencies might become overly reliant on a single vendor's technology and support model, making it difficult to adopt newer, potentially more efficient solutions. Thirdly, there's a risk of vendor lock-in, where switching to a different provider becomes prohibitively expensive or technically complex. Finally, limited competition can sometimes lead to a decline in service quality if the vendor faces less pressure to maintain high standards.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - DATA CENTER

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: 2600 TOWER OAKS BLVD STE 575, 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: $29,913,509

Exercised Options: $29,913,509

Current Obligation: $29,913,509

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC71B

IDV Type: GWAC

Timeline