CFPB awards $12.1M for cloud hosting, with 8 bidders competing for this firm-fixed-price contract

Contract Overview

Contract Amount: $12,071,223 ($12.1M)

Contractor: FCN, Inc.

Awarding Agency: Consumer Financial Protection Bureau

Start Date: 2019-12-01

End Date: 2025-03-10

Contract Duration: 1,926 days

Daily Burn Rate: $6.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CLOUD HOSTING SERVICES (AWS)

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Consumer Financial Protection Bureau obligated $12.1 million to FCN, INC. for work described as: CLOUD HOSTING SERVICES (AWS) Key points: 1. The contract's firm-fixed-price structure offers cost predictability for the agency. 2. A competitive landscape with 8 bidders suggests a healthy market for cloud hosting services. 3. The duration of the contract (over 1900 days) indicates a long-term need for these services. 4. The use of AWS as the cloud provider aligns with common government cloud adoption strategies. 5. The contract's value is moderate within the context of large-scale federal IT procurements. 6. The exclusion of sources in the 'full and open competition' suggests a specific justification was provided.

Value Assessment

Rating: good

The contract value of approximately $12.1 million over its period of performance appears reasonable for cloud hosting services, especially considering the use of a major provider like AWS. Benchmarking against similar large-scale cloud hosting contracts awarded by federal agencies would provide a more precise value-for-money assessment. The firm-fixed-price nature helps control costs, but the total expenditure will depend on actual usage and any potential modifications.

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, indicating that while the competition was broad, specific sources may have been excluded based on defined criteria. The presence of 8 bidders suggests a robust competitive environment, which typically drives better pricing and service offerings. The agency's decision to exclude certain sources warrants further examination to ensure it did not unduly limit competition.

Taxpayer Impact: The high number of bidders in this full and open competition is beneficial for taxpayers, as it likely led to more competitive pricing and a wider array of innovative solutions being considered, ultimately maximizing the value of federal dollars spent.

Public Impact

The Consumer Financial Protection Bureau (CFPB) benefits directly through access to essential cloud hosting infrastructure. This contract ensures the delivery of critical IT services supporting the CFPB's mission. The services are primarily delivered within Maryland, where the agency's operations are likely concentrated. The contract supports the IT workforce involved in managing and utilizing cloud-based services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in a full and open competition needs clear justification to ensure fairness and prevent potential anti-competitive practices.
The long contract duration (over 5 years) requires ongoing monitoring to ensure continued value and adaptation to evolving cloud technologies.
Reliance on a single cloud provider (AWS) could present vendor lock-in risks if not managed proactively.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the agency.
A competitive award with 8 bidders indicates a healthy market and likely competitive pricing.
The contract supports a critical government function, ensuring operational continuity for the CFPB.

Sector Analysis

This contract falls within the broader Information Technology sector, specifically focusing on cloud computing infrastructure. The federal government's spending on cloud services has been steadily increasing as agencies migrate from on-premises data centers to more flexible and scalable cloud environments. This contract with AWS represents a typical procurement for essential cloud hosting, supporting agency operations and data management. Comparable spending benchmarks would involve analyzing other large federal cloud hosting contracts, which often run into tens or hundreds of millions of dollars annually.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited unless FCN, Inc. voluntarily engages small businesses for subcontracting opportunities. Further investigation into the contractor's subcontracting plan would be necessary to assess any indirect benefits to small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the Consumer Financial Protection Bureau's contracting officers and program managers. The firm-fixed-price nature simplifies some aspects of oversight by focusing on delivery and performance rather than cost accumulation. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

General Services Administration (GSA) Cloud IT Schedule
Cloud Computing Services
IT Infrastructure Services
AWS Government Cloud Contracts

Risk Flags

Potential vendor lock-in with AWS
Need for clear justification for source exclusion
Long contract duration requires ongoing performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Consumer Financial Protection Bureau awarded $12.1 million to FCN, INC.. CLOUD HOSTING SERVICES (AWS)

Who is the contractor on this award?

The obligated recipient is FCN, INC..

Which agency awarded this contract?

Awarding agency: Consumer Financial Protection Bureau (Consumer Financial Protection Bureau).

What is the total obligated amount?

The obligated amount is $12.1 million.

What is the period of performance?

Start: 2019-12-01. End: 2025-03-10.

What is the specific justification for the exclusion of sources in this 'full and open competition after exclusion of sources' award?

The specific justification for excluding certain sources in a 'full and open competition after exclusion of sources' award is not detailed in the provided data. Typically, such exclusions are based on factors like unique capabilities, existing infrastructure compatibility, security requirements, or prior performance that only specific vendors can meet. Agencies must document these justifications thoroughly to ensure the exclusion is fair, reasonable, and in the government's best interest. Without the agency's documentation, it's impossible to ascertain the precise reasons, but it implies that while the competition was open to all eligible, certain entities were deemed unsuitable or unnecessary for this particular requirement.

How does the per-unit cost of AWS cloud hosting under this contract compare to other federal agencies or commercial rates?

The provided data does not include specific per-unit cost breakdowns for AWS services utilized under this contract, making a direct comparison difficult. Federal agencies often leverage enterprise agreements and volume discounts negotiated through programs like the General Services Administration (GSA) schedules or direct AWS government contracts. To benchmark, one would need to compare the specific AWS services (e.g., EC2 instance types, S3 storage tiers) and their negotiated rates against similar federal procurements or AWS's publicly available commercial pricing, adjusted for any government discounts. The firm-fixed-price nature suggests a bundled cost rather than granular per-unit pricing visible in the award data.

What are the key performance indicators (KPIs) used to measure the success of this cloud hosting contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for cloud hosting services, typical KPIs often include service availability (uptime), performance metrics (e.g., latency, throughput), security compliance (e.g., adherence to FedRAMP standards), incident response times, and adherence to service level agreements (SLAs). The Consumer Financial Protection Bureau (CFPB) would have defined these KPIs in the contract's Performance Work Statement (PWS) to ensure the contractor, FCN, Inc., meets the required standards for AWS cloud hosting.

What is the historical spending trend for cloud hosting services by the Consumer Financial Protection Bureau?

The provided data only details a single contract award for cloud hosting services valued at approximately $12.1 million from December 1, 2019, to March 10, 2025. To understand the historical spending trend, one would need to analyze the CFPB's procurement history over several fiscal years, looking for other contracts related to cloud hosting, IT infrastructure, and potentially AWS services. This single data point suggests a significant investment in cloud infrastructure during this period, but a comprehensive trend analysis would require a broader dataset of the CFPB's IT expenditures.

What are the potential risks associated with relying on AWS for cloud hosting, and how are they mitigated in this contract?

Potential risks of relying on AWS include vendor lock-in, security vulnerabilities (though AWS has robust security, misconfigurations are possible), service disruptions, and cost overruns if usage is not managed effectively. This contract, being firm-fixed-price, helps mitigate cost overruns related to the base service cost. However, risks related to vendor lock-in and potential disruptions remain. Mitigation strategies typically involve clear Service Level Agreements (SLAs) defining uptime and performance, robust security protocols implemented by the CFPB, and potentially multi-cloud strategies or exit plans, though the latter are not evident from this single contract's data.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 9531CB19Q0053

Offers Received: 8

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: $14,062,170

Exercised Options: $12,518,594

Current Obligation: $12,071,223

Actual Outlays: $12,071,223

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC71B

IDV Type: GWAC

Timeline