CFPB awards $2.56M for Nutanix maintenance, with FCN, Inc. securing the contract

Contract Overview

Contract Amount: $2,556,799 ($2.6M)

Contractor: FCN, Inc.

Awarding Agency: Consumer Financial Protection Bureau

Start Date: 2024-12-23

End Date: 2026-12-17

Contract Duration: 724 days

Daily Burn Rate: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NUTANIX MAINTENANCE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006

State: District of Columbia Government Spending

Plain-Language Summary

Consumer Financial Protection Bureau obligated $2.6 million to FCN, INC. for work described as: NUTANIX MAINTENANCE Key points: 1. The contract value of $2.56 million over its period of performance suggests a moderate investment in essential IT infrastructure. 2. Full and open competition after exclusion of sources indicates a deliberate procurement process, though the specific reasons for exclusion warrant review. 3. The firm-fixed-price contract type helps manage cost certainty for the agency. 4. The duration of the contract (724 days) aligns with typical IT maintenance cycles. 5. The award to FCN, Inc. represents a specific vendor's role in supporting the CFPB's IT needs. 6. The North American Industry Classification System (NAICS) code 541519 points to a broad category of computer-related services.

Value Assessment

Rating: fair

Benchmarking the value of this specific maintenance contract is challenging without more granular data on the services provided and the specific Nutanix products covered. However, the total award of $2.56 million spread over approximately two years suggests an annual expenditure in the range of $1.28 million. This figure needs to be compared against the cost of similar maintenance agreements for comparable IT infrastructure within government or the private sector to assess value for money. The firm-fixed-price nature of the contract provides cost predictability, which is a positive aspect for budget management.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This designation implies that while the competition was intended to be broad, certain sources were excluded for specific reasons. The number of bidders is not explicitly stated, but the 'exclusion of sources' suggests that the pool of potential bidders may have been narrowed from a fully open competition. This procurement approach can sometimes lead to less competitive pricing if the exclusions are not well-justified or if they significantly limit the number of capable offerors.

Taxpayer Impact: Taxpayers benefit from a structured competition, but the exclusion of sources necessitates scrutiny to ensure that the final price reflects the best possible value and that no viable, cost-effective alternatives were unfairly excluded.

Public Impact

The primary beneficiaries are the Consumer Financial Protection Bureau (CFPB) staff who rely on stable and maintained Nutanix infrastructure for their daily operations. The services delivered include the maintenance and support of critical IT hardware and software, ensuring the continuity of the CFPB's technological functions. The geographic impact is centered in the District of Columbia, where the CFPB's primary operations are located. There are potential workforce implications for IT support personnel, both within the CFPB and potentially for the contractor, FCN, Inc., who will be responsible for service delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition type requires further investigation to ensure it did not unduly limit competition and potentially inflate costs.
Lack of detailed service scope makes it difficult to benchmark the value for money effectively.
The specific Nutanix products and versions covered by the maintenance are not detailed, hindering a precise assessment of the contract's technical scope.

Positive Signals

The contract is firm-fixed-price, providing cost certainty for the agency.
The award was made under a competitive process, even with exclusions, suggesting an effort to obtain multiple proposals.
The contract duration aligns with typical IT maintenance and support lifecycles.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on hardware and software maintenance. The market for enterprise IT infrastructure maintenance is substantial, with numerous vendors offering support for various hardware and software solutions, including those from Nutanix. The CFPB's spending on this contract is a component of its overall IT budget, which is crucial for maintaining operational capabilities. Comparable spending benchmarks would involve analyzing other federal agencies' IT maintenance contracts for similar infrastructure sizes and complexities.

Small Business Impact

There is no indication that this contract included a small business set-aside. The award was made to FCN, Inc., which is not explicitly identified as a small business in the provided data. Therefore, the direct impact on small business set-asides appears minimal. However, the prime contractor, FCN, Inc., may engage small businesses as subcontractors, depending on their subcontracting plans and the nature of the services required. Further analysis of FCN, Inc.'s subcontracting practices would be needed to determine the broader impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Contracting Officer's Representative (COR) within the Consumer Financial Protection Bureau, who is responsible for monitoring performance and ensuring compliance with contract terms. Accountability measures are inherent in the firm-fixed-price structure, which obligates the contractor to deliver specified services within the agreed-upon cost. Transparency is facilitated through contract award databases, though detailed performance reports are often internal. The Inspector General of the CFPB would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

IT Infrastructure Maintenance Services
Nutanix Enterprise Cloud Platform Support
Federal IT Services Contracts
Consumer Financial Protection Bureau IT Procurement

Risk Flags

Limited Competition Due to Source Exclusion
Lack of Detailed Service Scope
Potential for Vendor Lock-in

Frequently Asked Questions

What is this federal contract paying for?

Consumer Financial Protection Bureau awarded $2.6 million to FCN, INC.. NUTANIX MAINTENANCE

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 $2.6 million.

What is the period of performance?

Start: 2024-12-23. End: 2026-12-17.

What is the specific scope of services covered under this Nutanix maintenance contract?

The provided data indicates the contract is for 'NUTANIX MAINTENANCE' and falls under NAICS code 541519 (Other Computer Related Services). However, the specific details of the maintenance services are not elaborated. Typically, such contracts cover software updates, patches, technical support, hardware replacement (if applicable), and potentially on-site assistance for the Nutanix enterprise cloud platform. The exact scope would be detailed in the contract's Statement of Work (SOW), which is not included in the provided summary data. Understanding the precise services is crucial for assessing value for money and comparing it to market rates.

How does the pricing of this contract compare to similar Nutanix maintenance agreements in the federal market?

Direct comparison of pricing is difficult without knowing the specific Nutanix products, configurations, and support levels (e.g., 24/7 vs. business hours) covered by this $2.56 million contract. However, the total contract value over approximately two years suggests an annual expenditure of roughly $1.28 million. To benchmark this, one would need to identify other federal contracts for similar Nutanix deployments, considering factors like the number of nodes, storage capacity, and required response times. Anecdotal evidence suggests that enterprise-level support contracts can represent a significant portion of the total cost of ownership for IT infrastructure. A detailed cost-benefit analysis comparing this contract's price against the potential costs of system downtime or the value of uninterrupted service would provide further insight.

What are the key risks associated with this contract, and how are they being mitigated?

A primary risk is the potential for the 'exclusion of sources' to have limited competition, potentially leading to suboptimal pricing or reduced vendor innovation. Mitigation would involve ensuring the exclusions were justified and that the competitive process still yielded a fair price. Another risk is vendor lock-in, where the CFPB becomes heavily reliant on FCN, Inc. for Nutanix support, potentially limiting future flexibility. Mitigation here involves clear contract terms and performance metrics. Performance risk, where FCN, Inc. may not deliver services to the required standard, is mitigated by the firm-fixed-price structure and the COR's oversight. Finally, the risk of technological obsolescence is inherent in IT; the contract's duration and the CFPB's future technology refresh plans would address this.

What is the track record of FCN, Inc. in providing IT maintenance services to the federal government?

FCN, Inc. is a known federal contractor. While specific performance details for this particular Nutanix maintenance contract are not yet available as it extends to December 2026, FCN, Inc. has a history of performing various IT services for government agencies. Publicly available contract databases can provide insights into their past performance, including contract values, types of services rendered, and any reported issues or commendations. A thorough review of their contract history, including past performance evaluations and any debriefings from previous solicitations, would offer a more comprehensive understanding of their reliability and capability in delivering IT maintenance and support.

How does this spending compare to the CFPB's overall IT budget or historical spending on similar services?

The provided data does not include the CFPB's total IT budget or historical spending figures, making a direct comparison impossible. The $2.56 million award for Nutanix maintenance represents a specific investment within the agency's technology infrastructure. To contextualize this spending, one would need access to the CFPB's annual IT budget reports and historical procurement data for IT maintenance and support services. Analyzing trends in IT spending, particularly on core infrastructure like that provided by Nutanix, would reveal whether this contract represents an increase, decrease, or stable level of investment compared to previous periods or similar agencies.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

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: $6,575,177

Exercised Options: $2,556,799

Current Obligation: $2,556,799

Actual Outlays: $1,259,507

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC71B

IDV Type: GWAC

Timeline