CFPB awards $4.9M for AWS cloud hosting, with competition and value to be closely monitored

Contract Overview

Contract Amount: $4,929,309 ($4.9M)

Contractor: FCN, Inc.

Awarding Agency: Consumer Financial Protection Bureau

Start Date: 2025-03-11

End Date: 2026-11-30

Contract Duration: 629 days

Daily Burn Rate: $7.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AWS CLOUD HOSTING

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Consumer Financial Protection Bureau obligated $4.9 million to FCN, INC. for work described as: AWS CLOUD HOSTING Key points: 1. The contract value represents a moderate investment in cloud infrastructure for the CFPB. 2. Competition dynamics suggest a potentially competitive bidding environment, which can drive better pricing. 3. The fixed-price contract type offers cost certainty but requires careful scope management. 4. Performance will be key to ensuring the cloud hosting meets the agency's operational needs. 5. This spending aligns with broader government trends towards cloud adoption for efficiency. 6. The duration of the contract extends over a significant period, requiring sustained oversight.

Value Assessment

Rating: good

The contract's value of approximately $4.9 million for cloud hosting services appears reasonable given the 2-year duration and the nature of AWS services. Benchmarking against similar cloud hosting contracts for federal agencies of comparable size and scope would provide a more definitive assessment of value for money. The firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government. However, the specific pricing of AWS services within this contract needs to be evaluated against publicly available AWS pricing models and any negotiated discounts.

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 that while the initial solicitation may have had some restrictions, the final award was made after a competitive process open to all eligible offerors. The fact that there were 5 bids received suggests a healthy level of competition for this cloud hosting requirement. This level of competition is generally positive as it allows the agency to select the best technical solution at a competitive price.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovation among bidders.

Public Impact

Consumers benefit indirectly through the agency's ability to maintain and enhance its digital services and data management capabilities. The contract delivers essential cloud hosting infrastructure, supporting the CFPB's mission to protect consumers in the financial marketplace. The primary geographic impact is within the District of Columbia, where the CFPB is headquartered, but the services support nationwide consumer protection efforts. The contract supports the IT workforce within the CFPB and potentially the contractor's workforce, ensuring the availability of skilled personnel for cloud management.

Waste & Efficiency Indicators

Waste Risk Score: 70 / 10

Warning Flags

Potential for vendor lock-in with AWS, requiring careful exit strategy planning.
Ensuring continued cost optimization as cloud usage scales over the contract period.
Maintaining robust security protocols for sensitive financial data hosted on the cloud.

Positive Signals

Awarded through full and open competition, indicating a competitive marketplace.
Firm-fixed-price contract provides cost predictability.
The contract duration allows for stable service delivery and planning.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on cloud computing services. The federal government's spending on cloud services has been steadily increasing as agencies migrate from on-premise data centers to more flexible and scalable cloud environments. The market for cloud hosting, particularly with major providers like AWS, is highly competitive, with significant investments from both government and commercial entities. This contract represents a portion of the CFPB's overall IT budget allocated to essential infrastructure.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract, nor does it mention subcontracting goals. Given the nature of large-scale cloud hosting services, it is possible that the prime contractor is a large business. Further analysis would be needed to determine if small businesses are involved in subcontracting opportunities or if the contract contributes to overall small business utilization goals within the CFPB.

Oversight & Accountability

Oversight for this contract will likely be managed by the Consumer Financial Protection Bureau's contracting officers and program managers. Accountability measures will be tied to the performance work statement and the firm-fixed-price terms. Transparency is generally facilitated through federal procurement databases like FPDS-NG, where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

Cloud Computing Services
AWS Government Cloud
IT Infrastructure Modernization
Consumer Financial Protection Bureau IT Services
Federal Data Center Consolidation

Risk Flags

Potential for cost creep if usage is not closely managed.
Cybersecurity risks associated with sensitive data in the cloud.
Dependence on a single cloud provider (AWS).

Frequently Asked Questions

What is this federal contract paying for?

Consumer Financial Protection Bureau awarded $4.9 million to FCN, INC.. AWS CLOUD HOSTING

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 $4.9 million.

What is the period of performance?

Start: 2025-03-11. End: 2026-11-30.

What is the track record of FCN, INC. in delivering similar cloud hosting services to federal agencies?

FCN, INC. has a history of providing IT services to the federal government, including cloud solutions. A review of their contract history would reveal specific past performance on cloud hosting, managed services, and AWS-related projects. Examining past performance evaluations and any reported issues or successes on similar contracts would provide insight into their capabilities and reliability. It is important to assess whether they have successfully managed firm-fixed-price cloud contracts of comparable size and complexity, and how they have handled performance metrics and service level agreements in previous engagements. This due diligence helps in understanding their capacity to meet the CFPB's requirements effectively.

How does the awarded price compare to market rates for AWS cloud hosting services?

To assess the value for money, the awarded price of approximately $4.9 million needs to be benchmarked against market rates for AWS cloud hosting. This involves comparing the specific AWS services, service levels, and contract duration against publicly available AWS pricing, enterprise discount agreements, and rates paid by other federal agencies for similar services. Given that AWS is a major cloud provider, the CFPB likely leveraged existing government-wide acquisition contracts (GWACs) or negotiated favorable terms. A detailed analysis would involve breaking down the total contract value into anticipated usage of compute, storage, and data transfer services, and then comparing these components to AWS's standard and negotiated pricing structures. Without access to the specific service catalog and negotiated rates, a precise comparison is difficult, but the competitive nature of the award suggests an effort to secure favorable pricing.

What are the primary risks associated with this cloud hosting contract?

Several risks are associated with this cloud hosting contract. Firstly, vendor lock-in with AWS could limit future flexibility and potentially lead to higher costs if the CFPB decides to switch providers or services later. Secondly, ensuring robust cybersecurity and data protection for sensitive financial information hosted on the cloud is paramount; any breach could have severe consequences. Thirdly, cost management is a continuous risk; as the CFPB's usage of cloud resources fluctuates, maintaining cost efficiency requires diligent monitoring and optimization. Finally, performance risks exist, such as service disruptions or latency issues, which could impact the CFPB's operational effectiveness. The firm-fixed-price nature mitigates some cost overrun risks for the government but places the onus on the contractor to manage performance within budget.

How effective is the 'Full and Open Competition After Exclusion of Sources' approach for this type of service?

The 'Full and Open Competition After Exclusion of Sources' (FCAES) approach is a nuanced method that allows agencies to initially restrict competition based on specific criteria but ultimately requires a full and open competition among eligible sources. For cloud hosting services, this approach can be effective if the initial exclusion criteria are well-justified and relevant to specialized requirements, such as specific security certifications or integration needs with existing systems. By opening the competition afterward, the agency ensures a broad range of qualified vendors can bid, fostering price discovery and innovation. The receipt of 5 bids suggests that the FCAES approach did not unduly limit the pool of potential offerors and likely resulted in a competitive outcome. This method balances the need for specialized capabilities with the government's mandate for broad competition.

What are the historical spending patterns for cloud hosting services at the CFPB?

Analyzing historical spending patterns for cloud hosting at the CFPB is crucial for context. This contract, valued at approximately $4.9 million over roughly two years, represents a significant but not exceptionally large investment in cloud infrastructure. Understanding whether this spending is an increase, decrease, or stable compared to previous years' IT infrastructure budgets, particularly for cloud services, would indicate trends. It would be beneficial to know if the CFPB has previously relied on AWS or other cloud providers, and how their spending has evolved with the increasing adoption of cloud technologies across the federal government. This historical perspective helps in evaluating the current contract's scale and its alignment with the agency's long-term IT strategy and budget.

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: 9531CB25Q0030

Offers Received: 5

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: $32,377,017

Exercised Options: $6,700,507

Current Obligation: $4,929,309

Actual Outlays: $3,678,158

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC71B

IDV Type: GWAC

Timeline