DoD's $25.6M software sustainment contract for Air Force cyber operations awarded to FCN, Inc

Contract Overview

Contract Amount: $25,675,000 ($25.7M)

Contractor: FCN, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-12-19

End Date: 2026-12-18

Contract Duration: 364 days

Daily Burn Rate: $70.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AFLCMC/HNCD HAS A BRAND NAME, COMMERCIAL REQUIREMENT FOR UNLIMITED ENTERPRISE RESOURCE UNIT SOFTWARE ELASTIC PELA BUNDLE CONTINUE SUSTAINING AIR FORCE DEFENSIVE CYBER OPERATIONS WEAPON SYSTEMS.

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78226

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $25.7 million to FCN, INC. for work described as: AFLCMC/HNCD HAS A BRAND NAME, COMMERCIAL REQUIREMENT FOR UNLIMITED ENTERPRISE RESOURCE UNIT SOFTWARE ELASTIC PELA BUNDLE CONTINUE SUSTAINING AIR FORCE DEFENSIVE CYBER OPERATIONS WEAPON SYSTEMS. Key points: 1. Contract focuses on sustaining critical software for defensive cyber operations, indicating a need for ongoing support of essential weapon systems. 2. The award was made under full and open competition, suggesting a robust market for these specialized enterprise resource planning (ERP) software services. 3. A single delivery order was issued against an existing contract, implying a continuation of services rather than a new procurement. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor and provides budget certainty for the government. 5. The duration of the order is one year, suggesting a need for agile and responsive sustainment for evolving cyber threats. 6. The contractor, FCN, Inc., has experience in providing IT services to the federal government, though specific performance on this type of software sustainment needs further review.

Value Assessment

Rating: fair

The contract value of $25.6 million for a one-year sustainment period for enterprise resource planning (ERP) software appears reasonable given the specialized nature of supporting Air Force defensive cyber operations weapon systems. Benchmarking this against similar sustainment contracts for complex defense systems is challenging without more detailed service descriptions. However, the firm fixed-price nature provides cost predictability. The absence of a specific Product or Service Code (PSC) makes direct comparison difficult, but the NAICS code (541519) suggests a broad category of IT services.

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,' which is an unusual designation. Typically, 'full and open' implies maximum competition. The 'after exclusion of sources' phrasing suggests that while the competition was open, certain sources may have been excluded prior to the solicitation, or it might refer to a specific procurement vehicle that had prior exclusions. Four bids were received, indicating a degree of competition, but the exact nature of the exclusion could impact the breadth of competition and potentially price discovery.

Taxpayer Impact: The full and open competition, despite potential source exclusions, aims to leverage market forces to secure the best value for taxpayers. Receiving four bids suggests that multiple vendors were capable and interested, which generally leads to more competitive pricing than a sole-source award.

Public Impact

The primary beneficiaries are the U.S. Air Force's defensive cyber operations units, ensuring the continued functionality of critical weapon systems. The contract delivers sustainment services for enterprise resource planning (ERP) software, essential for managing and operating these cyber defense capabilities. The geographic impact is primarily within the Department of Defense's operational footprint, supporting national security interests. Workforce implications include the need for specialized IT professionals with expertise in ERP software, cybersecurity, and defense systems sustainment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'after exclusion of sources' clause in the competition type warrants clarification to ensure maximum taxpayer value was achieved.
Limited public information on the specific ERP software and its criticality makes independent value assessment difficult.
The one-year duration of the delivery order may indicate a need for more frequent re-competition or contract modifications, potentially increasing administrative burden.

Positive Signals

The contract is firm fixed-price, providing cost certainty and transferring risk to the contractor.
Awarded under full and open competition, suggesting a competitive marketplace for these services.
The contractor, FCN, Inc., has existing federal contracting experience.
The contract supports critical defensive cyber operations, a vital national security function.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on software sustainment and enterprise resource planning (ERP) for defense applications. The market for defense IT sustainment is substantial, driven by the need to maintain complex and often legacy weapon systems. Comparable spending benchmarks are difficult to establish without knowing the specific ERP software and its criticality, but IT sustainment for defense systems can range from millions to hundreds of millions annually depending on scope and complexity. This contract represents a specific, albeit significant, investment in maintaining a crucial cyber defense capability.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, large businesses like FCN, Inc. are the primary awardees. There is no explicit information regarding subcontracting plans for small businesses within this specific delivery order. The impact on the small business ecosystem is neutral to potentially negative if opportunities that could have been set aside for small businesses are instead awarded to large prime contractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. The firm fixed-price nature provides a degree of accountability by linking payment to deliverables. Transparency is moderate, with basic contract award details available. Further oversight would involve performance monitoring, quality assurance, and potentially audits by the Defense Contract Audit Agency (DCAA) or the Inspector General, depending on the contract's value and risk profile.

Related Government Programs

Air Force Enterprise Resource Planning (ERP) Systems
Defense Cyber Operations
Weapon Systems Sustainment
IT Services for National Security
Commercial Software Licensing and Support

Risk Flags

Competition Clause Ambiguity
Lack of Specific Software Identification
Limited Performance Metrics Provided

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.7 million to FCN, INC.. AFLCMC/HNCD HAS A BRAND NAME, COMMERCIAL REQUIREMENT FOR UNLIMITED ENTERPRISE RESOURCE UNIT SOFTWARE ELASTIC PELA BUNDLE CONTINUE SUSTAINING AIR FORCE DEFENSIVE CYBER OPERATIONS WEAPON SYSTEMS.

Who is the contractor on this award?

The obligated recipient is FCN, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $25.7 million.

What is the period of performance?

Start: 2025-12-19. End: 2026-12-18.

What is the specific enterprise resource planning (ERP) software being sustained under this contract, and what is its criticality to Air Force defensive cyber operations?

The provided data does not specify the exact brand name or version of the Enterprise Resource Planning (ERP) software. It is described as an 'UNLIMITED ENTERPRISE RESOURCE UNIT SOFTWARE ELASTIC PELA BUNDLE CONTINUE SUSTAINING AIR FORCE DEFENSIVE CYBER OPERATIONS WEAPON SYSTEMS.' This suggests a commercial, potentially cloud-based or highly scalable solution. The criticality is implied by its role in sustaining 'Air Force Defensive Cyber Operations Weapon Systems,' indicating it is essential for the operational readiness and effectiveness of these vital national security assets. Without the specific software name, a precise assessment of its technical complexity and the associated sustainment challenges is not possible.

How does the $25.6 million contract value compare to historical spending on similar ERP software sustainment for Air Force cyber operations?

Historical spending data for this specific ERP software sustainment is not provided. However, the contract value of $25.6 million for a one-year period (2026-2027) for specialized defense IT sustainment is within a typical range for such critical systems. Sustaining complex software for weapon systems often involves significant costs due to the need for specialized expertise, rigorous testing, security updates, and integration with other defense infrastructure. Without knowing the specific software and its lifecycle stage, direct historical comparisons are difficult. It is advisable to review prior delivery orders under the parent contract, if available, or broader Air Force IT sustainment budgets for context.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract to ensure effective sustainment?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for sustainment contracts of this nature, KPIs would focus on software availability, system uptime, response times for critical issues, patch deployment timelines, and the successful resolution of reported defects or vulnerabilities. SLAs would define the expected performance standards and the remedies or penalties for non-compliance. The firm fixed-price contract structure implies that the contractor is incentivized to meet defined performance standards to ensure full payment, but the exact metrics are crucial for assessing performance.

What is the track record of FCN, Inc. in providing sustainment services for complex defense IT systems, particularly ERP software?

FCN, Inc. is a federal IT contractor with a history of serving various government agencies, including the Department of Defense. While they possess experience in IT solutions and services, the specific details of their track record in sustaining complex defense ERP software are not elaborated in the provided data. Their past performance on similar contracts, particularly those involving mission-critical defense systems and enterprise software, would be a key factor in assessing their capability to fulfill this requirement effectively. A deeper dive into their contract history and past performance evaluations would be necessary for a comprehensive assessment.

What are the potential risks associated with relying on a single delivery order for a critical software sustainment requirement?

Relying on a single delivery order for critical software sustainment carries several potential risks. Firstly, it may indicate a lack of long-term strategic planning or a gap in the overall contract vehicle's ability to address evolving needs, potentially leading to rushed procurements or less competitive pricing in the future. Secondly, if the current software or sustainment approach becomes obsolete or insufficient, transitioning to a new solution could be complex and costly. Thirdly, the 'after exclusion of sources' aspect, if not fully understood, could limit future competition and innovation. Finally, a single order might not fully capture the total lifecycle cost or long-term support needs, potentially leading to budget overruns or service disruptions.

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

Offers Received: 4

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: $78,475,000

Exercised Options: $25,675,000

Current Obligation: $25,675,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SC71B

IDV Type: GWAC

Timeline