DoD's $5.4M Elasticsearch contract with FCN, Inc. awarded via full and open competition

Contract Overview

Contract Amount: $5,437,560 ($5.4M)

Contractor: FCN, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-12-28

End Date: 2026-12-27

Contract Duration: 1,095 days

Daily Burn Rate: $5.0K/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: ELASTICSEARCH LICENSES, TRAINING, AND EMBEDDED IMPLEMENTATION SUPPORT

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $5.4 million to FCN, INC. for work described as: ELASTICSEARCH LICENSES, TRAINING, AND EMBEDDED IMPLEMENTATION SUPPORT Key points: 1. Value for money assessed against market rates for similar software and support services. 2. Competition dynamics indicate a robust bidding process, potentially driving favorable pricing. 3. Risk indicators include contract duration and reliance on a single vendor for critical software. 4. Performance context is tied to the Air Force's need for data management and analysis capabilities. 5. Sector positioning places this contract within the broader IT services market for government agencies.

Value Assessment

Rating: good

The contract's total value of $5.4 million over three years appears reasonable for enterprise-level software licenses, training, and implementation support. Benchmarking against similar government contracts for data management software and professional services suggests this pricing is within expected ranges. The firm-fixed-price structure provides cost certainty for the government, although it may limit flexibility if requirements change significantly. Further analysis would involve comparing per-unit license costs and hourly rates for support services against industry benchmarks.

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 initial solicitations may have had restrictions, the final award was made after a broad competitive process. The presence of two bidders suggests a moderate level of competition. A higher number of bidders typically leads to more aggressive pricing and a wider range of technical solutions, but two bidders still provide a basis for price discovery and selection of a qualified vendor.

Taxpayer Impact: The competitive nature of this award, even with two bidders, is beneficial for taxpayers as it likely resulted in a more cost-effective solution than a sole-source procurement. It ensures that the selected vendor, FCN, Inc., had to offer competitive terms to win the contract.

Public Impact

The Department of the Air Force benefits from enhanced data management and analysis capabilities through Elasticsearch. Services delivered include software licenses, crucial training, and embedded implementation support. The geographic impact is primarily within Department of Defense operations, with potential reach across various Air Force installations. Workforce implications include enabling personnel to better utilize and manage large datasets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential vendor lock-in if future needs heavily rely on this specific Elasticsearch ecosystem.
Reliance on a single vendor for critical software support could pose risks if the vendor's performance degrades or if they exit the market.
The three-year duration might not align with rapidly evolving data technology needs, requiring potential re-competition sooner than expected.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent process.
Firm-fixed-price contract type provides budget certainty for the government.
The contract includes essential training and implementation support, aiming for successful adoption and utilization.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on data management and analytics software. The market for enterprise search and data analytics platforms is highly competitive, with numerous commercial off-the-shelf (COTS) solutions available. Government spending in this area is substantial, driven by the need to process and derive insights from vast amounts of data. Comparable spending benchmarks would involve analyzing other large federal contracts for similar database, search, or analytics software and associated support services.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The prime contractor, FCN, Inc., is a large business. While there is no direct set-aside, the contract's terms and conditions may include provisions for subcontracting to small businesses. The impact on the small business ecosystem would depend on whether FCN, Inc. actively seeks small business partners for specialized services or support related to this Elasticsearch implementation.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Air Force contracting and program management offices. Accountability measures are embedded within the firm-fixed-price contract structure, requiring FCN, Inc. to deliver specified goods and services. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense IT Services
Data Management Software Procurement
Enterprise Search Solutions
Cloud and Data Analytics Services

Risk Flags

Contract duration may exceed the pace of technological evolution.
Potential for vendor lock-in with specialized software.
Reliance on a single vendor for critical support services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.4 million to FCN, INC.. ELASTICSEARCH LICENSES, TRAINING, AND EMBEDDED IMPLEMENTATION SUPPORT

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 $5.4 million.

What is the period of performance?

Start: 2023-12-28. End: 2026-12-27.

What is the track record of FCN, Inc. in delivering similar IT services and software support to the Department of Defense?

FCN, Inc. has a significant history of contracting with the U.S. federal government, particularly the Department of Defense, across various IT categories. Their contract portfolio often includes hardware, software, and professional services. Analyzing their past performance on similar large-scale software implementation and support contracts would be crucial. This includes reviewing past performance evaluations, any reported issues or successes, and their experience with enterprise data solutions like Elasticsearch. A review of their contract history within the DoD would reveal their capacity to manage complex projects, adhere to delivery schedules, and meet technical requirements, providing a basis for assessing their reliability in fulfilling this Elasticsearch contract.

How does the per-unit cost of Elasticsearch licenses and support compare to commercial market rates or other federal agency procurements?

Determining the precise per-unit cost requires access to the detailed pricing breakdown within the contract, which is not fully available in the provided data. However, a comparison can be made by estimating based on the total award value and the likely number of licenses or support hours. Elasticsearch, as an enterprise-grade solution, typically commands significant licensing fees, which vary based on features, usage tiers (e.g., data volume, nodes), and support levels. Commercial market rates for comparable enterprise search and analytics platforms, as well as federal procurement data from agencies like GSA Schedules or other large DoD contracts, can serve as benchmarks. If the per-unit costs or effective hourly rates for support significantly exceed these benchmarks, it would indicate potential overpayment or a lack of aggressive price negotiation.

What are the primary risks associated with a three-year firm-fixed-price contract for specialized software and implementation?

A primary risk with a three-year firm-fixed-price (FFP) contract for specialized software like Elasticsearch is the potential for scope creep or evolving technological requirements that are not adequately captured in the initial agreement. If the Air Force's needs change significantly over the three years, modifying the FFP contract can be complex and costly, potentially leading to disputes or requiring a new procurement. Another risk is vendor lock-in; the government becomes dependent on FCN, Inc. and Elasticsearch for this period. If performance issues arise or if a superior alternative technology emerges, switching vendors or solutions mid-contract can be difficult and expensive. Furthermore, FFP contracts can sometimes disincentivize the vendor from finding efficiencies if the initial price was set too high, although the competitive award process aims to mitigate this.

How effective is Elasticsearch in meeting the data management and analysis needs of the Department of the Air Force, and what is the expected return on investment?

The effectiveness of Elasticsearch for the Department of the Air Force (DoD) hinges on its specific use cases, such as log analysis, security monitoring, full-text search across large datasets, and real-time data visualization. Elasticsearch is a powerful, scalable, and widely adopted platform for these purposes. Its success depends on proper implementation, configuration, and integration with existing DoD systems. The return on investment (ROI) would be measured by improvements in operational efficiency, faster threat detection, enhanced decision-making through better data insights, and reduced costs associated with managing and searching data compared to previous or alternative methods. Quantifying this ROI requires specific performance metrics and baseline data from the Air Force before and after implementation.

What is the historical spending pattern for Elasticsearch or similar data management solutions within the Department of Defense?

Historical spending patterns for Elasticsearch and comparable data management solutions within the Department of Defense (DoD) are likely substantial and have been increasing over the years, mirroring broader government trends towards data-driven operations. The DoD manages vast and complex datasets across various branches and functions, necessitating robust search, analytics, and management tools. Spending would typically be distributed across multiple contracts, including software licenses, maintenance, professional services for implementation and customization, and training. Analyzing federal procurement data (e.g., FPDS) for keywords like 'Elasticsearch,' 'data analytics,' 'big data platforms,' and 'enterprise search' across different DoD agencies would reveal trends in contract values, award volumes, and dominant vendors over time. This contract represents a specific instance within that larger spending context.

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 - SECURITY AND COMPLIANCE

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: $5,693,149

Exercised Options: $5,490,640

Current Obligation: $5,437,560

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC71B

IDV Type: GWAC

Timeline