DoD's $33.7M NetApp Software Contract Awarded to FCN, Inc. Raises Questions on Competition
Contract Overview
Contract Amount: $33,752,580 ($33.8M)
Contractor: FCN, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-04-25
End Date: 2024-04-24
Contract Duration: 1,826 days
Daily Burn Rate: $18.5K/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: NETAPP SOFTWARE LICENSE AND SUPPORT
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $33.8 million to FCN, INC. for work described as: NETAPP SOFTWARE LICENSE AND SUPPORT Key points: 1. Significant contract value of $33.7M for software licenses and support. 2. Competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' warrants scrutiny. 3. Potential risk associated with the exclusion of other sources. 4. Spending falls within the IT sector, specifically 'Other Computer Related Services'.
Value Assessment
Rating: questionable
The contract value of $33.7M for NetApp software and support appears high, especially given the competition method. Benchmarking against similar software license and support contracts is crucial to determine if this represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources were excluded. This method can limit price discovery and potentially lead to higher costs for the government.
Taxpayer Impact: Taxpayer funds are being used for this significant software expenditure. The limited competition raises concerns about whether the best possible price was achieved, potentially impacting the efficient use of taxpayer money.
Public Impact
Military healthcare IT infrastructure relies on this software, impacting operational efficiency. Potential for increased costs to taxpayers due to limited competitive bidding. Ensuring data security and system integrity is paramount with this software.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises cost concerns.
- Exclusion of sources needs justification.
- Long contract duration (5 years) may not reflect current market pricing.
Positive Signals
- Contract supports critical Defense Health Agency IT.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
This contract falls under the Information Technology sector, specifically 'Other Computer Related Services.' Spending in this area is substantial across government agencies, with benchmarks varying widely based on software type and support levels.
Small Business Impact
The data does not indicate if small businesses were involved in this procurement. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The 'EXCLUSION OF SOURCES' clause in the competition method suggests a need for robust oversight to ensure the exclusion was justified and that the government received fair value. Accountability for the procurement decision is essential.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Limited competition (exclusion of sources)
- High contract value for software and support
- Long contract duration (5 years)
- Lack of small business participation indicated
Tags
other-computer-related-services, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.8 million to FCN, INC.. NETAPP SOFTWARE LICENSE AND SUPPORT
Who is the contractor on this award?
The obligated recipient is FCN, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $33.8 million.
What is the period of performance?
Start: 2019-04-25. End: 2024-04-24.
What was the justification for excluding specific sources in this 'full and open competition' procurement?
The justification for excluding specific sources under a 'full and open competition after exclusion of sources' award is critical. Agencies must document technical, programmatic, or other valid reasons why certain vendors were deemed ineligible or unsuitable. Without clear justification, this exclusion raises concerns about fairness and potentially limits the government's ability to secure the most advantageous pricing and solutions available in the market.
How does the $33.7M contract value compare to industry benchmarks for similar NetApp software licenses and support over a five-year period?
Benchmarking the $33.7M contract against industry standards for comparable NetApp software licenses and support over five years is essential for value assessment. Factors like the specific software versions, support tiers, and volume discounts significantly influence pricing. If this contract's per-unit cost or total value exceeds typical market rates, it suggests potential overspending or a lack of aggressive negotiation, impacting overall value for the taxpayer.
What are the potential risks to the Defense Health Agency's IT systems if this software or support is not competitively priced or if vendor lock-in occurs?
The primary risks involve potential overspending due to non-competitive pricing and vendor lock-in, which can stifle innovation and increase future costs. If the Defense Health Agency pays a premium for NetApp software and support, taxpayer funds are misallocated. Vendor lock-in can also limit the agency's flexibility to adopt newer, potentially more cost-effective technologies, impacting long-term IT strategy and system modernization efforts.
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
Offers Received: 2
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: $33,752,580
Exercised Options: $33,752,580
Current Obligation: $33,752,580
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: NNG15SC71B
IDV Type: GWAC
Timeline
Start Date: 2019-04-25
Current End Date: 2024-04-24
Potential End Date: 2024-04-24 00:00:00
Last Modified: 2023-11-17
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