DoD Awards $69.5M for Military Health System Application Access Gateway Refresh
Contract Overview
Contract Amount: $69,537,144 ($69.5M)
Contractor: FCN, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-09-18
End Date: 2025-03-07
Contract Duration: 536 days
Daily Burn Rate: $129.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MILITARY HEALTH SYSTEM APPLICATION ACCESS GATEWAY TECHNICAL HARDWARE AND SOFTWARE REFRESH
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78234
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $69.5 million to FCN, INC. for work described as: MILITARY HEALTH SYSTEM APPLICATION ACCESS GATEWAY TECHNICAL HARDWARE AND SOFTWARE REFRESH Key points: 1. The contract focuses on essential IT infrastructure for the Military Health System. 2. FCN, Inc. is the incumbent contractor, raising questions about sustained competition. 3. The contract value is significant, necessitating careful oversight of spending. 4. The sector is IT services, a critical area for government operations.
Value Assessment
Rating: good
The award amount of $69.5M for a 536-day duration appears reasonable for a hardware and software refresh of this nature. Benchmarking against similar IT infrastructure refresh contracts would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may have restricted the pool of potential bidders and potentially impacted price discovery.
Taxpayer Impact: Taxpayer funds are being used for this critical IT infrastructure upgrade. The limited competition raises concerns about whether the best possible price was achieved.
Public Impact
Ensures continued access to vital health applications for military personnel and their families. Supports the operational readiness of the Military Health System through updated technology. Potential for improved system performance and security for sensitive health data.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to higher costs.
- Reliance on a single vendor for critical infrastructure.
- Potential for vendor lock-in.
Positive Signals
- Addresses a critical need for system modernization.
- Ensures continuity of essential healthcare services.
- Awarded to a known entity with existing system knowledge.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on network and application infrastructure. Spending benchmarks for similar IT hardware and software refresh projects vary widely based on scope and scale, but $69.5M for a multi-year refresh is substantial.
Small Business Impact
The data indicates that this contract was not awarded to a small business. There is no information provided on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation suggests a specific justification for limiting the competitive pool. Further review of the justification and approval (J&A) document would be necessary to assess the adequacy of oversight.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Limited competition raises cost concerns.
- Potential for vendor lock-in.
- Lack of small business participation.
- Need for detailed review of source exclusion justification.
Tags
other-computer-related-services, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $69.5 million to FCN, INC.. MILITARY HEALTH SYSTEM APPLICATION ACCESS GATEWAY TECHNICAL HARDWARE AND SOFTWARE REFRESH
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 $69.5 million.
What is the period of performance?
Start: 2023-09-18. End: 2025-03-07.
What was the specific justification for excluding other sources in this full and open competition?
The justification for excluding other sources in a 'full and open competition after exclusion of sources' typically involves a determination that only specific vendors possess the necessary capabilities, technology, or security clearances to meet the requirement. This could be due to proprietary systems, unique integration needs, or national security considerations. A detailed review of the contract's Justification and Approval (J&A) document is required to understand the precise rationale.
How does the per-unit cost of the hardware and software components compare to industry benchmarks?
Without a detailed breakdown of the hardware and software components and their respective quantities, a precise per-unit cost benchmark is not feasible. However, the total contract value of $69.5M over approximately 1.5 years for a system-wide refresh suggests a significant investment. A thorough analysis would require itemized pricing data to compare against similar procurements in the federal and commercial IT markets.
What measures are in place to ensure the long-term effectiveness and security of the refreshed application access gateway?
The contract specifies a Firm Fixed Price (FFP) award, which incentivizes the contractor to deliver the specified scope efficiently. However, long-term effectiveness and security depend on robust performance metrics, service level agreements (SLAs), and ongoing monitoring and maintenance provisions within the contract. The Defense Health Agency's oversight will be crucial in ensuring these aspects are met throughout the contract period and beyond.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - END USER
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
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: $69,537,144
Exercised Options: $69,537,144
Current Obligation: $69,537,144
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC71B
IDV Type: GWAC
Timeline
Start Date: 2023-09-18
Current End Date: 2025-03-07
Potential End Date: 2025-03-07 00:00:00
Last Modified: 2024-06-13
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