Treasury's IRS spent $31.5M on PIV and SI refresh, awarded via full and open competition

Contract Overview

Contract Amount: $31,538,398 ($31.5M)

Contractor: FCN, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2017-07-26

End Date: 2017-09-22

Contract Duration: 58 days

Daily Burn Rate: $543.8K/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: IGF::CT::IGF FOR CRITICAL FUNCTIONS - PURCHASE OF PIV AND SI REFRESH

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $31.5 million to FCN, INC. for work described as: IGF::CT::IGF FOR CRITICAL FUNCTIONS - PURCHASE OF PIV AND SI REFRESH Key points: 1. The contract value of $31.5M for PIV and SI refresh appears reasonable given the scope of critical IT infrastructure. 2. Full and open competition was utilized, suggesting a competitive bidding process that should have yielded fair market pricing. 3. The short performance period (58 days) indicates a focused, potentially urgent need for the services. 4. The contract was awarded as a Delivery Order, implying it was part of a larger existing contract vehicle. 5. The North American Industry Classification System (NAICS) code 541519 suggests a broad range of IT services were procured. 6. The fixed-price contract type helps mitigate cost overrun risks for the government.

Value Assessment

Rating: good

The contract value of approximately $31.5 million for a PIV and SI refresh is within a typical range for critical IT infrastructure upgrades. While specific benchmarks for PIV and SI refreshes are not readily available without more detailed service descriptions, the fixed-price nature of the contract provides cost certainty. The award amount relative to the duration suggests a significant investment in a short timeframe, implying the urgency and importance of the refresh.

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,' which indicates that the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. The presence of two bidders suggests a moderate level of competition for this specific requirement. While more bidders would typically indicate stronger price discovery, the 'full and open' nature is a positive sign for competitive pricing.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it encourages multiple vendors to bid, driving down prices and ensuring the government receives the best value for its investment.

Public Impact

The Internal Revenue Service (IRS) benefits from enhanced security and operational efficiency through the PIV and SI refresh. Employees and potentially taxpayers interacting with IRS systems will experience improved security and reliability. The services delivered are critical for maintaining the integrity and functionality of IRS IT infrastructure. The primary geographic impact is likely within the IRS's operational centers, primarily in Maryland where the contractor is located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short performance period could indicate rushed implementation or potential for delays if unforeseen issues arise.
Limited competition (2 bidders) might suggest a niche service or high barriers to entry, potentially impacting long-term cost savings.
The specific nature of 'PIV and SI refresh' requires detailed understanding to ensure all critical security and identity management aspects were addressed.

Positive Signals

Awarded under full and open competition, maximizing potential for competitive pricing.
Firm Fixed Price contract type provides cost certainty and limits government financial risk.
The contract addresses critical IT functions, indicating a proactive approach to maintaining essential government services.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on identity and access management (PIV - Personal Identity Verification) and security infrastructure (SI). The market for such services is robust, driven by increasing cybersecurity threats and regulatory compliance requirements. Comparable spending benchmarks would typically be found within IT modernization and cybersecurity procurements across various federal agencies, often involving significant investments in hardware, software, and integration services.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, large businesses were the primary participants. There is no explicit information on subcontracting plans for small businesses within this specific award, which could represent missed opportunities for the small business ecosystem to participate in critical IT refresh projects.

Oversight & Accountability

Oversight for this contract would typically fall under the IRS's contracting officer and program management. The firm fixed-price nature provides some inherent oversight by limiting scope creep. Transparency is facilitated by the contract award being publicly available. While no specific Inspector General jurisdiction is mentioned for this particular award, the Treasury Inspector General for Tax Administration (TIGTA) generally oversees IRS operations and spending.

Related Government Programs

Federal Identity, Credential, and Access Management (FICAM)
Cybersecurity Modernization Programs
IT Infrastructure Upgrades
Personal Identity Verification (PIV) Card Services

Risk Flags

Short performance period
Limited number of bidders

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $31.5 million to FCN, INC.. IGF::CT::IGF FOR CRITICAL FUNCTIONS - PURCHASE OF PIV AND SI REFRESH

Who is the contractor on this award?

The obligated recipient is FCN, INC..

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $31.5 million.

What is the period of performance?

Start: 2017-07-26. End: 2017-09-22.

What is the specific scope of the PIV and SI refresh, and how does it align with current federal cybersecurity mandates?

The provided data abbreviates the scope as 'IGF::CT::IGF FOR CRITICAL FUNCTIONS - PURCHASE OF PIV AND SI REFRESH'. PIV (Personal Identity Verification) typically refers to the implementation and management of secure identification credentials for federal employees and contractors, mandated by Homeland Security Presidential Directive 12 (HSPD-12). SI likely refers to Security Infrastructure or Systems Integration, crucial for protecting sensitive government data. A refresh implies updating existing systems to meet current security standards, address vulnerabilities, and ensure compliance with evolving federal cybersecurity mandates like those from CISA (Cybersecurity and Infrastructure Security Agency) and NIST (National Institute of Standards and Technology). Without detailed documentation, it's difficult to ascertain the exact alignment, but the urgency implied by the short performance period suggests a focus on critical, immediate security needs.

How does the $31.5 million contract value compare to similar PIV and SI refresh contracts awarded by other federal agencies?

Benchmarking this $31.5 million contract value requires comparing it to similar PIV and SI refresh procurements across the federal government. However, such comparisons are complex due to variations in contract scope, duration, specific technologies deployed, and the number of users supported. Generally, large-scale PIV implementations and security infrastructure upgrades for agencies with extensive workforces, like the IRS, can easily run into tens of millions of dollars. The short performance period (58 days) for this specific award suggests it might be a focused refresh or a specific component of a larger initiative, rather than a full system overhaul. Therefore, while $31.5 million is a substantial sum, it may represent good value if it efficiently addresses critical security needs within the specified timeframe and scope.

What are the potential risks associated with a short performance period of 58 days for a critical IT function refresh?

A short performance period of 58 days for a critical IT function refresh like PIV and SI presents several potential risks. Firstly, there's an increased risk of rushed implementation, which could lead to overlooked details, inadequate testing, or suboptimal configuration, potentially compromising security or functionality. Secondly, unforeseen technical challenges or integration issues might arise that cannot be adequately resolved within the compressed timeframe, leading to delays or incomplete deployment. Thirdly, the contractor may face challenges in resource allocation, potentially impacting the quality of work or requiring overtime, which could indirectly increase costs or strain the vendor relationship. Finally, if the scope is not precisely defined and managed, the short duration could exacerbate scope creep issues, leading to missed deadlines or budget overruns despite the firm-fixed-price structure.

Given the 'Full and Open Competition After Exclusion of Sources' award type, what does this imply about the contractor selection process and potential for future competition?

The award type 'Full and Open Competition After Exclusion of Sources' indicates that the government broadly advertised the requirement and allowed all responsible sources to submit proposals. The 'Exclusion of Sources' part typically refers to a specific circumstance where certain sources might be excluded based on pre-defined criteria (e.g., specific security clearances, existing contract vehicles). In this case, two bidders submitted offers. This implies a moderately competitive process, suggesting that the market for this specific service is not overly saturated but also not a sole-source situation. For future competitions, this suggests that other qualified vendors could potentially compete if the requirement is re-solicited under similar terms, provided they meet the necessary qualifications and the government continues to pursue open competition.

What is the track record of FCN, Inc. in performing similar IT infrastructure and cybersecurity contracts for the federal government?

FCN, Inc. is a federal IT contractor that has historically secured numerous contracts across various agencies, including the Department of the Treasury. Their portfolio often includes services related to IT infrastructure, cloud solutions, cybersecurity, and data center management. While specific details on their performance for PIV and SI refreshes require deeper investigation into past performance evaluations and contract close-outs, their sustained presence in the federal IT market suggests a capability to deliver on complex projects. Analyzing their past performance on similar-sized or technically related contracts would provide a clearer picture of their reliability, technical expertise, and ability to meet deadlines and budget constraints in critical IT procurements.

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: 12315 WILKINS AVE, 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: $31,538,398

Exercised Options: $31,538,398

Current Obligation: $31,538,398

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: NNG15SC71B

IDV Type: GWAC

Timeline