Treasury's IRS awards $2.25M IT contract to FCN, Inc. for Enterprise Data Catalog services

Contract Overview

Contract Amount: $2,250,826 ($2.3M)

Contractor: FCN, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2023-09-11

End Date: 2026-08-04

Contract Duration: 1,058 days

Daily Burn Rate: $2.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENTERPRISE DATA CATALOG

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $2.3 million to FCN, INC. for work described as: ENTERPRISE DATA CATALOG Key points: 1. Contract value of $2.25M over 3 years represents a moderate investment in data management infrastructure. 2. Full and open competition suggests a healthy market for these specialized IT services. 3. The fixed-price contract structure shifts performance risk to the contractor. 4. This award falls within the broader IT services sector, crucial for government modernization. 5. The contract's duration of nearly 3 years allows for sustained service delivery and potential for follow-on work. 6. The North American Industry Classification System (NAICS) code 541519 indicates a focus on 'Other Computer Related Services'.

Value Assessment

Rating: good

The contract value of $2.25 million for Enterprise Data Catalog services over approximately 3 years appears reasonable given the specialized nature of IT infrastructure support. Benchmarking against similar government contracts for data management solutions suggests this pricing is within expected ranges, especially considering the fixed-price nature which often includes a premium for contractor risk. The specific services delivered under this contract will be key to fully assessing value-for-money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. With 5 bidders participating, the competition level appears healthy, suggesting that the IRS received a range of proposals and pricing. This level of competition is generally favorable for price discovery and ensuring the government obtains services at a competitive rate.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down costs and ensured the IRS selected a vendor offering the best value. It signals that the government is not locked into a single provider, promoting market efficiency.

Public Impact

The primary beneficiary is the Internal Revenue Service (IRS), which will receive enhanced capabilities for managing its enterprise data catalog. Services delivered will likely include the implementation, maintenance, and support of the data catalog system, improving data governance and accessibility. The geographic impact is primarily within Maryland, where the contractor is based and services are likely managed, though the benefits of improved data management are agency-wide. Workforce implications may include the need for specialized IT personnel within the IRS to manage and utilize the new data catalog, as well as employment opportunities for FCN, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the Enterprise Data Catalog solution becomes deeply integrated without clear exit strategies.
Dependence on a single contractor for critical data management infrastructure could pose risks if performance falters.
Ensuring adequate knowledge transfer and documentation to facilitate future transitions or internal management.

Positive Signals

Awarded through full and open competition, indicating a competitive marketplace and likely fair pricing.
Fixed-price contract structure incentivizes contractor efficiency and cost control.
Contract duration allows for stable service delivery and potential for long-term data management improvements.
FCN, Inc. is an established IT solutions provider, suggesting a degree of reliability and experience.

Sector Analysis

The IT services sector, particularly within government contracting, is highly competitive and essential for modernizing public services. The Enterprise Data Catalog market is a growing segment focused on data governance, discovery, and management. This contract fits within the broader trend of federal agencies investing in robust data infrastructure to improve operations and decision-making. Comparable spending benchmarks for similar data management solutions vary widely based on scope and complexity, but a $2.25 million award over three years for specialized services is a moderate investment.

Small Business Impact

This contract was not set aside for small businesses, and the awardee, FCN, Inc., is not identified as a small business. There is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem appears limited for this specific award, though FCN, Inc. may engage small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program managers within the IRS. Accountability measures are embedded in the firm-fixed-price contract terms, requiring FCN, Inc. to deliver specified services within the agreed budget and timeline. Transparency is generally facilitated through contract award databases, though detailed performance metrics may not be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Data Strategy
IT Modernization Initiatives
Data Governance Programs
Enterprise Resource Planning (ERP) Systems
Cloud Computing Services

Risk Flags

Potential for vendor lock-in
Dependence on contractor performance
Integration complexity with existing systems
Data security and privacy risks
Adequacy of technical expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $2.3 million to FCN, INC.. ENTERPRISE DATA CATALOG

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 $2.3 million.

What is the period of performance?

Start: 2023-09-11. End: 2026-08-04.

What is FCN, Inc.'s track record with the IRS and other federal agencies for similar data management contracts?

FCN, Inc. has a history of performing IT services for various federal agencies, including the IRS. While specific details on past data catalog contracts are not provided here, their experience typically spans areas like network infrastructure, cybersecurity, and cloud solutions. A deeper dive into their contract history with the IRS would reveal the extent of their involvement in data management projects and their performance ratings on those engagements. Examining past performance evaluations and any reported issues would provide a clearer picture of their reliability and expertise in delivering complex IT solutions for government clients.

How does the $2.25 million contract value compare to industry benchmarks for Enterprise Data Catalog solutions of similar scope?

The $2.25 million contract value over approximately three years for Enterprise Data Catalog services represents a moderate investment. Industry benchmarks for such solutions can vary significantly based on the complexity of the data environment, the specific functionalities required (e.g., data discovery, lineage, governance, AI-driven insights), and the number of users. For a federal agency like the IRS, with vast and complex data holdings, this figure suggests a focused effort on a specific aspect of data management rather than a complete overhaul. Compared to large-scale data platform implementations, this contract appears cost-effective, but a precise benchmark requires detailed knowledge of the service scope and deliverables.

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

Specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) are not detailed in the provided summary data. However, for an Enterprise Data Catalog contract, typical KPIs might include system uptime, data refresh rates, search response times, user adoption rates, and the accuracy of data lineage information. SLAs would likely define the expected availability of the service, response times for technical support, and resolution times for critical issues. The firm-fixed-price nature of the contract implies that FCN, Inc. is obligated to meet defined performance standards to receive full payment, and these would be outlined in the contract's statement of work.

What is the potential risk associated with the chosen technology stack for the Enterprise Data Catalog?

The provided data does not specify the technology stack chosen for this Enterprise Data Catalog. Potential risks associated with any technology stack include vendor lock-in, scalability limitations, security vulnerabilities, integration challenges with existing IRS systems, and the availability of skilled personnel to manage and maintain the chosen technologies. If the chosen stack relies on proprietary software, it could increase long-term costs and limit flexibility. Conversely, leveraging open-source or widely adopted technologies might mitigate some risks but could introduce others related to community support or rapid evolution. A thorough risk assessment would evaluate the specific technologies against these factors.

How does this contract align with the IRS's broader IT modernization strategy and data management goals?

This contract for an Enterprise Data Catalog directly aligns with common federal IT modernization strategies and the IRS's likely data management goals. Modern agencies aim to improve data governance, enhance data accessibility for analytics and decision-making, and ensure data quality and security. An Enterprise Data Catalog is a foundational component for achieving these objectives by providing a centralized inventory and understanding of the organization's data assets. By investing in this capability, the IRS is likely seeking to break down data silos, improve regulatory compliance, and enable more sophisticated data analysis to support its mission.

What is the historical spending trend for Enterprise Data Catalog or similar data management services at the IRS?

Historical spending data for Enterprise Data Catalog or precisely similar services at the IRS is not provided in the summary. However, federal agencies, including the IRS, have been increasingly investing in data management capabilities over the past decade, driven by initiatives like the Federal Data Strategy and mandates for improved data governance. Spending in this area typically encompasses software licenses, implementation services, and ongoing support. Without specific historical figures, it's difficult to establish a trend, but the general direction suggests a growing emphasis and potentially increasing investment in robust data cataloging and management tools across government.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - COMPUTE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

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: $3,929,206

Exercised Options: $2,250,826

Current Obligation: $2,250,826

Actual Outlays: $2,250,826

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC71B

IDV Type: GWAC

Timeline