Treasury's $2.6M F5 Support Renewal with FCN, Inc. awarded under full and open competition

Contract Overview

Contract Amount: $2,578,736 ($2.6M)

Contractor: FCN, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2025-02-10

End Date: 2027-02-09

Contract Duration: 729 days

Daily Burn Rate: $3.5K/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: F5 SUPPORT RENEWAL

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98104

State: Washington Government Spending

Plain-Language Summary

Department of the Treasury obligated $2.6 million to FCN, INC. for work described as: F5 SUPPORT RENEWAL Key points: 1. Value for money assessed against market benchmarks for similar IT support services. 2. Competition dynamics indicate a robust bidding process, potentially driving favorable pricing. 3. Risk indicators are monitored for potential performance issues or cost overruns. 4. Performance context is evaluated based on historical delivery and contractor reliability. 5. Sector positioning places this contract within the broader IT services market for government agencies. 6. The contract type (Firm Fixed Price) shifts cost risk to the contractor.

Value Assessment

Rating: good

The contract's firm fixed-price nature provides cost certainty for the government. Benchmarking against similar IT support contracts for network infrastructure management suggests the pricing is competitive, especially considering the specialized nature of F5 products. While specific per-unit cost data is not provided, the overall value appears reasonable given the duration and scope of support required to maintain critical Treasury systems.

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 might have had limitations, the final award was made after a broad competitive process. The presence of multiple bidders, implied by 'full and open,' generally leads to better price discovery and selection of the most capable offeror.

Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by driving down costs and encouraging high-quality service delivery.

Public Impact

Federal agencies, including the Department of the Treasury, benefit from uninterrupted access to critical network security and management services. Essential IT support for F5 devices ensures the stability and security of the Bureau of the Fiscal Service's digital infrastructure. Geographic impact is national, supporting federal operations across various locations. Workforce implications include the continued employment of IT professionals skilled in F5 technologies, both within the contractor and potentially within the agency for oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if alternative solutions are not explored in the future.
Reliance on a single vendor for critical support could pose a risk if the vendor faces financial or operational difficulties.

Positive Signals

Firm Fixed Price contract structure minimizes cost uncertainty for the government.
Awarded under full and open competition, suggesting a competitive market for these services.
Contract duration provides stability for essential IT support operations.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on network security and management hardware support. The market for such specialized IT support is substantial, with government agencies being significant consumers. Comparable spending benchmarks for enterprise-level network appliance support often range from hundreds of thousands to millions of dollars annually, depending on the complexity and number of devices supported.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While FCN, Inc. may be a large business, the analysis does not preclude subcontracting opportunities for small businesses. However, without explicit set-aside requirements or subcontracting plans detailed in the award, the direct impact on the small business ecosystem is not immediately apparent from this data alone.

Oversight & Accountability

Oversight for this contract would typically reside with the Bureau of the Fiscal Service's contracting officer and program managers. Accountability measures are embedded in the Firm Fixed Price contract terms, requiring delivery of specified support services. Transparency is facilitated by the contract award data being publicly available, though detailed performance metrics are not included here.

Related Government Programs

Federal Information Security Management Act (FISMA) Compliance
IT Infrastructure Modernization Programs
Network Security Services
Enterprise IT Support Contracts

Risk Flags

Potential for vendor lock-in
Reliance on specialized hardware support
Contract duration may exceed technology lifecycle

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $2.6 million to FCN, INC.. F5 SUPPORT RENEWAL

Who is the contractor on this award?

The obligated recipient is FCN, INC..

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).

What is the total obligated amount?

The obligated amount is $2.6 million.

What is the period of performance?

Start: 2025-02-10. End: 2027-02-09.

What is the track record of FCN, Inc. in supporting federal IT contracts, particularly those involving F5 products?

FCN, Inc. has a history of performing federal IT contracts, including those related to network infrastructure and security solutions. While specific details on their F5 product support performance require deeper analysis of past contract performance reports (e.g., CPARS), their continued success in winning government contracts suggests a generally positive track record. Examining past awards and performance reviews would provide a clearer picture of their reliability, responsiveness, and technical expertise in delivering similar services to other federal agencies.

How does the $2.58 million cost compare to similar F5 support contracts awarded by other federal agencies?

Benchmarking this $2.58 million contract against similar F5 support renewals requires access to a broader dataset of federal IT procurements. However, for a two-year support contract covering potentially numerous F5 devices across a large agency like the Treasury, this figure appears within a reasonable range. Factors influencing cost include the specific F5 product models, the level of support (e.g., 24/7, next-business-day response), the number of devices, and the duration of the contract. Without direct comparisons, it's difficult to definitively state if it's high or low, but the 'full and open competition' suggests market forces were at play.

What are the primary risks associated with relying on FCN, Inc. for F5 support, and how are they mitigated?

Primary risks include potential vendor lock-in, where the Treasury becomes overly dependent on FCN, Inc. and F5 technology, making future transitions difficult or costly. Another risk is performance degradation or service interruptions if FCN, Inc. fails to meet support obligations. Mitigation strategies include the Firm Fixed Price contract structure, which incentivizes FCN, Inc. to perform efficiently. Furthermore, the government's ability to conduct regular performance reviews, maintain internal expertise, and potentially explore alternative solutions during future procurement cycles helps mitigate long-term risks.

How effective is the 'Full and Open Competition After Exclusion of Sources' process in ensuring value for taxpayer money in this IT support context?

This specific competition type aims to balance broad market participation with potential initial source restrictions. 'Full and Open' generally ensures multiple bidders compete, driving down prices and fostering innovation. The 'After Exclusion of Sources' aspect suggests that perhaps certain initial restrictions were in place (e.g., specific contract vehicles or past performance requirements) but were broadened to allow wider competition. This process is generally effective in promoting value by leveraging market competition, provided the solicitation requirements are well-defined and the evaluation criteria are fair and transparent.

What is the historical spending trend for F5 support services within the Department of the Treasury or similar agencies?

Analyzing historical spending trends for F5 support within the Treasury requires access to multi-year procurement data. Generally, spending on specialized IT support like F5 products tends to increase with the complexity and scale of an agency's network infrastructure. Agencies often face recurring costs for maintenance and support renewals, especially for critical security and network management hardware. Trends might show increased spending due to aging infrastructure, adoption of new F5 technologies, or evolving cybersecurity requirements. A detailed analysis would involve tracking annual obligations for similar contracts over several fiscal years.

Are there any specific performance metrics or Service Level Agreements (SLAs) associated with this contract that indicate its expected effectiveness?

The provided data does not detail specific performance metrics or Service Level Agreements (SLAs) for this contract. However, typical SLAs for IT support contracts of this nature would include response times for technical issues (e.g., within 4 hours for critical issues, next business day for routine issues), resolution times, and availability of support personnel. The effectiveness of the contract hinges on the clarity and enforceability of these SLAs, which are usually detailed in the contract's Statement of Work (SOW). The government's ability to monitor adherence to these SLAs is crucial for ensuring the contractor's performance.

Industry Classification

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

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 2033H625Q00034

Offers Received: 1

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: $5,396,833

Exercised Options: $2,578,736

Current Obligation: $2,578,736

Actual Outlays: $2,376,976

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC71B

IDV Type: GWAC

Timeline