Treasury's IRS Awards $24M for Recovery Manager License Maintenance to FCN, Inc

Contract Overview

Contract Amount: $24,000 ($24.0K)

Contractor: FCN, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2023-06-12

End Date: 2025-05-30

Contract Duration: 718 days

Daily Burn Rate: $33/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: RECOVERY MANAGER LICENSE MAINTENANCE

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32220

State: Florida Government Spending

Plain-Language Summary

Department of the Treasury obligated $24,000 to FCN, INC. for work described as: RECOVERY MANAGER LICENSE MAINTENANCE Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 718 days indicates a medium-term need for these services. 3. The firm-fixed-price contract type helps manage cost certainty for the government. 4. The North American Industry Classification System (NAICS) code 541519 points to a focus on 'Other Computer Related Services'. 5. Awarded to FCN, INC., a contractor with a presence in Florida. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework.

Value Assessment

Rating: good

The total award amount of $24,000 for license maintenance over approximately two years suggests a reasonable annual cost for specialized software support. Without specific details on the 'RECOVERY MANAGER' software and its criticality, a direct comparison to similar contracts is challenging. However, the firm-fixed-price nature of the contract provides cost predictability. Benchmarking against industry standards for enterprise software license maintenance would be necessary for a more precise value assessment.

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 the competition was open, there might have been prior exclusions or specific circumstances leading to this method. The presence of 6 bidders suggests a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more cost-effective solution compared to a sole-source procurement. Multiple bidders vying for the contract generally drive down prices and encourage innovation.

Public Impact

The primary beneficiary is the Department of the Treasury, specifically the Internal Revenue Service (IRS), which will receive the license maintenance services. The services delivered are crucial for the ongoing operation and support of the 'RECOVERY MANAGER' software. The geographic impact is primarily within Florida, where the contractor FCN, INC. is located, though the services may support IRS operations nationwide. Workforce implications are likely minimal for the government, with the contractor providing the specialized maintenance expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics in the provided data makes it difficult to assess the quality of service.
The specific nature of 'RECOVERY MANAGER' software is not detailed, making it hard to gauge the criticality and potential risks associated with its maintenance.
The 'AFTER EXCLUSION OF SOURCES' clause in the competition type warrants further investigation to understand any prior limitations or specific justifications.

Positive Signals

The contract was awarded through full and open competition, indicating a robust and fair bidding process.
The firm-fixed-price contract type provides budget certainty and transfers some risk to the contractor.
The award to a single contractor, FCN, INC., suggests they met the requirements effectively.
The contract is for license maintenance, a necessary component for ensuring software functionality and support.

Sector Analysis

The IT services sector, particularly software maintenance and support, is a significant area of federal spending. This contract falls under 'Other Computer Related Services' (NAICS 541519), a broad category encompassing a wide range of IT support functions. Federal agencies rely heavily on specialized software for operations, and maintaining licenses is critical for continued access to updates, security patches, and technical support. The market for such services is competitive, with numerous providers offering varying levels of expertise and pricing.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The competition was open, meaning small businesses could have participated if they met the qualifications, but no specific allocation was made.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting officer and the relevant program managers within the IRS. As a delivery order, it likely operates under a broader IDIQ contract framework which may have its own oversight mechanisms. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IRS Software Maintenance Contracts
Treasury IT Modernization Efforts
Federal Software Licensing Agreements
General Services Administration (GSA) IT Schedule Contracts

Risk Flags

Competition Type Nuance
Lack of Software Specificity
Limited Performance Data

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $24,000 to FCN, INC.. RECOVERY MANAGER LICENSE MAINTENANCE

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 $24,000.

What is the period of performance?

Start: 2023-06-12. End: 2025-05-30.

What is the specific function and criticality of the 'RECOVERY MANAGER' software that necessitates this license maintenance contract?

The provided data does not specify the exact function or criticality of the 'RECOVERY MANAGER' software. However, the term 'Recovery Manager' often implies software used for data backup, disaster recovery, or business continuity planning. Such systems are typically critical for ensuring that an organization, especially a large one like the IRS, can restore its data and operations in the event of system failures, cyberattacks, or other disruptions. The need for license maintenance suggests it is a commercial off-the-shelf (COTS) or proprietary software requiring ongoing vendor support for updates, patches, and technical assistance to maintain its operational integrity and security.

How does the $24,000 award amount compare to the market rate for similar license maintenance services?

Benchmarking the $24,000 award for 'RECOVERY MANAGER LICENSE MAINTENANCE' against market rates requires more specific information about the software itself, including its vendor, edition, number of users or servers it supports, and the level of maintenance included (e.g., standard vs. premium support). Generally, enterprise-level software license maintenance can range from 15-25% of the initial software license cost annually. Without knowing the original license cost or the specific software, a precise market comparison is difficult. However, for a two-year period, $24,000 suggests a relatively modest annual cost, potentially indicating a niche software, a limited scope of support, or a highly competitive pricing environment for this particular maintenance agreement.

What are the potential risks associated with FCN, INC. providing these license maintenance services?

Potential risks associated with FCN, INC. providing these license maintenance services include: 1) **Performance Risk:** The contractor may not provide timely updates, patches, or adequate technical support, potentially leading to system vulnerabilities or downtime. 2) **Security Risk:** If the maintenance process involves access to sensitive IRS systems or data, any security lapse by the contractor could lead to data breaches. 3) **Dependency Risk:** The IRS may become overly reliant on FCN, INC. for critical software support, making transitions to new vendors or solutions difficult. 4) **Financial Viability:** The long-term financial stability of FCN, INC. could pose a risk if they experience financial difficulties, impacting their ability to provide sustained support. 5) **Knowledge Transfer:** If key personnel at FCN, INC. leave, there might be a loss of institutional knowledge regarding the specific 'RECOVERY MANAGER' software.

What is the historical spending pattern for 'RECOVERY MANAGER LICENSE MAINTENANCE' or similar services by the IRS?

The provided data only includes details for this specific $24,000 delivery order awarded on June 12, 2023, with an end date of May 30, 2025. It does not offer historical spending patterns for this specific service or software. To determine historical spending, one would need to query federal procurement databases (like FPDS or USASpending.gov) for previous contracts awarded by the IRS or Department of the Treasury for 'RECOVERY MANAGER' or functionally similar software maintenance and licensing. Analyzing past awards would reveal trends in contract values, durations, awarded contractors, and competition levels, providing context for the current award's significance and cost-effectiveness.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause imply about the procurement process?

The clause 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is a specific type of competitive procurement outlined in the Federal Acquisition Regulation (FAR). It means that the agency intended to conduct a full and open competition, but prior to the solicitation, certain sources were excluded based on specific justifications (e.g., proprietary data rights, unique capabilities, or prior development efforts). After these exclusions, the remaining sources were solicited on a full and open basis. This implies that while the competition was broad among the eligible sources, there were pre-defined reasons for not considering all potential offerors from the outset. Understanding the specific justification for the exclusion is key to fully evaluating the procurement's fairness and effectiveness.

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: 6

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: $24,000

Exercised Options: $24,000

Current Obligation: $24,000

Actual Outlays: $24,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC71B

IDV Type: GWAC

Timeline