DHS awards $5.3M for software services, with 10 bidders vying for the contract

Contract Overview

Contract Amount: $5,296,709 ($5.3M)

Contractor: FCN, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2025-03-05

End Date: 2026-04-03

Contract Duration: 394 days

Daily Burn Rate: $13.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SOFTWARE

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $5.3 million to FCN, INC. for work described as: SOFTWARE Key points: 1. The contract value represents a moderate investment in software services for U.S. Customs and Border Protection. 2. Strong competition among 10 bidders suggests a healthy market for these services. 3. The firm-fixed-price contract type indicates clear cost expectations and limits the government's financial risk. 4. The duration of the contract (394 days) is typical for software service delivery orders. 5. The contractor, FCN, INC., has secured a significant award within this service category. 6. The NAICS code 541519 points to a broad range of computer-related services being procured.

Value Assessment

Rating: good

The contract value of $5.3 million for software services appears reasonable given the scope and duration. Benchmarking against similar contracts for IT services within DHS or other agencies would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs, but without detailed service descriptions, a definitive price comparison is challenging. The number of bidders suggests competitive pricing was likely achieved.

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 multiple potential vendors were considered and allowed to bid. The participation of 10 bidders is a strong indicator of robust competition. This level of competition generally leads to more favorable pricing and better service offerings for the government, as contractors strive to win the award.

Taxpayer Impact: The high number of bidders suggests that taxpayer dollars are being used efficiently, as the competitive process likely drove down costs and ensured the government received a fair market price for the software services.

Public Impact

This contract will benefit U.S. Customs and Border Protection by providing essential software services to support their mission. The services delivered are expected to enhance operational efficiency and data management capabilities. The primary geographic impact is within the United States, supporting federal operations. The contract supports the IT workforce, potentially involving skilled software developers, engineers, and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the software becomes highly integrated into CBP's systems.
Reliance on a single contractor for critical software services could pose a risk if performance falters.
Scope creep could lead to cost overruns if not managed tightly, despite the fixed-price nature.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
Full and open competition with 10 bidders suggests a competitive market and likely fair pricing.
The contractor, FCN, INC., has the opportunity to demonstrate strong performance and build a positive track record.

Sector Analysis

The IT services sector is a significant area of federal spending. This contract falls under computer-related services, a broad category encompassing software development, maintenance, and support. Federal spending in this area is consistently high, driven by the need for modernizing legacy systems, cybersecurity, and data analytics. Comparable contracts often range from a few million to tens of millions of dollars, depending on the complexity and duration.

Small Business Impact

This contract was not specifically set aside for small businesses, and the 'sb' field is false. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless FCN, INC. voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Customs and Border Protection contracting officer and program managers. Accountability measures are inherent in the firm-fixed-price contract, requiring delivery of specified services. Transparency is generally maintained through contract award databases, though specific performance metrics may not be publicly disclosed. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IT Services
Software Development
Customs and Border Protection IT Modernization
Federal Software Procurement
Department of Homeland Security IT Contracts

Risk Flags

Potential for vendor lock-in
Reliance on contractor performance
Scope creep risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $5.3 million to FCN, INC.. SOFTWARE

Who is the contractor on this award?

The obligated recipient is FCN, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $5.3 million.

What is the period of performance?

Start: 2025-03-05. End: 2026-04-03.

What is FCN, INC.'s track record with federal contracts, particularly within DHS?

FCN, INC. has a history of securing federal contracts, including those with the Department of Homeland Security. While specific details of past performance on similar software service contracts are not provided in this data snippet, their ability to win this $5.3 million award suggests a competitive capability. A deeper dive into their contract history, including past performance reviews and any reported issues, would be necessary for a comprehensive assessment. Their experience with DHS would indicate familiarity with the agency's specific requirements and operational environment, potentially reducing onboarding risks and improving service delivery.

How does the $5.3 million contract value compare to similar software service contracts awarded by DHS or other agencies?

The $5.3 million contract value for software services over approximately 13 months (from April 2025 to April 2026) is a moderate-sized award. Without specific details on the scope of 'Other Computer Related Services' (NAICS 541519), direct comparison is difficult. However, federal agencies frequently award contracts in the multi-million dollar range for software development, maintenance, and support. Contracts for enterprise-level software solutions or large-scale system integrations can easily reach tens or hundreds of millions. Conversely, smaller, more specialized software tasks might be awarded for under a million dollars. The 10 bidders suggest this falls within a competitive and accessible range for many IT service providers.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential performance issues from the contractor, scope creep leading to cost overruns (though mitigated by the firm-fixed-price structure), and over-reliance on a single vendor. Mitigation strategies are embedded in the contract type and oversight. The firm-fixed-price nature incentivizes FCN, INC. to deliver within budget. The competitive award process suggests a selection of a capable vendor. Ongoing oversight by CBP program managers and contracting officers is crucial for monitoring performance, managing scope, and ensuring timely delivery. Clear performance metrics and regular reviews are standard mitigation practices.

How effective is the 'full and open competition after exclusion of sources' method for ensuring value for taxpayers in this case?

The 'full and open competition after exclusion of sources' method is generally highly effective for ensuring value for taxpayers. By allowing all responsible sources to submit bids, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. The fact that 10 bidders participated strongly suggests that the market was robust and that FCN, INC. was selected from a competitive field. This process inherently drives down costs as contractors vie for the award. While 'exclusion of sources' might sound restrictive, in this context, it likely refers to a pre-qualification or specific requirement phase that still allowed broad competition among qualified entities, rather than a true sole-source situation.

What are the historical spending patterns for software services by U.S. Customs and Border Protection?

U.S. Customs and Border Protection (CBP), as a major component of DHS, consistently invests heavily in IT and software services to manage border security, trade, and travel. Historical spending patterns reveal a significant and often increasing allocation towards software development, system modernization, data analytics, and cybersecurity solutions. This is driven by evolving threats, technological advancements, and the need to process vast amounts of data. CBP frequently utilizes various contract vehicles, including task orders against larger indefinite-delivery/indefinite-quantity (IDIQ) contracts, as well as direct awards for specific needs like this one. Analyzing CBP's budget and procurement history would show a sustained demand for these services.

Industry Classification

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

Product/Service Code: IT AND TELECOM - DATA CENTER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 12

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: $6,579,729

Exercised Options: $5,296,709

Current Obligation: $5,296,709

Actual Outlays: $5,296,709

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC71B

IDV Type: GWAC

Timeline