DHS Awards $9.4M Data Center Migration Contract to FCN, Inc. Under Full and Open Competition

Contract Overview

Contract Amount: $9,414,724 ($9.4M)

Contractor: FCN, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2020-09-29

End Date: 2025-09-29

Contract Duration: 1,826 days

Daily Burn Rate: $5.2K/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: VECADS DATA CENTER SITE MIGRATION

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $9.4 million to FCN, INC. for work described as: VECADS DATA CENTER SITE MIGRATION Key points: 1. Contract awarded for data center site migration services. 2. FCN, Inc. secured the contract through full and open competition. 3. The contract has a duration of 1826 days. 4. The total value is approximately $9.4 million. 5. The service falls under 'Other Computer Related Services'.

Value Assessment

Rating: good

The contract value of $9.4 million for a 5-year data center migration project appears reasonable. Benchmarking against similar large-scale IT infrastructure projects suggests this pricing is competitive, especially considering the complexity and duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a competitive process that aimed to maximize value. This method generally leads to better price discovery and ensures a wider pool of qualified vendors can participate.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair value for the services rendered, minimizing the risk of overpayment.

Public Impact

Ensures continuity of critical immigration and customs data services. Modernizes IT infrastructure for enhanced security and efficiency. Supports the operational needs of U.S. Immigration and Customs Enforcement. Potential for improved data accessibility and disaster recovery capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on services are required.
Risk of scope creep impacting final cost and timeline.
Dependence on a single vendor for critical infrastructure migration.

Positive Signals

Competitive award process ensures fair pricing.
Long-term contract provides stability for migration efforts.
Clear service delivery period reduces uncertainty.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on data center operations and migration. Spending in this area is substantial across federal agencies, driven by the need for modernization, cloud adoption, and enhanced cybersecurity. Benchmarks for similar projects vary widely based on scope and complexity.

Small Business Impact

The data indicates this contract was awarded through full and open competition, but it does not specify if small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract's duration and value suggest it is subject to standard federal procurement oversight. Agencies like DHS typically have internal review processes and reporting requirements to ensure accountability and adherence to contract terms.

Related Government Programs

Other Computer Related Services
Department of Homeland Security Contracting
U.S. Immigration and Customs Enforcement Programs

Risk Flags

Potential for vendor lock-in
Risk of scope creep
Dependence on a single vendor
Complexity of data center migration
Cybersecurity risks during transition

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $9.4 million to FCN, INC.. VECADS DATA CENTER SITE MIGRATION

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. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $9.4 million.

What is the period of performance?

Start: 2020-09-29. End: 2025-09-29.

What is the specific definition of 'EXCLUSION OF SOURCES' in this context and how did it impact the competition?

The phrase 'EXCLUSION OF SOURCES' within 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' typically implies that while the competition was open, certain specific sources or types of sources were initially excluded based on predefined criteria. This could be due to specific technical requirements, security clearances, or prior performance issues. The impact on competition depends on the justification for exclusion; if valid, it ensures qualified bidders, but if arbitrary, it could limit competition and potentially increase costs.

How does the $9.4M cost compare to industry benchmarks for similar data center migration projects of this scale and duration?

A $9.4 million cost for an 1826-day (approximately 5-year) data center migration project for a federal agency like DHS is generally within a reasonable range, considering the complexity, security requirements, and scale. Industry benchmarks vary significantly, but large-scale migrations can range from millions to tens of millions of dollars. Factors like the number of servers, data volume, required downtime, and specific technologies involved heavily influence the final cost. This price appears competitive given the full and open competition.

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

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a data center migration project, typical KPIs would likely include metrics related to uptime during migration, data integrity, successful transfer of services, adherence to schedule, and security compliance. Robust SLAs would define acceptable performance thresholds and remedies for non-compliance, ensuring the vendor meets the government's operational and security needs effectively.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12501 ARDENNES AVE, ROCKVILLE, MD, 20852

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $9,414,724

Exercised Options: $9,414,724

Current Obligation: $9,414,724

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSHQDC13D00017

IDV Type: IDC

Timeline