DHS awards $18.9M TIBCO license renewal to FCN, Inc. for IDENT system support

Contract Overview

Contract Amount: $18,942,833 ($18.9M)

Contractor: FCN, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2023-09-30

End Date: 2026-09-29

Contract Duration: 1,095 days

Daily Burn Rate: $17.3K/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: RECOMPETE THIS FIRM FIXED PRICE AWARD IS TO PROCURE TIBCO LICENSE AGREEMENT TO SUPPORT MAINTENANCE AND UPGRADES TO THE TIBCO IMPLEMENTATION WITHIN THE IDENT SYSTEM AND NONPRODUCTION ENVIRONMENTS, RENEWAL IN ACCORDANCE WITH THE ENCLOSED STATEMENT OF W

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $18.9 million to FCN, INC. for work described as: RECOMPETE THIS FIRM FIXED PRICE AWARD IS TO PROCURE TIBCO LICENSE AGREEMENT TO SUPPORT MAINTENANCE AND UPGRADES TO THE TIBCO IMPLEMENTATION WITHIN THE IDENT SYSTEM AND NONPRODUCTION ENVIRONMENTS, RENEWAL IN ACCORDANCE WITH THE ENCLOSED STATEMENT OF W Key points: 1. This contract represents a renewal for TIBCO software maintenance and upgrades, indicating ongoing reliance on the vendor's ecosystem. 2. The award was made under full and open competition, suggesting a competitive process was undertaken. 3. The duration of the contract is three years, aligning with typical software maintenance cycles. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The North American Industry Classification System (NAICS) code 541519 suggests a broad range of computer-related services were potentially considered. 6. The award is a Delivery Order, implying it is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar vehicle.

Value Assessment

Rating: fair

The contract value of $18.9 million over three years for TIBCO licenses and support appears to be within a reasonable range for enterprise software maintenance. Benchmarking against similar TIBCO renewals or comparable enterprise software agreements would provide a clearer picture of value for money. Without specific details on the scope of maintenance and upgrades, a precise value assessment is challenging. However, the firm fixed-price nature suggests the government has negotiated a set cost for the defined services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which indicates that the solicitation was made available to all responsible sources, but specific exclusions might have been applied based on pre-existing conditions or requirements. The presence of 5 offers suggests a degree of competition, though the exact number of bidders and the nature of any exclusions would be needed for a full assessment. This level of competition is generally positive for price discovery.

Taxpayer Impact: A competitive process, even with exclusions, generally benefits taxpayers by encouraging multiple vendors to offer their best pricing and terms, potentially leading to cost savings compared to a sole-source award.

Public Impact

The Department of Homeland Security (DHS) benefits from continued access to critical TIBCO software. Maintenance and upgrades to the TIBCO implementation within the IDENT system and non-production environments will be supported. This contract ensures the operational continuity of systems reliant on TIBCO software within DHS. The primary beneficiaries are the DHS personnel and systems that utilize the IDENT system and its associated TIBCO components.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with TIBCO software, making future transitions costly.
Reliance on a single vendor for maintenance and upgrades could limit flexibility in adopting alternative technologies.
The specific scope of 'maintenance and upgrades' needs clear definition to ensure value for money.

Positive Signals

Firm Fixed Price contract structure transfers cost overrun risk to the contractor.
Full and open competition, even with exclusions, suggests an effort to achieve competitive pricing.
The contract duration of three years provides budget stability for this critical software support.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on software licensing, maintenance, and support. The market for enterprise software solutions like TIBCO is mature, with several established vendors. Spending on software maintenance and upgrades is a significant component of IT budgets across federal agencies, ensuring the continued functionality and security of critical systems. Comparable spending benchmarks would typically be found in IT category management reports or agency-specific IT spending analyses.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, FCN, Inc., may engage small businesses as subcontractors, depending on their own subcontracting plans and the nature of the services required.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Homeland Security's Office of Procurement Operations, which awarded the contract. The firm fixed-price nature of the award provides a degree of accountability, as the contractor is responsible for delivering the specified maintenance and upgrades within the agreed-upon cost. Transparency would be enhanced by public contract data, and any specific Inspector General oversight would depend on DHS's internal audit and compliance programs.

Related Government Programs

IDENT System Support
TIBCO Software Licensing
IT Maintenance and Support Services
Department of Homeland Security IT Contracts

Risk Flags

Potential for vendor lock-in
Reliance on specific software vendor (TIBCO)
Need for clear definition of upgrade scope

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $18.9 million to FCN, INC.. RECOMPETE THIS FIRM FIXED PRICE AWARD IS TO PROCURE TIBCO LICENSE AGREEMENT TO SUPPORT MAINTENANCE AND UPGRADES TO THE TIBCO IMPLEMENTATION WITHIN THE IDENT SYSTEM AND NONPRODUCTION ENVIRONMENTS, RENEWAL IN ACCORDANCE WITH THE ENCLOSED STATEMENT OF W

Who is the contractor on this award?

The obligated recipient is FCN, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $18.9 million.

What is the period of performance?

Start: 2023-09-30. End: 2026-09-29.

What is the historical spending pattern for TIBCO licenses and support within DHS or similar agencies?

Analyzing historical spending on TIBCO licenses and support within DHS or comparable agencies is crucial for understanding the value proposition of this $18.9 million award. Without access to specific historical data for this contract or similar TIBCO agreements, it's difficult to establish a precise trend. However, federal agencies often engage in multi-year contracts for enterprise software maintenance due to the complexity and criticality of these systems. Renewals are common, and spending can fluctuate based on upgrade cycles, new feature requirements, and vendor pricing strategies. A significant increase or decrease in spending compared to previous periods could indicate changes in scope, market conditions, or negotiation outcomes. Further investigation would involve reviewing prior contract awards for TIBCO within DHS and other agencies with similar IT infrastructures to identify patterns in cost, duration, and service levels.

How does the per-unit cost of TIBCO licenses and support in this contract compare to market rates or other federal contracts?

Benchmarking the per-unit cost of TIBCO licenses and support in this $18.9 million contract against market rates or other federal contracts is essential for assessing value for money. As a 'Delivery Order' under a potentially larger vehicle, the specific unit pricing might not be immediately apparent without further detail on the number of licenses or support tiers included. However, TIBCO is a well-established enterprise software provider, and its pricing can be substantial. Federal agencies often leverage purchasing power through GSA schedules or other government-wide acquisition contracts (GWACs) to secure favorable pricing. Comparing the effective annual cost ($6.3 million) to similar TIBCO agreements within DHS or other agencies, adjusted for scope and duration, would be the most effective method. If this contract was awarded through full and open competition, it suggests that the pricing was deemed competitive among the bidders. However, a detailed analysis would require access to the specific pricing structure and a comparison with publicly available data on TIBCO's enterprise licensing and support costs.

What are the specific maintenance and upgrade requirements included in this TIBCO license agreement?

The statement of work (SOW) or contract line item numbers (CLINs) associated with this $18.9 million award would detail the specific maintenance and upgrade requirements for the TIBCO implementation within DHS's IDENT system and non-production environments. 'Maintenance' typically includes bug fixes, patches, security updates, and technical support to ensure the software operates as intended. 'Upgrades' generally refer to enhancements, new versions, or feature additions that improve functionality or performance. Without the detailed SOW, it's presumed that the contract covers the necessary activities to keep the TIBCO software current, secure, and operational. The scope is critical for evaluating the value for money, as extensive upgrade requirements could justify a higher cost than basic maintenance. Clarity on whether this includes major version upgrades or only incremental updates is important for understanding the contractor's obligations and the potential benefits to DHS.

What is FCN, Inc.'s track record with TIBCO software support and similar federal contracts?

FCN, Inc.'s track record with TIBCO software support and similar federal contracts is a key indicator of their capability and reliability. As the incumbent or a returning contractor for this TIBCO license renewal, their past performance is likely a significant factor in the award decision. Federal agencies typically evaluate past performance as part of the source selection process. Information on FCN, Inc.'s previous contracts, including their performance ratings, any issues encountered, and their success in delivering TIBCO-related services, would provide insight into their ability to meet the requirements of this new award. A review of contract databases and performance assessment reporting (if publicly available) could reveal their experience with similar systems and their overall performance trends within the federal IT landscape. Positive past performance would suggest a lower risk for DHS, while documented issues might raise concerns about future delivery.

What are the potential risks associated with relying on FCN, Inc. for continued TIBCO support?

Potential risks associated with relying on FCN, Inc. for continued TIBCO support include vendor lock-in, potential cost increases in future renewals, and the risk of service disruptions if performance falters. Given that this is a renewal, there's an inherent dependency on TIBCO's software ecosystem, which FCN, Inc. is supporting. If FCN, Inc. does not perform adequately, DHS could face challenges in transitioning to a new support provider, especially if the IDENT system is deeply integrated with TIBCO. Furthermore, as software vendors evolve their licensing and support models, future renewal costs could escalate. The firm fixed-price nature of this contract mitigates immediate cost overrun risks, but the long-term cost-effectiveness depends on competitive renewals and potential future technology shifts. Assessing FCN, Inc.'s specific performance history and the competitive landscape for TIBCO support is crucial to understanding these risks.

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: 70RDAD23Q00000217

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12501 ARDENNES AVE STE 101, 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: $18,942,833

Exercised Options: $18,942,833

Current Obligation: $18,942,833

Actual Outlays: $12,090,900

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC71B

IDV Type: GWAC

Timeline