DHS awards $3.3M for 77 Dell servers to FCN, Inc. under full and open competition

Contract Overview

Contract Amount: $3,327,067 ($3.3M)

Contractor: FCN, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2025-09-30

End Date: 2025-11-15

Contract Duration: 46 days

Daily Burn Rate: $72.3K/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: SEVENTY-SEVEN DELL POWEREDGE SERVERS. THIS IS CONSIDERED A NON-COVERED ACTION THAT SUPPORTS PUBLIC SAFETY.

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $3.3 million to FCN, INC. for work described as: SEVENTY-SEVEN DELL POWEREDGE SERVERS. THIS IS CONSIDERED A NON-COVERED ACTION THAT SUPPORTS PUBLIC SAFETY. Key points: 1. Contract supports public safety initiatives, indicating critical infrastructure reliance. 2. The award was made under full and open competition, suggesting a competitive pricing environment. 3. A short performance period of 46 days may indicate an urgent or specific need. 4. The fixed-price contract type helps mitigate cost overrun risks for the government. 5. The North American Industry Classification System (NAICS) code 541519 points to a broad range of IT services.

Value Assessment

Rating: good

The total award of $3.33 million for 77 Dell PowerEdge servers appears reasonable given the hardware specifications and the nature of government IT procurement. Benchmarking against similar large-scale server procurements is challenging without more granular detail on the server models and configurations. However, the fixed-price nature of the contract provides cost certainty. The inclusion of 'public safety' in the description suggests a critical need, which can sometimes command a premium, but the competitive award process should have helped control costs.

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 broad, specific sources may have been initially excluded before the final award. The presence of 5 bidders suggests a healthy level of competition for this IT hardware requirement. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it allows multiple vendors to bid, driving down prices and ensuring the government obtains the best value for its investment in these critical servers.

Public Impact

The Department of Homeland Security (DHS), specifically the Transportation Security Administration (TSA), is the primary beneficiary, utilizing the servers for public safety operations. The services delivered are essential IT infrastructure components, likely supporting data processing, storage, or network functions critical to TSA's mission. The geographic impact is centered around the agency's operational locations, likely within the United States. Workforce implications are minimal in terms of direct job creation from this contract, but the servers will support existing TSA personnel and their functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short performance period (46 days) could indicate a rushed deployment or potential for delays if not managed efficiently.
The 'Exclusion of Sources' clause in the competition type warrants further investigation to understand the rationale and ensure no viable vendors were unfairly excluded.
Lack of specific server model details makes it difficult to assess if the chosen hardware is the most cost-effective or technologically appropriate solution.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Fixed-price contract type provides budget certainty and limits the government's exposure to cost overruns.
The contract directly supports public safety, a critical government function.
Multiple bidders (5) suggest a competitive market for these IT assets.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer hardware procurement. The market for enterprise-grade servers like Dell PowerEdge is large and competitive, with numerous vendors offering similar solutions. Government agencies are significant buyers in this market, often procuring through large indefinite-delivery/indefinite-quantity (IDIQ) contracts or direct awards like this one. Spending benchmarks for similar server procurements vary widely based on quantity, specifications, and support agreements, but multi-million dollar awards for substantial server deployments are common.

Small Business Impact

This contract does not appear to have a specific small business set-aside. While FCN, Inc. is a large business, the contract details do not indicate any subcontracting requirements specifically for small businesses. Further review of the contract documentation would be needed to confirm if any small business subcontracting plan was mandated or achieved.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The Department of Homeland Security's Office of Inspector General (OIG) may conduct audits or investigations into the procurement process and contract performance. Transparency is facilitated through contract databases like FPDS, which provide award details. The fixed-price nature of the contract simplifies financial oversight compared to cost-reimbursement contracts.

Related Government Programs

DHS IT Modernization Programs
Transportation Security Administration (TSA) Infrastructure Upgrades
Federal Government Server Procurement
Public Safety Technology Investments

Risk Flags

Short performance period
Potential for rushed implementation
Lack of specific hardware details
Ambiguity in 'Exclusion of Sources' justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $3.3 million to FCN, INC.. SEVENTY-SEVEN DELL POWEREDGE SERVERS. THIS IS CONSIDERED A NON-COVERED ACTION THAT SUPPORTS PUBLIC SAFETY.

Who is the contractor on this award?

The obligated recipient is FCN, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $3.3 million.

What is the period of performance?

Start: 2025-09-30. End: 2025-11-15.

What specific Dell PowerEdge server models and configurations were procured under this contract?

The provided data does not specify the exact Dell PowerEdge server models or their configurations (e.g., CPU, RAM, storage). It only states 'SEVENTY-SEVEN DELL POWEREDGE SERVERS.' This lack of detail makes it difficult to perform a precise cost-benefit analysis or benchmark the price against specific hardware offerings. To provide a more accurate assessment, the specific SKUs or detailed technical specifications of the servers would be required. Without this, we can only infer that they are enterprise-grade servers suitable for demanding public safety applications.

How does the price per server compare to market rates for similar enterprise-grade hardware?

The total award is $3,327,066.68 for 77 servers, resulting in an approximate cost of $43,208.66 per server. This figure is a blended average and does not account for potential variations in configuration or included support/warranty. Enterprise-grade Dell PowerEdge servers, depending on their configuration (processors, memory, storage, network interface cards, etc.) and included support contracts (e.g., ProSupport Plus), can range significantly in price. High-end configurations with substantial processing power, large amounts of RAM, and advanced storage solutions, especially when purchased in bulk with premium support, can indeed fall within or even exceed this price range. However, without the exact model numbers and specifications, a definitive comparison to market rates is challenging. It is plausible for this price point for robust, business-critical servers.

What are the primary public safety functions these servers will support?

The data indicates the servers 'support public safety.' Given the agency is the Transportation Security Administration (TSA), these servers likely support critical functions related to aviation security, passenger screening data processing, threat intelligence analysis, or operational command and control systems. They could be part of infrastructure for baggage screening systems, watchlists, communication networks, or data analytics platforms used to identify and mitigate security risks within the transportation sector. The exact function depends on the specific systems they are integrated into.

What is the significance of the 'Full and Open Competition After Exclusion of Sources' contract type?

This contract type, 'Full and Open Competition After Exclusion of Sources' (often associated with FAR 6.302-1 or similar justifications), means that the agency initially intended to solicit offers from all responsible sources but then excluded specific sources based on a justification (e.g., only one source is capable of providing the supply or service). However, the 'Full and Open Competition' part implies that after any initial exclusions or justifications, the solicitation was still broadly advertised and evaluated among all remaining responsible offerors. In this case, 5 bidders participated, suggesting that while some sources might have been excluded early on, the final competition was indeed broad and competitive, which is generally positive for achieving best value.

What is the risk associated with the short 46-day performance period?

A 46-day performance period (from September 15, 2025, to November 15, 2025) is exceptionally short for the delivery and implementation of 77 enterprise servers. This short timeframe presents several risks: 1) **Delivery Delays:** Any disruption in the supply chain or manufacturing could lead to missed deadlines. 2) **Implementation Challenges:** Rushing the installation, configuration, and integration of such a significant number of servers could lead to errors, security vulnerabilities, or performance issues. 3) **Testing Deficiencies:** Inadequate testing due to time constraints could result in deploying unstable or insecure systems. 4) **Increased Costs:** Expedited shipping or overtime work might be required, potentially increasing overall costs if not managed carefully. The agency likely has a critical, time-sensitive need, but the short window increases the probability of encountering unforeseen problems.

Industry Classification

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

Product/Service Code: IT AND TELECOM - COMPUTE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

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: $3,327,067

Exercised Options: $3,327,067

Current Obligation: $3,327,067

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SC71B

IDV Type: GWAC

Timeline