Coast Guard awards $2.2M for KVM hardware, highlighting need for specialized maritime IT infrastructure

Contract Overview

Contract Amount: $2,215,835 ($2.2M)

Contractor: FCN, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2020-09-15

End Date: 2025-09-14

Contract Duration: 1,825 days

Daily Burn Rate: $1.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DELIVERY ORDER FOR KEYBOARD-VIDEO-MOUSE (KVM) HARDWARE FOR THE SECOND GENERATION COAST GUARD ELECTRONIC CHART DISPLAY&INFORMATION SYSTEM (CG-ECDIS-2) INSTALLED ON U.S. COAST GUARD CUTTERS.

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.2 million to FCN, INC. for work described as: DELIVERY ORDER FOR KEYBOARD-VIDEO-MOUSE (KVM) HARDWARE FOR THE SECOND GENERATION COAST GUARD ELECTRONIC CHART DISPLAY&INFORMATION SYSTEM (CG-ECDIS-2) INSTALLED ON U.S. COAST GUARD CUTTERS. Key points: 1. Contract addresses critical hardware for navigation systems on U.S. Coast Guard cutters. 2. Procurement ensures operational readiness of the second-generation electronic chart display and information system. 3. The fixed-price contract structure aims to control costs for essential electronic components. 4. Competition was conducted after exclusion of sources, suggesting specific technical requirements. 5. This award falls within the broader category of IT hardware and services for federal agencies. 6. The duration of the contract indicates a long-term need for system support and upgrades.

Value Assessment

Rating: good

The contract value of $2.2 million for KVM hardware over five years appears reasonable given the specialized nature of maritime electronic systems. Benchmarking against similar procurements for naval or coast guard vessels would provide a more precise assessment, but the firm fixed-price structure suggests an effort to manage costs effectively. The award amount is not excessively high when considering the need for reliable, durable hardware in a demanding operational environment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, only a limited number of qualified bidders met the stringent technical specifications. This approach is often used when specific technical expertise or proprietary technology is required, which can sometimes lead to higher prices due to reduced market reach. The limited number of bidders suggests that the market for this specific type of maritime IT hardware may be concentrated.

Taxpayer Impact: While the competition was limited, the exclusion of sources implies a focus on ensuring the best technical solution for a critical national security system. Taxpayers benefit from a system designed for specific operational needs, though the potential for higher costs due to limited competition is a consideration.

Public Impact

U.S. Coast Guard personnel operating cutters will benefit from reliable navigation and display systems. The contract ensures the continued operation and maintenance of the CG-ECDIS-2 system. This hardware is essential for safe and effective maritime operations, including search and rescue and law enforcement. The geographic impact is nationwide, as U.S. Coast Guard cutters operate in various maritime zones. The contract supports the technological infrastructure necessary for the Coast Guard's mission readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may restrict price discovery and potentially increase costs.
Reliance on specialized hardware could create vendor lock-in or long-term support challenges.
The specific technical requirements for maritime IT may limit the pool of capable small businesses.

Positive Signals

Procurement of critical hardware ensures operational continuity for the Coast Guard.
The firm fixed-price contract provides cost certainty for this acquisition.
The award supports the modernization of essential navigation systems for national security.

Sector Analysis

This contract falls within the broader IT services and hardware sector, specifically focusing on specialized electronic systems for maritime applications. The market for such systems is often characterized by high barriers to entry due to stringent performance and environmental requirements. Comparable spending benchmarks would typically be found within defense and homeland security procurements for naval vessels or critical infrastructure IT. The market size for highly specialized maritime navigation hardware is niche but vital for agencies like the U.S. Coast Guard.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary contractor, FCN, Inc., is expected to fulfill the requirements directly or through larger partners. The lack of small business involvement in this specific award might limit opportunities for smaller firms in this specialized IT hardware niche, though they may participate in broader IT service contracts.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Coast Guard and the Department of Homeland Security's contracting and program management offices. Accountability is ensured through the firm fixed-price contract terms, requiring delivery of specified hardware. Transparency is facilitated by federal procurement databases where such awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Coast Guard Electronic Chart Display & Information System (CG-ECDIS)
Maritime Domain Awareness Systems
Naval and Maritime IT Infrastructure
Federal IT Hardware Procurement
Department of Homeland Security IT Spending

Risk Flags

Limited competition may lead to higher costs.
Potential for hardware obsolescence over the contract duration.
Dependence on specialized components may affect long-term supportability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.2 million to FCN, INC.. DELIVERY ORDER FOR KEYBOARD-VIDEO-MOUSE (KVM) HARDWARE FOR THE SECOND GENERATION COAST GUARD ELECTRONIC CHART DISPLAY&INFORMATION SYSTEM (CG-ECDIS-2) INSTALLED ON U.S. COAST GUARD CUTTERS.

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. Coast Guard).

What is the total obligated amount?

The obligated amount is $2.2 million.

What is the period of performance?

Start: 2020-09-15. End: 2025-09-14.

What is the track record of FCN, Inc. in providing IT hardware to federal agencies, particularly within the defense and homeland security sectors?

FCN, Inc. has a significant history of contracting with U.S. federal agencies, including the Department of Defense and the Department of Homeland Security. Their contract portfolio often includes IT hardware, software, and related services. Analyzing their past performance on similar contracts, especially those involving specialized electronic systems or maritime applications, would provide further insight into their capabilities and reliability. Publicly available contract databases can offer details on their award history, past performance ratings, and any reported issues. A review of their financial stability and any past performance disputes would also be relevant for assessing risk.

How does the per-unit cost of the KVM hardware compare to commercial off-the-shelf (COTS) equivalents or similar military-specification hardware?

Direct comparison to Commercial Off-The-Shelf (COTS) equivalents is challenging without specific product details, as maritime-grade hardware often incorporates enhanced durability, environmental resistance (e.g., to salt spray, vibration), and specific interface requirements not found in standard consumer or business-grade KVMs. The 'exclusion of sources' suggests a need for specialized, potentially non-COTS, components. Benchmarking against similar military-specification hardware would require access to data from comparable naval or aviation procurements. The firm fixed-price nature of the contract implies that FCN, Inc. has factored these specialized costs into their bid, but without detailed specifications and market data, a precise per-unit cost comparison is difficult.

What are the primary risks associated with relying on specialized KVM hardware for critical navigation systems, and how are they mitigated?

Primary risks include potential obsolescence of specialized hardware, limited vendor support or long lead times for replacements, and higher initial costs compared to COTS alternatives. Obsolescence is a concern as technology evolves rapidly, but the five-year contract duration suggests a planned lifecycle. Mitigation strategies often involve robust warranty clauses, defined support and maintenance agreements, and contingency planning for end-of-life components. The Coast Guard likely has technical requirements that mandate specific performance and reliability standards, and the 'exclusion of sources' process aims to ensure that the selected hardware meets these stringent needs, thereby mitigating risks related to performance failure in critical operations.

What is the historical spending trend for KVM hardware or similar electronic components by the U.S. Coast Guard or Department of Homeland Security?

Historical spending data for KVM hardware specifically by the U.S. Coast Guard or DHS is not readily available in aggregated public reports. However, spending on IT hardware, electronic systems, and navigation equipment for maritime platforms is a consistent and significant part of the Coast Guard's budget. This award represents a portion of their ongoing investment in maintaining and upgrading operational systems. Analyzing broader categories like 'communications, navigation, and guidance systems' or 'IT equipment' for the Coast Guard over the past several years would reveal trends in technology investments and overall spending levels for critical operational hardware.

How does the 'exclusion of sources' procurement method impact the overall value proposition for the taxpayer in this specific contract?

The 'exclusion of sources' method, while allowing for highly specific technical solutions, can limit the number of potential bidders. This reduced competition may lead to higher prices than if the contract were fully open to all qualified vendors. For the taxpayer, the value proposition is a trade-off: potentially higher costs are accepted in exchange for a system that precisely meets critical operational requirements, thereby enhancing mission effectiveness and safety. The key is whether the specialized capabilities gained justify the potentially higher price point compared to less specialized, more competitively bid alternatives. Rigorous justification for the exclusion is essential to ensure taxpayer value.

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

Solicitation ID: 70Z04420R20007900

Offers Received: 4

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: $2,281,304

Exercised Options: $2,215,835

Current Obligation: $2,215,835

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC71B

IDV Type: GWAC

Timeline