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Contract Deobligations Alert — May 05, 2026

Contract Deobligations Alert

By Gunpowder Editorial ·

1 total filings analysed

Executive Summary

A single $242,713,808 contract deobligation alert highlights FCN, INC.'s firm fixed price delivery order from the IRS IT Strategy and Modernization office for Broadcom software license and maintenance services, with 0 defense and 1 civilian award.

The contract, awarded December 7, 2022, via full and open competition to the woman-owned small business, shows strong execution with $240,260,396 already outlayed toward the $242M obligation and potential ceiling of $454,642,987. The highest-conviction bullish signal stems from rapid progress on this 4-year performance period ending November 30, 2026. A key risk is high pricing risk under the firm fixed price structure, with investors watching option exercise notifications and compliance with the current end date.

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Tracking the trend? Catch up on the prior Contract Deobligations Alert digest from May 04, 2026.

Investment Signals (1)

  • FCN, INC. Demonstrates Strong Execution on $242M IRS Broadcom Software Contract (MEDIUM)

    FCN, INC. has outlayed $240,260,396 of the $242,713,808 obligation on its firm fixed price delivery order for Broadcom software licenses and maintenance awarded by the IRS on December 7, 2022. This full and open competition win by the woman-owned small business signals robust performance through nearly the full current 4-year period ending November 30, 2026.

Risk Flags (1)

  • Execution [HIGH RISK]

    High pricing risk on FCN, INC.'s firm fixed price $242M IRS contract due to fixed terms amid rapid $240M outlays, potentially pressuring margins as the performance period nears its November 30, 2026 end.

Opportunities (1)

  • FCN, INC. has upside to $454,642,987 total potential including options on its IRS Broadcom software maintenance delivery order.

Sector Themes (1)

  • FCN, INC.'s $242M obligation (with $454M potential) for Broadcom software licenses and maintenance under PSC DA01 underscores IRS focus on IT application support services, evidenced by rapid $240M outlays since December 2022.

Watch List (1)

  • 👁

    {"entity"=>"FCN, INC.", "reason"=>"Nearly fully outlayed $242M IRS contract with $454M potential ceiling and high pricing risk as current period ends November 30, 2026.", "trigger"=>"option exercise notifications, outlay progress beyond $240M, current end date compliance (Nov 30, 2026)"}

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