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Contract Option Exercises — May 05, 2026

Contract Option Exercises

By Gunpowder Editorial ·

1 total filings analysed

Executive Summary

A single $242,713,808 option exercise was recorded for FCN, INC. from the Department of the Treasury's IRS IT Strategy and Modernization office, representing a 100% civilian award with zero defense exposure. This firm fixed price delivery order for Broadcom software license and maintenance services underscores IRS prioritization of IT modernization, with $240,260,396 already outlayed signaling strong execution by the Rockville, MD-based woman-owned small business. The highest-conviction bullish signal is FCN, INC.'s full and open competition win on a contract with $454,642,987 potential including options, implying rapid revenue scaling from an estimated $60M annual base. Key watch item is high contract pricing risk under firm fixed price terms amid the current performance period ending November 30, 2026.

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

Investment Signals (1)

  • FCN, INC. Advances $242M IRS Broadcom Software Obligation with Near-Full $240M Outlay (MEDIUM)

    FCN, INC. has nearly fully outlayed $240,260,396 of the $242,713,808 obligation on its December 7, 2022, firm fixed price delivery order for Broadcom software licenses and maintenance from IRS IT Strategy and Modernization, indicating strong execution through November 30, 2026.

Risk Flags (1)

  • Execution [HIGH RISK]

    High pricing risk on FCN, INC.'s firm fixed price $242,713,808 IRS delivery order for Broadcom software maintenance, with performance through November 30, 2026, and potential options to 2029.

Opportunities (1)

  • FCN, INC. has $211,929,179 in unexercised options remaining on its $454,642,987 ceiling IRS Broadcom software maintenance delivery order.

Sector Themes (1)

  • FCN, INC.'s $242,713,808 obligation (with $454M potential) for Broadcom software licenses and maintenance under NAICS 541519 highlights IRS focus on IT application support (PSC DA01), won via full and open competition by a woman-owned small business.

Watch List (1)

  • 👁

    {"entity"=>"FCN, INC.", "reason"=>"$242M IRS obligation nearly fully outlayed at $240M with options to $454M ceiling and current end November 30, 2026.", "trigger"=>"option exercise notifications; outlay progress beyond $240M; current end date compliance November 30, 2026"}

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