Interior Dept. Awards $23.6M Microsoft ELA to Regan Technologies, Raising Competition Concerns
Contract Overview
Contract Amount: $23,612,509 ($23.6M)
Contractor: Regan Technologies Corp
Awarding Agency: Department of the Interior
Start Date: 2024-06-01
End Date: 2026-05-31
Contract Duration: 729 days
Daily Burn Rate: $32.4K/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: MICROSOFT ENTERPRISE LICENSE AGREEMENT (ELA) SOFTWARE
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024
Plain-Language Summary
Department of the Interior obligated $23.6 million to REGAN TECHNOLOGIES CORP for work described as: MICROSOFT ENTERPRISE LICENSE AGREEMENT (ELA) SOFTWARE Key points: 1. Significant software expenditure for enterprise licenses. 2. Regan Technologies Corp. is the awardee. 3. Potential concerns regarding the 'full and open competition after exclusion of sources' method. 4. Spending falls within the 'Other Computer Related Services' category.
Value Assessment
Rating: questionable
The $23.6 million cost for a Microsoft Enterprise License Agreement (ELA) needs careful benchmarking against similar government-wide or agency-specific ELA agreements. Without comparable data, assessing value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract specifies 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which suggests a limited competition approach. This method can impact price discovery and may not yield the most competitive pricing.
Taxpayer Impact: Taxpayer funds are being used for this significant software expenditure. The effectiveness of the competition method will directly influence the overall value for taxpayers.
Public Impact
Federal agencies rely heavily on software licenses, impacting IT infrastructure and operational efficiency. The use of specific vendors like Microsoft for enterprise-wide solutions is common but requires scrutiny. Transparency in procurement, especially with limited competition, is crucial for public trust. Ensuring fair pricing for software licenses protects taxpayer dollars.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition method
- Lack of clear justification for source exclusion
- Potential for inflated pricing due to restricted competition
Positive Signals
- Clear contract duration
- Firm fixed price contract type
Sector Analysis
This spending falls under 'Other Computer Related Services,' a broad category often encompassing software licensing and support. Benchmarks for similar large-scale enterprise software agreements are essential for evaluating this expenditure.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. Further analysis would be needed to determine if small businesses were excluded or had an opportunity to participate.
Oversight & Accountability
The 'full and open competition after exclusion of sources' clause warrants close oversight to ensure the exclusion was justified and that the competition, though limited, was conducted fairly and transparently.
Related Government Programs
- Other Computer Related Services
- Department of the Interior Contracting
- Departmental Offices Programs
Risk Flags
- Limited competition raises concerns about price fairness.
- Lack of transparency regarding source exclusion.
- Potential for overspending without robust benchmarking.
- Risk of vendor lock-in impacting future IT decisions.
Tags
other-computer-related-services, department-of-the-interior, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $23.6 million to REGAN TECHNOLOGIES CORP. MICROSOFT ENTERPRISE LICENSE AGREEMENT (ELA) SOFTWARE
Who is the contractor on this award?
The obligated recipient is REGAN TECHNOLOGIES CORP.
Which agency awarded this contract?
Awarding agency: Department of the Interior (Departmental Offices).
What is the total obligated amount?
The obligated amount is $23.6 million.
What is the period of performance?
Start: 2024-06-01. End: 2026-05-31.
What specific justification was provided for excluding other potential sources in this 'full and open competition after exclusion of sources' procurement?
The provided data does not contain the justification for excluding sources. Typically, such exclusions require a detailed rationale, often related to unique capabilities, existing infrastructure compatibility, or specific security requirements. Without this justification, it's difficult to assess the necessity and fairness of the limited competition.
How does the $23.6 million price compare to benchmarks for similar Microsoft ELA contracts awarded to other federal agencies or large organizations?
Benchmarking this $23.6 million cost against similar Microsoft ELAs is critical for determining value. Factors like the specific software suite, user count, support levels, and contract duration influence pricing. A lack of comparable data makes it challenging to ascertain if this represents a fair market price or an overpayment.
What is the potential impact on long-term IT strategy and vendor lock-in resulting from this large Microsoft ELA?
Large enterprise license agreements can lead to vendor lock-in, potentially limiting future flexibility and increasing long-term costs if alternative solutions are not explored. This ELA may influence the Department of the Interior's IT infrastructure choices for the next several years, necessitating careful strategic planning to mitigate 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 - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › 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: 140D0424Q0382
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 515 CENTERPOINT DR STE 115, MIDDLETOWN, CT, 06457
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $34,322,976
Exercised Options: $24,143,411
Current Obligation: $23,612,509
Actual Outlays: $23,593,858
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SD39B
IDV Type: GWAC
Timeline
Start Date: 2024-06-01
Current End Date: 2026-05-31
Potential End Date: 2027-05-31 00:00:00
Last Modified: 2026-02-20
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