DOJ awards $83.6M for Microsoft software assurance to Minburn Technology Group, a sole-source contract
Contract Overview
Contract Amount: $83,620,555 ($83.6M)
Contractor: Minburn Technology Group, LLC
Awarding Agency: Department of Justice
Start Date: 2020-05-01
End Date: 2021-04-30
Contract Duration: 364 days
Daily Burn Rate: $229.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MICROSOFT SOFTWARE ASSURANCE UNDER/AGAINST DOJ DOWO NO. 15JPSS20G00000304 AND NASA SEWP CONTRACT NO. NNG15SD34B.
Place of Performance
Location: GREAT FALLS, FAIRFAX County, VIRGINIA, 22066
State: Virginia Government Spending
Plain-Language Summary
Department of Justice obligated $83.6 million to MINBURN TECHNOLOGY GROUP, LLC for work described as: MICROSOFT SOFTWARE ASSURANCE UNDER/AGAINST DOJ DOWO NO. 15JPSS20G00000304 AND NASA SEWP CONTRACT NO. NNG15SD34B. Key points: 1. Contract value of $83.6M for software assurance services. 2. Sole-source award to Minburn Technology Group, LLC. 3. Risk of limited competition and potentially higher pricing. 4. IT services sector, specifically software and related services.
Value Assessment
Rating: questionable
The contract value of $83.6M for one year of software assurance is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar Microsoft licensing and support agreements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, indicating a lack of competition. This method limits price discovery and may result in the government paying a premium for the services provided.
Taxpayer Impact: The sole-source nature of this award raises concerns about taxpayer value, as competitive bidding was bypassed, potentially leading to inflated costs.
Public Impact
Government reliance on specific software vendors like Microsoft necessitates careful contract management. Sole-source awards can limit opportunities for small businesses and innovative solutions. Ensuring fair pricing for essential software licenses and support is crucial for budget efficiency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
Positive Signals
- Essential software assurance
- Specific vendor requirement
Sector Analysis
This contract falls within the IT sector, specifically for software assurance and related services. Spending benchmarks for similar software licensing and support contracts vary widely based on the software suite and user volume.
Small Business Impact
The sole-source nature of this award does not appear to directly benefit small businesses. Opportunities for small businesses are likely limited unless they are subcontractors to Minburn Technology Group.
Oversight & Accountability
Oversight is needed to ensure the services provided under this sole-source contract are necessary and priced competitively, despite the lack of formal competition. The Department of Justice should have internal controls to validate the need and cost.
Related Government Programs
- Other Computer Related Services
- Department of Justice Contracting
- Offices, Boards and Divisions Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competition.
- Limited transparency on pricing justification.
- Risk of vendor lock-in.
Tags
other-computer-related-services, department-of-justice, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $83.6 million to MINBURN TECHNOLOGY GROUP, LLC. MICROSOFT SOFTWARE ASSURANCE UNDER/AGAINST DOJ DOWO NO. 15JPSS20G00000304 AND NASA SEWP CONTRACT NO. NNG15SD34B.
Who is the contractor on this award?
The obligated recipient is MINBURN TECHNOLOGY GROUP, LLC.
Which agency awarded this contract?
Awarding agency: Department of Justice (Offices, Boards and Divisions).
What is the total obligated amount?
The obligated amount is $83.6 million.
What is the period of performance?
Start: 2020-05-01. End: 2021-04-30.
What is the justification for the sole-source award, and was a market research conducted to confirm no other vendors could provide the required Microsoft software assurance?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. For Microsoft software assurance, this often relates to existing licensing agreements and the complexity of managing them. However, thorough market research should still be conducted to ensure no other authorized resellers or partners could offer comparable services at a better price point.
How does the $83.6M contract value compare to industry benchmarks for Microsoft software assurance for a similar scope and duration?
Benchmarking this contract requires detailed knowledge of the specific Microsoft products covered, the number of licenses, and the level of support included in the 'assurance' package. Generally, software assurance can represent a significant portion of software licensing costs. Without a competitive bid, it's challenging to definitively state if $83.6M is high or low. However, the absence of competition suggests a potential risk of the price being above market.
What mechanisms are in place to ensure effective delivery and accountability for the software assurance services provided by Minburn Technology Group under this sole-source contract?
Accountability under a sole-source contract relies heavily on the government's contract management capabilities. This includes clearly defined performance standards, regular progress reviews, and robust acceptance criteria for deliverables. The Department of Justice should have a dedicated contract officer and technical points of contact to monitor performance, ensure compliance with the contract terms, and address any issues promptly to maximize the value received.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 10113 MINBURN ST, GREAT FALLS, VA, 22066
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Service Disabled Veteran Owned Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $83,652,052
Exercised Options: $83,652,052
Current Obligation: $83,620,555
Actual Outlays: $83,620,555
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: 15JPSS20G00000304
IDV Type: BOA
Timeline
Start Date: 2020-05-01
Current End Date: 2021-04-30
Potential End Date: 2025-04-30 00:00:00
Last Modified: 2021-08-09
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