DOJ Renews Microsoft Premier Support for $8.9M, Extending 2-Year Contract for IT Services
Contract Overview
Contract Amount: $8,945,655 ($8.9M)
Contractor: Microsoft Corporation
Awarding Agency: Department of Justice
Start Date: 2024-06-23
End Date: 2026-06-22
Contract Duration: 729 days
Daily Burn Rate: $12.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MICROSOFT PREMIER SUPPORT RENEWAL
Place of Performance
Location: REDMOND, KING County, WASHINGTON, 98052
Plain-Language Summary
Department of Justice obligated $8.9 million to MICROSOFT CORPORATION for work described as: MICROSOFT PREMIER SUPPORT RENEWAL Key points: 1. Significant contract value of $8.9M for IT support services. 2. Sole provider is Microsoft Corporation, a dominant player in the software market. 3. Potential risk associated with vendor lock-in and reliance on a single supplier. 4. Spending falls within the broad IT services sector, specifically Computer Systems Design.
Value Assessment
Rating: fair
The contract price of $8.9M for two years of premier support appears high compared to standard enterprise agreements. Benchmarking against similar large-scale government IT support contracts is difficult without more granular data on service levels and included features.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple vendors could have bid. However, the specific nature of 'premier support' for a major software vendor often limits practical competition to the vendor itself.
Taxpayer Impact: Taxpayer funds are being used for essential IT support. While competition was sought, the renewal of a specific vendor's support may indicate limited cost-saving opportunities through competitive bidding.
Public Impact
Ensures continued IT infrastructure stability for the Department of Justice. Supports critical operational functions reliant on Microsoft software and systems. Potential for cost savings if future renewals are more aggressively negotiated. Impact on agency's ability to adopt alternative technologies is limited by this renewal.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value for a single vendor's support.
- Potential for vendor lock-in.
- Limited transparency on specific service level agreements (SLAs) and performance metrics.
Positive Signals
- Ensures continuity of essential IT services.
- Leverages established relationship with a key technology provider.
- Fixed-price contract provides budget certainty.
Sector Analysis
This contract falls under the Computer Systems Design Services (NAICS 541512) sector, which is a significant area of government IT spending. Benchmarks for similar support contracts vary widely based on the scope of services and vendor.
Small Business Impact
This contract was awarded to Microsoft Corporation, a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific renewal, limiting opportunities for small business participation.
Oversight & Accountability
The Department of Justice is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should apply, but specific details on performance monitoring and accountability are not provided.
Related Government Programs
- Computer Systems Design Services
- Department of Justice Contracting
- Offices, Boards and Divisions Programs
Risk Flags
- Vendor lock-in potential.
- High cost for IT support services.
- Limited visibility into detailed service components.
- Reliance on a single, dominant technology provider.
Tags
computer-systems-design-services, department-of-justice, wa, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $8.9 million to MICROSOFT CORPORATION. MICROSOFT PREMIER SUPPORT RENEWAL
Who is the contractor on this award?
The obligated recipient is MICROSOFT CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Justice (Offices, Boards and Divisions).
What is the total obligated amount?
The obligated amount is $8.9 million.
What is the period of performance?
Start: 2024-06-23. End: 2026-06-22.
What specific services are included in this 'Premier Support' and how do they align with the DOJ's current IT needs?
The provided data does not detail the specific services included in Microsoft Premier Support. Typically, this includes enhanced technical support, proactive services, and access to specialized resources. A thorough review would be needed to confirm alignment with DOJ's evolving IT requirements and to ensure no redundant or unnecessary services are being funded.
Are there opportunities to negotiate better pricing or service terms in future renewals, given the long-term relationship?
While this is a renewal, future negotiations could potentially yield better terms. The government could explore bundling support with other Microsoft services, seeking volume discounts, or benchmarking against competitor offerings more rigorously. However, the specialized nature of premier support may limit leverage.
How does the cost of this support compare to the potential risks of system downtime or security breaches without it?
The $8.9M cost must be weighed against the potential financial and operational impact of system failures or security incidents. Premier support aims to mitigate these risks through proactive measures and rapid response. Quantifying the exact value requires assessing the likelihood and cost of such events without this level of support.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1 MICROSOFT WAY, REDMOND, WA, 98052
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $8,945,655
Exercised Options: $8,945,655
Current Obligation: $8,945,655
Actual Outlays: $8,950,838
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 15JPSS23D00000030
IDV Type: IDC
Timeline
Start Date: 2024-06-23
Current End Date: 2026-06-22
Potential End Date: 2026-06-22 00:00:00
Last Modified: 2026-03-19
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