DO for MS Premier FBI Unified FY2025 awarded to Microsoft Corporation for $8.17M

Contract Overview

Contract Amount: $8,166,780 ($8.2M)

Contractor: Microsoft Corporation

Awarding Agency: Department of Justice

Start Date: 2024-12-24

End Date: 2026-09-23

Contract Duration: 638 days

Daily Burn Rate: $12.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MS PREMIER FBI UNIFIED FY2025

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20530

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $8.2 million to MICROSOFT CORPORATION for work described as: MS PREMIER FBI UNIFIED FY2025 Key points: 1. Value for money appears reasonable given the firm-fixed-price structure and duration. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a fixed-price contract mitigating cost overrun risks. 4. Performance context is tied to computer systems design services for the FBI. 5. Sector positioning is within IT services, specifically supporting federal law enforcement needs.

Value Assessment

Rating: good

The contract's firm-fixed-price nature suggests a commitment to a set cost, which is generally favorable for value. Benchmarking against similar IT service contracts for federal agencies indicates that pricing for computer systems design services can vary widely based on scope and complexity. Without specific details on the deliverables, a precise value-for-money assessment is challenging, but the fixed-price structure provides a degree of cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The number of bidders is not specified, but a full and open competition generally fosters a competitive environment, which can lead to better pricing and innovation. This approach is intended to ensure the government receives the best possible value by considering a wide range of potential providers.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through competitive bidding and encourages a broader market of vendors to engage with government contracts.

Public Impact

The FBI benefits from enhanced IT systems and services, crucial for its law enforcement and national security missions. Services delivered include computer systems design, supporting the operational capabilities of the Department of Justice. The geographic impact is primarily within the District of Columbia, where the FBI's main operations are located. Workforce implications may involve specialized IT personnel required for system design and implementation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the system design is highly proprietary.
Dependence on a single vendor for critical IT infrastructure could pose risks.
Scope creep could become an issue if not managed tightly within the fixed-price contract.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Full and open competition suggests a robust bidding process.
Award to a well-established vendor like Microsoft may indicate reliability.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The federal IT services market is substantial, with agencies continually investing in modernizing their infrastructure and capabilities. This contract likely supports the FBI's efforts to maintain and upgrade its complex information systems, which are critical for data analysis, communication, and operational efficiency in law enforcement and intelligence.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary awardee, Microsoft Corporation, will likely perform the majority of the work. Further analysis would be needed to determine if any subcontracting opportunities exist for small businesses within the scope of this delivery order.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's contracting officers and program managers. The Inspector General's office for the Department of Justice may also conduct audits or investigations related to contract performance and financial management. Transparency is facilitated through contract award databases, though detailed performance metrics are often internal.

Related Government Programs

FBI IT Modernization Programs
Department of Justice IT Services
Federal Law Enforcement Technology Initiatives
Computer Systems Design Services Contracts

Risk Flags

Potential for vendor lock-in
Reliance on a single large vendor
Scope creep risk in fixed-price contracts

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $8.2 million to MICROSOFT CORPORATION. MS PREMIER FBI UNIFIED FY2025

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 $8.2 million.

What is the period of performance?

Start: 2024-12-24. End: 2026-09-23.

What is the specific scope of 'MS PREMIER FBI UNIFIED FY2025' and how does it align with the FBI's strategic IT goals?

The specific scope of 'MS PREMIER FBI UNIFIED FY2025' is not fully detailed in the provided data, but it is categorized under 'Computer Systems Design Services' (NAICS 541512) and awarded to Microsoft Corporation. This suggests the contract likely involves the design, development, integration, or modification of computer systems to meet the FBI's operational requirements. It aligns with the FBI's strategic IT goals by aiming to enhance its technological infrastructure, which is crucial for data management, analysis, communication, and supporting investigations. The 'Unified' aspect might imply an effort to consolidate or standardize IT solutions across different FBI divisions or functions, leading to greater efficiency and interoperability. Further details on the specific systems or platforms involved would be needed for a comprehensive alignment assessment.

How does the $8.17 million award compare to historical spending on similar FBI IT services contracts?

The $8.17 million award for 'MS PREMIER FBI UNIFIED FY2025' represents a significant but not unprecedented investment in IT services for a federal law enforcement agency like the FBI. Historical spending patterns for the FBI and similar agencies (e.g., DEA, Secret Service) often show multi-million dollar contracts for system design, software development, and IT infrastructure support. For instance, contracts for enterprise resource planning (ERP) systems, cybersecurity solutions, or data analytics platforms can easily reach tens or hundreds of millions over their lifecycle. This specific delivery order, with a duration of approximately two years (ending Sept 2026), suggests a focused project or a phase of a larger initiative. To provide a precise comparison, one would need to analyze the FBI's spending on NAICS code 541512 over the past 5-10 years, looking at contracts with similar durations and scopes, and considering inflation and evolving technological needs.

What are the key performance indicators (KPIs) or metrics used to evaluate the success of this contract?

The provided data does not specify the key performance indicators (KPIs) or metrics for this contract. However, for a 'Computer Systems Design Services' contract, typical KPIs would likely include adherence to project timelines, successful system integration, achievement of specified performance benchmarks (e.g., system speed, uptime, data processing capacity), user satisfaction, and compliance with security requirements. For a firm-fixed-price contract, meeting the defined scope and deliverables within the agreed budget and schedule is paramount. The FBI's program managers and contracting officers would be responsible for monitoring these aspects throughout the contract's performance period. Formal reviews and acceptance testing of delivered system components would also serve as critical evaluation points.

What is Microsoft Corporation's track record with the FBI and the Department of Justice for similar IT services?

Microsoft Corporation is a major technology provider to the U.S. federal government, including the Department of Justice (DOJ) and its components like the FBI. They have a long-standing track record of supplying software licenses (e.g., Windows, Office 365), cloud services (Azure), and IT support. For specific IT services like computer systems design, Microsoft often partners with system integrators or provides its own professional services. The FBI and DOJ have awarded numerous contracts to Microsoft over the years, covering a wide range of IT needs. While this specific delivery order is for 'Computer Systems Design Services,' it's likely building upon an existing relationship and leveraging Microsoft's expertise in their own technology stack or related areas. A detailed review of contract databases would reveal the volume and nature of past awards to Microsoft by these entities.

Are there any potential risks associated with relying on a single large vendor like Microsoft for critical FBI IT systems?

Yes, there are potential risks associated with relying heavily on a single large vendor like Microsoft for critical FBI IT systems. These include vendor lock-in, where the FBI becomes dependent on Microsoft's proprietary technologies, making it difficult and costly to switch to alternative solutions or integrate with non-Microsoft systems. There's also the risk of price increases upon contract renewal or for future services, as the vendor may have significant leverage. Security vulnerabilities within Microsoft's products could have a widespread impact across the FBI's infrastructure. Furthermore, reliance on a single vendor might stifle innovation if alternative, potentially more advanced, solutions emerge from smaller or specialized companies. Ensuring robust contract terms, maintaining competitive tension where possible, and implementing strong cybersecurity practices are crucial mitigation strategies.

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: $8,166,780

Exercised Options: $8,166,780

Current Obligation: $8,166,780

Actual Outlays: $8,170,477

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15JPSS23D00000030

IDV Type: IDC

Timeline