Labor awards $32.6M Microsoft ELA and Software Assurance from GovConnection

Contract Overview

Contract Amount: $32,588,094 ($32.6M)

Contractor: Govconnection Inc

Awarding Agency: Department of Labor

Start Date: 2021-03-31

End Date: 2024-03-31

Contract Duration: 1,096 days

Daily Burn Rate: $29.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TO OBTAIN MICROSOFT ENTERPRISE LICENSE AGREEMENT AND SOFTWARE ASSURANCE SERVICES

Place of Performance

Location: DERWOOD, MONTGOMERY County, MARYLAND, 20855

State: Maryland Government Spending

Plain-Language Summary

Department of Labor obligated $32.6 million to GOVCONNECTION INC for work described as: TO OBTAIN MICROSOFT ENTERPRISE LICENSE AGREEMENT AND SOFTWARE ASSURANCE SERVICES Key points: 1. Significant investment in enterprise software licenses and support. 2. GovConnection Inc. secured the contract, indicating a specific vendor relationship. 3. The contract spans three years, suggesting ongoing software needs. 4. The 'Other Computer Related Services' NAICS code is broad, requiring further detail on specific services procured.

Value Assessment

Rating: fair

The contract value of $32.6 million over three years for enterprise software licenses and assurance services appears substantial. Benchmarking against similar large-scale Microsoft ELA procurements would be necessary to definitively assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is generally positive for price discovery. However, the specific vendor, GovConnection Inc., suggests that while competition was allowed, this particular vendor was selected.

Taxpayer Impact: Taxpayer funds are being used for essential software licensing and support, which is a necessary cost for government operations. The effectiveness of the competition in achieving the best possible price is key to taxpayer impact.

Public Impact

Ensures continued access to critical Microsoft software for Department of Labor operations. Supports productivity and security through up-to-date software and assurance services. Potential for cost savings through enterprise-level licensing compared to individual purchases. The specific software covered by the ELA is not detailed, impacting the understanding of its full utility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific software details within the ELA.
Potential for vendor lock-in with enterprise agreements.
Need to verify if Software Assurance benefits are fully utilized.

Positive Signals

Awarded under full and open competition.
Long-term agreement provides budget stability.
Procurement of Software Assurance ensures support and updates.

Sector Analysis

The IT services sector, particularly software licensing and support, represents a significant portion of federal spending. Enterprise agreements like this are common for large agencies to manage software costs and compliance across their workforce.

Small Business Impact

This contract was awarded to GovConnection Inc. and does not indicate any specific set-asides or participation from small businesses in this particular award. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The contract was awarded via a delivery order against an existing contract vehicle. Oversight would involve monitoring contract performance, adherence to terms, and ensuring the software and services meet the agency's needs and represent good value.

Related Government Programs

Other Computer Related Services
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Lack of specific product/service details.
Potential for overspending if not actively managed.
Dependence on a single vendor for critical software.
Need for detailed utilization reports to ensure value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $32.6 million to GOVCONNECTION INC. TO OBTAIN MICROSOFT ENTERPRISE LICENSE AGREEMENT AND SOFTWARE ASSURANCE SERVICES

Who is the contractor on this award?

The obligated recipient is GOVCONNECTION INC.

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $32.6 million.

What is the period of performance?

Start: 2021-03-31. End: 2024-03-31.

What specific Microsoft products and services are included in this Enterprise License Agreement and Software Assurance?

The provided data does not specify the exact Microsoft products and services covered by the ELA and Software Assurance. This information is crucial for a comprehensive understanding of the contract's scope, value, and alignment with the agency's technological requirements. Without this detail, it's difficult to assess if the $32.6 million investment is fully optimized for the Department of Labor's operational needs.

How does the pricing of this Microsoft ELA compare to other federal agencies or commercial entities for similar software and assurance levels?

Benchmarking the pricing against similar Microsoft ELA and Software Assurance contracts across federal agencies or the commercial sector is essential for evaluating value. Given the large sum, a detailed cost-benefit analysis and comparison with market rates would determine if the Department of Labor secured competitive pricing and maximized taxpayer return on this significant software investment.

What is the projected impact of this ELA on the Department of Labor's IT infrastructure modernization and cybersecurity posture?

The ELA provides access to current Microsoft software and assurance services, which can bolster cybersecurity defenses and support IT modernization efforts by ensuring access to the latest features and security patches. However, the actual impact depends on how effectively the agency integrates these licensed products into its infrastructure and leverages the assurance services for proactive security management and system upgrades.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1605TB-21-Q-00044

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2275 RESEARCH BOULEVARD, ROCKVILLE, MD, 20850

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $33,243,737

Exercised Options: $33,243,737

Current Obligation: $32,588,094

Actual Outlays: $32,588,094

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC36B

IDV Type: GWAC

Timeline