Job Corps Renews Microsoft Software Suite License for $23M with Blue Tech Inc

Contract Overview

Contract Amount: $23,079,162 ($23.1M)

Contractor: Blue Tech Inc.

Awarding Agency: Department of Labor

Start Date: 2023-09-28

End Date: 2026-09-30

Contract Duration: 1,098 days

Daily Burn Rate: $21.0K/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 SOFTWARE SUITE LICENSING RENEWAL FOR JOB CORPS

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92110

State: California Government Spending

Plain-Language Summary

Department of Labor obligated $23.1 million to BLUE TECH INC. for work described as: MICROSOFT SOFTWARE SUITE LICENSING RENEWAL FOR JOB CORPS Key points: 1. Significant expenditure on software licensing for a critical government program. 2. Competition method suggests potential for better pricing, but details are key. 3. Risk of vendor lock-in and reliance on a single software provider. 4. IT sector spending, with a focus on software and cloud services.

Value Assessment

Rating: fair

The $23M renewal over three years for Microsoft software is substantial. Benchmarking against similar government-wide enterprise agreements or large-scale commercial licenses would be necessary to assess if this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, indicating an attempt to ensure fair pricing. However, the specific details of the bidding process and the number of bidders are crucial for evaluating price discovery.

Taxpayer Impact: Taxpayers are funding this significant software licensing renewal. Ensuring competitive pricing through robust competition is vital to maximize the value of this expenditure.

Public Impact

Ensures continued operation of essential IT systems for the Job Corps program. Supports training and administrative functions critical to workforce development. Potential for cost savings if competitive bidding yielded favorable terms. Highlights government reliance on major software vendors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future renewals.
Dependence on Microsoft for critical software functionality.
Need for ongoing IT asset management to optimize license usage.

Positive Signals

Awarded through full and open competition.
Firm Fixed Price contract provides cost certainty.
Long-term renewal ensures operational stability.

Sector Analysis

This contract falls within the IT sector, specifically software licensing and services. Government spending on enterprise software licenses is a consistent area of expenditure, often involving large sums due to the scale of operations.

Small Business Impact

The data does not indicate if small businesses were involved in this specific contract. Further analysis would be needed to determine the extent of small business participation in the supply chain or as subcontractors.

Oversight & Accountability

The Department of Labor's Office of the Assistant Secretary for Administration and Management is responsible for this contract. Standard procurement oversight processes should be in place to ensure compliance and value for money.

Related Government Programs

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

Risk Flags

Potential for price escalation in future renewals.
Dependence on a single software vendor.
Lack of detailed cost breakdown for specific software products.
Need for ongoing IT asset management to ensure optimal license utilization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $23.1 million to BLUE TECH INC.. MICROSOFT SOFTWARE SUITE LICENSING RENEWAL FOR JOB CORPS

Who is the contractor on this award?

The obligated recipient is BLUE TECH 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 $23.1 million.

What is the period of performance?

Start: 2023-09-28. End: 2026-09-30.

What specific Microsoft software products are included in this suite, and how do their costs compare to industry benchmarks for similar government or commercial licenses?

The specific Microsoft software suite is not detailed in the provided data. A comprehensive analysis would require itemizing the licensed products (e.g., Office 365, Windows Server, specific application licenses) and comparing their per-unit costs against government-wide schedules (like NASA SEWP or GSA MAS) and commercial price lists. This comparison is crucial for determining if the $23M represents a fair market value.

What were the key evaluation criteria used during the full and open competition, and how did they balance technical requirements against cost to mitigate risks associated with vendor lock-in?

The provided data does not detail the evaluation criteria. A thorough risk assessment would examine if the competition prioritized long-term cost-effectiveness, interoperability with existing systems, and vendor support alongside initial pricing. Understanding these criteria helps assess if the government secured a solution that minimizes future switching costs and technical debt, rather than just the lowest initial bid.

How does the per-user or per-device cost of this Microsoft software suite compare to previous contract periods or alternative solutions, and what is the projected impact on the Job Corps' IT budget?

Without historical data or alternative solution costs, a direct comparison is impossible. However, the $23M expenditure over approximately three years suggests a significant annual cost. Analyzing the cost per user/device against benchmarks and the contract's impact on the Job Corps' overall IT budget is essential for fiscal responsibility and identifying potential areas for optimization or future savings.

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: 1605TB-23-Q-00154

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4025 HANCOCK ST. STE. 100, SAN DIEGO, CA, 92110

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, HUBZone Firm, Manufacturer of Goods, Minority Owned Business, Other Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $23,079,162

Exercised Options: $23,079,162

Current Obligation: $23,079,162

Actual Outlays: $23,079,162

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC63B

IDV Type: GWAC

Timeline