Labor Awards $31.6M Microsoft EA to Minburn Technology Group for IT Services

Contract Overview

Contract Amount: $31,621,284 ($31.6M)

Contractor: Minburn Technology Group, LLC

Awarding Agency: Department of Labor

Start Date: 2024-03-31

End Date: 2027-03-31

Contract Duration: 1,095 days

Daily Burn Rate: $28.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MICROSOFT ENTERPRISE AGREEMENT (EA)

Place of Performance

Location: CHARLOTTESVILLE, CHARLOTTESVILLE CITY County, VIRGINIA, 22903

State: Virginia Government Spending

Plain-Language Summary

Department of Labor obligated $31.6 million to MINBURN TECHNOLOGY GROUP, LLC for work described as: MICROSOFT ENTERPRISE AGREEMENT (EA) Key points: 1. Significant contract value for enterprise software licensing and support. 2. Competition method indicates a potential for limited market engagement. 3. Risk of vendor lock-in and potential for price increases over contract duration. 4. IT sector spending is substantial, requiring careful cost management.

Value Assessment

Rating: fair

The contract value of $31.6M over three years for Microsoft Enterprise Agreements is within a typical range for large federal agencies. However, without specific details on the software and services included, a precise pricing assessment against similar contracts is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a specific justification for limiting the initial pool of bidders. This method can impact price discovery by reducing the number of competing offers.

Taxpayer Impact: Taxpayer funds are being used for enterprise software, which is a necessary but potentially costly expenditure. The limited competition raises questions about whether the best possible price was achieved.

Public Impact

Ensures continued access to critical Microsoft software for Department of Labor operations. Supports agency-wide IT infrastructure and employee productivity. Potential for cost savings through consolidated licensing, if negotiated effectively. Impacts federal employees' ability to utilize standard productivity tools.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about price optimization.
Potential for vendor lock-in with Microsoft products.
Contract duration may exceed actual need for specific software versions.

Positive Signals

Consolidates software licensing for potential administrative efficiencies.
Provides access to essential productivity tools for agency staff.

Sector Analysis

This contract falls within the Information Technology sector, specifically for computer-related services and software licensing. Federal IT spending is a significant portion of the budget, and managing these agreements effectively is crucial for cost control.

Small Business Impact

The contract was awarded to Minburn Technology Group, LLC. Further analysis is needed to determine if this award supports small business participation or if it represents a prime contract to a larger entity that may subcontract.

Oversight & Accountability

Oversight will be critical to ensure the Department of Labor is maximizing the value of this Microsoft Enterprise Agreement and that the terms remain competitive throughout the contract period, especially given the limited initial competition.

Related Government Programs

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

Risk Flags

Limited competition may lead to suboptimal pricing.
Risk of vendor lock-in with Microsoft ecosystem.
Potential for over-licensing or underutilization of software.
Contract duration might not align with rapid technology evolution.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $31.6 million to MINBURN TECHNOLOGY GROUP, LLC. MICROSOFT ENTERPRISE AGREEMENT (EA)

Who is the contractor on this award?

The obligated recipient is MINBURN TECHNOLOGY GROUP, LLC.

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 $31.6 million.

What is the period of performance?

Start: 2024-03-31. End: 2027-03-31.

What specific Microsoft products and services are included in this EA, and how do their costs compare to commercial pricing and other federal agreements?

The specific Microsoft products and services are not detailed in the provided data. A comprehensive analysis would require a breakdown of licensed software (e.g., Windows, Office 365, server licenses) and associated support/maintenance. Benchmarking against commercial price lists and other federal EAs (like NASA SEWP or GSA schedules) is essential to determine if the $31.6M represents a fair market price and optimal value for the taxpayer.

What was the justification for excluding other sources, and what mechanisms are in place to ensure fair pricing and prevent cost creep over the contract's three-year term?

The justification for excluding other sources under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' needs to be thoroughly reviewed. Mechanisms for fair pricing could include regular price reviews, volume discounts, and performance-based incentives. Preventing cost creep requires vigilant contract management, monitoring usage, and potentially renegotiating terms if market conditions or agency needs change significantly.

How does this Microsoft EA contribute to the Department of Labor's overall IT strategy and mission effectiveness, beyond just software provision?

This EA likely underpins the Department of Labor's ability to conduct its mission by providing essential productivity and collaboration tools to its workforce. Its contribution to IT strategy could involve standardization, enhanced security features, cloud integration capabilities, and enabling digital transformation initiatives. Evaluating its effectiveness requires assessing user adoption, system performance, and alignment with broader agency goals for modernization and efficiency.

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-24-Q-00038

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9716 ARNON CHAPEL RD, GREAT FALLS, VA, 22066

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $31,922,948

Exercised Options: $31,922,948

Current Obligation: $31,621,284

Actual Outlays: $23,043,151

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD34B

IDV Type: GWAC

Timeline