Treasury Renews Microsoft EA for $2.24M with Full and Open Competition
Contract Overview
Contract Amount: $2,238,498 ($2.2M)
Contractor: DH Technologies, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2024-03-01
End Date: 2027-02-28
Contract Duration: 1,094 days
Daily Burn Rate: $2.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MICROSOFT EA RENEWAL
Place of Performance
Location: LEESBURG, LOUDOUN County, VIRGINIA, 20176
State: Virginia Government Spending
Plain-Language Summary
Department of the Treasury obligated $2.2 million to DH TECHNOLOGIES, INC. for work described as: MICROSOFT EA RENEWAL Key points: 1. Significant contract value of $2.24 million over three years. 2. DH Technologies, Inc. secured the contract via full and open competition. 3. Potential risk associated with vendor lock-in for enterprise software. 4. IT services sector, specifically 'Other Computer Related Services'.
Value Assessment
Rating: good
The $2.24 million price for a three-year Microsoft Enterprise Agreement renewal appears reasonable given the scope of enterprise software licensing and support. Benchmarking against similar large-scale government EA renewals would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition after exclusion of sources, indicating a competitive bidding process. This method generally promotes price discovery and ensures fair market value is obtained.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary IT services.
Public Impact
Ensures continued access to essential Microsoft software for Treasury operations. Supports the Bureau of the Fiscal Service's IT infrastructure. Potential for cost savings through competitive renewal compared to sole-source.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on a single vendor for enterprise software.
- Potential for scope creep in future renewals.
- Cybersecurity risks associated with software licensing.
Positive Signals
- Competitive award process.
- Clear contract duration.
- Defined service scope.
Sector Analysis
This contract falls within the Information Technology sector, specifically 'Other Computer Related Services'. Government spending on enterprise software licenses and support is substantial, with benchmarks varying widely based on agency size and software suite.
Small Business Impact
While this specific contract was awarded through full and open competition, it's important to assess if opportunities exist for small businesses in subcontracting roles or for providing complementary services around the Microsoft EA.
Oversight & Accountability
The contract specifies a firm fixed price and a defined period, providing a degree of oversight. Further oversight would involve monitoring software utilization and ensuring compliance with licensing terms.
Related Government Programs
- Other Computer Related Services
- Department of the Treasury Contracting
- Bureau of the Fiscal Service Programs
Risk Flags
- Vendor Lock-in
- Software obsolescence
- Cybersecurity vulnerabilities
- Budgetary impact of renewals
Tags
other-computer-related-services, department-of-the-treasury, va, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $2.2 million to DH TECHNOLOGIES, INC.. MICROSOFT EA RENEWAL
Who is the contractor on this award?
The obligated recipient is DH TECHNOLOGIES, INC..
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).
What is the total obligated amount?
The obligated amount is $2.2 million.
What is the period of performance?
Start: 2024-03-01. End: 2027-02-28.
What is the total cost of ownership for this Microsoft EA renewal, considering potential future support and upgrade costs?
The total cost of ownership for this $2.24 million, three-year Microsoft EA renewal extends beyond the initial price. It includes potential future costs for specialized support, necessary upgrades, and integration with other systems. A comprehensive TCO analysis should also factor in training, potential third-party add-ons, and the ongoing administrative burden of managing the licenses.
What are the primary risks associated with relying on a single vendor for enterprise software like Microsoft?
The primary risks of single-vendor reliance include vendor lock-in, where switching to a competitor becomes prohibitively expensive or complex. This can lead to reduced negotiation leverage and potentially higher prices in future renewals. Additionally, dependence on one vendor can create vulnerabilities if that vendor experiences security breaches or discontinues key products.
How effectively does this competitive award process ensure the government is obtaining optimal value for its software investment?
A full and open competitive award process is designed to maximize value by encouraging multiple vendors to bid, driving down prices and fostering innovation. For this Microsoft EA renewal, it suggests that DH Technologies, Inc. offered a competitive price and solution. However, ongoing monitoring of software usage and performance is crucial to ensure the value proposition remains strong throughout the contract's life.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: 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: 294271
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 161 FORT EVANS RD NE STE 255, LEESBURG, VA, 20176
Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $4,126,575
Exercised Options: $2,238,498
Current Obligation: $2,238,498
Actual Outlays: $1,744,434
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC70B
IDV Type: GWAC
Timeline
Start Date: 2024-03-01
Current End Date: 2027-02-28
Potential End Date: 2027-02-28 00:00:00
Last Modified: 2026-01-23
More Contracts from DH Technologies, Inc.
- F5-Vpr-Ltm-B4450n — $31.3M (Department of Defense)
- Veritas — $18.9M (Department of Defense)
- Base Telecommunication System. Please SEE PWS. Please Note PWS Paragraph 1.0.2.1 Requiring a 7 DAY Work Overlap With the Current Contractor — $15.6M (Department of Defense)
- Entrust Certificates Maintenance and Support — $5.7M (Department of the Treasury)
- Rstudio — $464.8K (Department of Energy)
Other Department of the Treasury Contracts
- Advertising Services — $636.5M (True North Communications Inc)
- Cade 2 Ltis3 Covid-19 — $383.8M (Deloitte Consulting LLP)
- Establish a Broad Networking and Telecommunications Service Environment to Meet ITS Network Services (wide Area and Local Area Network), Voice Telecommunications Services, Audio/Video/Web Conferencing, and Cyber Requirements — $320.2M (AT&T Enterprises, LLC)
- THE Internal Revenue Service (IRS), Office of Information Technology Office, Issues This Order Under GSA Alliant 2 (unrestricted). Enterprise Case Management (ECM) Solution Integration Services — $305.5M (Booz Allen Hamilton Inc)
- THE Tfcceis Task Order IS to Transition the Existing Tfcc Services From the Networx Contract Onto the EIS Contract Vehicle in a Manner That Will Enable Continuity of an Enterprise Network of Toll Free Services for the IRS — $264.6M (Verizon Business Network Services LLC)