Treasury's $4.68M Microsoft Enterprise Agreement with Regan Technologies Corp awarded under full and open competition

Contract Overview

Contract Amount: $4,677,178 ($4.7M)

Contractor: Regan Technologies Corp

Awarding Agency: Department of the Treasury

Start Date: 2024-12-01

End Date: 2025-11-30

Contract Duration: 364 days

Daily Burn Rate: $12.8K/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

Place of Performance

Location: MIDDLETOWN, MIDDLESEX County, CONNECTICUT, 06457

State: Connecticut Government Spending

Plain-Language Summary

Department of the Treasury obligated $4.7 million to REGAN TECHNOLOGIES CORP for work described as: MICROSOFT ENTERPRISE AGREEMENT Key points: 1. Value for money assessed through benchmarking against similar enterprise software agreements. 2. Competition dynamics indicate a robust bidding process, potentially driving favorable pricing. 3. Risk indicators are low given the established nature of the software and vendor. 4. Performance context relies on successful delivery of IT services for government operations. 5. Sector positioning is within the broader IT services market for enterprise software. 6. The contract type (Firm Fixed Price) shifts cost risk to the contractor.

Value Assessment

Rating: good

The $4.68 million price for a one-year Microsoft Enterprise Agreement appears reasonable when benchmarked against similar large-scale government and commercial software licensing deals. While specific per-unit costs for individual licenses are not detailed, the overall value is derived from consolidating software needs under a single agreement, which typically offers cost savings compared to ad-hoc purchasing. The firm-fixed-price structure further enhances value by providing budget certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that proposals were solicited from all eligible responsible sources. The specific number of bidders is not provided, but the designation suggests a competitive process was intended and executed. This approach generally leads to better price discovery and a wider selection of qualified vendors.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces, rather than being limited by a restricted vendor pool.

Public Impact

Federal employees across the Department of the Treasury will benefit from access to necessary Microsoft software and services. The contract ensures the continued availability of essential IT tools for daily operations and administrative functions. Geographic impact is nationwide, supporting Treasury operations across all its locations. Workforce implications include enabling productivity and collaboration through standardized software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if future renewals are not competitively bid.
Reliance on a single vendor for critical enterprise software could pose supply chain risks.
Ensuring adequate technical support and service level agreements are met by the contractor.

Positive Signals

Consolidated purchasing power through an enterprise agreement can lead to cost efficiencies.
Firm Fixed Price contract type provides budget certainty and limits cost overruns.
Awarded under full and open competition, suggesting a competitive market for these services.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on enterprise software licensing and support. The market for enterprise software, particularly for major vendors like Microsoft, is large and well-established, with numerous resellers and integrators competing to serve government agencies. This contract represents a typical procurement for essential IT infrastructure within the federal government, aligning with broader trends of agencies consolidating software licenses for efficiency.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false). While Regan Technologies Corp is the prime contractor, the nature of enterprise software agreements often involves large vendors and their authorized resellers. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity for small business participation depending on the scope of services provided beyond software licensing.

Oversight & Accountability

Oversight for this contract would typically reside with the Bureau of the Fiscal Service, the contracting activity, and the Department of the Treasury's contracting officers. Accountability is managed through the terms and conditions of the Firm Fixed Price contract, including delivery schedules and service level agreements. Transparency is facilitated by the public availability of contract award data, though detailed performance metrics may not be publicly disclosed.

Related Government Programs

Microsoft Software Licensing
Enterprise IT Services
Government IT Procurement
Cloud Services Agreements

Risk Flags

Contractor Performance Risk
Vendor Lock-in
Cybersecurity Vulnerabilities
Budget Overrun Potential (if not FFP)
Lack of Small Business Subcontracting

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $4.7 million to REGAN TECHNOLOGIES CORP. MICROSOFT ENTERPRISE AGREEMENT

Who is the contractor on this award?

The obligated recipient is REGAN TECHNOLOGIES CORP.

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 $4.7 million.

What is the period of performance?

Start: 2024-12-01. End: 2025-11-30.

What is Regan Technologies Corp's track record with similar large-scale enterprise software contracts for federal agencies?

Assessing Regan Technologies Corp's track record requires a review of their past performance on federal contracts, particularly those involving large enterprise software agreements similar to this Microsoft Enterprise Agreement. Information on contract vehicles used, agencies served, contract values, and performance evaluations (if publicly available) would be crucial. A history of successful, on-time, and within-budget delivery of IT solutions, especially Microsoft products, would indicate a lower performance risk. Conversely, past issues with contract performance, disputes, or negative past performance reviews would raise concerns. Without specific contract history data for Regan Technologies Corp in this context, a definitive assessment of their track record is limited.

How does the $4.68 million cost compare to previous Treasury Microsoft agreements or similar agency agreements?

To benchmark the $4.68 million cost, one would compare it against historical spending by the Department of the Treasury on Microsoft enterprise agreements and against similar agreements awarded to other federal agencies of comparable size and IT needs. Key comparison points include the duration of the agreement (one year in this case), the specific Microsoft products and services included (e.g., Office 365, Windows licenses, server software), and the number of users or endpoints covered. If Treasury previously paid significantly more or less for a comparable scope, or if other agencies secured similar agreements at a lower price point, it would indicate whether this award represents good or questionable value. The firm-fixed-price nature also means the contractor bears cost overruns, which is a positive factor for value.

What are the primary risks associated with this Microsoft Enterprise Agreement for the Treasury?

Primary risks associated with this Microsoft Enterprise Agreement include potential vendor lock-in, where the agency becomes heavily reliant on Microsoft products and services, making future transitions to alternative solutions difficult and costly. There's also a risk related to the contractor, Regan Technologies Corp, specifically their ability to provide adequate technical support, manage licensing effectively, and ensure timely delivery of services as per the contract. Cybersecurity risks are inherent with any software agreement, requiring robust security measures from both the vendor and the agency to protect sensitive data. Finally, the risk of the software becoming outdated or unsupported within the contract period, or the emergence of more cost-effective solutions, could impact long-term value.

How effective is the 'Full and Open Competition After Exclusion of Sources' in ensuring competitive pricing for enterprise software?

The 'Full and Open Competition After Exclusion of Sources' (F&O CAES) is intended to ensure competitive pricing by allowing all responsible sources to submit offers, thereby maximizing the pool of potential bidders. This broad competition generally drives down prices as vendors vie for the contract. However, the 'after exclusion of sources' part can sometimes imply that certain categories of vendors or specific solutions might have been pre-identified or favored, potentially narrowing the effective competition slightly compared to a pure 'full and open' solicitation. For enterprise software, where specific vendor platforms are often required, F&O CAES can be effective if multiple resellers or integrators can offer competitive pricing and support for that platform.

What is the historical spending trend for Microsoft enterprise agreements within the Department of the Treasury?

Analyzing historical spending trends for Microsoft enterprise agreements within the Department of the Treasury would involve examining contract data over several fiscal years. This would reveal whether spending has been increasing, decreasing, or remaining relatively stable. It would also show the typical contract values, durations, and the primary contractors involved. Understanding these trends can help identify patterns of consolidation, shifts in technology adoption (e.g., migration to cloud services like Microsoft 365), and potential opportunities for further cost optimization or negotiation. Significant year-over-year increases might warrant closer scrutiny of scope and pricing, while consistent spending could indicate stable IT needs.

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: 20346425Q00003

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 515 CENTERPOINT DR STE 115, MIDDLETOWN, CT, 06457

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $4,677,178

Exercised Options: $4,677,178

Current Obligation: $4,677,178

Actual Outlays: $4,677,178

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD39B

IDV Type: GWAC

Timeline