GSA Awards $11.1M Microsoft Enterprise Agreement to GovConnection Inc. for IT Services
Contract Overview
Contract Amount: $11,106,603 ($11.1M)
Contractor: Govconnection Inc
Awarding Agency: General Services Administration
Start Date: 2023-09-30
End Date: 2025-09-29
Contract Duration: 730 days
Daily Burn Rate: $15.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MICROSOFT ENTERPRISE AGREEMENT
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76102
State: Texas Government Spending
Plain-Language Summary
General Services Administration obligated $11.1 million to GOVCONNECTION INC for work described as: MICROSOFT ENTERPRISE AGREEMENT Key points: 1. Significant contract value of $11.1 million for enterprise software licensing. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk appears moderate given the established nature of enterprise agreements and vendor. 4. Sector is IT, specifically Other Computer Related Services.
Value Assessment
Rating: good
The $11.1 million price tag for a Microsoft Enterprise Agreement is substantial. Benchmarking against similar large-scale enterprise software deals is crucial to assess value, though specific per-unit costs are not provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. The use of a delivery order under an existing agreement indicates a structured procurement process.
Taxpayer Impact: Taxpayer funds are utilized for enterprise software licensing, with the expectation of cost savings through bulk purchasing and competitive bidding.
Public Impact
Ensures access to essential Microsoft software for government operations. Supports agency productivity and digital transformation initiatives. Potential for cost efficiencies through negotiated enterprise licensing terms.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with Microsoft products.
- Need for ongoing management to ensure optimal software utilization.
Positive Signals
- Awarded through full and open competition.
- Long-term agreement provides budget stability.
Sector Analysis
This contract falls within the Information Technology sector, specifically Other Computer Related Services. Spending in this area is consistently high across federal agencies for software, hardware, and related services.
Small Business Impact
The data indicates this is a large enterprise agreement, and there is no specific information provided regarding small business participation or set-asides. Large software agreements often involve prime contractors who may then subcontract.
Oversight & Accountability
The General Services Administration (GSA) is responsible for this contract, which falls under their role of facilitating government-wide IT procurement. Oversight would involve ensuring compliance with terms and conditions.
Related Government Programs
- Other Computer Related Services
- General Services Administration Contracting
- Office of Administrative Services Programs
Risk Flags
- Potential for cost overruns if software utilization is not optimized.
- Dependence on a single software vendor (Microsoft).
- Need for robust contract management to ensure compliance and value.
- Risk of scope creep if additional services are added without proper justification.
Tags
other-computer-related-services, general-services-administration, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $11.1 million to GOVCONNECTION INC. MICROSOFT ENTERPRISE AGREEMENT
Who is the contractor on this award?
The obligated recipient is GOVCONNECTION INC.
Which agency awarded this contract?
Awarding agency: General Services Administration (Office of Administrative Services).
What is the total obligated amount?
The obligated amount is $11.1 million.
What is the period of performance?
Start: 2023-09-30. End: 2025-09-29.
What is the total cost of ownership for this Microsoft Enterprise Agreement over its full duration, including potential renewals and support?
The current award is for $11.1 million over two years. To determine the total cost of ownership, one must consider potential future renewals, any additional licensing or services required beyond the initial scope, and the ongoing costs of managing and supporting the software environment. A comprehensive TCO analysis would also factor in training and potential integration expenses.
How does the pricing of this Microsoft Enterprise Agreement compare to similar agreements awarded by other federal agencies or state governments?
Benchmarking against similar agreements is essential for value assessment. While this contract was competitively awarded, comparing its per-user or per-service costs against publicly available data for comparable Microsoft Enterprise Agreements across other government entities would reveal if the pricing is favorable. Variations in included software suites and support levels can impact direct comparisons.
What specific Microsoft products and services are included in this $11.1 million agreement, and how do they align with agency needs?
The provided data does not specify the exact Microsoft products and services covered by this $11.1 million agreement. A detailed breakdown is necessary to understand the scope and ensure alignment with the Office of Administrative Services' operational requirements. Understanding the included software (e.g., Office 365, Windows licenses, Azure credits) is key to evaluating its effectiveness and necessity.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
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: $15,219,003
Exercised Options: $11,106,603
Current Obligation: $11,106,603
Actual Outlays: $5,349,672
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 47QTCA19D00LP
IDV Type: FSS
Timeline
Start Date: 2023-09-30
Current End Date: 2025-09-29
Potential End Date: 2025-09-29 00:00:00
Last Modified: 2026-01-28
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