GSA awards $33.9M for Army O365 licenses to Minburn Technology Group, highlighting software publisher needs

Contract Overview

Contract Amount: $33,912,720 ($33.9M)

Contractor: Minburn Technology Group, LLC

Awarding Agency: General Services Administration

Start Date: 2021-11-01

End Date: 2022-10-31

Contract Duration: 364 days

Daily Burn Rate: $93.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ARMY O365 SUBSCRIPTION LICENSES MINBURN

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $33.9 million to MINBURN TECHNOLOGY GROUP, LLC for work described as: ARMY O365 SUBSCRIPTION LICENSES MINBURN Key points: 1. Value for money assessed through competitive bidding and fixed-price contract. 2. Competition dynamics indicate a robust market for enterprise software licensing. 3. Risk indicators include reliance on a single vendor for essential software. 4. Performance context is a one-year subscription for critical Army operations. 5. Sector positioning within software publishers, serving federal IT needs.

Value Assessment

Rating: good

The contract value of $33.9M for one year of O365 licenses appears reasonable given the scale of Army operations. Benchmarking against similar large-scale federal software procurements suggests this price falls within expected ranges for enterprise-level subscriptions. The firm fixed-price structure provides cost certainty for the government, mitigating the risk of cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive process that likely drove pricing towards market rates. This approach is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by fostering a market where vendors must offer their best pricing to win. This reduces the likelihood of overpayment and maximizes the value obtained for the software licenses.

Public Impact

Army personnel benefit from access to essential productivity and collaboration software. Services delivered include subscription licenses for Microsoft Office 365. Geographic impact is nationwide, supporting Army operations across various locations. Workforce implications include enabling seamless communication and task management for soldiers and civilian staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with long-term reliance on Microsoft O365.
Dependence on a single contractor for critical software delivery.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Firm fixed-price contract provides budget certainty.
Supports essential Army IT infrastructure and operational readiness.

Sector Analysis

The federal IT sector, particularly software licensing, is a significant area of government spending. This contract falls within the software publishers' market, serving the enterprise needs of a major federal agency. Comparable spending benchmarks for large-scale software subscriptions often run into tens or hundreds of millions of dollars annually, depending on the user base and software suite.

Small Business Impact

This contract was not set aside for small businesses, and the awardee, Minburn Technology Group, LLC, is not explicitly identified as a small business in the provided data. Therefore, there are no direct subcontracting implications for small businesses stemming from this specific award. The focus appears to be on fulfilling a large enterprise requirement through a competitive process.

Oversight & Accountability

The General Services Administration (GSA) oversees this contract through its Federal Acquisition Service. Oversight mechanisms likely include contract performance monitoring and adherence to the terms of the Blanket Purchase Agreement (BPA) Call. Transparency is facilitated by the public nature of contract awards, though specific performance metrics and detailed oversight reports are not detailed here.

Related Government Programs

Army IT Modernization Programs
GSA IT Schedule Contracts
Microsoft Enterprise Agreements
Federal Software Licensing

Risk Flags

Potential for vendor lock-in
Reliance on a single contractor for critical software

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $33.9 million to MINBURN TECHNOLOGY GROUP, LLC. ARMY O365 SUBSCRIPTION LICENSES MINBURN

Who is the contractor on this award?

The obligated recipient is MINBURN TECHNOLOGY GROUP, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $33.9 million.

What is the period of performance?

Start: 2021-11-01. End: 2022-10-31.

What is the historical spending pattern for Army O365 licenses prior to this award?

Historical spending data for Army O365 licenses prior to this specific award is not detailed in the provided information. However, the Army, like other branches of the Department of Defense, has been progressively migrating to cloud-based productivity suites like Microsoft 365 to enhance collaboration and operational efficiency. This trend suggests a consistent and likely increasing demand for such services over recent years. Analyzing past contract vehicles, such as previous GSA Schedule orders or other agency-specific agreements for similar software, would provide a clearer picture of the spending trajectory and potential volume discounts achieved previously.

How does the per-user cost of these O365 licenses compare to commercial rates or other federal agencies?

The provided data does not include a per-user cost breakdown, making a direct comparison difficult. However, federal agencies often leverage GSA Schedule contracts and large-volume purchasing power to negotiate rates that are competitive with, and sometimes lower than, commercial enterprise agreements. Without knowing the specific O365 suite (e.g., E3, E5) and the exact number of users, a precise benchmark is challenging. Generally, federal rates aim to achieve significant discounts compared to list prices. Comparing this contract's implied per-user cost to publicly available GSA Schedule pricing or data from similar large federal O365 procurements would be necessary for a thorough assessment.

What is Minburn Technology Group's track record with similar federal software contracts?

Minburn Technology Group, LLC has a track record of securing federal contracts, including those related to IT services and software. The award of this BPA Call for Army O365 licenses indicates their capability to support large-scale federal IT requirements. Further analysis of their contract history, including past performance evaluations, contract values, and the types of software and services provided to other government agencies, would offer a more comprehensive understanding of their experience and reliability in fulfilling similar large enterprise software needs.

What are the key performance indicators (KPIs) for this O365 subscription contract?

Specific Key Performance Indicators (KPIs) for this O365 subscription contract are not detailed in the provided award data. However, typical KPIs for such agreements often revolve around service availability (uptime), user support response times, security compliance, and timely delivery of license updates. For a software subscription, ensuring continuous access to the service and prompt resolution of any technical issues are paramount. The General Services Administration (GSA) likely has standard performance metrics associated with its Blanket Purchase Agreements (BPAs) that would apply here, focusing on reliability and user satisfaction.

Are there any identified risks associated with this specific contract award or the chosen vendor?

Potential risks associated with this contract include vendor lock-in, as the Army relies on Minburn Technology Group for essential O365 licenses, and potential disruptions if the vendor fails to meet performance obligations. Given the firm fixed-price nature, the primary risk shifts to the vendor to deliver within budget. The 'full and open competition' aspect mitigates some risk by ensuring a competitive market was tapped. However, a deeper dive into Minburn Technology Group's financial stability and past performance on critical contracts would be needed for a comprehensive risk assessment.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFSA22Q0013

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: $109,668,000

Exercised Options: $33,912,720

Current Obligation: $33,912,720

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: 47QTCA21A0003

IDV Type: BPA

Timeline