USMC Spends $15.3M on IL6 Licenses from Minburn Technology Group via GSA BPA Call

Contract Overview

Contract Amount: $15,357,675 ($15.4M)

Contractor: Minburn Technology Group, LLC

Awarding Agency: General Services Administration

Start Date: 2024-11-21

End Date: 2025-11-20

Contract Duration: 364 days

Daily Burn Rate: $42.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: USMC IL6 LICENSES

Place of Performance

Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $15.4 million to MINBURN TECHNOLOGY GROUP, LLC for work described as: USMC IL6 LICENSES Key points: 1. Significant expenditure on software licenses highlights reliance on specific technology. 2. Competition method (Full and Open) is positive, but BPA Call structure warrants review. 3. Risk of vendor lock-in or price creep exists despite initial competition. 4. IT sector spending, particularly on software, is a major government expenditure area.

Value Assessment

Rating: fair

The contract value of $15.3M for 364 days is substantial. Benchmarking against similar IL6 license procurements is difficult without more specific product details, but the per-unit cost appears high relative to general software licensing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded via a BPA Call under Full and Open competition, suggesting a competitive process initially. However, the BPA Call mechanism can sometimes limit downstream competition if not managed carefully.

Taxpayer Impact: Taxpayer funds are used for this expenditure. While competition was present, the overall value and potential for future renewals necessitate scrutiny to ensure cost-effectiveness.

Public Impact

Ensures USMC has access to necessary software for classified operations. Supports a specific technology vendor, potentially impacting broader market options. Potential for recurring costs if licenses are renewed beyond the current term.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price escalation in future renewals.
Limited visibility into specific software utility and necessity.
Dependence on a single vendor for critical software.

Positive Signals

Awarded under Full and Open competition.
Utilizes existing GSA contract vehicle (BPA Call).

Sector Analysis

This contract falls within the IT sector, specifically software publishers. Government spending on software licenses, particularly for secure environments like IL6, is a consistent and significant portion of the federal IT budget.

Small Business Impact

The awardee, MINBURN TECHNOLOGY GROUP, LLC, is listed. Further analysis is needed to determine if this company qualifies as a small business and if opportunities were provided for small business participation in the subcontracting chain.

Oversight & Accountability

Oversight is provided by the General Services Administration (GSA) through its Federal Acquisition Service. The BPA Call structure implies some level of pre-negotiated terms, but ongoing monitoring of usage and pricing is crucial.

Related Government Programs

Software Publishers
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

High contract value for a single year.
Lack of specific software details.
Potential for future price increases.
Dependence on a single vendor.
Limited information on small business participation.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $15.4 million to MINBURN TECHNOLOGY GROUP, LLC. USMC IL6 LICENSES

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 $15.4 million.

What is the period of performance?

Start: 2024-11-21. End: 2025-11-20.

What is the specific software being procured, and how does its functionality align with the USMC's operational requirements?

The data does not specify the exact software titles or versions. Understanding the specific applications and their criticality to USMC missions is essential for validating the $15.3M expenditure. Without this detail, it's difficult to assess if the cost is justified by the value derived from the software's capabilities and operational impact.

What are the long-term cost implications and potential for price increases upon contract renewal?

The current contract is for one year. Future renewals could see price increases, especially if the software becomes more embedded in USMC operations or if market conditions change. A strategy for managing software obsolescence and exploring alternative solutions should be considered to mitigate long-term cost risks.

How effectively does the BPA Call mechanism ensure continued competition and cost savings over the life of the software need?

While the initial award was under full and open competition, the BPA Call structure itself may not guarantee ongoing competitive pricing for subsequent needs. Agencies must actively manage BPA calls to ensure fair pricing and encourage competition among BPA holders, preventing potential price creep or vendor lock-in.

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: 47QFSA25Q0003

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, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $23,889,735

Exercised Options: $15,357,675

Current Obligation: $15,357,675

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA21A0003

IDV Type: BPA

Timeline