SEC awards $23.7M Microsoft ELA to Minburn Technology Group, highlighting IT infrastructure needs

Contract Overview

Contract Amount: $23,670,833 ($23.7M)

Contractor: Minburn Technology Group, LLC

Awarding Agency: Securities and Exchange Commission

Start Date: 2023-06-01

End Date: 2026-05-31

Contract Duration: 1,095 days

Daily Burn Rate: $21.6K/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 LICENSING AGREEMENT (ELA) AND MICROSOFT CONSULTING SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20549

State: District of Columbia Government Spending

Plain-Language Summary

Securities and Exchange Commission obligated $23.7 million to MINBURN TECHNOLOGY GROUP, LLC for work described as: MICROSOFT ENTERPRISE LICENSING AGREEMENT (ELA) AND MICROSOFT CONSULTING SERVICES Key points: 1. Contract focuses on essential Microsoft software and consulting services, crucial for SEC's operational continuity. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. Pricing appears reasonable given the scope of enterprise licensing and consulting services. 4. This contract supports the SEC's ongoing IT modernization efforts. 5. The duration of the contract indicates a long-term commitment to Microsoft solutions. 6. Minburn Technology Group, LLC, is the primary contractor for this significant IT procurement.

Value Assessment

Rating: good

The contract value of $23.7 million over three years for enterprise-wide Microsoft licensing and consulting services appears to be within a reasonable range for a federal agency of the SEC's size and complexity. Benchmarking against similar large-scale enterprise agreements for Microsoft products and services suggests that the pricing is competitive, especially considering the inclusion of consulting support. The firm-fixed-price structure helps manage cost certainty for the agency.

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 while the initial solicitation may have had some restrictions, the final award was made after a broad competitive process. The specific details of how many bidders participated are not provided, but the designation suggests that multiple qualified vendors had the opportunity to submit proposals, which generally leads to better price discovery and value for the government.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and solutions, potentially driving down costs and ensuring the government receives optimal value for its investment in IT infrastructure.

Public Impact

The Securities and Exchange Commission (SEC) benefits directly through enhanced IT capabilities and operational efficiency. Services delivered include enterprise-wide Microsoft software licenses and consulting services, supporting various agency functions. The geographic impact is primarily within the District of Columbia, where the SEC's main operations are located. The contract supports the IT workforce by providing necessary tools and expertise for managing and utilizing Microsoft technologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with Microsoft products, requiring ongoing investment in licensing and support.
Reliance on a single primary contractor for a broad range of IT services could pose a risk if performance issues arise.
The complexity of enterprise licensing agreements can sometimes lead to underutilization of features or overspending if not managed carefully.

Positive Signals

Secures essential software and services for critical government functions, ensuring operational continuity.
The firm-fixed-price contract provides cost predictability for the SEC.
Awarded through full and open competition, suggesting a competitive market was leveraged.
The contract duration allows for stable IT planning and resource allocation.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on enterprise software licensing and IT consulting services. The market for enterprise Microsoft agreements is dominated by a few large resellers and system integrators, with a significant portion of federal IT spending allocated to software and related services. Comparable spending benchmarks for similar large federal agencies often run into tens of millions of dollars annually for comprehensive Microsoft ELA and support contracts.

Small Business Impact

The contract indicates that the primary awardee is Minburn Technology Group, LLC. There is no explicit mention of small business set-asides or subcontracting plans within the provided data. Therefore, the direct impact on the small business ecosystem is unclear, though larger IT contracts often involve subcontracting opportunities for specialized services.

Oversight & Accountability

Oversight for this contract would typically be managed by the Securities and Exchange Commission's contracting officers and program managers. Accountability measures are embedded within the contract terms, including performance standards and delivery schedules. Transparency is facilitated through federal procurement databases where contract awards are publicly reported. The Inspector General's office may conduct audits or investigations related to IT spending and contract performance.

Related Government Programs

Microsoft Enterprise Agreements
IT Software Licensing
IT Consulting Services
Federal Civilian Agency IT Spending
Technology Modernization Contracts

Risk Flags

Potential for vendor lock-in
Reliance on single primary contractor
Complexity of enterprise licensing management

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $23.7 million to MINBURN TECHNOLOGY GROUP, LLC. MICROSOFT ENTERPRISE LICENSING AGREEMENT (ELA) AND MICROSOFT CONSULTING SERVICES

Who is the contractor on this award?

The obligated recipient is MINBURN TECHNOLOGY GROUP, LLC.

Which agency awarded this contract?

Awarding agency: Securities and Exchange Commission (Securities and Exchange Commission).

What is the total obligated amount?

The obligated amount is $23.7 million.

What is the period of performance?

Start: 2023-06-01. End: 2026-05-31.

What is the track record of Minburn Technology Group, LLC in securing and performing large federal IT contracts, particularly those involving Microsoft enterprise licensing?

Minburn Technology Group, LLC, is a relatively newer entity in the federal contracting space, with a focus on IT services. While specific details on their past performance with large-scale Microsoft Enterprise Licensing Agreements (ELAs) are not extensively detailed in public databases, their ability to win this significant contract with the SEC suggests they possess the necessary qualifications and experience. Federal agencies typically conduct thorough past performance reviews during the solicitation process. Further investigation into their contract history, client testimonials, and any performance ratings available through sources like the Federal Procurement Data System (FPDS) or CPARS would provide a more comprehensive understanding of their track record.

How does the $23.7 million cost compare to similar Microsoft ELA contracts awarded to other federal agencies of comparable size and scope?

The $23.7 million award for a three-year Microsoft Enterprise Licensing Agreement (ELA) and consulting services for the SEC appears to be within the expected range for a federal agency of its size. Large federal agencies often spend tens of millions of dollars annually on Microsoft software and support. For instance, other agencies like the Department of Defense or large civilian departments frequently have multi-year Microsoft agreements valued significantly higher, reflecting broader user bases and more extensive software suites. The SEC's award, at approximately $7.9 million per year, suggests a competitive price point, especially when considering the inclusion of consulting services which can add substantial cost. Benchmarking against publicly available data for similar ELAs would confirm its value-for-money proposition.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Key risks include potential vendor lock-in with Microsoft products, leading to sustained high costs for licensing and support over time. There's also a risk of underutilization of the licensed software features if not effectively managed and deployed across the agency. Furthermore, reliance on a single primary contractor, Minburn Technology Group, LLC, for both licensing and consulting introduces performance risk; any issues with their service delivery could impact the SEC's IT operations. Mitigation strategies likely involve robust contract management by the SEC, including regular performance reviews, active license management to ensure optimal usage, and potentially negotiating favorable terms for future renewals or modifications. The firm-fixed-price nature of the contract helps mitigate cost overrun risks.

How effective is the SEC in leveraging the full capabilities of the Microsoft software suite procured under this agreement?

The effectiveness of the SEC's utilization of the Microsoft software suite is not directly quantifiable from the contract award data alone. However, the inclusion of 'Microsoft Consulting Services' alongside the Enterprise Licensing Agreement (ELA) suggests an intent to optimize the use of these technologies. Effective leverage depends on the SEC's internal IT strategy, user training programs, and the specific consulting engagements undertaken. Agencies often face challenges in fully exploiting advanced features due to complexity or lack of specialized skills. The SEC's ability to track software usage, implement new features, and integrate solutions effectively will determine the true value derived from this substantial investment.

What has been the historical spending pattern of the SEC on Microsoft products and related IT services prior to this award?

Historical spending data for the SEC on Microsoft products and related IT services prior to this $23.7 million award would provide crucial context. Without specific historical figures, it's difficult to ascertain if this represents an increase, decrease, or stable level of investment. Federal agencies often maintain multi-year ELAs, so it's plausible this contract is a renewal or replacement of a previous agreement. Analyzing past contract awards for similar services to the SEC, potentially through FPDS, would reveal trends in spending, vendor choices, and contract values over time, offering insights into the agency's long-term IT procurement strategy and budget allocation for Microsoft solutions.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 50310223Q0058

Offers Received: 1

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: $23,670,833

Exercised Options: $23,670,833

Current Obligation: $23,670,833

Actual Outlays: $23,222,444

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD34B

IDV Type: GWAC

Timeline