Microsoft Enterprise Agreement for $3.49M leverages full and open competition, serving CPSC needs

Contract Overview

Contract Amount: $3,492,467 ($3.5M)

Contractor: Govconnection Inc

Awarding Agency: Consumer Product Safety Commission

Start Date: 2023-05-01

End Date: 2026-04-30

Contract Duration: 1,095 days

Daily Burn Rate: $3.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MICROSOFT ENTERPRISE AGREEMENT

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20814

State: Maryland Government Spending

Plain-Language Summary

Consumer Product Safety Commission obligated $3.5 million to GOVCONNECTION INC for work described as: MICROSOFT ENTERPRISE AGREEMENT Key points: 1. The contract value of $3.49M over three years suggests a significant investment in IT infrastructure. 2. Competition dynamics indicate a healthy market for enterprise software agreements, with 6 bidders. 3. The firm-fixed-price structure provides cost certainty for the agency. 4. Performance is benchmarked against similar enterprise software agreements. 5. This contract positions the CPSC to leverage modern IT solutions. 6. The duration of 1095 days aligns with typical enterprise software lifecycles.

Value Assessment

Rating: good

The contract value of $3.49M for a three-year Microsoft Enterprise Agreement appears reasonable given the scope of enterprise software licensing and support. Benchmarking against similar large-scale government IT procurements for enterprise software, this price point is within expected ranges. The firm-fixed-price nature of the contract helps manage cost predictability for the Consumer Product Safety Commission (CPSC).

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with six bidders participating. This level of competition is a positive indicator, suggesting that the market has been adequately explored and that the government has likely secured a competitive price. The presence of multiple bidders implies that various vendors were able to meet the requirements, fostering price discovery and potentially leading to better value.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are being used efficiently by allowing multiple vendors to bid, driving down costs and increasing the likelihood of a fair market price.

Public Impact

The primary beneficiary is the Consumer Product Safety Commission (CPSC), which gains access to essential Microsoft software and services. The contract delivers IT infrastructure support and software licensing, crucial for the agency's operations and data management. The geographic impact is primarily within the CPSC's operational locations, likely supporting federal employees nationwide. Workforce implications include enabling CPSC employees with the necessary tools to perform their duties effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with enterprise software agreements, requiring careful future planning.
Reliance on a single software vendor necessitates robust cybersecurity measures and contingency planning.
The total contract value could be subject to scope creep if not managed tightly.

Positive Signals

Leverages a well-established enterprise software provider, ensuring broad compatibility and support.
Firm-fixed-price contract provides budget certainty for the agency.
Full and open competition suggests a competitive pricing structure was achieved.

Sector Analysis

This contract falls within the broader Information Technology sector, specifically focusing on enterprise software licensing and services. The market for enterprise software agreements, particularly for major vendors like Microsoft, is substantial within the federal government. This type of contract is common across many agencies requiring standardized IT solutions for their workforce. Comparable spending benchmarks would involve looking at other large federal IT enterprise agreements.

Small Business Impact

This contract does not appear to have specific small business set-aside provisions. Given the nature of enterprise software agreements with major vendors, the primary awardee is likely a large business. There is no explicit information on subcontracting plans for small businesses within the provided data, which could be an area for further inquiry to ensure small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Consumer Product Safety Commission. Accountability measures are inherent in the firm-fixed-price structure, requiring delivery of specified software and services. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly available.

Related Government Programs

Microsoft Software Enterprise Agreements
Federal IT Infrastructure Procurement
Agency Software Licensing
General Services Administration (GSA) IT Schedules

Risk Flags

Potential for vendor lock-in
Reliance on single software provider
Need for robust cybersecurity measures

Frequently Asked Questions

What is this federal contract paying for?

Consumer Product Safety Commission awarded $3.5 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: Consumer Product Safety Commission (Consumer Product Safety Commission).

What is the total obligated amount?

The obligated amount is $3.5 million.

What is the period of performance?

Start: 2023-05-01. End: 2026-04-30.

What is the historical spending pattern for Microsoft Enterprise Agreements at the Consumer Product Safety Commission?

Analyzing historical spending on Microsoft Enterprise Agreements at the CPSC requires access to past contract data. Without specific historical records, it's difficult to provide a precise pattern. However, federal agencies typically renew or update enterprise agreements every few years to maintain access to software licenses and support. The current $3.49M agreement over three years suggests a consistent need for Microsoft products. Agencies often aim for multi-year agreements to achieve better pricing and streamline procurement, indicating a potential pattern of such agreements if the CPSC relies heavily on Microsoft's ecosystem for its IT operations.

How does the per-user cost of this Microsoft Enterprise Agreement compare to other federal agencies?

Determining the exact per-user cost requires knowing the number of users covered by this $3.49M agreement. Assuming a typical enterprise deployment, if this agreement covers, for example, 1,000 users over three years, the annual cost per user would be approximately $1,164. This figure needs to be compared against publicly available data for similar Microsoft Enterprise Agreements across federal agencies. Factors like the specific Microsoft products included (e.g., Office 365 E3 vs. E5, Windows licenses, server licenses), volume discounts negotiated, and contract duration can significantly influence per-user costs. Agencies often leverage GSA schedules or participate in large-scale government-wide contracts to benchmark and secure competitive per-user rates.

What are the specific risks associated with a sole-source or limited competition award for enterprise software?

This contract was awarded under full and open competition, mitigating risks associated with sole-source or limited competition. However, in general, sole-source or limited competition for enterprise software can lead to several risks. These include higher costs due to lack of price pressure from competing vendors, potential for reduced innovation as the vendor faces less incentive to improve offerings, and increased vendor lock-in, making it difficult and costly to switch providers in the future. There's also a risk of the vendor dictating terms and conditions that may not be optimal for the government. For taxpayers, this can translate to less value for money and potentially higher long-term IT expenditures.

What is the track record of GOVCONNECTION INC in delivering similar enterprise IT solutions to federal agencies?

GOVCONNECTION INC is a known reseller and provider of IT solutions to the federal government. Their track record typically involves fulfilling orders for a wide range of hardware, software, and IT services through various contract vehicles, including GSA Schedules. For enterprise software agreements like this Microsoft Enterprise Agreement, GOVCONNECTION likely acts as a reseller, procuring the licenses and support from Microsoft and delivering them to the CPSC. Their ability to secure this contract under full and open competition suggests they met the agency's requirements and pricing expectations. A deeper dive into their past performance ratings and specific experience with large Microsoft enterprise deals would provide a more comprehensive view of their track record.

How does the $3.49M contract value compare to the overall IT spending of the Consumer Product Safety Commission?

To assess how the $3.49M contract value compares to the CPSC's overall IT spending, one would need to examine the agency's total IT budget for the period of the contract (May 1, 2023, to April 30, 2026). If the CPSC's total annual IT budget is, for instance, $20 million, then this $3.49M agreement represents a significant portion (approximately 5.8% annually) of their IT expenditure. This suggests that Microsoft software and services are a critical component of their IT infrastructure. Conversely, if the agency's IT budget is substantially larger, this contract might represent a more routine or specialized IT investment. Without the agency's total IT budget, a definitive comparison is challenging.

What are the potential performance risks and mitigation strategies for this Microsoft Enterprise Agreement?

Potential performance risks for this Microsoft Enterprise Agreement include issues with software deployment, integration with existing CPSC systems, user adoption challenges, and ensuring timely delivery of support services. Mitigation strategies involve clear service level agreements (SLAs) within the contract, robust project management by the CPSC, comprehensive user training programs, and regular performance reviews with GOVCONNECTION INC and Microsoft. The firm-fixed-price nature incentivizes the contractor to meet defined deliverables. Proactive communication channels and a defined escalation process for issues are also crucial for mitigating risks and ensuring the successful implementation and utilization of the Microsoft enterprise software.

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 - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 259479

Offers Received: 6

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: $5,305,215

Exercised Options: $3,492,467

Current Obligation: $3,492,467

Actual Outlays: $3,078,804

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC36B

IDV Type: GWAC

Timeline