NLRB awards $6.4M for Microsoft Enterprise Agreement, extending through 2026

Contract Overview

Contract Amount: $6,431,254 ($6.4M)

Contractor: Govconnection Inc

Awarding Agency: National Labor Relations Board

Start Date: 2023-09-30

End Date: 2026-09-29

Contract Duration: 1,095 days

Daily Burn Rate: $5.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MICROSOFT ENTERPRISE AGREEMENT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20570

State: District of Columbia Government Spending

Plain-Language Summary

National Labor Relations Board obligated $6.4 million to GOVCONNECTION INC for work described as: MICROSOFT ENTERPRISE AGREEMENT Key points: 1. Value for money appears fair given the duration and scope of enterprise software licensing. 2. Competition dynamics indicate a full and open process, potentially leading to competitive pricing. 3. Risk indicators are moderate, primarily related to software obsolescence and vendor lock-in. 4. Performance context is tied to essential IT infrastructure for the National Labor Relations Board. 5. Sector positioning is within IT services, specifically software licensing and support.

Value Assessment

Rating: fair

The contract value of $6.4 million over three years for a Microsoft Enterprise Agreement suggests a moderate per-year cost for essential software. Benchmarking against similar large-scale enterprise software agreements is challenging without specific product details, but the price appears within a reasonable range for government-wide or agency-wide licensing. The firm-fixed-price structure provides 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, indicating that multiple vendors had the opportunity to bid. The presence of three bidders suggests a reasonably competitive environment for this type of IT service. The competitive process likely contributed to achieving a fair market price for the Microsoft Enterprise Agreement.

Taxpayer Impact: A competitive award process ensures that taxpayer dollars are used efficiently by preventing inflated pricing that might occur with sole-source or limited competition contracts.

Public Impact

The National Labor Relations Board (NLRB) benefits from access to up-to-date Microsoft software and services. Essential IT services and productivity tools are delivered to NLRB staff nationwide. The geographic impact is national, supporting all NLRB offices and remote workers. Workforce implications include enabling employees with the necessary software for their daily tasks and collaboration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with Microsoft products, limiting future flexibility.
Risk of software obsolescence if not managed proactively throughout the agreement term.
Dependence on a single vendor for critical IT infrastructure.

Positive Signals

Provides access to a comprehensive suite of productivity and collaboration tools.
Firm-fixed-price contract offers budget predictability.
Full and open competition suggests a potentially competitive price.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on enterprise software licensing and support. The market for enterprise software, particularly from major vendors like Microsoft, is substantial within the federal government. This agreement represents a typical procurement for agencies needing to maintain and update their core IT infrastructure and user productivity tools.

Small Business Impact

The provided data does not indicate any specific small business set-asides or subcontracting requirements for this contract. As it was awarded to GOVCONNECTION INC, a reseller, the extent of small business participation would depend on their subcontracting practices, which are not detailed here.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The National Labor Relations Board's contracting office is responsible for monitoring performance and compliance. Transparency is maintained through public contract databases like FPDS. Inspector General oversight would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

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

Risk Flags

Vendor Lock-in
Software Obsolescence
Reliance on Single Vendor

Frequently Asked Questions

What is this federal contract paying for?

National Labor Relations Board awarded $6.4 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: National Labor Relations Board (National Labor Relations Board).

What is the total obligated amount?

The obligated amount is $6.4 million.

What is the period of performance?

Start: 2023-09-30. End: 2026-09-29.

What is the specific breakdown of software and services included in this Microsoft Enterprise Agreement?

The provided data identifies this as a 'MICROSOFT ENTERPRISE AGREEMENT' but does not detail the specific software titles, licenses, or support services included. Enterprise Agreements typically cover a broad range of Microsoft products such as Windows operating systems, Office 365 (now Microsoft 365) suite, server licenses (e.g., Windows Server, SQL Server), and potentially cloud services like Azure. The exact composition would be detailed in the contract's statement of work or associated licensing documents, which are not publicly available in this data snippet. Understanding the specific components is crucial for a precise value assessment.

How does the $6.4 million cost compare to similar Microsoft Enterprise Agreements for federal agencies of the NLRB's size?

Direct comparison of the $6.4 million cost is difficult without knowing the exact user count, software suite, and support levels procured by the National Labor Relations Board (NLRB). However, the average cost per user per year for Microsoft Enterprise Agreements in the federal sector can range from $100 to $500+, depending on the included products and services. Given the NLRB's size (likely a few thousand employees), a three-year agreement costing $6.4 million ($2.13 million per year) suggests a per-user cost that falls within a plausible range, assuming a mid-tier licensing package. Further analysis would require knowing the number of users and the specific Microsoft products licensed.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this Microsoft Enterprise Agreement. Typically, for such contracts, KPIs would focus on software availability, uptime of cloud-based services (like Microsoft 365), help desk response times for software-related issues, and successful deployment of new software versions or features. Contract performance would also be assessed against adherence to licensing terms and conditions, ensuring the NLRB is compliant and not over- or under-licensed. The contracting officer's representative (COR) at the NLRB would be responsible for monitoring these aspects.

What is the track record of GOVCONNECTION INC in fulfilling similar large-scale enterprise software contracts for the federal government?

GOVCONNECTION INC is a well-established reseller of IT products and services, often holding numerous government contracts and GWACs (Government-Wide Acquisition Contracts). Their track record in fulfilling large-scale enterprise software contracts is generally considered robust, as they specialize in this area and have extensive partnerships with major software vendors like Microsoft. However, specific performance details for contracts of this magnitude would be found in past performance evaluations submitted during the bidding process or through agency performance reports, which are not detailed in the provided data. Their ability to win this contract under full and open competition suggests a positive past performance record.

Are there any known risks associated with the long-term use of Microsoft software and services procured under this agreement?

Yes, there are several potential long-term risks. Vendor lock-in is a primary concern, as migrating away from a deeply integrated Microsoft ecosystem can be complex and costly. Software obsolescence is another risk; if the NLRB does not actively manage its licenses and upgrade paths, it may end up paying for software that is no longer supported or has been superseded by newer, more efficient technologies. Furthermore, reliance on a single vendor for critical IT infrastructure can pose security risks if vulnerabilities are discovered in Microsoft's products or services. Proactive contract management and regular reviews are essential to mitigate these risks.

How does this contract align with the NLRB's overall IT modernization strategy or goals?

This Microsoft Enterprise Agreement likely aligns with the NLRB's IT modernization strategy by providing access to current and future versions of essential productivity software, collaboration tools, and potentially cloud services. Modern enterprise agreements often facilitate the adoption of cloud-based solutions (like Microsoft 365) which can enhance scalability, security, and remote work capabilities. By standardizing on a single vendor's ecosystem, the NLRB can streamline IT management, training, and support, contributing to operational efficiency. The agreement's duration suggests a commitment to leveraging these tools for the foreseeable future as part of their modernization efforts.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

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: $6,431,254

Exercised Options: $6,431,254

Current Obligation: $6,431,254

Actual Outlays: $5,593,732

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA19D00LP

IDV Type: FSS

Timeline