DoD's $17.1M Microsoft Premier Support Contract Awarded to Microsoft Corporation
Contract Overview
Contract Amount: $17,103,756 ($17.1M)
Contractor: Microsoft Corporation
Awarding Agency: Department of Defense
Start Date: 2009-09-30
End Date: 2011-07-31
Contract Duration: 669 days
Daily Burn Rate: $25.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MICROSOFT PREMIER SUPPORT
Place of Performance
Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36112
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $17.1 million to MICROSOFT CORPORATION for work described as: MICROSOFT PREMIER SUPPORT Key points: 1. High contract value indicates significant reliance on Microsoft's premium support services. 2. Sole reliance on Microsoft Corporation suggests a lack of competitive bidding. 3. Potential risk of overpayment due to non-competitive award and lack of market comparison. 4. IT services sector spending is substantial, but this specific contract's value is notable.
Value Assessment
Rating: questionable
The contract value of $17.1M for premier support over two years is substantial. Without competitive bids or benchmarks for similar premier support contracts, it's difficult to assess if this pricing is reasonable or inflated.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Microsoft Corporation. This limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these essential IT support services.
Public Impact
Essential IT infrastructure support for the Department of the Air Force. Ensures continuity of operations for critical systems reliant on Microsoft products. Potential for vendor lock-in and reduced flexibility in future IT procurement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
- No clear justification for sole-source
Positive Signals
- Ensures access to critical vendor support
- Potentially faster issue resolution with direct vendor support
Sector Analysis
This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Spending in this area is consistently high across government agencies, reflecting the increasing reliance on technology.
Small Business Impact
This contract was awarded directly to Microsoft Corporation, a large business. There is no indication of subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The non-competitive nature of this award warrants scrutiny. Further investigation into the justification for a sole-source procurement and the pricing structure is recommended to ensure accountability.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award lacks transparency and competitive pricing.
- Potential for overpayment due to absence of market competition.
- Risk of vendor lock-in and limited future procurement flexibility.
- High contract value requires strong justification for non-competitive award.
Tags
other-computer-related-services, department-of-defense, al, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.1 million to MICROSOFT CORPORATION. MICROSOFT PREMIER SUPPORT
Who is the contractor on this award?
The obligated recipient is MICROSOFT CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $17.1 million.
What is the period of performance?
Start: 2009-09-30. End: 2011-07-31.
What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The provided data does not include the specific justification for the sole-source award. Typically, agencies cite reasons such as urgency, unique capabilities, or lack of market availability. Without this information, it's impossible to determine if the non-competitive approach was warranted or if it represented a missed opportunity for cost savings through competition.
How does the per-unit cost of this premier support compare to industry benchmarks or other government contracts for similar services?
Benchmarking is difficult without knowing the specific services included in 'Premier Support' and the number of users or systems covered. However, given the sole-source nature and the substantial total value, there is a significant risk that the per-unit cost is higher than what could be achieved through a competitive process or by leveraging enterprise-wide agreements.
What mechanisms are in place to ensure the effectiveness and value for money of this Microsoft Premier Support contract?
Effectiveness is typically measured through service level agreements (SLAs) and performance metrics defined in the contract. Value for money is harder to assess without competition. Oversight would involve tracking support ticket resolution times, system uptime, and the impact of the support on operational readiness, comparing these against the contract costs.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: ONE MICROSOFT WAY, REDMOND, WA, 01
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $17,103,756
Exercised Options: $17,103,756
Current Obligation: $17,103,756
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91QUZ09D0038
IDV Type: IDC
Timeline
Start Date: 2009-09-30
Current End Date: 2011-07-31
Potential End Date: 2011-07-31 00:00:00
Last Modified: 2012-05-01
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