DHS awards $3.7M for Microsoft O365 Tenant services to Steampunk, Inc

Contract Overview

Contract Amount: $3,700,803 ($3.7M)

Contractor: Steampunk, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2023-09-19

End Date: 2026-09-18

Contract Duration: 1,095 days

Daily Burn Rate: $3.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: LABOR HOURS

Sector: IT

Official Description: MICROSOFT OFFICE 365 (O365) TENANT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20528

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $3.7 million to STEAMPUNK, INC. for work described as: MICROSOFT OFFICE 365 (O365) TENANT Key points: 1. Contract awarded for Computer Systems Design Services. 2. Steampunk, Inc. is the contractor for this delivery order. 3. The contract duration is 1095 days. 4. The agency is the Department of Homeland Security. 5. The total award amount is $3,700,802.80.

Value Assessment

Rating: fair

The award amount of $3.7M for O365 tenant services over three years appears reasonable given the scope. However, without specific labor hour breakdowns or comparable contract data, a precise valuation is difficult. Benchmarking against similar cloud service contracts would provide better insight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially lower costs for the government compared to limited or sole-source procurements.

Taxpayer Impact: The competitive nature of this award is positive for taxpayers, as it likely resulted in a more cost-effective solution for the O365 tenant services.

Public Impact

Ensures continued operation and management of critical Microsoft O365 services for DHS. Supports the agency's digital infrastructure and employee productivity. Potential for enhanced cybersecurity posture through managed O365 tenant. Impacts numerous DHS employees relying on O365 for daily operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under IT services, specifically computer systems design. Spending in this sector is substantial, with agencies increasingly relying on cloud-based solutions like Microsoft O365 for operational efficiency and collaboration. Benchmarks for similar cloud management contracts vary widely based on scope and service level agreements.

Small Business Impact

The provided data does not indicate if small businesses were involved in this procurement, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Office of the Inspector General is listed as the source of the data, suggesting some level of review or oversight. However, detailed oversight activities and accountability mechanisms for this specific contract are not elaborated upon in the provided information.

Related Government Programs

Risk Flags

Tags

computer-systems-design-services, department-of-homeland-security, dc, delivery-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $3.7 million to STEAMPUNK, INC.. MICROSOFT OFFICE 365 (O365) TENANT

Who is the contractor on this award?

The obligated recipient is STEAMPUNK, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of the Inspector General).

What is the total obligated amount?

The obligated amount is $3.7 million.

What is the period of performance?

Start: 2023-09-19. End: 2026-09-18.

What specific O365 services are included in this contract, and how do they align with DHS's strategic IT goals?

The provided data identifies the contract as being for a 'MICROSOFT OFFICE 365 (O365) TENANT' and falls under 'Computer Systems Design Services'. While this indicates management and support of the O365 environment, specific service details like email, collaboration tools, security features, or user support are not itemized. Alignment with DHS's strategic IT goals would depend on whether these services directly contribute to modernization, cybersecurity enhancement, or improved operational efficiency as outlined in their IT strategy documents.

How does the $3.7M award compare to industry benchmarks for managing a federal O365 tenant of similar size and complexity?

Benchmarking this $3.7M award requires understanding the number of users, the specific O365 licenses procured (e.g., E3, E5), and the level of managed services included. Federal IT contracts for O365 tenant management can range significantly. Without these specifics, it's difficult to definitively state if it's high or low. However, for a large agency like DHS, $3.7M over three years for comprehensive tenant management and support is likely within a reasonable range, assuming robust service delivery.

What performance metrics are being used to evaluate Steampunk, Inc.'s delivery of O365 tenant services, and what are the consequences for underperformance?

The provided data does not specify the performance metrics or Key Performance Indicators (KPIs) established for this contract. Effective oversight would require clearly defined metrics related to uptime, security incident response times, user support resolution rates, and compliance adherence. The contract terms should also outline remedies or penalties for Steampunk, Inc. if these performance standards are not met, ensuring accountability and value for taxpayer dollars.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70VT1523Q00021

Offers Received: 7

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 1753 PINNACLE DR STE 900, MC LEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,120,330

Exercised Options: $3,700,803

Current Obligation: $3,700,803

Actual Outlays: $1,938,863

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA20D005E

IDV Type: FSS

Timeline

Start Date: 2023-09-19

Current End Date: 2026-09-18

Potential End Date: 2028-09-18 00:00:00

Last Modified: 2026-01-30

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