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
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
- Lack of detailed performance metrics in provided data.
- Potential for vendor lock-in with O365 services.
- Need for clear scope definition to prevent cost overruns.
Positive Signals
- Awarded under full and open competition.
- Clear contract duration and award amount.
- Supports essential government IT infrastructure.
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
- Computer Systems Design Services
- Department of Homeland Security Contracting
- Office of the Inspector General Programs
Risk Flags
- Potential for cost creep if scope is not tightly managed.
- Reliance on a single vendor for critical O365 services.
- Need for robust performance monitoring to ensure service quality.
- Limited visibility into specific service components and pricing breakdown.
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 Services › Computer Systems Design and Related Services › Computer 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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