NASA awards $33.26M for Microsoft M365 G5 licenses to Minburn Technology Group, LLC
Contract Overview
Contract Amount: $33,258,600 ($33.3M)
Contractor: Minburn Technology Group, LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2025-05-01
End Date: 2026-04-30
Contract Duration: 364 days
Daily Burn Rate: $91.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THIS TASK ORDER IS FOR MICROSOFT M365 G5 LICENSES PER ATTACHED QUOTE # MTG-NASA-MIC-05249 DATED 04/23/2025. THE TASK ORDER INCORPORATES FAR 52.217-9 OPTION TO EXTEND THE TERM OF THE CONTRACT.
Place of Performance
Location: GREAT FALLS, FAIRFAX County, VIRGINIA, 22066
State: Virginia Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $33.3 million to MINBURN TECHNOLOGY GROUP, LLC for work described as: THIS TASK ORDER IS FOR MICROSOFT M365 G5 LICENSES PER ATTACHED QUOTE # MTG-NASA-MIC-05249 DATED 04/23/2025. THE TASK ORDER INCORPORATES FAR 52.217-9 OPTION TO EXTEND THE TERM OF THE CONTRACT. Key points: 1. Spending focuses on essential software licenses for NASA operations. 2. Competition was full and open after exclusion of sources, suggesting a competitive process. 3. Risk is moderate, tied to vendor lock-in and potential price increases for future renewals. 4. The sector is IT services, specifically software licensing and support.
Value Assessment
Rating: fair
The price of $33.26M for Microsoft M365 G5 licenses over one year appears high. Benchmarking against similar large-scale government or enterprise Microsoft E5/G5 license procurements would be necessary for a definitive assessment, but this figure warrants scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition after exclusion of sources.' This implies that while the initial pool might have been narrowed, the final award was competitive. The pricing discovery mechanism is dependent on the specific bidding process used.
Taxpayer Impact: Taxpayer funds are used for essential software, but the high cost necessitates careful review to ensure value for money.
Public Impact
Ensures NASA personnel have access to critical productivity and security software. Supports agency-wide digital transformation and collaboration efforts. Potential for cost savings if negotiated effectively for multi-year terms or through volume discounts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High cost for software licenses
- Potential for price increases in future option periods
- Reliance on a single software vendor (Microsoft)
Positive Signals
- Procurement supports essential agency functions
- Competitive bidding process utilized
Sector Analysis
This procurement falls within the IT sector, specifically software licensing. Government spending on enterprise software like Microsoft 365 is substantial, with benchmarks varying widely based on license tiers, user counts, and contract vehicles.
Small Business Impact
Minburn Technology Group, LLC, is listed as the awardee. Further analysis would be needed to determine if this is a small business and if subcontracting opportunities were utilized or mandated.
Oversight & Accountability
The task order incorporates FAR 52.217-9, Option to Extend the Term, which requires careful monitoring to ensure continued justification and fair pricing if exercised. NASA's internal oversight should verify license utilization and cost-effectiveness.
Related Government Programs
- Other Computer Related Services
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- High total contract value
- Potential for vendor lock-in with Microsoft ecosystem
- Reliance on software licenses which can become obsolete or require frequent upgrades
- Option to extend term requires careful management to avoid price creep
Tags
other-computer-related-services, national-aeronautics-and-space-administr, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $33.3 million to MINBURN TECHNOLOGY GROUP, LLC. THIS TASK ORDER IS FOR MICROSOFT M365 G5 LICENSES PER ATTACHED QUOTE # MTG-NASA-MIC-05249 DATED 04/23/2025. THE TASK ORDER INCORPORATES FAR 52.217-9 OPTION TO EXTEND THE TERM OF THE CONTRACT.
Who is the contractor on this award?
The obligated recipient is MINBURN TECHNOLOGY GROUP, LLC.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $33.3 million.
What is the period of performance?
Start: 2025-05-01. End: 2026-04-30.
What is the specific breakdown of M365 G5 licenses being procured and the per-user cost?
The provided data does not detail the specific breakdown of Microsoft M365 G5 licenses or the per-user cost. The total award amount of $33.26M for a 364-day period suggests a significant number of users or a high per-user cost. A detailed license breakdown is crucial for validating the overall value and comparing it against industry benchmarks.
How does the per-unit cost compare to other federal agencies or commercial entities for similar Microsoft M365 G5 licenses?
Without the per-user cost or specific license SKUs, a direct comparison is difficult. However, the total contract value of $33.26M for one year for M365 G5 licenses is substantial. Agencies often leverage Enterprise License Agreements (ELAs) or specific government-wide contract vehicles to achieve better pricing. Benchmarking against these would reveal if NASA achieved competitive rates.
What is the justification for using 'full and open competition after exclusion of sources' for this specific software procurement?
The justification for 'full and open competition after exclusion of sources' typically arises when a specific product or service is required, and only certain sources can meet those needs, but the competition is still open among those qualified sources. For M365 G5, this might relate to specific integrations or existing infrastructure, but it warrants scrutiny to ensure it doesn't unduly restrict competition.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 9716 ARNON CHAPEL RD, GREAT FALLS, VA, 22066
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $99,775,800
Exercised Options: $33,258,600
Current Obligation: $33,258,600
Actual Outlays: $33,258,600
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SD34B
IDV Type: GWAC
Timeline
Start Date: 2025-05-01
Current End Date: 2026-04-30
Potential End Date: 2028-04-30 00:00:00
Last Modified: 2025-12-05
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