HUD awards $55.1M for Microsoft licenses to Minburn Technology Group via full and open competition
Contract Overview
Contract Amount: $55,124,050 ($55.1M)
Contractor: Minburn Technology Group, LLC
Awarding Agency: Department of Housing and Urban Development
Start Date: 2018-12-01
End Date: 2022-11-30
Contract Duration: 1,460 days
Daily Burn Rate: $37.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: DELIVERY ORDER FOR MICROSOFT LICENSES
Place of Performance
Location: GREAT FALLS, FAIRFAX County, VIRGINIA, 22066
State: Virginia Government Spending
Plain-Language Summary
Department of Housing and Urban Development obligated $55.1 million to MINBURN TECHNOLOGY GROUP, LLC for work described as: DELIVERY ORDER FOR MICROSOFT LICENSES Key points: 1. Significant contract value for software licensing. 2. Competition method indicates a potentially competitive market. 3. Risk is moderate, primarily related to software obsolescence and vendor lock-in. 4. IT sector spending, specifically software and IT services.
Value Assessment
Rating: fair
The contract value of $55.1M over four years suggests a substantial investment. Benchmarking against similar large-scale Microsoft license agreements is difficult without specific product details, but the price appears within a plausible range for extensive enterprise licensing.
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,' indicating that while sources were initially excluded, the final award was open. This method aims for best value and price discovery, though the exclusion phase warrants scrutiny.
Taxpayer Impact: Taxpayers benefit from competitive pricing, but the overall cost of $55.1M for software licenses represents a significant expenditure.
Public Impact
Ensures continued access to essential Microsoft software for HUD operations. Supports federal IT infrastructure modernization efforts. Potential for cost savings through competitive bidding on software renewals and upgrades.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific software details makes cost validation challenging.
- Potential for vendor lock-in with Microsoft products.
- Contract duration may outpace rapid technological advancements.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type provides cost certainty.
- Significant contract value may indicate economies of scale.
Sector Analysis
This contract falls within the IT sector, specifically software licensing and related services. Federal spending on software licenses is substantial, with agencies often consolidating purchases to achieve better pricing and manageability.
Small Business Impact
The data indicates this contract was not awarded to a small business (ss: false, sb: false). Larger IT service providers likely dominated the competition for this significant software licensing requirement.
Oversight & Accountability
The 'Full and Open Competition After Exclusion of Sources' method suggests a structured procurement process. However, oversight is needed to ensure the exclusion of sources was justified and that the final competition yielded the best value.
Related Government Programs
- Other Computer Related Services
- Department of Housing and Urban Development Contracting
- Department of Housing and Urban Development Programs
Risk Flags
- Lack of detailed product/quantity information.
- Potential for price inflation due to initial source exclusion.
- Risk of software obsolescence over the contract term.
- Dependency on a single vendor (Microsoft).
Tags
other-computer-related-services, department-of-housing-and-urban-developm, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Housing and Urban Development awarded $55.1 million to MINBURN TECHNOLOGY GROUP, LLC. DELIVERY ORDER FOR MICROSOFT LICENSES
Who is the contractor on this award?
The obligated recipient is MINBURN TECHNOLOGY GROUP, LLC.
Which agency awarded this contract?
Awarding agency: Department of Housing and Urban Development (Department of Housing and Urban Development).
What is the total obligated amount?
The obligated amount is $55.1 million.
What is the period of performance?
Start: 2018-12-01. End: 2022-11-30.
What specific Microsoft products and quantities were procured under this delivery order, and how does their cost compare to market rates for similar enterprise agreements?
The provided data lacks specifics on the exact Microsoft products, versions, and quantities. Without this granular detail, a precise cost comparison to market rates is impossible. However, the total value of $55.1M suggests a broad enterprise-level deployment, potentially including operating systems, productivity suites, and server software.
What were the reasons for excluding certain sources initially, and how did this exclusion impact the final pricing and competition?
The rationale for excluding specific sources prior to the 'full and open' phase is not detailed. Such exclusions can limit competition and potentially inflate prices if not based on legitimate technical or security requirements. Transparency regarding these exclusions is crucial for assessing the integrity of the price discovery process.
How effectively does this contract support HUD's mission-critical IT needs, and are there mechanisms for performance monitoring and contract adjustments?
This contract likely supports HUD's core IT functions by providing necessary software. The firm fixed price structure offers budget predictability. However, without details on performance metrics or user feedback, assessing effectiveness is difficult. Contract clauses for monitoring and potential adjustments would be key to ensuring ongoing alignment with mission needs.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 86543D19Q00009
Offers Received: 4
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: $55,124,050
Exercised Options: $55,124,050
Current Obligation: $55,124,050
Actual Outlays: $46,616,076
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SD34B
IDV Type: GWAC
Timeline
Start Date: 2018-12-01
Current End Date: 2022-11-30
Potential End Date: 2023-11-30 00:00:00
Last Modified: 2025-03-12
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