HUD Awards $64M for Microsoft Enterprise Agreement and Azure to Minburn Technology Group
Contract Overview
Contract Amount: $64,077,483 ($64.1M)
Contractor: Minburn Technology Group, LLC
Awarding Agency: Department of Housing and Urban Development
Start Date: 2022-12-01
End Date: 2026-03-31
Contract Duration: 1,216 days
Daily Burn Rate: $52.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MICROSOFT ENTERPRISE AGREEMENT AND MICROSOFT AZURE
Place of Performance
Location: GREAT FALLS, FAIRFAX County, VIRGINIA, 22066
State: Virginia Government Spending
Plain-Language Summary
Department of Housing and Urban Development obligated $64.1 million to MINBURN TECHNOLOGY GROUP, LLC for work described as: MICROSOFT ENTERPRISE AGREEMENT AND MICROSOFT AZURE Key points: 1. Significant contract value for enterprise software and cloud services. 2. Competition method suggests potential for better pricing through open bidding. 3. Risk of vendor lock-in with major software providers. 4. IT services sector with substantial government spending.
Value Assessment
Rating: fair
The contract value of $64M over approximately 4 years is substantial. Benchmarking against similar enterprise agreements for Microsoft products is difficult without specific service details, but the price appears within a typical range for large-scale deployments.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may not yield the most competitive pricing compared to unrestricted full and open competition.
Taxpayer Impact: The pricing impact on taxpayers is uncertain due to the limited competition, but a more open process could have potentially driven down costs.
Public Impact
Federal agencies rely heavily on Microsoft software and Azure cloud services for operations. This agreement ensures continued access to essential IT infrastructure for HUD. Potential for cost savings or increased efficiency through consolidated licensing and cloud adoption.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to higher costs.
- Dependence on a single vendor for critical IT services.
- Potential for scope creep and unmanaged costs in cloud services.
Positive Signals
- Consolidated enterprise agreement can simplify procurement.
- Leverages established Microsoft ecosystem for productivity.
- Supports cloud migration strategy.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on software licensing and cloud computing services. Government spending on IT, particularly cloud services, has been steadily increasing as agencies modernize.
Small Business Impact
The contract was awarded to MINBURN TECHNOLOGY GROUP, LLC. Further analysis is needed to determine the extent of small business participation as a subcontractor on this agreement.
Oversight & Accountability
The Department of Housing and Urban Development is responsible for overseeing this contract. Standard oversight mechanisms for IT contracts, including performance monitoring and financial reviews, should be in place.
Related Government Programs
- Other Computer Related Services
- Department of Housing and Urban Development Contracting
- Department of Housing and Urban Development Programs
Risk Flags
- Limited competition may result in suboptimal pricing.
- Potential for vendor lock-in with Microsoft's ecosystem.
- Complexity in managing cloud spend and ensuring cost-efficiency.
- Reliance on a single vendor for critical IT infrastructure.
- Need for clear performance metrics and service level agreements.
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 $64.1 million to MINBURN TECHNOLOGY GROUP, LLC. MICROSOFT ENTERPRISE AGREEMENT AND MICROSOFT AZURE
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 $64.1 million.
What is the period of performance?
Start: 2022-12-01. End: 2026-03-31.
What is the specific breakdown of costs between the Enterprise Agreement and Azure services?
The provided data does not specify the cost allocation between the Microsoft Enterprise Agreement (licensing) and Microsoft Azure (cloud services). A detailed breakdown would be crucial for understanding where the majority of the $64M is allocated and for assessing the value of each component independently.
Were there any specific justifications provided for excluding other sources during the competition?
The data indicates 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a justification was made to limit the pool of potential bidders. Understanding the nature of this exclusion (e.g., specific technical requirements, existing infrastructure compatibility) is key to evaluating if it was necessary and fair.
How does the per-user or per-service cost compare to industry benchmarks for similar government contracts?
Without granular data on the specific Microsoft licenses and Azure services included, a precise per-unit cost benchmark is not feasible. However, the overall value of $64M for a multi-year enterprise agreement and cloud services for a large agency like HUD is substantial and warrants detailed cost-benefit analysis against comparable government-wide agreements or agency-specific procurements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - COMPUTE
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 86615423Q00001
Offers Received: 2
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: $64,077,483
Exercised Options: $64,077,483
Current Obligation: $64,077,483
Actual Outlays: $54,533,088
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SD34B
IDV Type: GWAC
Timeline
Start Date: 2022-12-01
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2025-11-26
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