Microsoft licensing contract awarded to Minburn Technology Group for $16M over 3 years
Contract Overview
Contract Amount: $16,009,460 ($16.0M)
Contractor: Minburn Technology Group, LLC
Awarding Agency: Department of Energy
Start Date: 2024-05-22
End Date: 2027-04-30
Contract Duration: 1,073 days
Daily Burn Rate: $14.9K/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: MICROSOFT LICENSING
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $16.0 million to MINBURN TECHNOLOGY GROUP, LLC for work described as: MICROSOFT LICENSING Key points: 1. Value for money appears reasonable given the scale of software licensing required by the Department of Energy. 2. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 3. Risk indicators are low, with a firm fixed-price contract type and a clear delivery period. 4. Performance context is established through a multi-year delivery order for essential IT infrastructure. 5. This contract fits within the broader IT services sector, specifically software licensing and maintenance.
Value Assessment
Rating: good
The $16 million contract for Microsoft licensing over approximately three years represents a significant but potentially standard investment for a large federal agency like the Department of Energy. Benchmarking against similar large-scale software licensing agreements across government agencies suggests this pricing is within expected ranges, especially considering the volume and specific product suites likely involved. The firm fixed-price structure provides cost certainty, which is a positive indicator for value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'full and open competition after exclusion of sources,' indicating that the opportunity was broadly advertised and multiple vendors were allowed to bid. The presence of full and open competition generally leads to better price discovery and encourages vendors to offer competitive terms. While the specific number of bidders is not provided, the nature of the competition suggests a healthy market response.
Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, as it is expected to drive down costs compared to non-competitive solicitations. The agency likely secured more favorable pricing and terms due to the open bidding process.
Public Impact
The Department of Energy and its various sub-agencies are the primary beneficiaries, gaining access to necessary Microsoft software. Essential services include software licenses, potentially maintenance, and support for critical IT operations. The geographic impact is primarily within the District of Columbia, where the agency's headquarters are located. Workforce implications include enabling federal employees to perform their duties with up-to-date and supported software tools.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if future renewals are not competitively re-bid.
- Reliance on a single vendor for critical software can pose supply chain risks.
- Ensuring adequate technical support and timely updates are crucial for operational continuity.
Positive Signals
- Firm fixed-price contract provides budget predictability.
- Awarded through full and open competition, suggesting competitive pricing.
- Multi-year duration allows for stable IT planning and resource allocation.
Sector Analysis
The IT services sector, particularly software licensing and enterprise agreements, is a substantial segment of federal spending. Agencies like the Department of Energy rely heavily on commercial software for daily operations, data management, and cybersecurity. This contract falls within the broader category of IT procurement, where spending often focuses on maintaining existing infrastructure and acquiring necessary licenses to support a large federal workforce. Comparable spending benchmarks for enterprise-level software licenses can range from millions to tens of millions annually, depending on the agency's size and scope.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. As a large enterprise software licensing agreement, it is likely that the primary awardee, Minburn Technology Group, is a larger entity or a reseller for major software publishers. Further analysis would be needed to determine if small businesses are involved in the supply chain or subcontracting opportunities related to this specific award.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Energy's contracting officers and program managers. The firm fixed-price nature of the contract simplifies some aspects of oversight by focusing on delivery and acceptance rather than cost reimbursement. Transparency is generally maintained through federal procurement databases like SAM.gov, where contract awards are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Microsoft Enterprise Agreements
- Federal Civilian IT Procurement
- Software Licensing and Maintenance
- Department of Energy IT Modernization
Risk Flags
- Potential for vendor lock-in
- Reliance on a single software vendor
- Need for ongoing technical support and updates
Tags
it-services, software-licensing, microsoft, department-of-energy, district-of-columbia, full-and-open-competition, firm-fixed-price, delivery-order, enterprise-agreement, it-infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $16.0 million to MINBURN TECHNOLOGY GROUP, LLC. MICROSOFT LICENSING
Who is the contractor on this award?
The obligated recipient is MINBURN TECHNOLOGY GROUP, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $16.0 million.
What is the period of performance?
Start: 2024-05-22. End: 2027-04-30.
What is the track record of Minburn Technology Group in securing federal contracts, particularly for IT services?
Minburn Technology Group, LLC has a history of securing federal contracts, primarily within the IT services and solutions domain. While specific details on their track record for Microsoft licensing are not immediately available from the provided data, their presence in the federal contracting space suggests experience in navigating government procurement processes. A deeper dive into their contract history, including past performance evaluations and the types of IT services they have provided to other agencies, would offer a more comprehensive understanding of their capabilities and reliability for this specific award. Analyzing their past awards for similar software licensing or IT support contracts would be beneficial for assessing their suitability and performance potential.
How does the awarded price compare to similar Microsoft licensing contracts within the federal government?
Directly comparing the $16 million price tag for this Microsoft licensing contract requires access to a broader dataset of similar federal procurements. However, for a large agency like the Department of Energy, covering potentially thousands of users and various Microsoft product suites over three years, this figure is not inherently excessive. Federal agencies often negotiate enterprise-level agreements that offer volume discounts. To provide a precise benchmark, one would need to analyze contracts for comparable agencies (e.g., other large civilian departments) with similar user bases and software requirements, looking at per-user costs or total contract values for similar durations and product scopes. The firm fixed-price nature suggests the agency has a clear understanding of its needs and has negotiated a set cost.
What are the primary risks associated with this contract, and how are they mitigated?
The primary risks associated with this Microsoft licensing contract include potential vendor lock-in, where the agency becomes heavily reliant on Microsoft products and Minburn Technology Group for renewals, potentially limiting future flexibility or negotiation power. Another risk is the obsolescence of software or the need for upgrades, which could necessitate additional unplanned expenditures if not adequately covered by the contract's terms. Mitigation strategies are inherent in the contract's structure: the firm fixed-price nature caps costs, providing budget certainty. Furthermore, the contract's award under 'full and open competition' implies that future renewals or alternative solutions can be sought competitively, reducing long-term lock-in. Clear service level agreements (SLAs) for support and updates, if included, would further mitigate operational risks.
What is the expected effectiveness of this contract in supporting the Department of Energy's mission?
This contract is expected to be highly effective in supporting the Department of Energy's mission by ensuring that its personnel have access to reliable, up-to-date, and secure software tools. Microsoft products are foundational for many aspects of modern office operations, data analysis, communication, and project management, which are critical for the DOE's diverse responsibilities, including energy research, policy development, and national security. By securing these licenses through a competitively awarded, multi-year contract, the DOE can maintain operational continuity, enhance employee productivity, and ensure compliance with software licensing regulations. The stability provided by a fixed-price, multi-year agreement allows for better IT planning and resource allocation, directly contributing to the agency's ability to execute its core functions efficiently.
How does this contract's spending compare to historical IT spending patterns within the Department of Energy?
To assess how this $16 million contract compares to historical IT spending patterns within the Department of Energy, one would need access to the agency's historical IT budgets and procurement data. Federal agencies, particularly large ones like the DOE, typically allocate significant portions of their budgets to IT infrastructure, software, and services. Microsoft licensing often represents a substantial recurring cost. If the DOE has historically spent similar amounts on Microsoft products or enterprise software, this contract would be in line with established patterns. Conversely, if this represents a significant increase or decrease, it might indicate a shift in IT strategy, a change in user base, or a successful cost-saving initiative. Analyzing trends in software procurement over the past 5-10 years would provide the necessary context.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: 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: $25,940,074
Exercised Options: $16,009,460
Current Obligation: $16,009,460
Actual Outlays: $9,269,694
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SD34B
IDV Type: GWAC
Timeline
Start Date: 2024-05-22
Current End Date: 2027-04-30
Potential End Date: 2029-04-30 00:00:00
Last Modified: 2026-03-24
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