Microsoft Enterprise Agreement awarded to Minburn Technology Group for $3.76M, covering IT services through April 2026
Contract Overview
Contract Amount: $3,761,678 ($3.8M)
Contractor: Minburn Technology Group, LLC
Awarding Agency: Department of Energy
Start Date: 2024-05-01
End Date: 2026-04-30
Contract Duration: 729 days
Daily Burn Rate: $5.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 15
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MICROSOFT ENTERPRISE AGREEMENT
Place of Performance
Location: OAK RIDGE, ANDERSON County, TENNESSEE, 37830
Plain-Language Summary
Department of Energy obligated $3.8 million to MINBURN TECHNOLOGY GROUP, LLC for work described as: MICROSOFT ENTERPRISE AGREEMENT Key points: 1. The contract value represents a significant investment in enterprise software licensing and support. 2. Competition was full and open after exclusion of sources, suggesting a deliberate procurement process. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance is benchmarked against similar enterprise software agreements for government agencies. 5. This agreement positions the Department of Energy to leverage Microsoft's suite of productivity and cloud services. 6. The duration of 729 days indicates a medium-term commitment to these IT services.
Value Assessment
Rating: good
The contract value of $3.76 million for a 2-year Microsoft Enterprise Agreement appears reasonable when benchmarked against similar government-wide agreements for enterprise software. While specific per-unit costs for individual licenses are not detailed, the overall price reflects the comprehensive nature of enterprise-level software and support. The firm-fixed-price structure provides cost certainty, which is a positive indicator of value. Further analysis would require comparing the specific software modules and support levels included against market rates for comparable organizations.
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.' This indicates that while the competition was intended to be broad, there may have been specific criteria or prior exclusions that narrowed the field. The presence of 15 bids suggests a healthy level of competition, which generally leads to better price discovery and potentially more favorable terms for the government. The exclusion of sources warrants further investigation to understand if it limited the competitive landscape unduly.
Taxpayer Impact: A competitive bidding process, even with exclusions, is beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and terms, ultimately driving down costs and improving service quality.
Public Impact
The Department of Energy benefits from access to updated Microsoft software and support, enhancing employee productivity and IT infrastructure. Employees across the Department of Energy will utilize the licensed software for daily operations, data management, and communication. The geographic impact is national, supporting DOE operations across all its facilities. Workforce implications include enabling federal employees with modern digital tools and potentially requiring training on new software features.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with enterprise software agreements.
- The 'exclusion of sources' clause could limit broader market competition.
- Reliance on a single vendor for critical enterprise software.
Positive Signals
- Firm-fixed-price contract provides cost predictability.
- Multiple bids received indicate a competitive process.
- Standardized enterprise agreement simplifies IT management.
Sector Analysis
The IT services sector, particularly enterprise software licensing and support, is a significant area of federal spending. This contract falls under the broader category of IT services, specifically focusing on software and related support. The market is dominated by a few large providers, making enterprise agreements a common procurement vehicle for agencies seeking comprehensive solutions. Comparable spending benchmarks for similar enterprise agreements across federal agencies would typically range from hundreds of thousands to millions of dollars annually, depending on agency size and software needs.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The prime contractor, Minburn Technology Group, LLC, is a small business, which is a positive signal for small business participation. However, the contract itself is not set aside for small businesses. There is no explicit information on subcontracting plans, but given the prime contractor's size, there may be opportunities for other small businesses to participate in subcontracting roles, depending on the scope of work and Minburn's strategy.
Oversight & Accountability
Oversight for this contract will primarily reside with the Department of Energy's contracting officers and program managers. The firm-fixed-price nature of the award provides a degree of financial oversight by limiting cost variability. Transparency is facilitated through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected or reported.
Related Government Programs
- General Services Administration (GSA) IT Schedule contracts
- Enterprise Software Licenses
- Cloud Computing Services
- IT Support Services
Risk Flags
- Potential for limited competition due to source exclusion.
- Need for clear performance metrics to ensure value delivery.
- Risk of vendor lock-in with enterprise software.
Tags
it-services, software-licensing, microsoft, enterprise-agreement, department-of-energy, firm-fixed-price, full-and-open-competition, delivery-order, tennessee, medium-sized-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $3.8 million to MINBURN TECHNOLOGY GROUP, LLC. MICROSOFT ENTERPRISE AGREEMENT
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 $3.8 million.
What is the period of performance?
Start: 2024-05-01. End: 2026-04-30.
What is the track record of Minburn Technology Group, LLC in delivering similar enterprise IT solutions to federal agencies?
Minburn Technology Group, LLC has a track record of providing IT services to federal agencies. While specific details on past enterprise agreements of this scale are not immediately available in the provided data, their presence as a prime contractor suggests experience. Further investigation into their contract history, client testimonials, and past performance evaluations would be necessary to fully assess their capabilities in delivering complex enterprise IT solutions. Their status as a small business prime contractor is notable and may influence their approach to project execution and client relations.
How does the $3.76 million contract value compare to similar Microsoft Enterprise Agreements awarded by other federal agencies?
The $3.76 million value for a two-year Microsoft Enterprise Agreement is within a typical range for federal agencies of moderate to large size. Agencies like the Department of Defense or the Department of Homeland Security often award much larger, multi-year enterprise agreements that can reach tens or hundreds of millions of dollars due to their extensive user bases and complex IT requirements. For an agency like the Department of Energy, this value suggests a comprehensive licensing package covering a significant portion of its workforce, but likely not the entirety of its IT infrastructure spending. Benchmarking against agencies of similar size and mission scope would provide a more precise comparison.
What are the primary risks associated with this firm-fixed-price contract for Microsoft Enterprise Agreement services?
The primary risks associated with this firm-fixed-price contract are minimal in terms of cost overruns, as the price is fixed. However, risks can emerge if the scope of work is not clearly defined, leading to potential disputes over deliverables or if the government's needs evolve significantly beyond what the agreement covers. Another risk is the potential for the vendor to under-deliver on service quality or support if not adequately monitored, despite the fixed price. Ensuring robust performance metrics and oversight is crucial to mitigate these risks and ensure the government receives the intended value.
How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring optimal value for taxpayers?
The 'Full and Open Competition After Exclusion of Sources' method aims to balance broad competition with specific agency needs. By excluding certain sources, the agency might be targeting vendors with particular capabilities or existing relationships, potentially streamlining the process. However, this exclusion inherently limits the competitive pool. If the exclusions are not well-justified or are overly broad, it could reduce price pressure and potentially lead to higher costs for taxpayers compared to unrestricted full and open competition. The receipt of 15 bids suggests that, in this instance, sufficient competition was maintained despite the exclusions.
What are the historical spending patterns for Microsoft Enterprise Agreements within the Department of Energy?
Historical spending patterns for Microsoft Enterprise Agreements within the Department of Energy (DOE) are not detailed in the provided data. To assess this, one would need to examine past DOE contracts for similar software licensing and support. Analyzing trends in contract values, durations, and awarded vendors over several fiscal years would reveal whether this $3.76 million award represents an increase, decrease, or stable level of investment in Microsoft enterprise solutions. Understanding historical spending can help identify potential cost efficiencies or areas where spending has escalated.
What are the implications of the 729-day contract duration on the Department of Energy's IT strategy and flexibility?
A 729-day (approximately 2-year) duration for a Microsoft Enterprise Agreement provides a stable period for the Department of Energy (DOE) to leverage its software suite without frequent re-procurement cycles. This allows for consistent access to productivity tools and IT infrastructure, supporting long-term planning and project execution. However, it also implies a degree of commitment that might limit flexibility if the DOE's strategic IT needs shift rapidly or if disruptive new technologies emerge during the contract period. The fixed duration necessitates careful consideration of future technological advancements and potential renegotiation or new procurement strategies towards the end of the term.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 15
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: $7,244,997
Exercised Options: $3,910,657
Current Obligation: $3,761,678
Actual Outlays: $3,612,281
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SD34B
IDV Type: GWAC
Timeline
Start Date: 2024-05-01
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2026-01-26
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