DOE awards $4.35M for Microsoft Enterprise Licenses via NASA SEWP GWAC, highlighting IT infrastructure needs
Contract Overview
Contract Amount: $4,354,730 ($4.4M)
Contractor: Minburn Technology Group, LLC
Awarding Agency: Department of Energy
Start Date: 2024-05-30
End Date: 2027-04-30
Contract Duration: 1,065 days
Daily Burn Rate: $4.1K/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: PURCHASE OF MICROSOFT ENTERPRISE LICENSE AGREEMENT VIA THE MS ELA MARKETPLACE ON THE NASA SEWP GWAC
Place of Performance
Location: MORGANTOWN, MONONGALIA County, WEST VIRGINIA, 26505
Plain-Language Summary
Department of Energy obligated $4.4 million to MINBURN TECHNOLOGY GROUP, LLC for work described as: PURCHASE OF MICROSOFT ENTERPRISE LICENSE AGREEMENT VIA THE MS ELA MARKETPLACE ON THE NASA SEWP GWAC Key points: 1. Contract leverages existing NASA SEWP GWAC, suggesting efficient procurement for IT services. 2. Focus on enterprise software licenses indicates a need for standardized IT solutions across the agency. 3. The firm-fixed-price structure provides cost certainty for the Department of Energy. 4. Delivery Order award mechanism implies this is part of a larger, pre-established agreement. 5. The contract duration of over two years suggests a sustained requirement for these software licenses. 6. Limited competition noted, potentially impacting price negotiation and value for money. 7. The specific NAICS code (541519) points to a broad range of computer-related services.
Value Assessment
Rating: fair
The contract value of $4.35 million for Microsoft enterprise licenses appears reasonable given the scope of enterprise-wide software agreements. Benchmarking against similar large-scale ELA procurements is challenging without more specific details on the exact software suite and user count. However, the use of a GWAC (NASA SEWP) generally implies a degree of pre-negotiated pricing and fair opportunity, which can contribute to value. The firm-fixed-price nature helps control costs, but the absence of detailed performance metrics makes a definitive value assessment difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' via the NASA SEWP GWAC. While SEWP itself is a competitive vehicle, the 'exclusion of sources' phrasing suggests that not all potential vendors were considered, or that specific conditions led to a narrowed field. The number of bidders is not specified, but the limited competition designation implies fewer than a full and open competition where any qualified vendor could bid. This could lead to less aggressive pricing.
Taxpayer Impact: Limited competition may result in higher prices for taxpayers compared to a fully open bid process, as the government may have fewer options to drive down costs through competitive pressure.
Public Impact
Federal employees within the Department of Energy will benefit from access to essential Microsoft software for their daily operations. The contract ensures the delivery of up-to-date Microsoft enterprise software licenses, supporting agency productivity and cybersecurity. The geographic impact is likely nationwide, supporting DOE operations across various locations. IT support staff and system administrators will be involved in the deployment and management of these licenses. This contract supports the agency's IT infrastructure, enabling critical government functions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition could lead to suboptimal pricing for taxpayers.
- Lack of detailed performance metrics makes it difficult to assess the true value for money.
- Reliance on a single vendor's enterprise agreement may create long-term dependency and potential future cost increases.
Positive Signals
- Leverages an existing, competitive GWAC (NASA SEWP) for efficient procurement.
- Firm-fixed-price contract provides budget certainty for the agency.
- Ensures access to essential software for agency operations and productivity.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on software licensing and related services. The market for enterprise software licenses, particularly for major vendors like Microsoft, is substantial and highly competitive among resellers and managed service providers. The use of a Government-Wide Acquisition Contract (GWAC) like NASA SEWP is a common strategy for federal agencies to procure IT solutions efficiently, often with pre-negotiated terms and pricing. Comparable spending benchmarks would involve analyzing other large enterprise software agreements across federal agencies, which often run into millions of dollars annually.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While the primary awardee is MINBURN TECHNOLOGY GROUP, LLC, which may be a small business, the contract type and the nature of enterprise software licensing often involve larger prime contractors. There is no explicit information on subcontracting plans for small businesses within this award. The impact on the small business ecosystem is likely minimal unless Minburn Technology Group actively subcontracts to smaller IT service providers.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Energy's contracting officers and program managers. As a Delivery Order under the NASA SEWP GWAC, there is an existing framework of oversight associated with the GWAC itself. Transparency is facilitated by the public availability of contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.
Related Government Programs
- NASA SEWP GWAC
- Microsoft Enterprise Agreements
- Federal IT Software Procurement
- Department of Energy IT Services
Risk Flags
- Limited Competition
- Potential for Vendor Lock-in
- Lack of Detailed Performance Metrics
Tags
it, software-licensing, microsoft, department-of-energy, nasa-sewp, gwac, delivery-order, firm-fixed-price, limited-competition, enterprise-agreement, west-virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $4.4 million to MINBURN TECHNOLOGY GROUP, LLC. PURCHASE OF MICROSOFT ENTERPRISE LICENSE AGREEMENT VIA THE MS ELA MARKETPLACE ON THE NASA SEWP GWAC
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 $4.4 million.
What is the period of performance?
Start: 2024-05-30. End: 2027-04-30.
What is the specific suite of Microsoft products covered by this Enterprise License Agreement?
The provided data does not specify the exact Microsoft products included in this Enterprise License Agreement (ELA). ELAs typically cover a broad range of Microsoft software, potentially including operating systems (e.g., Windows), productivity suites (e.g., Microsoft 365), server software, and development tools. To understand the full scope, one would need to review the detailed terms and conditions of the Delivery Order (DO) issued under the NASA SEWP GWAC. The specific software entitlements are crucial for assessing the value and necessity of the purchase.
How does the pricing of this ELA compare to other federal agencies or commercial entities for similar Microsoft products?
Direct price comparison is difficult without knowing the precise software suite, user counts, and specific licensing terms (e.g., perpetual vs. subscription, specific editions). However, the contract was awarded through the NASA SEWP GWAC, which is designed to offer competitive pricing for IT products and services. Agencies often negotiate discounts through ELAs based on volume and commitment. A benchmark analysis would require comparing the per-unit cost or total cost for equivalent Microsoft licenses procured by other large federal agencies or large commercial organizations, considering factors like negotiated discounts and contract vehicles used.
What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?
The provided summary data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. For software license agreements, KPIs might relate to software availability, patch management, or support response times if technical support is included. SLAs, if present, would define the expected level of service from the vendor regarding delivery, activation, or ongoing support. These details would typically be found within the full contract documentation or the Delivery Order itself, which are not fully detailed here.
What is the historical spending pattern for Microsoft Enterprise Licenses at the Department of Energy?
The provided data does not offer historical spending patterns for Microsoft Enterprise Licenses at the Department of Energy. To establish this, one would need to analyze past contract awards for similar software licenses over several fiscal years. This would involve searching federal procurement databases (like FPDS or USASpending.gov) for previous ELAs or large software purchases from Microsoft or its resellers by the DOE. Understanding historical spending helps in identifying trends, potential cost increases, and the overall IT budget allocation for software.
What is the risk associated with vendor lock-in given this is an Enterprise License Agreement?
Enterprise License Agreements (ELAs), particularly with major software vendors like Microsoft, inherently carry a risk of vendor lock-in. This occurs because ELAs often involve significant upfront investment and deep integration into an organization's IT infrastructure and workflows. Switching to a different software vendor later can be complex, costly, and disruptive. The Department of Energy, by entering into this ELA, commits to using Microsoft products for the duration of the agreement and potentially beyond, making it more challenging and expensive to adopt alternative solutions in the future.
How does the use of the NASA SEWP GWAC impact the overall cost and efficiency of this procurement?
Utilizing the NASA SEWP GWAC generally enhances both cost-efficiency and procurement speed. SEWP (Strategic Sourcing for the Acquisition of Technical Services) is a Government-Wide Acquisition Contract vehicle that has already undergone a competitive bidding process to establish pre-negotiated pricing and terms with numerous IT vendors. This means agencies like the Department of Energy can issue Delivery Orders against the GWAC without conducting their own lengthy full-and-open competition, saving time and administrative resources. The pre-negotiated pricing also aims to provide fair and reasonable costs, although specific pricing can vary based on the individual Delivery Order.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - END USER
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: $7,308,137
Exercised Options: $4,354,730
Current Obligation: $4,354,730
Actual Outlays: $2,901,371
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SD34B
IDV Type: GWAC
Timeline
Start Date: 2024-05-30
Current End Date: 2027-04-30
Potential End Date: 2029-04-30 00:00:00
Last Modified: 2026-03-11
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