DOE awards $1.36M for Microsoft licenses via non-competed BPA call to Minburn Technology Group
Contract Overview
Contract Amount: $1,359,182 ($1.4M)
Contractor: Minburn Technology Group, LLC
Awarding Agency: Department of Energy
Start Date: 2024-05-31
End Date: 2027-05-01
Contract Duration: 1,065 days
Daily Burn Rate: $1.3K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: THE U.S. ENERGY INFORMATION ADMINISTRATION OFFICE OF RESOURCES & TECHNOLOGY MANAGEMENT OFFICE OF ACQUISITION MANAGEMENT IS ISSUING A BPA CALL UNDER DOES BPA NASA SEWP NNG15SD34B 89303024AIM000021 TO PROCURE MICROSOFT ENTERPRISE LICENSES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $1.4 million to MINBURN TECHNOLOGY GROUP, LLC for work described as: THE U.S. ENERGY INFORMATION ADMINISTRATION OFFICE OF RESOURCES & TECHNOLOGY MANAGEMENT OFFICE OF ACQUISITION MANAGEMENT IS ISSUING A BPA CALL UNDER DOES BPA NASA SEWP NNG15SD34B 89303024AIM000021 TO PROCURE MICROSOFT ENTERPRISE LICENSES Key points: 1. Contract awarded under an existing NASA SEWP BPA, suggesting a streamlined procurement process. 2. The award represents a small portion of overall federal spending on enterprise software licenses. 3. Limited competition raises questions about potential overpayment and optimal value for taxpayer funds. 4. The contract duration of nearly three years provides stability for software access. 5. Focus on Microsoft licenses indicates a reliance on a dominant software vendor within the agency.
Value Assessment
Rating: fair
The contract value of $1.36 million for Microsoft enterprise licenses over approximately 3 years appears within a reasonable range for federal agencies. However, without specific details on the exact software suite and user count, a precise value-for-money assessment is challenging. Benchmarking against similar, competitively awarded Microsoft enterprise agreements would provide a clearer picture of whether the pricing reflects market rates or potential premium due to limited competition.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was issued as a BPA Call under an existing NASA SEWP BPA, which itself was likely competed. However, the specific call to Minburn Technology Group was not competed under SAP (Simplified Acquisition Procedures), indicating a sole-source or limited competition award at this stage. This approach bypasses a fresh competitive process for this specific requirement, potentially limiting price discovery.
Taxpayer Impact: The lack of direct competition for this BPA call means taxpayers may not benefit from the most aggressive pricing that could have been achieved through a fully open solicitation.
Public Impact
Federal employees within the Department of Energy will benefit from continued access to essential Microsoft enterprise software. The services delivered include the procurement and management of Microsoft software licenses. The geographic impact is primarily within the District of Columbia, where the agency is headquartered. Workforce implications are minimal, as this contract focuses on software licensing rather than direct IT services requiring new personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of open competition for this specific BPA call may lead to suboptimal pricing.
- Reliance on a single vendor for enterprise licenses can create long-term dependency and limit flexibility.
- The specific software suite and user count are not detailed, making it difficult to assess the true value.
Positive Signals
- Leveraging an existing NASA SEWP BPA streamlines the procurement process.
- The contract provides a defined period for software access, ensuring operational continuity.
- Minburn Technology Group is likely experienced in fulfilling federal IT requirements.
Sector Analysis
The federal IT services sector, particularly software licensing, is a significant area of government spending. This contract falls under the 'Other Computer Related Services' NAICS code, which encompasses a broad range of IT support and services. The market for enterprise software licenses, especially for major vendors like Microsoft, is characterized by large contracts and established vendor relationships. This award is a typical example of how agencies procure necessary software through established frameworks like NASA SEWP.
Small Business Impact
The data indicates this contract was not competed under SAP and the small business set-aside flag is false. Therefore, there is no direct indication of small business participation or subcontracting requirements tied to this specific award. The primary contractor, Minburn Technology Group, LLC, is a small business, which is a positive signal for small business prime participation, but the lack of competition limits broader small business subcontracting opportunities.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Energy's internal procurement and financial management offices. As it's a BPA Call under a larger NASA SEWP BPA, NASA's oversight mechanisms for the parent BPA would also be relevant. Transparency is moderate, as the award is publicly visible, but detailed justifications for the non-competed nature and specific pricing breakdowns are not readily available without further inquiry.
Related Government Programs
- NASA SEWP (Solutions for Enterprise-Wide Procurement)
- Federal Enterprise Software Licensing
- Microsoft Enterprise Agreements
- Department of Energy IT Procurement
Risk Flags
- Lack of Competition
- Potential for Overpricing
- Vendor Lock-in
Tags
energy, department-of-energy, microsoft-licenses, enterprise-software, bpa-call, not-competed, sole-source, minburn-technology-group, district-of-columbia, it-services, firm-fixed-price
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $1.4 million to MINBURN TECHNOLOGY GROUP, LLC. THE U.S. ENERGY INFORMATION ADMINISTRATION OFFICE OF RESOURCES & TECHNOLOGY MANAGEMENT OFFICE OF ACQUISITION MANAGEMENT IS ISSUING A BPA CALL UNDER DOES BPA NASA SEWP NNG15SD34B 89303024AIM000021 TO PROCURE MICROSOFT ENTERPRISE 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 Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $1.4 million.
What is the period of performance?
Start: 2024-05-31. End: 2027-05-01.
What specific Microsoft enterprise licenses are being procured under this BPA call, and what is the user count?
The provided data does not specify the exact Microsoft enterprise licenses (e.g., Office 365 E3/E5, Windows Server CALs, Azure credits) or the total number of users covered by this BPA call. This information is crucial for a detailed value assessment, as different license types and user volumes have vastly different cost implications. Without this granularity, it's difficult to benchmark the $1.36 million against industry standards or compare it effectively to other federal agency procurements for similar software suites.
What is the justification for not competing this BPA call under SAP, given the contract value?
The data states the contract was 'NOT COMPETED UNDER SAP'. While the underlying NASA SEWP BPA was likely competed, this specific call was not. Agencies may choose not to compete BPA calls if the requirement is a direct continuation of services or products previously procured under the parent BPA, or if there's a specific justification for a sole-source award (e.g., unique compatibility, urgent need, or if the contractor is the only source). However, for a value of $1.36 million, a competitive process, even under SAP, would typically be expected to yield better pricing and broader vendor engagement.
How does Minburn Technology Group's past performance and pricing compare to other vendors for similar Microsoft license procurements?
Assessing Minburn Technology Group's past performance and pricing requires access to more detailed contract history and performance evaluations, which are not included in the provided data. Generally, for federal IT procurements, agencies maintain performance records. To compare, one would need to look at other similar BPA calls or direct awards for Microsoft enterprise licenses issued by the Department of Energy or other agencies, analyze the pricing structures, and evaluate the performance feedback associated with the awarded contractors. Without this comparative data, it's challenging to definitively state how Minburn's offering stacks up.
What is the historical spending pattern for Microsoft licenses at the Department of Energy?
The provided data focuses on a single BPA call. To understand historical spending patterns for Microsoft licenses at the Department of Energy (DOE), one would need to analyze federal procurement databases (like FPDS or USASpending) for all contracts awarded by DOE for Microsoft software over several fiscal years. This analysis would reveal trends in spending, identify key vendors, track the evolution of license types procured, and highlight any shifts towards or away from specific licensing models (e.g., perpetual vs. subscription). This specific $1.36 million award should be viewed within that broader context.
Are there any identified risks associated with Minburn Technology Group as a contractor for this type of service?
The provided data does not contain specific risk flags or negative performance indicators for Minburn Technology Group related to this contract. Standard federal procurement processes involve vetting contractors. Risks could potentially arise from factors such as financial stability, past performance issues on other contracts, cybersecurity compliance, or delivery delays. A comprehensive risk assessment would involve reviewing contractor performance reports, any past audit findings, and the overall health of the company, none of which are detailed here. The primary risk highlighted by the data is the lack of competition.
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: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
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, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $2,247,417
Exercised Options: $1,359,182
Current Obligation: $1,359,182
Actual Outlays: $966,320
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 89303024AIM000021
IDV Type: BPA
Timeline
Start Date: 2024-05-31
Current End Date: 2027-05-01
Potential End Date: 2029-04-30 00:00:00
Last Modified: 2026-04-07
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