Department of Energy awards $10.1M for Microsoft products and services to Minburn Technology Group under a strategic marketplace BPA
Contract Overview
Contract Amount: $18,538,166 ($18.5M)
Contractor: Minburn Technology Group, LLC
Awarding Agency: Department of Energy
Start Date: 2024-04-29
End Date: 2026-04-28
Contract Duration: 729 days
Daily Burn Rate: $25.4K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THE PURPOSE OF THIS REQUISITION IS AS FOLLOWS: 1. ESTABLISH AN INITIAL DELIVERY ORDER FOR MICROSOFT PRODUCTS AND SERVICES ISSUED UNDER THE STRATEGIC MARKETPLACE NO. 89303024AIM000021. 2. PROVIDE FUNDING IN THE AMOUNT OF $10,122,290.10 TO CLIN 0000
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $18.5 million to MINBURN TECHNOLOGY GROUP, LLC for work described as: THE PURPOSE OF THIS REQUISITION IS AS FOLLOWS: 1. ESTABLISH AN INITIAL DELIVERY ORDER FOR MICROSOFT PRODUCTS AND SERVICES ISSUED UNDER THE STRATEGIC MARKETPLACE NO. 89303024AIM000021. 2. PROVIDE FUNDING IN THE AMOUNT OF $10,122,290.10 TO CLIN 0000 Key points: 1. The contract is for Microsoft products and services, indicating a reliance on established software ecosystems. 2. The award was made under a strategic marketplace BPA, suggesting an existing framework for procurement. 3. The contract duration is 729 days, providing a medium-term supply of necessary IT resources. 4. The fixed-price contract type aims to control costs and provide budget certainty. 5. The award to Minburn Technology Group, LLC, represents a specific vendor relationship for these IT needs.
Value Assessment
Rating: fair
The contract value of $10.1 million for Microsoft products and services over approximately two years appears to be within a reasonable range for enterprise-level IT procurements. However, without specific details on the exact products and services being procured (e.g., licenses, support, consulting), a precise value-for-money assessment is challenging. Benchmarking against similar large-scale Microsoft enterprise agreements or specific product bundles would be necessary for a more definitive evaluation of pricing and overall value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed under Simplified Acquisition Procedures (SAP) and is listed as 'NOT COMPETED UNDER SAP'. The award was made under a BPA Call, which implies it was likely a pre-competed vehicle. However, the specific competition for this particular delivery order is not detailed, and it is categorized as 'NOT COMPETED UNDER SAP', suggesting it may have been a sole-source or limited competition action within the BPA framework.
Taxpayer Impact: The lack of open competition for this specific delivery order means taxpayers may not have benefited from the potentially lower prices that could arise from a broader bidding process. This could lead to higher costs compared to a fully competed scenario.
Public Impact
The Department of Energy benefits from access to essential Microsoft products and services, supporting its operational and IT infrastructure. Federal employees within the Department of Energy will likely utilize these Microsoft products for daily tasks, data management, and communication. The services delivered will ensure the continued functionality and support of critical IT systems reliant on Microsoft software. The geographic impact is primarily within the District of Columbia, where the Department of Energy's headquarters are located.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific details on the Microsoft products and services procured makes it difficult to assess if the most cost-effective solutions were chosen.
- The 'NOT COMPETED UNDER SAP' designation raises questions about the extent of competition for this specific delivery order, potentially impacting price.
- Reliance on a single vendor (Microsoft) through a specific contractor can create long-term dependencies and limit flexibility.
Positive Signals
- The use of a Strategic Marketplace BPA suggests an established procurement vehicle, potentially streamlining the acquisition process.
- The Firm Fixed Price contract type provides cost certainty for the Department of Energy.
- The contract is awarded to Minburn Technology Group, LLC, indicating a specific, vetted vendor is providing the services.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on computer-related services and software. The IT services market is vast and highly competitive, with significant government spending allocated to software licenses, cloud services, and IT support. The Department of Energy's procurement of Microsoft products and services is a common practice across federal agencies, reflecting Microsoft's dominant position in the enterprise software market. Comparable spending benchmarks would involve analyzing other large federal contracts for Microsoft enterprise agreements or similar IT service procurements.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from this particular award. The primary contractor, Minburn Technology Group, LLC, is a small business, which is a positive signal for small business prime contracting, but the contract itself was not a small business set-aside.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Energy's contracting officers and program managers. The use of a BPA Call suggests that the underlying BPA likely has its own oversight mechanisms. Transparency is facilitated by public contract databases, but detailed performance metrics and specific oversight activities are not publicly detailed in this data. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- General Services Administration (GSA) Schedules
- Strategic Marketplace BPA
- Microsoft Enterprise Agreements
- Federal Civilian IT Procurement
- Department of Energy IT Services
Risk Flags
- Lack of detailed competition justification for a large award.
- Potential for vendor lock-in with reliance on specific Microsoft products.
- Limited transparency on specific products/services procured and their value.
Tags
it-services, microsoft-products, department-of-energy, bpa-call, firm-fixed-price, not-competed-under-sap, minburn-technology-group, district-of-columbia, strategic-marketplace, computer-related-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $18.5 million to MINBURN TECHNOLOGY GROUP, LLC. THE PURPOSE OF THIS REQUISITION IS AS FOLLOWS: 1. ESTABLISH AN INITIAL DELIVERY ORDER FOR MICROSOFT PRODUCTS AND SERVICES ISSUED UNDER THE STRATEGIC MARKETPLACE NO. 89303024AIM000021. 2. PROVIDE FUNDING IN THE AMOUNT OF $10,122,290.10 TO CLIN 0000
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 $18.5 million.
What is the period of performance?
Start: 2024-04-29. End: 2026-04-28.
What specific Microsoft products and services are included in this $10.1 million award, and how do their costs compare to market rates?
The provided data does not specify the exact Microsoft products and services covered by this $10.1 million award. It only states 'Microsoft Products and Services.' To assess value for money, a detailed breakdown of items such as software licenses (e.g., Windows, Office 365, server licenses), associated maintenance and support contracts, or any professional services (e.g., implementation, consulting) would be required. Benchmarking these specific items against publicly available Microsoft pricing, reseller quotes, or similar government contracts awarded through competitive processes would be necessary. Without this granular detail, it's impossible to definitively state if the pricing is competitive or represents good value for taxpayers.
What was the rationale for awarding this contract to Minburn Technology Group, LLC, under a 'NOT COMPETED UNDER SAP' status, especially given the significant dollar amount?
The contract was issued as a BPA Call under a Strategic Marketplace BPA (Contract Number 89303024AIM000021). The 'NOT COMPETED UNDER SAP' designation, combined with it being a BPA Call, suggests that the underlying BPA itself was competed, and Minburn Technology Group, LLC, was awarded a position on that BPA. This specific delivery order was then placed against that BPA. The rationale for not further competing this specific call under SAP likely stems from the terms of the BPA, which may allow for direct awards or limited competition for specific requirements if certain criteria are met. However, the exact justification for not conducting a broader competition for this $10.1 million order within the BPA framework is not detailed in the provided data.
How does the $10.1 million award for Microsoft products and services compare to the Department of Energy's historical spending on similar IT procurements?
Analyzing the Department of Energy's historical spending on similar IT procurements requires access to detailed historical contract data. This $10.1 million award for Microsoft products and services represents a significant, but not necessarily unusual, IT expenditure for a large federal agency. Federal agencies commonly spend millions on software licenses, support, and related services, particularly for widely used platforms like Microsoft's. To provide a comparative context, one would need to examine past awards for Microsoft software, IT services, or similar enterprise-level IT solutions made by the Department of Energy over several fiscal years. This would help determine if this award is an outlier, a consistent level of spending, or an increase/decrease compared to previous trends.
What are the potential risks associated with awarding a large contract for IT services to a single vendor like Minburn Technology Group, LLC, even if it's through a BPA?
Potential risks associated with awarding a large contract through a BPA to a single vendor include vendor lock-in, where the agency becomes heavily reliant on that specific vendor and their offerings, making it difficult or costly to switch providers. There's also the risk of price increases over time if competition is limited or absent in subsequent calls. Furthermore, the agency's ability to leverage the broader market for innovation or better pricing might be curtailed. While Minburn Technology Group, LLC, is a small business, the concentration of a $10.1 million spend could still pose these risks if not managed carefully through ongoing performance monitoring and periodic re-evaluation of the procurement strategy.
What performance metrics or oversight mechanisms are in place to ensure Minburn Technology Group, LLC, delivers satisfactory Microsoft products and services for the $10.1 million contract?
The provided data does not detail specific performance metrics or oversight mechanisms for this contract. Typically, federal contracts include clauses for performance standards, delivery schedules, and quality assurance. The Department of Energy's contracting officer and program managers are responsible for overseeing contract performance, ensuring deliverables meet requirements, and managing payments. For IT services, this often involves tracking service level agreements (SLAs), ensuring timely delivery of licenses or support, and addressing any issues that arise. Formal acceptance of deliverables and periodic performance reviews are standard oversight practices, though the specifics for this contract are not publicly available.
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: $51,202,194
Exercised Options: $20,821,081
Current Obligation: $18,538,166
Actual Outlays: $18,523,621
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 89303024AIM000021
IDV Type: BPA
Timeline
Start Date: 2024-04-29
Current End Date: 2026-04-28
Potential End Date: 2029-04-28 00:00:00
Last Modified: 2026-03-20
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