DOE awards $353K for Microsoft Azure via BPA Call to Minburn Technology Group
Contract Overview
Contract Amount: $353,142 ($353.1K)
Contractor: Minburn Technology Group, LLC
Awarding Agency: Department of Energy
Start Date: 2025-04-23
End Date: 2026-04-30
Contract Duration: 372 days
Daily Burn Rate: $949/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: TO PLACE A CALL FOR MICROSOFT PRODUCT AZURE FROM AGENCY CATALOG 89303024AIM000021.
Place of Performance
Location: LAKEWOOD, JEFFERSON County, COLORADO, 80228
State: Colorado Government Spending
Plain-Language Summary
Department of Energy obligated $353,141.68 to MINBURN TECHNOLOGY GROUP, LLC for work described as: TO PLACE A CALL FOR MICROSOFT PRODUCT AZURE FROM AGENCY CATALOG 89303024AIM000021. Key points: 1. Spending on cloud services like Azure is a growing trend across federal agencies. 2. The award is a BPA Call, indicating it leverages an existing contract vehicle. 3. Lack of competition raises questions about price discovery and potential value. 4. The 'Other Computer Related Services' NAICS code is broad and could encompass various IT needs.
Value Assessment
Rating: questionable
The contract value of $353,141.68 for Azure services is difficult to assess without specific usage metrics or comparison to similar agency procurements. The 'NOT COMPETED UNDER SAP' status suggests a lack of direct price comparison.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not competed under Simplified Acquisition Procedures (SAP), implying it was likely placed against an existing Blanket Purchase Agreement (BPA). The limited competition method may not yield the best possible price for the government.
Taxpayer Impact: The lack of open competition could result in taxpayers paying more than necessary for these Microsoft Azure services.
Public Impact
Federal agencies increasingly rely on cloud services for IT infrastructure and operations. The use of BPA Calls streamlines procurement for commonly purchased items or services. Transparency in pricing for cloud services is crucial for ensuring taxpayer value. The specific services procured under this Azure call are not detailed, limiting public understanding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of detailed service description
- Potential for overpayment due to non-competitive award
Positive Signals
- Leverages existing BPA for efficiency
- Firm Fixed Price contract type provides cost certainty
Sector Analysis
The Department of Energy's spending on cloud services falls within the broader IT sector. Benchmarks for cloud service procurement vary widely based on service type (IaaS, PaaS, SaaS) and usage volume. This award's value is moderate for a single BPA call.
Small Business Impact
The awardee, Minburn Technology Group, LLC, is listed as a small business. However, the procurement method (BPA Call, not competed under SAP) limits the opportunity for other small businesses to compete on this specific task order.
Oversight & Accountability
The use of a BPA Call suggests that the underlying BPA likely underwent some form of competition and oversight. However, the specific task order's lack of competition warrants scrutiny to ensure fair pricing and value.
Related Government Programs
- Other Computer Related Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Lack of competition
- Potential for price gouging
- Limited transparency on services procured
- Broad NAICS code obscures specific service details
Tags
other-computer-related-services, department-of-energy, co, bpa-call, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $353,141.68 to MINBURN TECHNOLOGY GROUP, LLC. TO PLACE A CALL FOR MICROSOFT PRODUCT AZURE FROM AGENCY CATALOG 89303024AIM000021.
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 $353,141.68.
What is the period of performance?
Start: 2025-04-23. End: 2026-04-30.
What specific Microsoft Azure services are being procured, and how do their costs compare to market rates for similar government or commercial contracts?
The provided data does not specify the exact Azure services being procured, only that it's for 'Microsoft Product Azure'. Without this detail, a direct cost comparison is impossible. However, federal agencies often procure IaaS, PaaS, and SaaS solutions. Pricing for these can vary significantly based on usage tiers, reserved instances, and support levels. Agencies typically benchmark against GSA schedules or other GWACs for similar services to ensure fair and reasonable pricing, a step that appears to have been bypassed here due to the non-competitive nature of the award.
What is the justification for not competing this BPA Call under SAP, and what risk does this pose to achieving best value?
The justification for not competing under SAP is not provided. Typically, agencies might use a BPA Call for pre-negotiated services or when the value falls below certain thresholds where full competition isn't mandated. However, the risk is that without competition, the government may not receive the most advantageous pricing or terms, potentially leading to overspending and suboptimal service delivery compared to a competitively awarded contract.
How does the Department of Energy ensure effective oversight and accountability for cloud service spending, particularly on non-competitively awarded BPA Calls?
Effective oversight typically involves regular reviews of cloud spending, performance monitoring against Service Level Agreements (SLAs), and periodic re-evaluation of contract vehicles. For non-competitively awarded BPA Calls, agencies should have robust internal policies requiring justification for limited competition and ensuring that pricing remains fair and reasonable throughout the contract period. This includes tracking usage and comparing costs against market benchmarks.
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: $353,142
Exercised Options: $353,142
Current Obligation: $353,142
Actual Outlays: $67,569
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 89303024AIM000021
IDV Type: BPA
Timeline
Start Date: 2025-04-23
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2026-04-02
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