DOE's $18.3M Microsoft EA and Premier Subscription Services contract awarded to Regan Technologies Corp

Contract Overview

Contract Amount: $18,279,525 ($18.3M)

Contractor: Regan Technologies Corp

Awarding Agency: Department of Energy

Start Date: 2019-05-01

End Date: 2024-04-30

Contract Duration: 1,826 days

Daily Burn Rate: $10.0K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE PURCHASE OF MICROSOFT EA AND PREMIER SUBSCRIPTION SERVICES

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Department of Energy obligated $18.3 million to REGAN TECHNOLOGIES CORP for work described as: THE PURCHASE OF MICROSOFT EA AND PREMIER SUBSCRIPTION SERVICES Key points: 1. Value for money is difficult to assess without competitive benchmarking. 2. The contract was not competed, raising questions about price discovery. 3. Risk indicators include reliance on a single vendor for essential software. 4. Performance context is limited due to the lack of competition. 5. This contract falls within the IT services sector, specifically software licensing. 6. The sole-source nature limits opportunities for broader market engagement.

Value Assessment

Rating: questionable

The total value of $18.3 million for Microsoft EA and Premier Subscription Services over five years is substantial. However, without a competitive bidding process, it is challenging to benchmark this against market rates or similar contracts. The lack of competition means the government may not be achieving the best possible price or terms. Further analysis would require comparing this to publicly available Microsoft Enterprise Agreement pricing or other federal agency agreements for similar scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach is typically used when only one vendor can provide the required goods or services. In this case, it implies that Regan Technologies Corp. was the only entity capable of fulfilling the Department of Energy's specific Microsoft Enterprise Agreement and Premier Subscription needs. The lack of competition limits the government's ability to leverage market forces to drive down costs.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. Without multiple bids, there is less assurance that the price reflects the most economical option available in the market.

Public Impact

Federal Energy Regulatory Commission (FERC) employees benefit from access to essential Microsoft software and support. The contract ensures continued access to productivity and collaboration tools for agency operations. The geographic impact is primarily within Virginia, where the agency is located. Workforce implications include enabling employees to perform their duties efficiently with up-to-date software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The IT services sector, particularly software licensing and enterprise agreements, is a significant area of federal spending. Federal agencies often rely on large, established software vendors like Microsoft for their core IT infrastructure. Contracts for Enterprise Agreements (EA) and Premier Support are common, providing comprehensive licensing and support. Benchmarking this contract's value would ideally involve comparing it to other federal EAs for similar user counts and service levels, or to commercial pricing structures for comparable organizations.

Small Business Impact

This contract was awarded to Regan Technologies Corp. and was not competed, nor does it appear to have a small business set-aside component. The 'ss' and 'sb' fields are false. This means that small businesses were not specifically targeted for this award, and there is no indication of subcontracting opportunities for small businesses within this specific contract. The impact on the small business ecosystem is neutral to negative, as opportunities were not proactively directed towards them.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Energy's contracting and procurement offices, as well as the Federal Energy Regulatory Commission's internal oversight mechanisms. Given it's a sole-source award, the justification for this procurement method would be subject to review. Transparency is limited by the lack of a competitive process, and there is no specific mention of an Inspector General's active review related to this particular award.

Related Government Programs

Risk Flags

Tags

it-services, software-licensing, microsoft-enterprise-agreement, premier-support, sole-source, department-of-energy, federal-energy-regulatory-commission, virginia, firm-fixed-price, large-contract, it-software

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $18.3 million to REGAN TECHNOLOGIES CORP. THE PURCHASE OF MICROSOFT EA AND PREMIER SUBSCRIPTION SERVICES

Who is the contractor on this award?

The obligated recipient is REGAN TECHNOLOGIES CORP.

Which agency awarded this contract?

Awarding agency: Department of Energy (Federal Energy Regulatory Commission).

What is the total obligated amount?

The obligated amount is $18.3 million.

What is the period of performance?

Start: 2019-05-01. End: 2024-04-30.

What is the track record of Regan Technologies Corp. in fulfilling federal contracts, particularly for software licensing?

Information regarding Regan Technologies Corp.'s specific track record with federal contracts, especially for Microsoft Enterprise Agreements and Premier Subscription Services, is not detailed in the provided data. A comprehensive review would require examining past performance evaluations (e.g., CPARS), contract history, and any reported issues or successes. Without this, it's difficult to assess their reliability and capability beyond this single award. Further research into federal procurement databases and agency performance reports would be necessary to provide a detailed assessment of their past performance.

How does the pricing of this Microsoft EA compare to other federal agencies or commercial entities?

The provided data does not include specific pricing details or benchmarks to compare against other federal agencies or commercial entities. The total award amount of $18.3 million for a five-year period is a high-level figure. To conduct a meaningful comparison, one would need to know the exact Microsoft products and services included, the number of users or devices covered, and the specific support levels (Premier vs. other tiers). Without this granular information and access to comparable contract data, assessing the value-for-money is speculative. Federal procurement data portals and industry reports on Microsoft licensing costs could offer some comparative insights if available.

What are the primary risks associated with a sole-source award for essential software like Microsoft EA?

The primary risks associated with a sole-source award for essential software include potential overpayment due to the lack of competitive pricing, reduced leverage in negotiating terms and conditions, and a lack of vendor innovation. Agencies become dependent on a single provider, which can limit flexibility if needs change or if better solutions emerge from other vendors. Furthermore, sole-source awards can sometimes indicate a lack of strategic planning or market research. For critical software, this dependence also poses a risk if the vendor experiences service disruptions or changes its product strategy significantly.

What is the expected effectiveness of this contract in ensuring the Department of Energy's operational continuity?

This contract is expected to be highly effective in ensuring the Department of Energy's (DOE) operational continuity by providing uninterrupted access to essential Microsoft software and support services. Enterprise Agreements and Premier Subscriptions typically guarantee access to the latest software versions, security updates, and technical assistance, which are crucial for maintaining productivity and cybersecurity. The five-year duration suggests a strategic commitment to stable IT operations. The effectiveness hinges on the vendor's ability to deliver these services reliably and the agency's utilization of the licensed software and support.

What has been the historical spending pattern for Microsoft EA and Premier Subscription Services at the Department of Energy?

The provided data only details a single contract award of $18.3 million from May 1, 2019, to April 30, 2024. It does not offer insight into historical spending patterns for similar Microsoft agreements at the Department of Energy (DOE) prior to or beyond this period. To understand historical spending, one would need to analyze procurement data for previous EA renewals, different Microsoft licensing vehicles, or other related IT software contracts within the DOE. Without this broader context, it's impossible to determine trends, increases, or decreases in spending on these types of services over time.

Are there any specific performance metrics or Service Level Agreements (SLAs) associated with this contract?

The provided data does not specify the performance metrics or Service Level Agreements (SLAs) associated with this contract. Typically, Microsoft Enterprise Agreements and Premier Support contracts include detailed SLAs covering aspects like response times for technical support, availability of online resources, and software update delivery. The effectiveness and value of the contract are heavily influenced by adherence to these SLAs. A thorough review of the contract documentation would be necessary to identify these specific performance standards and how they are monitored and enforced by the Department of Energy.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesOther Computer Related Services

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

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: 515 CENTERPOINT DR STE 115, MIDDLETOWN, CT, 06457

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $20,162,068

Exercised Options: $18,704,910

Current Obligation: $18,279,525

Actual Outlays: $13,737,771

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 89303019AIM000008

IDV Type: BPA

Timeline

Start Date: 2019-05-01

Current End Date: 2024-04-30

Potential End Date: 2024-05-27 00:00:00

Last Modified: 2025-11-13

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