Department of Energy awards $12.6M for Microsoft products and subscriptions to Minburn Technology Group
Contract Overview
Contract Amount: $12,641,143 ($12.6M)
Contractor: Minburn Technology Group, LLC
Awarding Agency: Department of Energy
Start Date: 2024-05-01
End Date: 2026-04-30
Contract Duration: 729 days
Daily Burn Rate: $17.3K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MICROSOFT PRODUCTS AND SUBSCRIPTIONS
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20426
Plain-Language Summary
Department of Energy obligated $12.6 million to MINBURN TECHNOLOGY GROUP, LLC for work described as: MICROSOFT PRODUCTS AND SUBSCRIPTIONS Key points: 1. Value for money appears fair given the nature of software subscriptions, but detailed benchmarking is needed. 2. Competition was limited, raising questions about potential price overreach. 3. Risk indicators are moderate, primarily related to the lack of robust competition. 4. Performance context is limited without specific deliverables or service level agreements. 5. This contract positions the agency to acquire essential software tools for its operations.
Value Assessment
Rating: fair
The contract value of $12.6 million for Microsoft products and subscriptions over two years suggests a steady operational expenditure. Without specific details on the exact software licenses and support levels, a direct comparison to similar contracts is challenging. However, the pricing for enterprise software can vary significantly based on volume discounts, support tiers, and the specific product suite. Further analysis would require benchmarking against government-wide acquisition contracts (GWACs) or other large-scale enterprise agreements for Microsoft products to ascertain if the pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not competed under simplified acquisition procedures, indicating a potential limitation in the competitive process. The data provided states the contract type as 'NOT COMPETED UNDER SAP' and 'BPA CALL', suggesting it may have been awarded against an existing Blanket Purchase Agreement (BPA) or through a limited solicitation. The absence of a full and open competition means fewer vendors had the opportunity to bid, potentially impacting price discovery and the government's ability to secure the best possible pricing.
Taxpayer Impact: The limited competition for this contract means taxpayers may not have benefited from the most competitive pricing that a broader solicitation could have yielded. This could translate to higher overall costs for the software and subscriptions acquired.
Public Impact
Federal Energy Regulatory Commission (FERC) staff will benefit from access to essential Microsoft software and subscription services. The services delivered include the provision of Microsoft products and ongoing subscriptions, crucial for modern IT infrastructure. The geographic impact is centered in the District of Columbia, where the agency is located. Workforce implications include enabling employees with the necessary tools to perform their duties efficiently.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of full and open competition may lead to suboptimal pricing.
- Reliance on a single vendor for critical software can create long-term dependency.
- Potential for scope creep or unmanaged subscription growth without clear performance metrics.
Positive Signals
- Ensures continuity of essential software services for agency operations.
- Leverages established Microsoft products familiar to government users.
- Fixed-price contract type provides cost predictability for the awarded period.
Sector Analysis
The Information Technology sector, specifically software and cloud services, is a significant area of federal spending. This contract falls within the broader category of IT services and software licensing, a market dominated by a few large providers like Microsoft. Federal agencies increasingly rely on these enterprise solutions for productivity, collaboration, and data management. Benchmarking this contract against other federal IT procurements would involve comparing the cost per user or per license against similar agreements, considering factors like the specific product versions and support levels.
Small Business Impact
The provided data indicates that small business participation (sb) is false, and the contract was not set aside for small businesses (ss is false). This suggests that the procurement was not specifically targeted to benefit small businesses. Consequently, there are no direct subcontracting implications for small businesses arising from this particular award. The focus appears to be on acquiring specific software solutions rather than fostering small business engagement through this contract.
Oversight & Accountability
Oversight for this contract would typically fall under the Federal Energy Regulatory Commission's (FERC) contracting and procurement offices within the Department of Energy. Accountability measures would be tied to the terms and conditions of the Blanket Purchase Agreement (BPA) call and the specific Microsoft licensing agreements. Transparency is facilitated through contract databases like FPDS, which provide public access to award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Microsoft Enterprise Agreements
- Software Licensing and Support Services
- IT Services and Cloud Computing
- Department of Energy IT Modernization Efforts
Risk Flags
- Limited Competition
- Lack of Detailed Product Specification
- Absence of Explicit Performance Metrics
Tags
it-software, microsoft, department-of-energy, federal-energy-regulatory-commission, bpa-call, not-competed-under-sap, firm-fixed-price, district-of-columbia, large-contract, software-subscriptions
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $12.6 million to MINBURN TECHNOLOGY GROUP, LLC. MICROSOFT PRODUCTS AND SUBSCRIPTIONS
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 (Federal Energy Regulatory Commission).
What is the total obligated amount?
The obligated amount is $12.6 million.
What is the period of performance?
Start: 2024-05-01. End: 2026-04-30.
What specific Microsoft products and subscription levels are included in this $12.6 million award?
The provided data identifies the award as 'MICROSOFT PRODUCTS AND SUBSCRIPTIONS' valued at $12,641,142.91. However, it does not specify the exact product suite (e.g., Microsoft 365 E3/E5, Azure credits, specific server licenses, Windows upgrades) or the subscription levels (e.g., standard, premium, academic). This level of detail is crucial for a thorough value assessment. Without this information, it is difficult to benchmark the cost against market rates or similar government contracts. The duration of the contract is 729 days (approximately 2 years), suggesting these are recurring subscription costs rather than one-time perpetual licenses. Further inquiry with the agency would be needed to obtain a detailed product list and justification for the chosen subscription tiers.
How does the pricing of this contract compare to other federal agencies acquiring similar Microsoft enterprise agreements?
Comparing the pricing of this $12.6 million contract to other federal agencies requires access to detailed pricing information for the specific Microsoft products and subscription levels. Federal agencies often leverage Enterprise License Agreements (ELAs) or Government-wide Acquisition Contracts (GWACs) like NASA SEWP or GSA Schedules, which can offer volume discounts. The fact that this was a 'BPA CALL' suggests it might be leveraging an existing BPA, potentially with pre-negotiated rates. However, without knowing the exact SKUs, quantities, and support tiers, a direct comparison is speculative. Agencies like the General Services Administration (GSA) often publish pricing information or facilitate large-scale agreements that could serve as benchmarks. A comprehensive analysis would involve querying FPDS for similar Microsoft procurements by other agencies, filtering by product type and contract vehicle, and then comparing the estimated cost per user or per license.
What are the primary risks associated with awarding this contract via a limited competition or BPA call?
The primary risks associated with awarding this contract via a limited competition or BPA call stem from the potential lack of robust price discovery and market competition. When a contract is not fully and openly competed, the government may not receive the most advantageous pricing available in the market. This can lead to paying a premium for the software and subscriptions. Furthermore, limited competition can foster vendor lock-in, making it harder for the agency to switch providers or negotiate better terms in the future. There's also a risk that the chosen vendor may not be the most innovative or cost-effective solution available. While BPA calls can offer efficiency, they must still be managed to ensure fair pricing and adherence to the terms of the underlying BPA, which itself should have been competed appropriately.
What performance metrics or service level agreements (SLAs) are in place to ensure the value and effectiveness of these Microsoft products and subscriptions?
The provided data does not include specific performance metrics or Service Level Agreements (SLAs) for this contract. The contract type is 'FIRM FIXED PRICE', which typically defines the total price but does not inherently include detailed performance standards for the delivered goods or services, especially for software subscriptions. For software and subscriptions, SLAs are often tied to vendor support response times, uptime guarantees (if cloud-based services are involved), and the availability of updates and patches. Without explicit SLAs, the agency's ability to hold the contractor accountable for the quality, timeliness, and effectiveness of the Microsoft products and subscription services is limited. It is essential for the agency to have internal processes for tracking software utilization, user satisfaction, and ensuring that the procured solutions meet operational needs.
What is the historical spending pattern for Microsoft products and subscriptions within the Federal Energy Regulatory Commission (FERC)?
To determine the historical spending pattern for Microsoft products and subscriptions within the Federal Energy Regulatory Commission (FERC), one would need to analyze past contract awards data from sources like the Federal Procurement Data System (FPDS). This would involve searching for contracts awarded to Microsoft or its resellers/partners by FERC over several fiscal years. Key data points to examine would include the total annual spending on Microsoft software and subscriptions, the types of products procured (e.g., operating systems, office productivity suites, server software, cloud services), and the contracting vehicles used (e.g., GWACs, direct purchase, BPA calls). Understanding this historical trend can reveal whether spending has been increasing, decreasing, or remaining stable, and whether the agency is consolidating its software purchases or diversifying its vendors. This context is vital for assessing the significance of the current $12.6 million award.
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: $37,479,640
Exercised Options: $12,941,143
Current Obligation: $12,641,143
Actual Outlays: $11,631,680
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 89303024AIM000021
IDV Type: BPA
Timeline
Start Date: 2024-05-01
Current End Date: 2026-04-30
Potential End Date: 2029-04-30 00:00:00
Last Modified: 2026-04-13
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