Education Dept Spends $13.9M on Microsoft Licenses via BPA Call, Full and Open Competition

Contract Overview

Contract Amount: $13,886,551 ($13.9M)

Contractor: Minburn Technology Group, LLC

Awarding Agency: Department of Education

Start Date: 2019-05-15

End Date: 2022-05-30

Contract Duration: 1,111 days

Daily Burn Rate: $12.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF CRITICAL FUNCTIONS THIS REQUIREMENT IS TO ACQUIRE MICROSOFT DESKTOP AND SERVER LICENSES.

Place of Performance

Location: GREAT FALLS, FAIRFAX County, VIRGINIA, 22066

State: Virginia Government Spending

Plain-Language Summary

Department of Education obligated $13.9 million to MINBURN TECHNOLOGY GROUP, LLC for work described as: IGF::CT::IGF CRITICAL FUNCTIONS THIS REQUIREMENT IS TO ACQUIRE MICROSOFT DESKTOP AND SERVER LICENSES. Key points: 1. Significant spending on essential software licenses highlights reliance on Microsoft products. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Contract duration of 1111 days is substantial, requiring ongoing monitoring. 4. The use of a BPA Call indicates a pre-negotiated framework for procurement. 5. No small business participation noted, which could be an area for improvement.

Value Assessment

Rating: good

The total award amount of $13.9M for Microsoft licenses appears reasonable given the duration and scope. Benchmarking against similar large-scale software license procurements would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, utilizing a BPA Call. This method generally promotes competitive pricing by allowing multiple vendors to bid on task orders.

Taxpayer Impact: Full and open competition aims to secure the best value for taxpayers by leveraging market forces.

Public Impact

Federal agencies rely heavily on Microsoft software for daily operations. Procurement of software licenses is a recurring and significant government expense. The use of BPA calls streamlines the acquisition process for commonly needed items. Transparency in pricing for software licenses is crucial for taxpayer accountability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation.
Potential for vendor lock-in with Microsoft products.
Need to ensure license optimization to avoid overspending.

Positive Signals

Full and open competition utilized.
BPA Call provides a streamlined acquisition process.
Firm Fixed Price contract type offers cost certainty.

Sector Analysis

The Software Publishers sector (NAICS 511210) is critical for government IT infrastructure. Spending benchmarks for enterprise software licenses vary widely based on agency size and specific product needs.

Small Business Impact

This contract did not involve small businesses, as indicated by 'sb': false. Agencies should explore opportunities to include small businesses in software procurements where feasible.

Oversight & Accountability

The use of a BPA Call suggests that the initial procurement underwent some level of oversight. Ongoing monitoring of license usage and vendor performance is essential for accountability.

Related Government Programs

Software Publishers
Department of Education Contracting
Department of Education Programs

Risk Flags

Potential for overspending if licenses are not optimized.
Dependence on a single vendor (Microsoft).
Limited visibility into long-term cost implications.
Lack of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $13.9 million to MINBURN TECHNOLOGY GROUP, LLC. IGF::CT::IGF CRITICAL FUNCTIONS THIS REQUIREMENT IS TO ACQUIRE MICROSOFT DESKTOP AND SERVER 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 Education (Department of Education).

What is the total obligated amount?

The obligated amount is $13.9 million.

What is the period of performance?

Start: 2019-05-15. End: 2022-05-30.

What is the total cost of ownership for these Microsoft licenses over their lifecycle, including support and potential upgrades?

The provided data only reflects the initial award amount of $13.9M for the contract period ending May 2022. A comprehensive total cost of ownership analysis would require tracking subsequent renewals, support contracts, and the cost of future upgrades or migrations to newer versions. This information is not available in the provided dataset but is crucial for long-term budget planning and value assessment.

How does the per-unit cost of these Microsoft licenses compare to commercial market rates or other government contracts?

Without specific line-item details on the exact Microsoft products and quantities purchased, a precise per-unit cost benchmark is not possible. However, given the full and open competition and the use of a BPA Call, it is likely that pricing was competitive. Comparing against GSA Schedule pricing or other agency enterprise agreements would be necessary for a definitive assessment.

What strategies are in place to ensure the government is only paying for licenses that are actively used and necessary?

Effective license management and optimization strategies are critical. This includes regular audits of software usage, de-provisioning unused licenses, and negotiating terms that allow for flexibility in license allocation. The Department of Education should have internal policies and potentially utilize software asset management tools to monitor and control license deployment and costs.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10113 MINBURN ST, GREAT FALLS, VA, 22066

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $13,886,551

Exercised Options: $13,886,551

Current Obligation: $13,886,551

Actual Outlays: $9,546,146

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 91990019A0001

IDV Type: BPA

Timeline