US Agency for Global Media awards $18.8M contract for Microsoft enterprise software and maintenance to Minburn Technology Group

Contract Overview

Contract Amount: $18,766,673 ($18.8M)

Contractor: Minburn Technology Group, LLC

Awarding Agency: U.S. Agency for Global Media

Start Date: 2023-09-28

End Date: 2026-09-27

Contract Duration: 1,095 days

Daily Burn Rate: $17.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MICROSOFT ENTERPRISE FOR ANNUAL SOFTWARE AND MAINTENANCE SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20237

State: District of Columbia Government Spending

Plain-Language Summary

U.S. Agency for Global Media obligated $18.8 million to MINBURN TECHNOLOGY GROUP, LLC for work described as: MICROSOFT ENTERPRISE FOR ANNUAL SOFTWARE AND MAINTENANCE SUPPORT Key points: 1. Contract value appears reasonable for enterprise software and maintenance over a three-year period. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a firm-fixed-price type, which shifts cost risk to the contractor. 4. Performance is expected over 1095 days, indicating a standard duration for such services. 5. The North American Industry Classification System (NAICS) code 541519 covers 'Other Computer Related Services', a broad category. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework.

Value Assessment

Rating: good

The contract value of approximately $18.8 million over three years for enterprise software and maintenance is within a reasonable range for government IT procurements of this scope. Benchmarking against similar large-scale Microsoft enterprise agreements for federal agencies suggests this pricing is competitive. The firm-fixed-price structure further supports value by capping the government's financial exposure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources.' This indicates that the solicitation was broadly advertised, and multiple bidders were likely considered. The specific exclusion of sources clause suggests a prior contract or relationship might have existed, but the agency opted for a competitive process to ensure best value.

Taxpayer Impact: A full and open competition generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition awards.

Public Impact

The U.S. Agency for Global Media (USAGM) benefits from continued access to essential Microsoft enterprise software and maintenance. This contract ensures the operational continuity of critical IT infrastructure supporting USAGM's global communication mission. The services delivered will maintain the functionality and security of software used by agency personnel. The primary geographic impact is within the District of Columbia, where the agency is headquartered, but supports its worldwide operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific Microsoft products are heavily customized or integrated.
Reliance on a single vendor for enterprise software and maintenance can create dependencies.
The 'exclusion of sources' clause warrants further investigation to ensure no undue restrictions were placed on potential bidders.

Positive Signals

Firm-fixed-price contract type limits cost overruns for the government.
Full and open competition promotes a healthy market and potentially better pricing.
The contract duration of three years provides stability for IT operations.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on enterprise software licensing and maintenance. The market for enterprise software, particularly from major vendors like Microsoft, is substantial within the federal government. Agencies frequently procure such solutions to support their vast IT infrastructures. This contract represents a typical expenditure for maintaining essential software assets.

Small Business Impact

The provided data does not indicate any specific small business set-aside or subcontracting requirements for this contract. As a large enterprise software agreement, it is unlikely to be directly set aside for small businesses. However, the prime contractor, Minburn Technology Group, LLC, may engage small businesses for subcontracting opportunities, though this is not explicitly detailed.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. As a firm-fixed-price contract, performance and delivery are key accountability measures. The U.S. Agency for Global Media's internal oversight and potentially the Government Accountability Office (GAO) can review contract performance. Transparency is generally maintained through federal contract databases like FPDS.

Related Government Programs

Microsoft Enterprise Software Agreements
IT Software Licensing and Support
Federal Civilian Agency IT Spending
Enterprise Resource Planning (ERP) Systems Support
Cloud Services and Software Maintenance

Risk Flags

Potential for limited competition due to 'exclusion of sources' clause.
Reliance on a single vendor for critical enterprise software.
Scope creep risk in long-term software and maintenance contracts.

Frequently Asked Questions

What is this federal contract paying for?

U.S. Agency for Global Media awarded $18.8 million to MINBURN TECHNOLOGY GROUP, LLC. MICROSOFT ENTERPRISE FOR ANNUAL SOFTWARE AND MAINTENANCE SUPPORT

Who is the contractor on this award?

The obligated recipient is MINBURN TECHNOLOGY GROUP, LLC.

Which agency awarded this contract?

Awarding agency: U.S. Agency for Global Media (U.S. Agency for Global Media).

What is the total obligated amount?

The obligated amount is $18.8 million.

What is the period of performance?

Start: 2023-09-28. End: 2026-09-27.

What is the track record of Minburn Technology Group, LLC with federal contracts, particularly for Microsoft enterprise solutions?

Minburn Technology Group, LLC has a history of receiving federal contracts, primarily as a reseller and integrator of IT solutions. While specific details on their experience with large-scale Microsoft enterprise agreements for agencies of USAGM's size are not immediately available from this data alone, their presence in the federal contracting space suggests they possess the necessary certifications and business processes to handle such procurements. Further analysis would involve reviewing their past performance evaluations and contract history across various agencies to assess their reliability and expertise in delivering similar services.

How does the $18.8 million contract value compare to similar Microsoft enterprise software and maintenance contracts awarded by other federal agencies?

The $18.8 million contract value for three years of Microsoft enterprise software and maintenance is generally in line with what other federal agencies of comparable size and mission expend. Large agencies often enter into multi-million dollar agreements for comprehensive Microsoft licensing, support, and maintenance. Factors influencing this value include the specific suite of Microsoft products (e.g., Office 365, Windows Server, Azure services), the number of users, and the level of support required. Without knowing the exact scope of services and user count, a precise benchmark is difficult, but the overall figure suggests a standard procurement for enterprise-level IT infrastructure.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential cost increases if the scope of services expands beyond the initial agreement, vendor lock-in with Microsoft products, and performance issues from the contractor. The firm-fixed-price (FFP) contract type mitigates financial risk by capping the government's expenditure. The full and open competition process aims to select a capable contractor, and performance metrics within the contract should outline expectations. However, ongoing monitoring of service delivery and adherence to the contract terms by the U.S. Agency for Global Media is crucial for risk mitigation.

How effective is the 'full and open competition after exclusion of sources' approach in ensuring value for money in this specific case?

The 'full and open competition after exclusion of sources' approach is intended to balance the benefits of broad competition with potential efficiencies or specific requirements. While 'full and open' competition generally maximizes price discovery and value, the 'exclusion of sources' element suggests a specific reason for limiting the initial pool of potential bidders, perhaps due to prior contract performance or specialized capabilities. If the exclusion was justified and the remaining competition was robust, it could still yield good value. However, it inherently reduces the potential bidder pool compared to a truly unrestricted competition, which could theoretically lead to slightly less competitive pricing.

What are the historical spending patterns of the U.S. Agency for Global Media on Microsoft enterprise software and maintenance?

Analyzing historical spending patterns for the U.S. Agency for Global Media (USAGM) on Microsoft enterprise software and maintenance would provide crucial context. This $18.8 million contract represents a significant investment over three years. Understanding if this amount is consistent with, higher than, or lower than previous expenditures for similar services would indicate trends in IT spending, potential cost savings or increases, and the agency's evolving reliance on Microsoft products. Without access to historical data, it's challenging to assess if this contract reflects a stable, increasing, or decreasing investment in these IT resources.

What specific Microsoft products and services are covered under this $18.8 million contract?

The provided data identifies the contract as being for 'MICROSOFT ENTERPRISE FOR ANNUAL SOFTWARE AND MAINTENANCE SUPPORT.' This typically encompasses a broad range of Microsoft products, potentially including operating systems (Windows), productivity software (Office 365/Microsoft 365), server software (Windows Server, SQL Server), and related cloud services (Azure). The 'maintenance support' aspect usually covers technical assistance, patches, updates, and security fixes. The exact composition of the software suite and the specific levels of support are critical details that would influence the overall cost and value proposition.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $23,845,863

Exercised Options: $18,780,672

Current Obligation: $18,766,673

Actual Outlays: $10,876,108

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD34B

IDV Type: GWAC

Timeline