Microsoft licenses and Azure services contract awarded to New Tech Solutions, Inc. for $3.45M

Contract Overview

Contract Amount: $3,449,782 ($3.4M)

Contractor: NEW Tech Solutions, Inc.

Awarding Agency: Court Services and Offender Supervision Agency

Start Date: 2025-02-01

End Date: 2027-01-31

Contract Duration: 729 days

Daily Burn Rate: $4.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MICROSOFT LICENSES AND AZURE SERVICES.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20002

State: District of Columbia Government Spending

Plain-Language Summary

Court Services and Offender Supervision Agency obligated $3.4 million to NEW TECH SOLUTIONS, INC. for work described as: MICROSOFT LICENSES AND AZURE SERVICES. Key points: 1. Contract value of $3.45M for IT services, including software licenses and cloud computing. 2. Awarded to New Tech Solutions, Inc. under full and open competition. 3. Contract duration of 729 days, ending January 31, 2027. 4. Pricing structure is Firm Fixed Price, indicating predictable costs. 5. The contract is for IT services, specifically computer related services. 6. Geographic location of performance is Washington D.C.

Value Assessment

Rating: fair

The contract value of $3.45M for Microsoft licenses and Azure services appears to be within a reasonable range for government IT procurements of this nature. Benchmarking against similar contracts for cloud services and software licensing would provide a clearer picture of value for money. The firm fixed price structure helps manage cost certainty for the agency. However, without specific details on the exact services and quantities, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that multiple vendors were likely solicited, but specific reasons for excluding certain sources may exist. The presence of 5 bidders suggests a competitive environment, which generally leads to better pricing and service offerings for the government. The level of competition is a positive indicator for price discovery.

Taxpayer Impact: The competitive bidding process for this contract is beneficial for taxpayers as it likely resulted in more favorable pricing and terms compared to a sole-source award.

Public Impact

The Court Services and Offender Supervision Agency benefits from access to essential Microsoft software and Azure cloud services. This contract ensures the continuity of IT operations and services for the agency. The services are delivered within the District of Columbia. The contract supports the agency's mission by providing necessary technological infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with specific Microsoft products and Azure services.
Reliance on a single vendor for critical IT infrastructure could pose risks if not managed effectively.
The 'after exclusion of sources' clause warrants further investigation into the rationale for excluding certain vendors.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm Fixed Price contract provides cost predictability for the agency.
Contract duration of two years allows for stable IT service provision.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on software licensing and cloud computing services. The market for these services is highly competitive, with major players like Microsoft dominating the enterprise software space and cloud infrastructure. Government spending in this area is substantial, driven by the need for modern, scalable IT solutions. Comparable spending benchmarks would involve analyzing other federal contracts for similar Microsoft products and Azure consumption.

Small Business Impact

There is no indication that this contract included a small business set-aside. The contract was awarded to New Tech Solutions, Inc., and further analysis would be needed to determine if they are a small business or if subcontracting opportunities for small businesses are anticipated or required.

Oversight & Accountability

The contract is subject to the oversight of the Court Services and Offender Supervision Agency. As a federal contract, it is also subject to general government procurement regulations and oversight bodies. Transparency is facilitated through contract award databases. Specific Inspector General jurisdiction would depend on the agency's IG office.

Related Government Programs

Microsoft Software Licenses
Cloud Computing Services
IT Professional Services
Software and Application Development

Risk Flags

Potential for vendor lock-in
Limited transparency on specific service breakdown
Rationale for 'exclusion of sources' not detailed

Frequently Asked Questions

What is this federal contract paying for?

Court Services and Offender Supervision Agency awarded $3.4 million to NEW TECH SOLUTIONS, INC.. MICROSOFT LICENSES AND AZURE SERVICES.

Who is the contractor on this award?

The obligated recipient is NEW TECH SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Court Services and Offender Supervision Agency (Court Services and Offender Supervision Agency).

What is the total obligated amount?

The obligated amount is $3.4 million.

What is the period of performance?

Start: 2025-02-01. End: 2027-01-31.

What is the specific breakdown of Microsoft licenses and Azure services being procured under this contract?

The provided data does not detail the specific breakdown of Microsoft licenses and Azure services. This information would typically be found in the contract's statement of work or associated documentation. Understanding the exact quantities of licenses (e.g., Windows, Office 365, SQL Server) and the specific Azure services (e.g., compute, storage, networking, specific PaaS offerings) is crucial for a comprehensive value assessment and for benchmarking against market rates. Without this granular detail, it's difficult to ascertain if the $3.45 million represents a fair price for the quantity and type of services rendered.

How does the pricing of these Microsoft licenses and Azure services compare to commercial or other government contract rates?

Benchmarking the pricing of these Microsoft licenses and Azure services against commercial rates and other government contracts is essential for assessing value for money. Government entities often benefit from negotiated discounts through programs like the General Services Administration (GSA) schedules or specific Enterprise License Agreements (ELAs). The firm fixed price nature of this contract suggests that the agency has a clear understanding of the costs involved. However, a detailed comparison would require access to the specific license types, quantities, and Azure service consumption tiers, as well as the pricing structures of comparable contracts, to determine if the $3.45 million expenditure is competitive.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. For IT services, particularly cloud-based solutions like Azure, robust KPIs and SLAs are critical for ensuring service availability, performance, and security. These metrics typically cover aspects such as uptime guarantees, response times for support, data security compliance, and performance thresholds. The absence of this information in the summary data makes it challenging to evaluate the contractor's performance obligations and the agency's ability to hold them accountable for service delivery.

What is the track record of New Tech Solutions, Inc. in delivering similar IT services to government agencies?

Information regarding the specific track record of New Tech Solutions, Inc. in delivering similar IT services to government agencies is not detailed in the provided data. A thorough assessment would involve reviewing past performance evaluations, contract history, and client references. Understanding their experience with Microsoft licensing and Azure services, especially within a federal context, is important for evaluating the risk associated with this contract. Agencies typically maintain performance records, and databases like the Federal Procurement Data System (FPDS) can offer insights into a contractor's past awards and performance.

What is the historical spending pattern for Microsoft licenses and Azure services by the Court Services and Offender Supervision Agency?

The provided data does not include historical spending patterns for Microsoft licenses and Azure services by the Court Services and Offender Supervision Agency. To understand the context of this $3.45 million contract, it would be beneficial to analyze previous expenditures on similar IT services. This analysis could reveal trends in spending, identify potential cost savings or increases over time, and highlight any shifts in technology adoption, such as a move towards cloud services. Examining past contracts would also help in assessing whether this current award represents a significant change or a continuation of established IT procurement strategies.

What are the implications of the 'after exclusion of sources' clause in the contract's competition type?

The 'Full and Open Competition After Exclusion of Sources' designation suggests that while the contract was intended to be competed broadly, certain potential sources were deliberately excluded from the bidding process. The reasons for such exclusions can vary, including specific technical requirements, security mandates, or prior performance issues with certain vendors. Understanding the justification for excluding sources is important for ensuring that the competition was fair and that the government did not miss out on potentially better offers from excluded vendors. This clause warrants further investigation to confirm that the exclusion was legally sound and in the best interest of the government.

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

Solicitation ID: 9594CS25Q0007

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4179 BUSINESS CENTER DR, FREMONT, CA, 94538

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,066,921

Exercised Options: $3,449,782

Current Obligation: $3,449,782

Actual Outlays: $1,183,631

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SC82B

IDV Type: GWAC

Timeline