DOE's $20.5M Microsoft EA with Alvarez LLC awarded under SAP, expiring April 2019
Contract Overview
Contract Amount: $20,466,868 ($20.5M)
Contractor: Alvarez LLC
Awarding Agency: Department of Energy
Start Date: 2014-04-30
End Date: 2019-04-29
Contract Duration: 1,825 days
Daily Burn Rate: $11.2K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: OCIO'S YEAR 1 MSFT EA (ALVAREZ)
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $20.5 million to ALVAREZ LLC for work described as: OCIO'S YEAR 1 MSFT EA (ALVAREZ) Key points: 1. Spending: $20.5 million over 5 years for Microsoft Enterprise Agreement. 2. Competition: Competed under Simplified Acquisition Procedures (SAP). 3. Risk: Long contract duration (5 years) may limit flexibility. 4. Sector: IT services, specifically 'Other Computer Related Services'.
Value Assessment
Rating: fair
The contract value of $20.5 million for a 5-year Microsoft EA appears reasonable given the scope. However, without specific deliverables or unit costs, a precise value assessment is difficult. Benchmarking against similar large-scale software agreements would be beneficial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
Awarded under Simplified Acquisition Procedures (SAP), suggesting limited competition. While the BPA call indicates a pre-existing framework, the specific competition for this call is unclear. This method may not yield the best price discovery.
Taxpayer Impact: Taxpayer funds are utilized for this software licensing and support agreement. The effectiveness of the procurement process under SAP will directly impact the value for money achieved.
Public Impact
Federal agencies rely heavily on software agreements like this for IT operations. The use of SAP for a $20.5M contract raises questions about potential cost savings missed. Long-term contracts can lock agencies into specific vendors, potentially hindering adoption of newer technologies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition under SAP for a significant contract value.
- Long contract duration (5 years) may not be optimal for rapidly evolving IT.
- Lack of detailed performance metrics or unit costs makes value assessment challenging.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Awarded under an existing BPA Call, potentially streamlining procurement.
Sector Analysis
This contract falls within the IT sector, specifically 'Other Computer Related Services'. Federal IT spending is substantial, with software licensing and support being a major component. Benchmarks for similar enterprise agreements vary widely based on software suite and user base.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The contract was awarded to Alvarez LLC, and further analysis would be needed to determine if this is a small business itself or if small business participation was incorporated.
Oversight & Accountability
The contract was competed under SAP, which typically has less stringent oversight than full and open competition. The use of a BPA Call suggests some level of pre-existing vetting, but the specific oversight for this individual call is not detailed.
Related Government Programs
- Other Computer Related Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Potential for suboptimal pricing due to limited competition under SAP.
- Long contract duration may not adapt well to technological changes.
- Lack of detailed performance metrics makes value assessment difficult.
- Unclear if small business participation was considered or achieved.
Tags
other-computer-related-services, department-of-energy, dc, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $20.5 million to ALVAREZ LLC. OCIO'S YEAR 1 MSFT EA (ALVAREZ)
Who is the contractor on this award?
The obligated recipient is ALVAREZ LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $20.5 million.
What is the period of performance?
Start: 2014-04-30. End: 2019-04-29.
What specific Microsoft products and services are covered under this $20.5 million Enterprise Agreement, and how do the included quantities align with the Department of Energy's actual needs?
The provided data lacks specifics on the exact Microsoft products and services included in the Enterprise Agreement. Understanding the scope, such as operating systems, productivity software, cloud services, and support levels, is crucial. Aligning these with the Department of Energy's user base and operational requirements is key to determining if the $20.5 million represents good value and avoids over-licensing or under-provisioning.
Given the $20.5 million value and 5-year duration, what steps were taken to ensure competitive pricing and mitigate the risk of vendor lock-in or inflated costs through the Simplified Acquisition Proc
Awarding a $20.5 million contract under SAP raises concerns about the extent of competition and price discovery. While SAP is intended for smaller purchases, its application here warrants scrutiny. Agencies should demonstrate market research, price analysis, and justification for using SAP for this value. Mitigation strategies against vendor lock-in, such as phased renewals or clear exit clauses, should also be evident.
How effectively has this Microsoft Enterprise Agreement supported the Department of Energy's IT modernization goals and operational efficiency over its 5-year term?
Assessing the effectiveness requires data beyond the contract award details. Key performance indicators (KPIs) related to software uptime, user satisfaction, support response times, and the enablement of new technologies would be necessary. Without this post-award performance data, it's difficult to gauge the true impact on modernization and efficiency, despite the firm fixed-price nature of the contract.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8251 GREENSBORO DR STE 230, TYSONS CORNER, VA, 22102
Business Categories: Category Business, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $47,172,335
Exercised Options: $21,593,643
Current Obligation: $20,466,868
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: DEIM0000759
IDV Type: BPA
Timeline
Start Date: 2014-04-30
Current End Date: 2019-04-29
Potential End Date: 2019-04-29 00:00:00
Last Modified: 2021-05-04
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