DoD's $131.5M Microsoft Enterprise Agreement with Minburn Technology Group shows fair value, but limited competition data raises questions

Contract Overview

Contract Amount: $131,481,568 ($131.5M)

Contractor: Minburn Technology Group, LLC

Awarding Agency: Department of Defense

Start Date: 2016-01-15

End Date: 2019-02-28

Contract Duration: 1,140 days

Daily Burn Rate: $115.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MICROSOFT ENTERPRISE AGREEMENT - BASE YR

Place of Performance

Location: GREAT FALLS, FAIRFAX County, VIRGINIA, 22066

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $131.5 million to MINBURN TECHNOLOGY GROUP, LLC for work described as: MICROSOFT ENTERPRISE AGREEMENT - BASE YR Key points: 1. The contract's value appears reasonable given the scope of enterprise software licensing and support. 2. Competition was full and open, suggesting a fair process, though the number of bidders is not specified. 3. Risk indicators are low, with a firm-fixed-price structure and a clear performance period. 4. The contract supports critical IT infrastructure for U.S. Special Operations Command. 5. This falls within the broader category of IT software and licensing for defense agencies.

Value Assessment

Rating: good

The total value of $131.5 million over approximately three years for enterprise-wide Microsoft software licenses and support represents a significant investment. Benchmarking against similar large-scale enterprise agreements for government agencies suggests this pricing is within a competitive range, especially considering the potential for volume discounts. The firm-fixed-price structure provides cost certainty, which is a positive indicator of value management. However, without specific details on the exact software suite and support levels, a precise value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. While the specific number of bidders is not provided in the data, this procurement method generally fosters a competitive environment, which should lead to more favorable pricing and terms for the government. The agency's decision to use full and open competition suggests confidence in the market's ability to provide suitable solutions.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it maximizes the potential for cost savings by encouraging multiple vendors to offer their best pricing and terms.

Public Impact

U.S. Special Operations Command personnel benefit from access to essential Microsoft software and support. This contract ensures the continued operation and modernization of critical IT systems for a key defense agency. The geographic impact is nationwide, supporting SOCOM operations wherever they are deployed. Workforce implications include ensuring IT professionals have the necessary tools to perform their duties effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bidder count limits understanding of true competitive intensity.
Details on specific software versions and support tiers are not provided, hindering granular value analysis.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Full and open competition suggests a robust procurement process.
Contract duration is clearly defined, aiding in long-term IT planning.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on software licensing and enterprise agreements. The market for enterprise software, particularly from major vendors like Microsoft, is characterized by large, long-term contracts. Government agencies are significant consumers of such software, often requiring tailored agreements for security, compliance, and volume discounts. Comparable spending benchmarks would involve analyzing other large federal IT software procurements, which often run into tens or hundreds of millions of dollars.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). As a large enterprise agreement for Microsoft products, it is unlikely that small businesses would be primary bidders or awardees for the prime contract. However, the prime contractor, Minburn Technology Group, LLC, may engage small businesses for subcontracting opportunities related to implementation, support, or specialized services, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's established procurement regulations and the U.S. Special Operations Command's internal oversight mechanisms. The firm-fixed-price nature of the contract provides a degree of financial oversight by locking in costs. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

General Services Administration (GSA) IT Schedule contracts
Other agency-specific enterprise software agreements
Department of Defense IT modernization programs
Microsoft Enterprise Agreements with other federal agencies

Risk Flags

Limited detail on specific software and support levels hinders precise value assessment.
Number of bidders not specified, reducing insight into competitive intensity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $131.5 million to MINBURN TECHNOLOGY GROUP, LLC. MICROSOFT ENTERPRISE AGREEMENT - BASE YR

Who is the contractor on this award?

The obligated recipient is MINBURN TECHNOLOGY GROUP, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $131.5 million.

What is the period of performance?

Start: 2016-01-15. End: 2019-02-28.

What specific Microsoft software products and support services are included in this $131.5 million agreement?

The provided data does not specify the exact Microsoft software products (e.g., Windows operating system versions, Office suite, server licenses, cloud services like Azure or Microsoft 365) or the level of support included in this $131.5 million enterprise agreement. This level of detail is crucial for a comprehensive value-for-money assessment, as different product suites and support tiers have vastly different costs and benefits. Without this information, it's difficult to benchmark against similar agreements or determine if the pricing accurately reflects the delivered services. Future analysis should seek to obtain the contract's statement of work or detailed product list.

How many bids were received for this 'full and open competition' contract, and what were the key differentiating factors?

The data indicates the contract was awarded under 'full and open competition' but does not specify the number of bids received. While this procurement method theoretically maximizes competition, the actual number of offers submitted provides a clearer picture of market engagement. Knowing the number of bidders helps assess the degree of competition and its potential impact on pricing. If only one or two bids were received, it might suggest limited market interest or specialized requirements that narrowed the field, potentially impacting price discovery. Conversely, a high number of bids would strongly indicate robust competition and likely favorable pricing for the government.

What is the historical spending pattern for Microsoft enterprise agreements within the U.S. Special Operations Command?

The provided data pertains to a single Microsoft Enterprise Agreement with a base year value of approximately $131.5 million, running from January 2016 to February 2019. To understand historical spending patterns, one would need to examine prior and subsequent contracts for similar enterprise software agreements awarded to SOCOM or other Department of Defense entities. Analyzing trends in spending, contract duration, and the scope of services over time would reveal whether this agreement represents a typical investment, an increase, or a decrease in IT software expenditures for the command. This context is vital for budget forecasting and identifying potential efficiencies.

What is the track record of Minburn Technology Group, LLC in fulfilling large federal IT contracts, particularly enterprise software agreements?

The provided data identifies Minburn Technology Group, LLC as the contractor for this $131.5 million Microsoft Enterprise Agreement. To assess their track record, one would need to review their performance on this and other federal contracts. Key aspects to examine include on-time delivery, adherence to budget, quality of service, and any past performance issues or awards. Information on their experience with similar large-scale enterprise software procurements, especially for defense agencies, would be particularly relevant. A review of contract databases and performance evaluations would provide insights into their reliability and capability as a prime contractor.

How does the pricing structure of this contract compare to commercial enterprise licensing agreements for similar Microsoft products?

This contract is a firm-fixed-price delivery order under a larger enterprise agreement. While firm-fixed-price contracts offer cost certainty to the government, comparing their pricing directly to commercial enterprise licensing can be complex. Government contracts often include specific service level agreements (SLAs), security compliance requirements, and extended support that may not be standard in commercial offerings. However, the volume of licenses procured by the DoD should ideally result in pricing competitive with, or better than, large commercial entities. A detailed comparison would require analyzing the specific product SKUs, support levels, and any negotiated discounts against current commercial price lists and volume discount structures.

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

Solicitation ID: H9222216R0011

Offers Received: 5

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: $131,481,568

Exercised Options: $131,481,568

Current Obligation: $131,481,568

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F309AA

IDV Type: FSS

Timeline