DoD's $285M Microsoft Enterprise Agreement with Minburn Technology Group shows strong value, but competition could be enhanced

Contract Overview

Contract Amount: $284,638,565 ($284.6M)

Contractor: Minburn Technology Group, LLC

Awarding Agency: Department of Defense

Start Date: 2019-02-28

End Date: 2024-02-29

Contract Duration: 1,827 days

Daily Burn Rate: $155.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: USSOCOM MICROSOFT ENTERPRISE AGREEMENT FOR MICROSOFT LICENSE SOFTWARE ASSURANCE AND NEW LICENSES

Place of Performance

Location: GREAT FALLS, FAIRFAX County, VIRGINIA, 22066

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $284.6 million to MINBURN TECHNOLOGY GROUP, LLC for work described as: USSOCOM MICROSOFT ENTERPRISE AGREEMENT FOR MICROSOFT LICENSE SOFTWARE ASSURANCE AND NEW LICENSES Key points: 1. The contract demonstrates a commitment to leveraging enterprise-wide software solutions for operational efficiency. 2. Pricing appears competitive given the scale and scope of Microsoft licensing and support. 3. Potential risks include vendor lock-in and the need for ongoing diligent contract management. 4. Performance context suggests a stable, long-term relationship for critical software needs. 5. This falls within the broader IT sector, specifically software licensing and support services. 6. The contract's duration and value indicate a significant investment in foundational IT infrastructure.

Value Assessment

Rating: good

The $284.6 million awarded over approximately five years for Microsoft licenses and support appears reasonable when benchmarked against similar large-scale enterprise software agreements. The firm-fixed-price structure provides cost certainty. However, a detailed cost breakdown of specific licenses and support services would allow for a more granular value assessment against market rates for comparable software suites.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. While the specific number of bidders is not detailed, the full and open nature suggests a competitive process that should drive favorable pricing. The award to Minburn Technology Group, LLC, implies they offered the best value proposition among the competing entities.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible pricing for essential software licenses and support, preventing inflated costs that could arise from a less competitive environment.

Public Impact

U.S. Special Operations Command (USSOCOM) personnel benefit from access to up-to-date Microsoft software and assurance services. Essential services include software licensing, maintenance, and technical support for a wide range of Microsoft products. The geographic impact is primarily within USSOCOM facilities, supporting its global mission. Workforce implications include ensuring IT professionals have the necessary tools and support to maintain and deploy software across the command.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with Microsoft products, requiring careful future procurement strategies.
Reliance on a single vendor for core software necessitates robust cybersecurity measures and diligent license management.
The long-term nature of the contract may limit flexibility in adopting newer, potentially more cost-effective technologies if not managed proactively.

Positive Signals

Enterprise-wide agreement standardizes software, potentially reducing support complexity and training costs.
Firm-fixed-price contract provides budget predictability for the duration of the award.
Full and open competition suggests a competitive pricing environment was leveraged.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on software publishers and enterprise licensing agreements. The market for enterprise software licenses, particularly for major vendors like Microsoft, is substantial, with government agencies being significant consumers. This agreement represents a strategic procurement to ensure consistent access to essential software tools and support, aligning with broader government IT modernization efforts.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses explicitly detailed in this summary. Therefore, the direct impact on the small business ecosystem is likely minimal unless Minburn Technology Group, LLC, voluntarily engages small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Special Operations Command's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, requiring delivery of specified licenses and support. Transparency is facilitated by the contract's public availability, though detailed internal cost breakdowns may not be publicly accessible.

Related Government Programs

General Services Administration (GSA) Schedules
Enterprise Software Licensing Agreements
Department of Defense IT Procurement
Microsoft Volume Licensing Programs

Risk Flags

Potential Vendor Lock-in
Long-term Software Dependency
Need for Detailed Cost Analysis

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $284.6 million to MINBURN TECHNOLOGY GROUP, LLC. USSOCOM MICROSOFT ENTERPRISE AGREEMENT FOR MICROSOFT LICENSE SOFTWARE ASSURANCE AND NEW 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 Defense (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $284.6 million.

What is the period of performance?

Start: 2019-02-28. End: 2024-02-29.

What is the specific breakdown of software licenses and support services included in this $284.6 million agreement?

The provided data indicates a 'MICROSOFT ENTERPRISE AGREEMENT FOR MICROSOFT LICENSE SOFTWARE ASSURANCE AND NEW LICENSES' valued at $284,638,564.88. However, a detailed breakdown of the specific Microsoft products (e.g., Windows, Office 365, server licenses), the quantity of licenses, and the precise nature of the software assurance and new licenses is not available in the summary data. This level of detail is typically found in the contract's statement of work or associated exhibits, which would clarify the scope and allow for more precise value analysis against individual product market rates.

How does the per-user or per-device cost compare to industry benchmarks for similar Microsoft enterprise agreements?

Without knowing the exact number of users or devices covered by this agreement, a direct per-unit cost comparison is not feasible. Enterprise agreements are often structured based on user counts, device counts, or a combination, and pricing can vary significantly based on volume discounts, the specific suite of products licensed (e.g., E3 vs. E5 licenses), and the level of software assurance included. To benchmark effectively, one would need to know the total number of licensed entities and compare the total contract value divided by that number against publicly available pricing for comparable Microsoft enterprise agreements or government-specific licensing vehicles.

What is Minburn Technology Group, LLC's track record with large federal IT contracts, particularly software licensing?

Minburn Technology Group, LLC, has been awarded this significant contract by the U.S. Special Operations Command. Further investigation into their contract history, including past performance evaluations, experience with similar large-scale software licensing agreements, and their overall financial stability, would be necessary to fully assess their track record. Information from sources like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) could provide insights into their performance on previous government contracts.

What are the key performance indicators (KPIs) used to measure the success of this software licensing and assurance agreement?

Key performance indicators for such an agreement would likely focus on software availability, uptime of cloud-based services (if applicable), responsiveness to support requests, successful delivery of new licenses and updates, and adherence to the agreed-upon software assurance terms. The effectiveness of the agreement also hinges on whether it meets the operational needs of USSOCOM, facilitates efficient software deployment, and provides adequate security and compliance assurances. Specific KPIs would be detailed in the contract's performance work statement.

How has USSOCOM's spending on Microsoft software evolved over the years leading up to and following this contract award?

This contract, awarded in February 2019 and ending in February 2024, represents a significant portion of USSOCOM's spending on Microsoft software during that period. To understand the evolution, one would need to examine historical spending data for USSOCOM's IT procurements, specifically looking at prior Microsoft agreements or similar software licensing contracts. Analyzing trends in spending volume, contract types (e.g., sole-source vs. competitive), and the scope of software procured would reveal whether this agreement represents an increase, decrease, or stable level of investment in Microsoft products.

Are there any identified risks associated with vendor lock-in or the long-term reliance on Microsoft products under this agreement?

Yes, vendor lock-in is a common risk with large enterprise software agreements, especially those spanning multiple years. This contract, by consolidating licenses and support for Microsoft products, could make it challenging and costly for USSOCOM to switch to alternative software vendors in the future. The reliance on Microsoft also means that future pricing increases by Microsoft could significantly impact USSOCOM's budget. Mitigating this risk requires proactive contract management, exploring multi-vendor strategies where feasible, and staying informed about emerging technologies and competitive offerings.

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

Offers Received: 4

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

Financial Breakdown

Contract Ceiling: $284,661,713

Exercised Options: $284,638,565

Current Obligation: $284,638,565

Actual Outlays: $173,564

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F309AA

IDV Type: FSS

Timeline