F-35 JPO Spends $58.3M on Computer Systems Design Services with Microsoft Corporation
Contract Overview
Contract Amount: $58,334,355 ($58.3M)
Contractor: Microsoft Corporation
Awarding Agency: Department of Defense
Start Date: 2017-06-14
End Date: 2022-06-14
Contract Duration: 1,826 days
Daily Burn Rate: $31.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF - METSS FOR F-35 JOINT PROGRAM OFFICE
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $58.3 million to MICROSOFT CORPORATION for work described as: IGF::OT::IGF - METSS FOR F-35 JOINT PROGRAM OFFICE Key points: 1. Significant contract value of $58.3 million awarded to a single vendor. 2. Sole-source award to Microsoft Corporation raises questions about competition. 3. Contract duration of 5 years (2017-2022) indicates a long-term need. 4. Focus on Computer Systems Design Services suggests critical IT support for the F-35 program.
Value Assessment
Rating: questionable
The contract value of $58.3 million for computer systems design services is substantial. Without specific benchmarks for F-35 JPO IT support, it's difficult to definitively assess pricing, but the lack of competition warrants scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This significantly limits price discovery and may result in higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the best possible price due to the absence of competitive bidding.
Public Impact
Impacts the critical F-35 Joint Program Office, a high-profile defense initiative. Potential for taxpayer funds to be used inefficiently due to lack of competition. Raises concerns about the government's ability to secure competitive pricing for essential IT services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Significant contract value
Positive Signals
- Supports a critical defense program (F-35)
- Long-term contract indicates sustained need
Sector Analysis
This contract falls under IT services, specifically computer systems design. The defense sector often involves large, complex IT contracts, and benchmarks can vary widely based on the specific technology and support required.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or had opportunities to participate in subcontracting.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the services provided are necessary and that the pricing is reasonable, despite the lack of competition.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Potential for overpayment due to sole-source award
- Lack of transparency in the procurement process
- Risk of vendor lock-in
- Limited opportunity for innovation from other vendors
Tags
computer-systems-design-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $58.3 million to MICROSOFT CORPORATION. IGF::OT::IGF - METSS FOR F-35 JOINT PROGRAM OFFICE
Who is the contractor on this award?
The obligated recipient is MICROSOFT CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $58.3 million.
What is the period of performance?
Start: 2017-06-14. End: 2022-06-14.
What justification was provided for the sole-source award of this significant contract to Microsoft Corporation?
The justification for a sole-source award typically involves demonstrating that only one responsible source can provide the required supplies or services. For IT services, this might be due to proprietary software, unique expertise, or critical integration requirements with existing systems. A thorough review of the justification documentation is necessary to assess its validity and ensure it aligns with federal procurement regulations.
What is the estimated cost savings or premium paid due to the sole-source award compared to a competitive process?
Quantifying the exact cost difference without a competitive benchmark is challenging. However, sole-source contracts are generally presumed to be more expensive than competitively awarded ones. A price reasonableness analysis would have been conducted, but it relies on internal data or limited market research rather than actual bids, potentially leading to a premium paid by the government.
How effectively were the computer systems design services delivered under this contract to support the F-35 JPO's mission?
Assessing the effectiveness requires reviewing performance metrics, user feedback, and the overall impact on the F-35 program's IT infrastructure. While the contract was long-term, indicating a sustained need, its effectiveness is best judged by the successful delivery of services that met or exceeded the JPO's operational requirements and contributed to program objectives.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HC102816R0024
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: ONE MICROSOFT WAY, REDMOND, WA, 98052
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $58,334,355
Exercised Options: $58,334,355
Current Obligation: $58,334,355
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC102817D0001
IDV Type: IDC
Timeline
Start Date: 2017-06-14
Current End Date: 2022-06-14
Potential End Date: 2022-06-14 00:00:00
Last Modified: 2023-07-19
More Contracts from Microsoft Corporation
- Microsoft Consulting Services (MCS) and Microsoft Premier Support (MPS) for the United States Marine Corps (usmc — $220.0M (Department of Defense)
- Army Cyber Commands Microsoft Consulting Services and Microsoft Premier Support — $172.5M (Department of Defense)
- - Metss for Usmc — $160.7M (Department of Defense)
- Labor — $148.0M (Department of Defense)
- Microsoft Consulting Services (MCS) and Unified Support for the U.S. Navy / Program Executive Office Digital and Enterprise Services (PEO) Digital — $119.5M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)