DISA Awards $26.8M Microsoft Consulting Services Contract to Microsoft Corporation
Contract Overview
Contract Amount: $26,779,114 ($26.8M)
Contractor: Microsoft Corporation
Awarding Agency: Department of Defense
Start Date: 2023-06-15
End Date: 2026-06-14
Contract Duration: 1,095 days
Daily Burn Rate: $24.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: DISA/SD MICROSOFT CONSULTING SERVICE FOR SD PROGRAMS IN SUPPORT OF DOD AND DISA CUSTOMERS.
Place of Performance
Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $26.8 million to MICROSOFT CORPORATION for work described as: DISA/SD MICROSOFT CONSULTING SERVICE FOR SD PROGRAMS IN SUPPORT OF DOD AND DISA CUSTOMERS. Key points: 1. Contract awarded to Microsoft Corporation for consulting services. 2. Significant spending on IT consulting services for DoD and DISA. 3. Lack of competition raises concerns about potential overpricing. 4. Services are critical for supporting Department of Defense programs.
Value Assessment
Rating: questionable
The contract value of $26.8M for 3 years of Microsoft consulting services appears high, especially given the sole-source nature. Benchmarking against similar, competitively awarded IT consulting contracts would be necessary to determine fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source to Microsoft Corporation, indicating no competition. This method limits price discovery and may result in higher costs for taxpayers compared to a competitive procurement.
Taxpayer Impact: The sole-source award limits competitive pressure, potentially leading to increased costs for the government and taxpayers.
Public Impact
Ensures continued support for critical Department of Defense IT programs. Potential for increased costs due to lack of competition. Reliance on a single vendor for specialized consulting services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Supports critical DoD and DISA missions
- Utilizes established vendor relationship
Sector Analysis
This contract falls within the IT consulting sector, specifically Computer Systems Design Services. Spending in this area is substantial across the federal government, with significant portions often going to large technology providers.
Small Business Impact
This contract was not awarded to a small business. The sole-source nature of the award further limits opportunities for small businesses to compete for these services.
Oversight & Accountability
The sole-source award warrants close oversight to ensure the services provided are necessary and priced appropriately. Transparency in the justification for the sole-source award is crucial.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Sole-source award limits competition and potentially increases costs.
- High contract value requires careful justification and oversight.
- Lack of small business participation.
- Potential for vendor lock-in.
Tags
computer-systems-design-services, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.8 million to MICROSOFT CORPORATION. DISA/SD MICROSOFT CONSULTING SERVICE FOR SD PROGRAMS IN SUPPORT OF DOD AND DISA CUSTOMERS.
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 $26.8 million.
What is the period of performance?
Start: 2023-06-15. End: 2026-06-14.
What is the justification for awarding this contract sole-source to Microsoft Corporation?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a critical need for continuity of services that only the incumbent vendor can provide. For this contract, DISA likely cited the need for specialized expertise directly related to Microsoft products and services essential for their existing IT infrastructure and DoD programs.
What are the potential risks associated with a sole-source IT consulting contract of this magnitude?
The primary risks include inflated pricing due to the absence of competitive bidding, vendor lock-in, and a lack of innovation spurred by competition. There's also a risk that the government may not receive the best value or most cost-effective solutions. Continuous monitoring and strong contract management are essential to mitigate these risks.
How does this contract contribute to the overall effectiveness of DISA and DoD IT operations?
This contract is intended to ensure the effective operation and support of critical IT systems and programs for DISA and the DoD. By engaging Microsoft's specialized consulting services, the agencies aim to maintain, enhance, and potentially modernize their technology infrastructure, thereby supporting mission-critical functions and national security 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: $27,769,459
Exercised Options: $27,769,459
Current Obligation: $26,779,114
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC102817D0001
IDV Type: IDC
Timeline
Start Date: 2023-06-15
Current End Date: 2026-06-14
Potential End Date: 2026-06-14 00:00:00
Last Modified: 2026-01-13
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)