Army Awards $6.3M for Microsoft Unified Support, Lacking Competition
Contract Overview
Contract Amount: $6,323,379 ($6.3M)
Contractor: Microsoft Corporation
Awarding Agency: Department of Defense
Start Date: 2023-09-14
End Date: 2026-03-31
Contract Duration: 929 days
Daily Burn Rate: $6.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MICROSOFT UNIFIED SUPPORT FOR U.S. ARMY PROJECT DIRECTOR ACQUISITION, LOGISTICS & TECHNOLOGY ENTERPRISE SYSTEMS AND SERVICES (PD ALTESS)
Place of Performance
Location: RADFORD, RADFORD CITY County, VIRGINIA, 24143
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $6.3 million to MICROSOFT CORPORATION for work described as: MICROSOFT UNIFIED SUPPORT FOR U.S. ARMY PROJECT DIRECTOR ACQUISITION, LOGISTICS & TECHNOLOGY ENTERPRISE SYSTEMS AND SERVICES (PD ALTESS) Key points: 1. Significant contract for essential IT support services. 2. Solely awarded to Microsoft, raising competition concerns. 3. Long-term contract (over 2.5 years) with a fixed price. 4. Falls within the Computer Systems Design Services sector.
Value Assessment
Rating: fair
The $6.3M award for Microsoft Unified Support appears to be priced in line with typical enterprise support contracts. However, without competitive bidding, it's difficult to ascertain if this represents the best possible value for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Microsoft. This lack of competition limits price discovery and potentially leads to higher costs than if multiple vendors had bid.
Taxpayer Impact: The absence of competition may result in taxpayers paying a premium for these essential IT support services.
Public Impact
Ensures continued operational support for critical Army IT systems. Potential for vendor lock-in with a single provider. Impacts the ability of other IT service providers to compete for this business.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for overpayment
Positive Signals
- Essential IT support secured
- Fixed price contract
Sector Analysis
This contract falls under the Computer Systems Design Services sector, which is crucial for maintaining and operating government IT infrastructure. Benchmarks for similar large-scale enterprise support contracts can vary widely based on scope and vendor.
Small Business Impact
The contract was not awarded to a small business, and the sole-source nature likely precluded small business participation. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
The award was made by the Department of Defense's Defense Information Systems Agency (DISA), suggesting established oversight processes. However, the lack of competition warrants scrutiny regarding the justification for a sole-source award.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for price escalation
- Vendor lock-in risk
Tags
computer-systems-design-services, department-of-defense, va, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.3 million to MICROSOFT CORPORATION. MICROSOFT UNIFIED SUPPORT FOR U.S. ARMY PROJECT DIRECTOR ACQUISITION, LOGISTICS & TECHNOLOGY ENTERPRISE SYSTEMS AND SERVICES (PD ALTESS)
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 $6.3 million.
What is the period of performance?
Start: 2023-09-14. End: 2026-03-31.
What is the justification for awarding this contract as sole-source to Microsoft, and were alternative solutions explored?
The provided data indicates the contract was 'NOT COMPETED.' A thorough review would require access to the contract file to understand the specific justification, such as a critical need for proprietary software support or a lack of qualified alternative vendors. Without this, it's difficult to assess if taxpayer funds were used efficiently.
What are the specific risks associated with relying solely on Microsoft for this level of unified support for the U.S. Army?
Key risks include vendor lock-in, where the Army becomes dependent on Microsoft's pricing and service terms, potentially leading to escalating costs. There's also a risk of reduced innovation if alternative solutions aren't considered, and potential vulnerabilities if Microsoft's support capabilities are not rigorously assessed against evolving threats.
How does this sole-source award impact the overall effectiveness and cost-efficiency of the Army's IT support strategy?
This sole-source award limits the potential for cost savings through competitive bidding and may not leverage the most innovative or cost-effective solutions available in the market. While it ensures continuity of support, it raises questions about long-term value and the Army's ability to adapt to future technological needs without being constrained by a single vendor's offerings.
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: $6,323,379
Exercised Options: $6,323,379
Current Obligation: $6,323,379
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC102817D0001
IDV Type: IDC
Timeline
Start Date: 2023-09-14
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2025-12-30
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