DoD's $21.5M Microsoft 365 & Server Licenses Awarded to Minburn Technology Group Under BPA Call

Contract Overview

Contract Amount: $21,458,951 ($21.5M)

Contractor: Minburn Technology Group, LLC

Awarding Agency: Department of Defense

Start Date: 2024-05-01

End Date: 2026-04-30

Contract Duration: 729 days

Daily Burn Rate: $29.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MICROSOFT OFFICE 365 AND SERVER LICENSES

Place of Performance

Location: GREAT FALLS, FAIRFAX County, VIRGINIA, 22066

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $21.5 million to MINBURN TECHNOLOGY GROUP, LLC for work described as: MICROSOFT OFFICE 365 AND SERVER LICENSES Key points: 1. Significant investment in essential software for defense operations. 2. Competition method (BPA Call) suggests a streamlined but potentially less price-optimized process. 3. Risk of vendor lock-in and potential for future price increases with Microsoft software. 4. IT sector spending, crucial for agency functionality and cybersecurity.

Value Assessment

Rating: fair

The contract value of $21.5M over two years for Microsoft licenses appears substantial. Benchmarking against similar large-scale government software procurements is difficult without specific license counts and tiers, but the price per year is significant.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Awarded via a BPA Call, indicating competition occurred at the BPA level, but this specific call might have had limited participants. The pricing discovery relies on the initial BPA competition and subsequent call-offs.

Taxpayer Impact: Taxpayers are funding essential software for national defense, with the cost influenced by the competitive landscape of the BPA and the specific call.

Public Impact

Ensures critical software availability for Department of Defense personnel. Supports agency operations through updated software and server licenses. Potential for indirect impact on cybersecurity posture through software updates. Facilitates collaboration and productivity within the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on a single software vendor (Microsoft).
Potential for price increases in future renewals.
Limited visibility into per-unit cost effectiveness.
Contract duration extends over two years.

Positive Signals

Procurement supports essential government functions.
Utilizes an existing Best Price Agreement (BPA) framework.
Firm Fixed Price contract provides cost certainty.

Sector Analysis

This contract falls within the Information Technology sector, specifically software licensing. Government spending on enterprise software like Microsoft 365 is a significant portion of IT budgets, driven by the need for standardized, secure, and collaborative tools.

Small Business Impact

While the contract was awarded under a full and open competition framework, the data does not indicate if small businesses were involved as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The award was made under a BPA Call, suggesting oversight exists at the BPA creation and call-off stages. Accountability for the value and necessity of these licenses rests with the contracting officers and the Defense Counterintelligence and Security Agency.

Related Government Programs

Software Publishers
Department of Defense Contracting
Defense Counterintelligence and Security Agency Programs

Risk Flags

High reliance on a single vendor (Microsoft).
Potential for price escalation in future contract periods.
Lack of detailed unit cost data for precise value assessment.
Limited insight into small business participation.
Contract duration may not align with optimal long-term cost strategies.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.5 million to MINBURN TECHNOLOGY GROUP, LLC. MICROSOFT OFFICE 365 AND SERVER 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 (Defense Counterintelligence and Security Agency).

What is the total obligated amount?

The obligated amount is $21.5 million.

What is the period of performance?

Start: 2024-05-01. End: 2026-04-30.

What is the specific breakdown of licenses (e.g., user counts, server types, editions) to accurately assess value for money?

Without a detailed breakdown of the specific Microsoft 365 and server licenses, including user counts, license tiers (e.g., E3, E5), and server editions, it is challenging to perform a precise value-for-money assessment. This granular data is crucial for comparing against industry benchmarks and ensuring the government is not overpaying for features or capacity it does not require.

How does the pricing compare to other federal agencies or commercial entities procuring similar Microsoft enterprise agreements?

Benchmarking this $21.5M contract against similar government or commercial Microsoft enterprise agreements is difficult without access to detailed pricing structures and volume discounts. Agencies often negotiate different terms based on size and commitment. A comparative analysis would require access to GSA schedules, other agency BPA call details, or commercial price lists for equivalent license volumes.

What is the long-term strategy for software licensing and potential cost savings beyond this two-year contract?

The agency's long-term strategy for software licensing is unclear from this data. While this contract provides current software, it doesn't reveal plans for future cost optimization, such as exploring alternative software solutions, negotiating longer-term enterprise agreements for better discounts, or leveraging open-source alternatives where feasible. Proactive planning is key to managing escalating software costs.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

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: $29,772,153

Exercised Options: $21,458,951

Current Obligation: $21,458,951

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6600119A0006

IDV Type: BPA

Timeline