Navy SharePoint Labor Contract Awarded to Microsoft for $30.6M
Contract Overview
Contract Amount: $30,591,181 ($30.6M)
Contractor: Microsoft Corporation
Awarding Agency: Department of Defense
Start Date: 2011-12-14
End Date: 2013-06-14
Contract Duration: 548 days
Daily Burn Rate: $55.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CD26 NAVY SHAREPOINT LABOR
Place of Performance
Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $30.6 million to MICROSOFT CORPORATION for work described as: CD26 NAVY SHAREPOINT LABOR Key points: 1. Significant contract value of $30.6 million for SharePoint labor. 2. Sole-source award to Microsoft Corporation, limiting competition. 3. Potential risk associated with single-vendor reliance for critical IT services. 4. Spending falls within the 'Other Computer Related Services' sector.
Value Assessment
Rating: questionable
The contract value of $30.6 million for SharePoint labor appears high given the 'Other Computer Related Services' NAICS code and the duration of the contract. Benchmarking against similar IT labor contracts is difficult without more specific service details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This method may lead to higher prices as there was no market pressure to drive down costs through competitive bidding.
Taxpayer Impact: The absence of competition raises concerns about whether taxpayers received the best possible value for this $30.6 million expenditure.
Public Impact
Taxpayers may have overpaid due to the sole-source nature of the award. Reliance on a single vendor for IT services can create long-term dependencies. Lack of transparency in pricing due to limited competition. Potential for vendor lock-in with Microsoft's SharePoint platform.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value for IT labor
Positive Signals
- Contract awarded to a well-known technology provider
Sector Analysis
This contract falls under 'Other Computer Related Services,' a broad category. The spending of $30.6 million for IT labor services is substantial and warrants scrutiny, especially given the sole-source award.
Small Business Impact
The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within this sole-source award.
Oversight & Accountability
The sole-source nature of this award suggests potential weaknesses in the procurement process. Further oversight is needed to ensure fair pricing and justification for non-competitive awards.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Sole-source award limits competition and potentially inflates costs.
- Lack of transparency in pricing due to non-competitive nature.
- Potential for vendor lock-in with Microsoft SharePoint.
- High contract value for IT labor services.
Tags
other-computer-related-services, department-of-defense, md, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.6 million to MICROSOFT CORPORATION. CD26 NAVY SHAREPOINT LABOR
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 $30.6 million.
What is the period of performance?
Start: 2011-12-14. End: 2013-06-14.
What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without this information, it's impossible to assess the validity of the procurement method.
How does the $30.6 million cost compare to market rates for similar SharePoint labor services?
Benchmarking this contract's cost is challenging without detailed service descriptions and labor categories. However, a $30.6 million expenditure over approximately 1.5 years for IT labor, especially under a sole-source award, raises concerns about potential overpricing. A competitive process would have provided a clearer market benchmark.
What is the long-term risk associated with relying solely on Microsoft for this SharePoint labor?
The primary long-term risk is vendor lock-in, making it difficult and costly to switch to alternative solutions or providers in the future. It also concentrates critical IT support with one entity, potentially limiting flexibility and innovation if Microsoft's offerings or support change.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: ONE MICROSOFT WAY, REDMOND, WA, 01
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $30,591,181
Exercised Options: $30,591,181
Current Obligation: $30,591,181
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91QUZ09D0038
IDV Type: IDC
Timeline
Start Date: 2011-12-14
Current End Date: 2013-06-14
Potential End Date: 2013-06-14 00:00:00
Last Modified: 2014-01-27
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