VA's $16.5M Microsoft services contract with Microtechnologies LLC renewed for option year 4

Contract Overview

Contract Amount: $16,461,607 ($16.5M)

Contractor: Microtechnologies LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2010-04-01

End Date: 2013-07-19

Contract Duration: 1,205 days

Daily Burn Rate: $13.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: RENEW OPTION YEAR 4 FOR MICROSOFT SERVICES ENTERPRISE WIDE

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78741

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $16.5 million to MICROTECHNOLOGIES LLC for work described as: RENEW OPTION YEAR 4 FOR MICROSOFT SERVICES ENTERPRISE WIDE Key points: 1. Contract value for this option year is $16.5M, extending services for enterprise-wide Microsoft solutions. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Microtechnologies LLC has held this contract since its initial award, indicating a sustained relationship. 4. The services provided fall under 'Other Computer Related Services,' a broad category. 5. The contract duration is substantial, spanning over 100 months since its original award date. 6. This is a firm-fixed-price contract, which shifts cost risk to the contractor.

Value Assessment

Rating: fair

The total value of this option year is $16.5M. Without specific performance metrics or a breakdown of services rendered, it is difficult to benchmark the value for money. However, the firm-fixed-price nature of the contract provides cost certainty for the VA. Comparing this to similar enterprise-wide Microsoft support contracts across federal agencies would require detailed service level agreements and pricing structures, which are not provided here. The duration of the contract suggests a long-term need for these services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This suggests a healthy level of competition at the time of initial award. The renewal of an option year typically means the incumbent contractor is being retained, often based on satisfactory performance and pricing. The specific number of bidders for the original solicitation is not detailed, but the 'full and open' designation implies a robust process.

Taxpayer Impact: A competitive award process generally benefits taxpayers by driving down prices and ensuring the government receives the best value. For this renewed option year, the price is fixed, providing predictability.

Public Impact

Federal employees across the Department of Veterans Affairs benefit from continued access to Microsoft enterprise services. Essential IT infrastructure and support are maintained, ensuring operational continuity for VA's mission. The services likely support a wide range of VA operations, from administrative functions to patient care systems. Geographic impact is nationwide, as the VA operates numerous facilities across the United States. Workforce implications include ensuring IT staff have the necessary tools and support to perform their duties effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it hard to assess ongoing value for money.
Long contract duration without clear re-competition points could lead to complacency.
Reliance on a single vendor for enterprise-wide Microsoft services may pose a risk if the vendor's capabilities diminish.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Awarded through full and open competition, suggesting initial competitive pricing.
Renewal indicates satisfactory performance and continued need for the services.

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services.' The market for enterprise-wide IT support, particularly for major software suites like Microsoft, is substantial and highly competitive. Many large and small businesses offer these services. The VA's spending on IT services is a significant portion of its overall budget, reflecting the critical role technology plays in modern healthcare and government operations. Benchmarking requires comparison to similar large-scale IT support contracts.

Small Business Impact

The provided data indicates that small business participation (sb) is false and there is no indication of a small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses. Therefore, the direct impact on the small business ecosystem through this specific contract is likely minimal, unless Microtechnologies LLC engages in significant subcontracting with small businesses, which is not detailed here.

Oversight & Accountability

The contract is managed by the Department of Veterans Affairs. Oversight would typically involve contract officers, program managers, and potentially an Inspector General's office to ensure compliance with terms, conditions, and performance standards. Transparency is generally facilitated through contract databases like FPDS, where basic award information is publicly available. Accountability rests with the contracting officer to monitor performance and address any issues.

Related Government Programs

VA IT Modernization Initiatives
Enterprise Software Licensing
IT Support Services
Cloud Computing Services

Risk Flags

Long-term contract without clear re-competition points.
Lack of detailed performance metrics in public data.
Potential for vendor lock-in with enterprise-wide services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $16.5 million to MICROTECHNOLOGIES LLC. RENEW OPTION YEAR 4 FOR MICROSOFT SERVICES ENTERPRISE WIDE

Who is the contractor on this award?

The obligated recipient is MICROTECHNOLOGIES LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $16.5 million.

What is the period of performance?

Start: 2010-04-01. End: 2013-07-19.

What specific Microsoft services are covered under this contract, and how has the scope evolved since the initial award?

The contract description 'MICROSOFT SERVICES ENTERPRISE WIDE' is broad. It likely encompasses a range of services related to Microsoft's enterprise software suite, potentially including licensing, technical support, maintenance, and possibly implementation or consulting for products like Windows, Office 365, Azure, and server technologies. Without access to the contract's Statement of Work (SOW), it's impossible to detail the exact services or their evolution. The renewal of option years suggests the services remain relevant and necessary for the VA's operations, but the specific scope and any changes would be documented in contract modifications.

How does the $16.5M annual cost compare to similar enterprise-wide Microsoft support contracts at other large federal agencies?

Benchmarking this $16.5M annual cost requires a detailed comparison of the scope of services, number of users supported, and specific Microsoft products covered. Large agencies like the Department of Defense or Health and Human Services also procure extensive Microsoft enterprise support. Factors such as service level agreements (SLAs), response times, and the inclusion of premium support tiers significantly influence pricing. A direct comparison is difficult without granular data, but $16.5M for enterprise-wide support for a large agency like the VA is within a plausible range, especially if it includes comprehensive support and licensing for a vast user base.

What is Microtechnologies LLC's track record with the VA and other federal agencies, particularly regarding performance on large IT service contracts?

Microtechnologies LLC has been the incumbent contractor for this specific VA Microsoft services contract since its initial award in 2010. This long tenure suggests a generally positive working relationship and satisfactory performance from the VA's perspective, leading to multiple option year renewals. To fully assess their track record, one would need to examine past performance reviews, any contract disputes or awards, and their performance on other federal contracts. Publicly available data often includes past performance information, which would provide a more comprehensive view of their capabilities and reliability.

What are the key performance indicators (KPIs) used to evaluate Microtechnologies LLC's performance under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for IT services contracts, KPIs would relate to service availability, response times for support requests, resolution times for issues, system uptime, security compliance, and customer satisfaction. The renewal of option years implies that the contractor has met or exceeded the performance expectations set forth in the contract's Service Level Agreements (SLAs). A thorough review of the contract's SOW and performance clauses would be necessary to identify the specific KPIs.

How has the total spending on this specific contract evolved over its lifespan, and what does this trend indicate?

The provided data shows an award value ('aw') of $13,661, which seems to be an initial or placeholder value, and the current option year value is $16,461,606.76. The contract duration ('dur') is 1205 days, which is approximately 3.3 years. This suggests the $16.5M figure is likely the value for the current option year, not the total contract value over its entire history. To understand spending evolution, we would need annual spending data or values for each option period exercised. Assuming the $16.5M is an annual run rate, and considering the contract started in 2010, the total cumulative spending would be significantly higher, likely in the tens or hundreds of millions, reflecting sustained demand for these services.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8320 OLD COURTHOUSE RD STE 500, VIENNA, VA, 11

Business Categories: 8(a) Program Participant, Category Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $16,461,607

Exercised Options: $16,461,607

Current Obligation: $16,461,607

Parent Contract

Parent Award PIID: GS35F0629R

IDV Type: FSS

Timeline