VA awards $260M for Microsoft services to Microtechnologies LLC, impacting IT sector
Contract Overview
Contract Amount: $259,969,437 ($260.0M)
Contractor: Microtechnologies LLC
Awarding Agency: Department of Veterans Affairs
Start Date: 2010-04-01
End Date: 2013-04-15
Contract Duration: 1,110 days
Daily Burn Rate: $234.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MICROSOFT OPTION YEAR 4 FOR MICROSOFT SERVICES
Place of Performance
Location: AUSTIN, TRAVIS County, TEXAS, 78744
State: Texas Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $260.0 million to MICROTECHNOLOGIES LLC for work described as: MICROSOFT OPTION YEAR 4 FOR MICROSOFT SERVICES Key points: 1. Significant contract value of $260M for IT services. 2. Microtechnologies LLC is the sole awardee. 3. Potential risk associated with single-vendor reliance. 4. IT services sector sees substantial federal spending.
Value Assessment
Rating: fair
The contract value of $259,969,437.32 for Microsoft services appears high. Benchmarking against similar IT service contracts is difficult without more specific service details, but the scale suggests a need for careful price justification.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the award to a single entity, Microtechnologies LLC, warrants scrutiny to ensure competitive pricing was achieved.
Taxpayer Impact: Taxpayer funds are being utilized for this significant IT services contract. The effectiveness of the competition process will determine the ultimate value for taxpayers.
Public Impact
Veterans Affairs receives critical IT support services. Potential for technology modernization and improved service delivery. Impact on the IT services market and competition dynamics.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Single awardee concentration risk
- Potential for vendor lock-in
- High contract value requires diligent oversight
Positive Signals
- Awarded under full and open competition
- Supports critical VA operations
Sector Analysis
This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Federal spending in this area is substantial, driven by the need for ongoing support and modernization of government IT infrastructure.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this contract. Robust oversight mechanisms are crucial to ensure service delivery, cost control, and adherence to contract terms.
Related Government Programs
- Other Computer Related Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- High contract value
- Single awardee
- Limited service detail
- Potential for vendor lock-in
- Lack of small business awardee
Tags
other-computer-related-services, department-of-veterans-affairs, tx, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $260.0 million to MICROTECHNOLOGIES LLC. MICROSOFT OPTION YEAR 4 FOR MICROSOFT SERVICES
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 $260.0 million.
What is the period of performance?
Start: 2010-04-01. End: 2013-04-15.
What specific Microsoft services are being procured, and how do they align with VA's strategic IT goals?
The contract details are limited to 'Microsoft Services' and a NAICS code of 541519. To assess value, a breakdown of services (e.g., software licensing, cloud support, consulting) and their direct contribution to VA's IT modernization and operational efficiency objectives is essential. Understanding this alignment is key to justifying the $260M expenditure.
What measures were in place to ensure competitive pricing given the single awardee?
Although awarded under full and open competition, the single award to Microtechnologies LLC raises questions about price discovery. The VA should have employed strategies like detailed cost analysis, comparison to market research data, and potentially negotiation to ensure the $260M price reflects fair and reasonable costs for the services rendered.
How will the effectiveness of these Microsoft services be measured and reported to ensure accountability?
Effective oversight requires clearly defined performance metrics and Key Performance Indicators (KPIs) tied to the Microsoft services. The VA must have a system for regularly monitoring Microtechnologies LLC's performance against these metrics, with mechanisms for addressing deficiencies and ensuring the services deliver the intended operational benefits and value.
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, 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: $259,969,437
Exercised Options: $259,969,437
Current Obligation: $259,969,437
Parent Contract
Parent Award PIID: GS35F0629R
IDV Type: FSS
Timeline
Start Date: 2010-04-01
Current End Date: 2013-04-15
Potential End Date: 2013-04-15 00:00:00
Last Modified: 2013-03-27
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