Peace Corps awards $5.4M for Microsoft licenses and support, with 2 bidders and a 14.9K benchmark

Contract Overview

Contract Amount: $5,433,348 ($5.4M)

Contractor: Countertrade Products, Inc.

Awarding Agency: Peace Corps

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $14.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MICROSOFT SOFTWARE LICENSES AND SUPPORT

Place of Performance

Location: ARVADA, JEFFERSON County, COLORADO, 80003

State: Colorado Government Spending

Plain-Language Summary

Peace Corps obligated $5.4 million to COUNTERTRADE PRODUCTS, INC. for work described as: MICROSOFT SOFTWARE LICENSES AND SUPPORT Key points: 1. Value for money appears reasonable given the benchmarked per-unit cost. 2. Competition was limited to two bidders, potentially impacting price discovery. 3. Risk indicators are low, with a firm fixed-price contract and short duration. 4. Performance context is a standard software licensing and support agreement. 5. Sector positioning is within IT services, specifically software procurement.

Value Assessment

Rating: good

The contract's value of $5.43 million for Microsoft licenses and support is benchmarked against a per-unit cost of $14,927. This benchmark suggests a potentially favorable price point, especially when compared to typical enterprise licensing agreements. The firm fixed-price structure further enhances value by locking in costs and mitigating budget uncertainty for the Peace Corps.

Cost Per Unit: $14,927

Competition Analysis

Competition Level: limited

This contract was awarded under full and open competition, but only two bids were received. While competition existed, the limited number of bidders may have reduced the pressure on pricing and innovation compared to a more robust bidding environment. The agency's approach to competition will be key to understanding if the best possible value was secured.

Taxpayer Impact: With only two bidders, taxpayers may not have benefited from the full spectrum of competitive pricing that could have been achieved with more offers. This could translate to a slightly higher cost than if multiple vendors had vied for the contract.

Public Impact

The Peace Corps benefits directly through access to essential Microsoft software and ongoing technical support, enabling its global operations. Services delivered include licensing for various Microsoft products and maintenance/support services. Geographic impact is global, supporting Peace Corps personnel worldwide. Workforce implications include ensuring Peace Corps staff have the necessary tools to perform their duties effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to higher prices than a more open bidding process.
Reliance on a single software vendor (Microsoft) can create long-term dependency and potential vendor lock-in.

Positive Signals

Firm fixed-price contract provides cost certainty for the agency.
Short contract duration (1 year) allows for periodic re-evaluation of needs and pricing.
Standard software licensing is a common and well-understood procurement category.

Sector Analysis

This contract falls within the Information Technology sector, specifically software licensing and support. The market for enterprise software licenses and support is dominated by a few major players, including Microsoft. Spending in this category is substantial across federal agencies, with agencies often procuring similar licenses for productivity suites and operating systems. Benchmarking against industry standards is crucial for ensuring cost-effectiveness.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature of Microsoft software licensing, it is unlikely that small businesses would be primary bidders for such a large-scale enterprise agreement. Subcontracting opportunities for small businesses are not explicitly mentioned but could arise if the primary contractor engages them for specific support services.

Oversight & Accountability

Oversight for this contract would typically reside with the Peace Corps' contracting officer and program managers. Accountability is ensured through the firm fixed-price terms, requiring delivery of specified licenses and support. Transparency is maintained through federal procurement databases where contract awards are publicly reported. Inspector General jurisdiction may apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Microsoft Enterprise Agreements
Federal Civilian Agency IT Procurement
Software Licensing and Maintenance

Risk Flags

Limited competition may impact price optimization.
Lack of specific product details hinders comprehensive value analysis.

Frequently Asked Questions

What is this federal contract paying for?

Peace Corps awarded $5.4 million to COUNTERTRADE PRODUCTS, INC.. MICROSOFT SOFTWARE LICENSES AND SUPPORT

Who is the contractor on this award?

The obligated recipient is COUNTERTRADE PRODUCTS, INC..

Which agency awarded this contract?

Awarding agency: Peace Corps (Peace Corps).

What is the total obligated amount?

The obligated amount is $5.4 million.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What is the historical spending pattern for Microsoft software licenses and support at the Peace Corps?

Analyzing historical spending data for Microsoft software licenses and support at the Peace Corps is crucial for understanding trends and identifying potential anomalies. Without specific historical data for this agency, we can infer general patterns. Federal agencies typically engage in multi-year agreements for enterprise software, often renewing or upgrading licenses as needed. Spending can fluctuate based on user growth, new software adoption, and changes in licensing models (e.g., subscription vs. perpetual). A consistent pattern of similar awards over time would suggest stable demand and predictable budgeting. Conversely, significant year-over-year increases might warrant investigation into the drivers, such as expanded user base or new technology rollouts. Comparing current award values to previous ones helps assess whether the agency is achieving better pricing or if costs are escalating.

How does the per-unit cost of $14,927 compare to similar federal contracts for Microsoft licenses?

The per-unit cost of $14,927 for Microsoft licenses and support, as indicated by the benchmark, needs to be contextualized against similar federal contracts. Federal procurement data often reveals a wide range for enterprise software licenses, influenced by the specific product suite (e.g., Office 365 E5 vs. Windows Server CALs), the number of units, the duration of the contract, and the level of support included. Generally, larger volume purchases or longer-term commitments can lead to lower per-unit costs due to volume discounts. The benchmark of $14,927 suggests a potentially mid-to-high range, which could be justified if it includes premium support tiers, a comprehensive suite of products, or is for a smaller quantity of high-value licenses. A detailed comparison would involve examining contracts with similar product scope and quantities awarded around the same period to ascertain if this price is competitive.

What are the specific Microsoft products and support levels included in this $5.43 million award?

The provided data abbreviates the description to 'MICROSOFT SOFTWARE LICENSES AND SUPPORT,' lacking specificity regarding the exact products and support levels. This $5.43 million award could encompass a broad range of Microsoft offerings, from operating system licenses (Windows) and productivity suites (Office 365/Microsoft 365) to server software (Windows Server, SQL Server) and specialized applications. The 'support' component is equally vague; it could range from basic technical assistance and security updates to premium, 24/7 enterprise-level support with dedicated account managers. Understanding the precise mix of products and the depth of support is critical for a thorough value assessment. Without this detail, it's challenging to definitively benchmark the cost against comparable contracts or to evaluate if the Peace Corps is procuring precisely what it needs at an optimal price point.

What is the track record of Countertrade Products, Inc. in providing IT services to federal agencies?

Information regarding the track record of Countertrade Products, Inc. in providing IT services to federal agencies is not detailed in the provided data snippet. A comprehensive assessment would require reviewing the company's past performance on similar contracts, including client satisfaction ratings, adherence to schedules and budgets, and any history of disputes or contract modifications. Federal procurement databases (like SAM.gov or FPDS) often contain performance evaluations and contract histories. Without this specific information, it's difficult to gauge the contractor's reliability and expertise in delivering Microsoft software licenses and support. Agencies typically rely on past performance as a key factor in source selection, especially for critical IT infrastructure.

What are the potential risks associated with a sole-source or limited competition award for essential software?

While this contract was listed as 'FULL AND OPEN COMPETITION' with two bidders, the limited number of offers presents risks. A primary risk in sole-source or limited competition scenarios for essential software is the potential for inflated pricing. Without robust competition, vendors may have less incentive to offer their most competitive rates. This can lead to taxpayers footing a higher bill than necessary. Furthermore, limited competition can stifle innovation, as agencies may not be exposed to alternative solutions or more cost-effective technologies from a wider range of vendors. It can also create vendor lock-in, making it difficult and costly to switch providers in the future. Agencies must carefully justify limited competition to ensure they are still achieving best value and managing taxpayer funds responsibly.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7585 W 66TH AVE, ARVADA, CO, 80003

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $8,270,690

Exercised Options: $5,433,348

Current Obligation: $5,433,348

Actual Outlays: $5,016,151

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC05B

IDV Type: GWAC

Timeline