USDA's $234.7M Enterprise Solutions Contract Awarded to Minburn Technology Group

Contract Overview

Contract Amount: $234,662,304 ($234.7M)

Contractor: Minburn Technology Group, LLC

Awarding Agency: Department of Agriculture

Start Date: 2022-08-16

End Date: 2032-09-30

Contract Duration: 3,698 days

Daily Burn Rate: $63.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FY23 USDA OCIO ENTERPRISE SOLUTIONS POP: 10/1/2022 - 9/30/2023

Place of Performance

Location: GREAT FALLS, FAIRFAX County, VIRGINIA, 22066

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $234.7 million to MINBURN TECHNOLOGY GROUP, LLC for work described as: FY23 USDA OCIO ENTERPRISE SOLUTIONS POP: 10/1/2022 - 9/30/2023 Key points: 1. Significant contract value highlights investment in IT infrastructure. 2. Competition method suggests a potentially competitive bidding process. 3. Long contract duration (10 years) poses potential for price escalation. 4. Focus on 'Other Computer Related Services' indicates a broad IT scope.

Value Assessment

Rating: fair

The contract's fixed price structure is positive, but the total value over 10 years requires careful monitoring. Benchmarking against similar large-scale IT service contracts is crucial to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a competitive process was intended, but the exclusion of specific sources warrants scrutiny to ensure true market fairness and optimal price discovery.

Taxpayer Impact: Taxpayer funds are committed to a long-term IT solution, necessitating robust oversight to ensure cost-effectiveness and alignment with agency needs.

Public Impact

Impacts USDA's ability to modernize its IT systems and deliver services. Potential for ripple effects on other government agencies seeking similar solutions. Ensures continuity of essential IT operations for the Department of Agriculture.

Waste & Efficiency Indicators

Waste Risk Score: 60 / 10

Warning Flags

Long-term contract duration increases risk of cost overruns.
Exclusion of sources in competition needs justification.
Lack of small business participation noted.

Positive Signals

Firm Fixed Price contract type.
Full and Open Competition utilized.
Clear definition of services (NAICS 541519).

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Government spending in this area is substantial, driven by the need for digital transformation and cybersecurity.

Small Business Impact

The contract data indicates no small business participation (ss: false, sb: false). This suggests a missed opportunity to leverage small business innovation and support economic diversity within the federal contracting landscape.

Oversight & Accountability

The long duration of this definitive contract necessitates strong oversight mechanisms to ensure performance, manage scope creep, and validate continued necessity and cost-effectiveness throughout its term.

Related Government Programs

Other Computer Related Services
Department of Agriculture Contracting
Office of the Chief Financial Officer Programs

Risk Flags

Long contract duration (10 years)
Exclusion of sources in competition
No small business participation
High total contract value

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $234.7 million to MINBURN TECHNOLOGY GROUP, LLC. FY23 USDA OCIO ENTERPRISE SOLUTIONS POP: 10/1/2022 - 9/30/2023

Who is the contractor on this award?

The obligated recipient is MINBURN TECHNOLOGY GROUP, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $234.7 million.

What is the period of performance?

Start: 2022-08-16. End: 2032-09-30.

How does the total contract value of $234.7 million over 10 years compare to industry benchmarks for similar enterprise IT solutions?

Benchmarking this contract requires comparing the total contract value against the average cost of similar 10-year enterprise IT solutions for large federal agencies. Factors like scope, complexity, and specific services offered by Minburn Technology Group are critical. Without detailed service breakdowns and market data, a precise comparison is difficult, but the figure suggests a significant investment that should be scrutinized for efficiency and value against peer contracts.

What are the specific reasons for excluding certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process, and how was market research conducted?

The justification for excluding sources is crucial for understanding the competitive landscape and potential impact on pricing. Agencies typically exclude sources based on specific technical requirements, existing infrastructure compatibility, or unique capabilities. Robust market research should have been conducted to ensure that the exclusion did not unduly limit competition or lead to a suboptimal price. Transparency regarding these exclusions is vital for accountability.

What performance metrics and deliverables are in place to ensure the effectiveness and value of these enterprise solutions over the 10-year contract period?

Effective oversight requires clearly defined performance metrics and deliverables tied to the contract's objectives. These should include measurable outcomes related to system performance, user satisfaction, cost savings, and alignment with USDA's strategic goals. Regular reviews and reporting against these metrics are essential to track progress, identify potential issues early, and ensure the government receives the intended value for its investment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 12314422R0011

Offers Received: 4

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: $715,625,652

Exercised Options: $234,662,304

Current Obligation: $234,662,304

Actual Outlays: $231,152,063

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline