Treasury's OCC Spends $15.15M on Microsoft Enterprise Agreement for Desktop Support

Contract Overview

Contract Amount: $15,153,487 ($15.2M)

Contractor: Minburn Technology Group, LLC

Awarding Agency: Department of the Treasury

Start Date: 2022-10-01

End Date: 2025-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: HQ - 2022-OCT-01 - THE MICROSOFT ENTERPRISE AGREEMENT IS USED TO SUPPORT THE INSTALLATION AND CONFIGURATION OF THE OCC DESKTOP AND INFRASTRUCTURE ENVIRONMENT. THE OCC USES NUMEROUS MICROSOFT SOFTWARE

Place of Performance

Location: GREAT FALLS, FAIRFAX County, VIRGINIA, 22066

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $15.2 million to MINBURN TECHNOLOGY GROUP, LLC for work described as: HQ - 2022-OCT-01 - THE MICROSOFT ENTERPRISE AGREEMENT IS USED TO SUPPORT THE INSTALLATION AND CONFIGURATION OF THE OCC DESKTOP AND INFRASTRUCTURE ENVIRONMENT. THE OCC USES NUMEROUS MICROSOFT SOFTWARE Key points: 1. Significant investment in Microsoft software for critical OCC infrastructure. 2. Contract awarded to Minburn Technology Group, LLC. 3. Potential risk associated with vendor lock-in for enterprise software. 4. Spending falls within the 'Other Computer Related Services' NAICS code.

Value Assessment

Rating: fair

The $15.15M cost over three years for an enterprise-wide Microsoft software agreement appears reasonable given the scope of supporting the OCC's desktop and infrastructure environment. Benchmarking against similar large-scale government software licenses would provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a competitive process but with specific source exclusions. This method aims for fair pricing but the exclusions could limit the breadth of competition.

Taxpayer Impact: Taxpayer funds are being used for essential IT infrastructure, with the cost being managed through a competitive process, though the specific impact of source exclusions on overall value is unclear.

Public Impact

Ensures OCC employees have access to necessary Microsoft software for daily operations. Supports the stability and functionality of the OCC's IT environment. Potential for future upgrades and support services tied to this agreement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on a single vendor's ecosystem (Microsoft)
Potential for cost increases in future renewals
Security vulnerabilities within widely used software

Positive Signals

Standardized software environment for efficiency
Established support and maintenance framework
Supports critical government functions

Sector Analysis

This spending falls under IT services, specifically 'Other Computer Related Services.' Government spending on enterprise software licenses and support is substantial, with benchmarks varying widely based on software type, user count, and contract terms.

Small Business Impact

The contract was awarded to Minburn Technology Group, LLC. It is not indicated whether this is a small business, and the nature of enterprise software agreements often involves larger vendors or resellers.

Oversight & Accountability

The contract is a Delivery Order under a larger agreement, suggesting it has undergone some level of review. Further oversight would involve monitoring performance, adherence to terms, and cost-effectiveness throughout the contract period.

Related Government Programs

Other Computer Related Services
Department of the Treasury Contracting
Office of the Comptroller of the Currency Programs

Risk Flags

Potential for vendor lock-in
Cost-effectiveness not fully benchmarked
Reliance on a single software ecosystem
Limited visibility into specific software utilization

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $15.2 million to MINBURN TECHNOLOGY GROUP, LLC. HQ - 2022-OCT-01 - THE MICROSOFT ENTERPRISE AGREEMENT IS USED TO SUPPORT THE INSTALLATION AND CONFIGURATION OF THE OCC DESKTOP AND INFRASTRUCTURE ENVIRONMENT. THE OCC USES NUMEROUS MICROSOFT SOFTWARE

Who is the contractor on this award?

The obligated recipient is MINBURN TECHNOLOGY GROUP, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Office of the Comptroller of the Currency).

What is the total obligated amount?

The obligated amount is $15.2 million.

What is the period of performance?

Start: 2022-10-01. End: 2025-09-30.

What is the specific value proposition of using Microsoft's enterprise agreement compared to alternative software solutions or procurement methods for the OCC?

The value proposition likely centers on standardization, economies of scale for licensing, and integrated support for a wide range of Microsoft products used across the OCC. This approach can simplify IT management, reduce training costs, and ensure compatibility within the existing infrastructure. However, a thorough analysis would compare these benefits against the total cost of ownership and potential limitations compared to best-of-breed solutions or open-source alternatives.

What are the primary risks associated with this long-term enterprise agreement, and how are they being mitigated?

Key risks include vendor lock-in, limiting future flexibility and potentially leading to price escalations upon renewal. There's also the risk of over-provisioning software licenses or paying for features not utilized. Mitigation strategies could involve strict contract management, regular license audits, negotiating favorable renewal terms in advance, and exploring hybrid cloud or multi-vendor strategies for future procurements.

How effectively does this agreement support the OCC's mission-critical functions and overall IT modernization efforts?

The agreement directly supports OCC's functions by providing the necessary software tools for its workforce. Its effectiveness in IT modernization depends on whether the licensed software aligns with strategic goals, such as cloud adoption or enhanced cybersecurity. If the agreement facilitates the use of modern, secure, and efficient Microsoft solutions, it contributes positively. Conversely, if it perpetuates legacy systems or hinders adoption of newer technologies, its effectiveness is questionable.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 2031JW23Q00005

Offers Received: 3

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, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $15,503,507

Exercised Options: $15,153,487

Current Obligation: $15,153,487

Actual Outlays: $15,151,452

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD34B

IDV Type: GWAC

Timeline