NAVY's $3.36M software contract awarded to MINBURN TECHNOLOGY GROUP, LLC for IT services

Contract Overview

Contract Amount: $3,360,700 ($3.4M)

Contractor: Minburn Technology Group, LLC

Awarding Agency: General Services Administration

Start Date: 2024-09-25

End Date: 2026-08-31

Contract Duration: 705 days

Daily Burn Rate: $4.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NAVY NAVAIR X3 AND AADP2SEC

Place of Performance

Location: GREAT FALLS, FAIRFAX County, VIRGINIA, 22066

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $3.4 million to MINBURN TECHNOLOGY GROUP, LLC for work described as: NAVY NAVAIR X3 AND AADP2SEC Key points: 1. Contract awarded through a GSA schedule, suggesting pre-negotiated pricing and streamlined acquisition. 2. The contract is for software publishing and IT services, a common area of federal spending. 3. Fixed-price contract type aims to control costs and provide budget certainty. 4. The duration of 705 days indicates a medium-term need for the software and services. 5. No small business set-aside was used, potentially limiting opportunities for smaller firms. 6. The contract is for the Navy, a major defense agency with significant IT requirements.

Value Assessment

Rating: good

The contract value of $3.36 million over approximately two years appears reasonable for IT software and services. As it was procured through a GSA schedule, it likely benefits from pre-negotiated rates that are generally competitive. Benchmarking against similar GSA schedule awards for software publishing would provide a more precise value-for-money assessment. The firm fixed-price nature of the award helps mitigate cost overrun risks for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific details on the number of bidders are not provided, but full and open competition generally fosters a competitive environment, leading to better pricing and innovation. The use of a GSA schedule often implies a competitive process has already occurred to establish the schedule pricing.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential offerors, driving down prices through market forces and ensuring the government receives the best value.

Public Impact

The primary beneficiary is the U.S. Navy, which will receive essential software and IT support. Services delivered include software publishing and related IT support, crucial for naval operations. The geographic impact is primarily within the Navy's operational and administrative centers, likely in Virginia where the contractor is located. Workforce implications may include support roles for IT specialists and software engineers, both within the contractor's organization and potentially within the Navy's IT departments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific metrics on performance success or user satisfaction.
Potential for vendor lock-in if the software is proprietary and deeply integrated.
Dependence on a single contractor for critical software and IT services.

Positive Signals

Awarded through GSA schedule, indicating adherence to established procurement standards.
Firm fixed-price contract type provides cost certainty.
Full and open competition suggests a robust selection process.

Sector Analysis

This contract falls within the Information Technology sector, specifically software publishing and IT services. The federal IT market is vast, with agencies constantly seeking to modernize systems and acquire new software solutions. Spending in this area is driven by the need for cybersecurity, data management, operational efficiency, and advanced analytics. Comparable spending benchmarks would involve looking at other Navy or DoD IT procurements, as well as broader federal IT spending trends.

Small Business Impact

The contract was not awarded as a small business set-aside, nor is there an indication of specific subcontracting goals for small businesses in the provided data. This suggests that larger businesses or those capable of competing under full and open terms were the primary focus. The impact on the small business ecosystem is neutral to potentially negative if they were excluded from direct competition for this specific award, though they may participate as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Navy. As a GSA schedule contract, it adheres to the Federal Acquisition Regulation (FAR) and GSA's procurement policies. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Navy IT Modernization Programs
GSA Information Technology Schedule
Defense Software Procurement
Naval Air Systems Command (NAVAIR) IT Support

Risk Flags

Potential for cost overruns if scope is not well-defined.
Risk of vendor lock-in with proprietary software.
Dependence on contractor performance for critical Navy IT functions.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $3.4 million to MINBURN TECHNOLOGY GROUP, LLC. NAVY NAVAIR X3 AND AADP2SEC

Who is the contractor on this award?

The obligated recipient is MINBURN TECHNOLOGY GROUP, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $3.4 million.

What is the period of performance?

Start: 2024-09-25. End: 2026-08-31.

What is the track record of MINBURN TECHNOLOGY GROUP, LLC with federal contracts, particularly with the Department of Defense?

MINBURN TECHNOLOGY GROUP, LLC has a history of receiving federal contracts, primarily through GSA schedules. While specific details on their performance with the Department of Defense are not fully elaborated in this summary, their ability to secure contracts, including this one with the Navy, suggests a level of established capability and compliance with federal procurement regulations. A deeper dive into their contract history would reveal the types of services provided, their performance ratings on past contracts (if publicly available), and their experience with similar IT requirements. Analyzing past performance data, such as contract close-out reports or CPARS (Contractor Performance Assessment Reporting System) if accessible, would offer a more comprehensive view of their reliability and effectiveness as a government contractor.

How does the pricing of this contract compare to similar software publishing contracts awarded by the Navy or other federal agencies?

The provided data indicates a total contract value of $3.36 million for approximately two years, awarded under a firm fixed-price GSA schedule. To benchmark pricing, one would compare the per-unit costs or overall value against contracts for similar software and IT services. GSA schedules are designed to offer competitive pricing, but variations can exist based on specific software, support levels, and volume discounts. A detailed comparison would involve analyzing the specific North American Industry Classification System (NAICS) code (511210 - Software Publishers) and Product Service Code (PSC) if available, to identify comparable awards. Without access to the specific line items and quantities within this contract, a precise per-unit cost comparison is challenging, but the GSA schedule itself implies a degree of pre-competed value.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential performance issues if the contractor fails to deliver the software or services as specified, leading to delays or operational disruptions for the Navy. Another risk is the possibility of cost increases if the firm fixed-price contract doesn't adequately account for unforeseen technical challenges or scope creep, though the fixed-price nature generally limits this. Vendor lock-in is also a risk if the software is proprietary and difficult to replace. Mitigation strategies likely include robust contract oversight by the Navy's contracting officer, clear performance metrics and deliverables outlined in the contract, and the potential for exercising contract termination clauses if performance is unsatisfactory. The use of a GSA schedule also implies that the contractor has met certain standards to be included on the schedule, offering a baseline level of assurance.

How effective is the GSA schedule mechanism in ensuring value for money for IT procurements like this one?

The GSA schedule mechanism is generally effective in ensuring value for money for IT procurements by streamlining the acquisition process and leveraging pre-negotiated, competitive pricing. Agencies benefit from reduced administrative burden and faster award times. The pricing on GSA schedules is typically benchmarked against commercial market rates and subjected to fair and reasonable price analysis by GSA. However, the 'value for money' can vary depending on the specific schedule, the products/services offered, and how well the agency utilizes the schedule's capabilities. For this contract, the Navy likely achieved efficiency and competitive pricing by using the GSA schedule, assuming the selected offering met their specific technical and budgetary requirements.

What are the historical spending patterns for software publishing and IT services by the U.S. Navy?

The U.S. Navy, as a major component of the Department of Defense, has consistently been a significant spender on software publishing and IT services. Historical data shows a trend of increasing investment in IT to support modernization efforts, cybersecurity, data analytics, and operational command and control systems. Spending often fluctuates based on strategic priorities, technological advancements, and specific program requirements, such as those related to naval aviation (indicated by NAVAIR in the data). The Navy procures these services through various contract vehicles, including GSA schedules, other agency IDIQs, and direct solicitations, reflecting a continuous need for advanced technological solutions to maintain its global operational readiness.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFSA24Q0079

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: $5,547,100

Exercised Options: $3,360,700

Current Obligation: $3,360,700

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA21A0003

IDV Type: BPA

Timeline