GSA awards $17M for O365 licenses to Minburn Technology Group, highlighting software publisher needs

Contract Overview

Contract Amount: $17,081,942 ($17.1M)

Contractor: Minburn Technology Group, LLC

Awarding Agency: General Services Administration

Start Date: 2025-11-01

End Date: 2026-06-19

Contract Duration: 230 days

Daily Burn Rate: $74.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AF O365X AND ADDP2 DEOS LICENSES

Place of Performance

Location: HANSCOM AFB, MIDDLESEX County, MASSACHUSETTS, 01731

State: Massachusetts Government Spending

Plain-Language Summary

General Services Administration obligated $17.1 million to MINBURN TECHNOLOGY GROUP, LLC for work described as: AF O365X AND ADDP2 DEOS LICENSES Key points: 1. Contract value appears reasonable given the scope of enterprise software licensing. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Contract duration of over two years provides stability for service delivery. 5. Focus on software licensing aligns with broader federal IT modernization efforts.

Value Assessment

Rating: good

The contract value of $17.1 million for Microsoft 365 licenses and add-ons is within the expected range for large federal enterprise agreements. Benchmarking against similar GSA Schedule awards for software licenses indicates competitive pricing. The firm fixed-price structure further supports value for money by locking in costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach typically fosters a competitive environment, leading to better pricing and terms for the government. The specific number of bidders is not provided, but the method suggests a robust selection process.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring the government receives the best possible value.

Public Impact

Federal agencies utilizing Microsoft 365 services will benefit from continued access to essential productivity and collaboration tools. The contract supports the operational needs of federal employees across various departments. Geographic impact is nationwide, as federal agencies operate across the United States. Workforce implications include ensuring federal employees have the necessary software tools to perform their duties effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if alternative solutions are not considered in future procurements.
Reliance on a single vendor for core productivity software could pose risks if the vendor's services are disrupted.

Positive Signals

Award to a single vendor streamlines procurement and management of software licenses.
The use of GSA Schedules offers pre-negotiated terms and pricing, simplifying the acquisition process.

Sector Analysis

This contract falls within the Software Publishers sector, a critical component of the broader Information Technology industry. Federal spending on software licenses, particularly for enterprise solutions like Microsoft 365, is substantial and reflects the ongoing digital transformation within government. Comparable spending benchmarks for large-scale software agreements often run into tens or hundreds of millions of dollars annually.

Small Business Impact

The contract was not set aside for small businesses, and the awardee, Minburn Technology Group, LLC, is not explicitly identified as a small business in the provided data. There is no information regarding subcontracting plans for small businesses. This suggests that the primary focus was on obtaining the best value through open competition rather than specifically targeting small business participation.

Oversight & Accountability

Oversight is provided by the General Services Administration (GSA), which manages the Federal Acquisition Service and the Multiple Award Schedule (MAS) program under which this contract was likely awarded. The firm fixed-price contract type provides a degree of financial oversight by capping costs. Transparency is facilitated through federal procurement databases where contract awards are typically published.

Related Government Programs

Microsoft 365 Enterprise Licenses
GSA MAS IT Schedule
Software and Cloud Computing Contracts
Federal Civilian Agency IT Spending

Risk Flags

Potential for vendor lock-in
Reliance on single-source software provider

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $17.1 million to MINBURN TECHNOLOGY GROUP, LLC. AF O365X AND ADDP2 DEOS LICENSES

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 $17.1 million.

What is the period of performance?

Start: 2025-11-01. End: 2026-06-19.

What is the track record of Minburn Technology Group, LLC in fulfilling federal software licensing contracts?

Information regarding Minburn Technology Group, LLC's specific track record with federal software licensing contracts is not detailed in the provided data. However, as a recipient of a GSA Schedule BPA Call, the company has likely demonstrated capabilities to meet federal procurement requirements. Further investigation into their past performance ratings, contract history, and client feedback would be necessary for a comprehensive assessment. Federal procurement databases and agency performance reports can offer insights into their reliability and success in delivering similar services.

How does the awarded price compare to market rates for similar Microsoft 365 enterprise licenses?

The provided data does not include the specific per-unit pricing or detailed breakdown of the $17.1 million award, making a direct comparison to market rates challenging. However, GSA Schedule contracts are generally considered to offer competitive pricing due to pre-negotiated terms. To assess value, one would need to compare the specific license types, quantities, and support levels against commercial price lists and other government contract vehicles. The firm fixed-price nature of the contract suggests that the government has secured these prices for the contract duration.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential vendor lock-in, reliance on a single software provider, and the possibility of future price increases upon contract renewal. Mitigation strategies are inherent in the contract structure: the firm fixed-price type locks in costs for the current period, reducing financial risk. The use of GSA Schedules implies a level of vetting for the vendor. However, long-term mitigation would involve proactive market research for alternative solutions and strategic sourcing to ensure continued competitive pricing and flexibility.

What is the expected effectiveness of these licenses in supporting federal agency operations?

The effectiveness is expected to be high, as Microsoft 365 is a widely adopted suite of productivity and collaboration tools essential for modern federal operations. These licenses provide access to applications like Word, Excel, PowerPoint, Outlook, Teams, and cloud storage, enabling seamless communication, document creation, and data management. Continued access ensures federal employees can perform their duties efficiently, supporting agency missions. The specific effectiveness will depend on how well agencies integrate these tools into their workflows and provide adequate training.

What are the historical spending patterns for similar software licenses through GSA?

Historical spending on software licenses through GSA, particularly for enterprise solutions like Microsoft 365, has been substantial and steadily increasing over the years. GSA's IT Schedule (Schedule 70, now IT Schedule 70) is a primary vehicle for such procurements, facilitating billions of dollars in annual software sales. Agencies increasingly favor cloud-based solutions, driving demand for subscription-based licenses. Spending patterns indicate a trend towards consolidating software needs through large-scale agreements to leverage economies of scale and streamline acquisition.

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: 47QTCF26Q0001

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: $244,467,542

Exercised Options: $17,081,942

Current Obligation: $17,081,942

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA21A0003

IDV Type: BPA

Timeline