GSA awards $5.56M for Microsoft O365 Entra ID licenses to Minburn Technology Group

Contract Overview

Contract Amount: $5,560,128 ($5.6M)

Contractor: Minburn Technology Group, LLC

Awarding Agency: General Services Administration

Start Date: 2025-12-31

End Date: 2026-12-30

Contract Duration: 364 days

Daily Burn Rate: $15.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: M26 DEOS O365 ADDON ENTRAID PS LICENSE AAN

Place of Performance

Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $5.6 million to MINBURN TECHNOLOGY GROUP, LLC for work described as: M26 DEOS O365 ADDON ENTRAID PS LICENSE AAN Key points: 1. Value for money appears fair given the essential nature of the software licenses. 2. Competition was full and open, suggesting a competitive pricing environment. 3. Risk indicators are low due to the firm-fixed-price contract type and established software. 4. Performance context is within the standard for software licensing renewals. 5. Sector positioning is within the IT services and software procurement category.

Value Assessment

Rating: good

The contract value of $5.56 million for Microsoft O365 Entra ID licenses is benchmarked against similar government procurements for enterprise software. While specific per-unit costs are not detailed here, the total award amount is consistent with the scale of federal agencies adopting cloud-based identity and access management solutions. The firm-fixed-price structure provides cost certainty 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 multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the open competition suggests a robust process that likely drove competitive pricing. This approach is generally favored to ensure the government receives the best value.

Taxpayer Impact: Full and open competition helps ensure taxpayer dollars are used efficiently by fostering a market where prices are driven down by multiple interested vendors.

Public Impact

Federal employees across various agencies will benefit from access to secure identity and access management. Essential services include enhanced security features for cloud-based applications and data. The geographic impact is nationwide, supporting federal operations across all locations. Workforce implications include enabling seamless and secure access to necessary digital tools for government personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with proprietary software licenses.
Reliance on a single software provider for critical identity management functions.

Positive Signals

Use of a firm-fixed-price contract limits cost overruns.
Awarded through full and open competition, suggesting competitive pricing.
Contract supports essential cybersecurity and operational continuity for federal agencies.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on software licensing for cloud-based identity and access management. The market for such solutions is large and growing, driven by digital transformation initiatives across government and private sectors. Comparable spending benchmarks for enterprise software licenses often run into millions of dollars annually for large organizations.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting requirements. As a BPA Call, it may be part of a larger contract vehicle that has different small business considerations. Further analysis would be needed to determine the specific impact on the small business ecosystem.

Oversight & Accountability

The General Services Administration (GSA) oversees this contract, utilizing its Federal Acquisition Service. Oversight mechanisms include the established procurement processes for Best-in-Class (BIC) software and the terms of the underlying Blanket Purchase Agreement (BPA). Transparency is facilitated through public contract databases, and while no specific IG jurisdiction is mentioned, the GSA OIG would have oversight.

Related Government Programs

Microsoft O365 Licensing
Cloud Computing Services
Identity and Access Management Solutions
Software as a Service (SaaS)

Risk Flags

Potential for price increases upon contract renewal.
Dependence on a single vendor for critical identity management.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $5.6 million to MINBURN TECHNOLOGY GROUP, LLC. M26 DEOS O365 ADDON ENTRAID PS LICENSE AAN

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 $5.6 million.

What is the period of performance?

Start: 2025-12-31. End: 2026-12-30.

What is the track record of Minburn Technology Group, LLC with federal contracts, particularly for software licensing?

Minburn Technology Group, LLC has a history of receiving federal contracts, primarily for IT products and services. Analysis of their contract awards indicates a focus on software licensing and hardware, often through competitive solicitations and GSA schedules. While specific performance metrics for past contracts are not detailed in this summary, their consistent award of contracts suggests a satisfactory performance history with various federal agencies. Further due diligence would involve reviewing past performance evaluations and any reported issues or commendations related to their service delivery and product provision.

How does the per-unit cost of these Microsoft Entra ID licenses compare to other federal agencies or the commercial market?

The provided data does not include the specific per-unit cost for the Microsoft Entra ID licenses, making a direct comparison difficult. However, the total award of $5.56 million for a 364-day duration suggests a significant number of licenses are being procured. Given that this was awarded under full and open competition by GSA, it is reasonable to assume the pricing is competitive within the federal market. For a precise benchmark, one would need to compare the negotiated unit price against GSA's Advantage! catalog pricing, other agency BPA calls for similar licenses, or commercial enterprise agreements, factoring in any volume discounts or specific service level agreements.

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

The primary risks associated with this contract include potential vendor lock-in with Microsoft's ecosystem and the possibility of price increases in future renewals, despite the current firm-fixed-price structure. Mitigation strategies are inherent in the procurement process: the use of full and open competition for this award aims to secure favorable pricing and terms. Furthermore, the government's ability to re-compete the contract upon expiration allows for market re-evaluation. The reliance on a widely adopted platform like Microsoft O365 also mitigates risks related to software adoption and user training, as many federal employees are already familiar with the environment.

How does this spending align with broader federal IT modernization and cybersecurity initiatives?

This contract directly aligns with federal IT modernization and cybersecurity initiatives by providing licenses for Microsoft Entra ID, a core component of cloud-based identity and access management (IAM). Secure IAM is fundamental to protecting federal networks and data against evolving cyber threats, a key objective of numerous federal cybersecurity strategies. By enabling secure access to cloud resources and applications, this procurement supports the government's move towards more agile, cloud-native IT infrastructures, which is a central theme in federal IT modernization efforts. The investment in robust IAM solutions is crucial for agencies aiming to enhance their security posture and operational efficiency in a digital-first environment.

What is the historical spending trend for similar software licenses procured by the General Services Administration?

Historical spending trends for similar software licenses procured by the GSA typically show a consistent and significant investment in enterprise software, particularly Microsoft products, due to their widespread adoption across government. GSA often leverages large-scale agreements and Blanket Purchase Agreements (BPAs) to achieve economies of scale and competitive pricing. Spending in this category has generally increased over the years, reflecting the growing reliance on cloud services and digital tools. Analyzing past GSA spending reports for software categories like 'Software Publishers' (NAICS 511210) would reveal multi-million dollar annual expenditures, with fluctuations often tied to major technology refresh cycles or shifts in government-wide software strategies.

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: 47QTCF26Q0003

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: $16,907,328

Exercised Options: $5,560,128

Current Obligation: $5,560,128

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA21A0003

IDV Type: BPA

Timeline