DHS Awards $19.5M for Microsoft Office 365 & Azure Support to Ho-Chunk Shared Services

Contract Overview

Contract Amount: $19,551,630 ($19.6M)

Contractor: Ho-Chunk Shared Services Company

Awarding Agency: Department of Homeland Security

Start Date: 2022-08-30

End Date: 2025-09-23

Contract Duration: 1,120 days

Daily Burn Rate: $17.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MICROSOFT OFFICE 365 AND AZURE SUPPORT SERVICES

Place of Performance

Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $19.6 million to HO-CHUNK SHARED SERVICES COMPANY for work described as: MICROSOFT OFFICE 365 AND AZURE SUPPORT SERVICES Key points: 1. Contract value of $19.5M for cloud support services. 2. Competition method was 'Full and Open Competition After Exclusion of Sources'. 3. Risk of vendor lock-in and potential cost overruns exist. 4. Sector is IT services, specifically cloud computing and system design.

Value Assessment

Rating: fair

The contract value of $19.5M for cloud support services appears reasonable given the scope. However, without specific performance metrics or benchmarks for similar O365/Azure support contracts, a precise value assessment is difficult. The firm-fixed-price structure provides cost certainty.

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'. This suggests that while competition was sought, certain sources were excluded, potentially limiting the breadth of competition and impacting price discovery. Further details on the exclusion criteria are needed.

Taxpayer Impact: The firm-fixed-price contract aims to control costs. However, the effectiveness of competition and the specific pricing structure will ultimately determine the taxpayer impact.

Public Impact

Ensures continuity of critical IT infrastructure for U.S. Customs and Border Protection. Supports essential cloud services for national security and border operations. Potential for cost savings through optimized cloud resource management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition details
Potential for vendor lock-in with Microsoft ecosystem
Reliance on a single vendor for critical cloud support

Positive Signals

Firm-fixed-price contract
Supports critical government functions
Long-term support for essential cloud services

Sector Analysis

This contract falls within the IT sector, specifically focusing on cloud computing support for Microsoft's Office 365 and Azure platforms. Spending in this area has surged as agencies migrate to cloud-based solutions, making efficient and competitive procurement crucial.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, as the awardee is Ho-Chunk Shared Services Company. Further analysis would be needed to determine if small business subcontracting opportunities are included or if the prime contractor has a history of engaging small businesses.

Oversight & Accountability

Oversight will be critical to ensure the contractor delivers the required support services effectively and within budget. The Department of Homeland Security and U.S. Customs and Border Protection should monitor performance metrics closely and ensure adherence to contract terms.

Related Government Programs

Computer Systems Design Services
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

Potential for limited competition due to source exclusion
Reliance on a single vendor for critical cloud infrastructure support
Need for clear performance metrics to ensure value for money
Potential for cost creep if scope is not tightly managed

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $19.6 million to HO-CHUNK SHARED SERVICES COMPANY. MICROSOFT OFFICE 365 AND AZURE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is HO-CHUNK SHARED SERVICES COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $19.6 million.

What is the period of performance?

Start: 2022-08-30. End: 2025-09-23.

What specific services are included under 'Microsoft Office 365 and Azure Support Services'?

These services typically encompass technical support, system administration, configuration management, troubleshooting, performance optimization, and security monitoring for Microsoft's cloud-based productivity suite (Office 365) and its Azure cloud computing platform. This ensures the smooth operation and availability of critical government IT infrastructure.

What are the risks associated with 'Full and Open Competition After Exclusion of Sources'?

This procurement method, while allowing for competition, introduces risk by excluding certain potential offerors. The rationale for exclusion needs to be clearly justified to ensure it doesn't unduly restrict competition or lead to suboptimal pricing. It could potentially limit the government's access to the best available solutions or prices.

How does this contract contribute to the overall effectiveness of U.S. Customs and Border Protection operations?

Reliable support for Office 365 and Azure is crucial for CBP's operational effectiveness. These platforms likely host essential communication, data management, and analytical tools used in border security, law enforcement, and administrative functions. Consistent and expert support ensures these systems remain available and perform optimally.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: 70B04C22Q00000166

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ho-Chunk, Inc.

Address: 818 ST AUGUSTINES DR, WINNEBAGO, NE, 68071

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,551,630

Exercised Options: $19,551,630

Current Obligation: $19,551,630

Actual Outlays: $18,943,720

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCB22D0368

IDV Type: GWAC

Timeline