SBA's $34.5M Microsoft License and Support Contract Awarded to Minburn Technology Group

Contract Overview

Contract Amount: $34,519,090 ($34.5M)

Contractor: Minburn Technology Group, LLC

Awarding Agency: Small Business Administration

Start Date: 2019-09-27

End Date: 2022-09-25

Contract Duration: 1,094 days

Daily Burn Rate: $31.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: EA MICROSOFT LICENSE/ATP-365 SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20416

State: District of Columbia Government Spending

Plain-Language Summary

Small Business Administration obligated $34.5 million to MINBURN TECHNOLOGY GROUP, LLC for work described as: EA MICROSOFT LICENSE/ATP-365 SUPPORT Key points: 1. Contract provides essential software licenses and technical support for Microsoft products. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. Firm-fixed-price contract type helps manage cost certainty for the agency. 4. Duration of nearly three years indicates a significant, ongoing need for these services. 5. Contractor is a small business, aligning with SBA's mission. 6. Performance is located in Washington D.C., the agency's headquarters.

Value Assessment

Rating: good

The contract value of $34.5 million over approximately three years for Microsoft licenses and support appears reasonable given the scope. Benchmarking against similar enterprise-level software agreements is challenging without specific license counts and support tiers. However, the firm-fixed-price structure provides cost predictability. The award to a small business contractor for this type of service is noteworthy and aligns with the agency's mission.

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. The number of bidders is not specified, but this procurement method generally fosters price discovery and allows the government to select the best value offer. The competitive nature suggests that Minburn Technology Group likely offered a compelling price and technical solution to win the award.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and ensures the government receives competitive offers, maximizing the value of taxpayer dollars.

Public Impact

Federal employees within the Small Business Administration benefit from access to up-to-date Microsoft software and reliable technical support, enhancing productivity. The contract ensures the continued operation of critical IT infrastructure supporting the SBA's mission to aid small businesses. Services are delivered primarily within the Washington D.C. metropolitan area, supporting agency operations. The contract supports jobs within the IT services sector, particularly within the small business community.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with Microsoft products, requiring ongoing investment.
Reliance on a single small business contractor for critical IT infrastructure.
Scope creep could increase costs beyond the initial $34.5 million if not managed carefully.

Positive Signals

Award to a small business contractor aligns with federal small business goals.
Firm-fixed-price contract provides cost certainty.
Full and open competition suggests a competitive award process.

Sector Analysis

This contract falls within the Software Publishers (NAICS 511210) sector, specifically focusing on the procurement of software licenses and associated support services. The market for enterprise software licenses and IT support is substantial, with numerous large and small companies competing. This contract represents a significant investment by the SBA in its core IT infrastructure, ensuring access to essential productivity tools and technical assistance necessary for its operations.

Small Business Impact

The award to Minburn Technology Group, LLC, a small business, is a positive signal for the small business IT contracting ecosystem. It demonstrates the SBA's commitment to supporting small businesses by providing them with significant contract opportunities. As a small business awardee, Minburn Technology Group may have fewer resources for subcontracting compared to larger firms, but the primary benefit here is the direct award, fostering growth and capacity within the small business sector.

Oversight & Accountability

Oversight for this contract would typically be managed by the Small Business Administration's contracting officers and program managers. Accountability is ensured through the firm-fixed-price contract terms, requiring delivery of specified licenses and support. Transparency is facilitated by the public nature of federal contract awards, allowing for review of basic contract details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Microsoft Enterprise Agreements
Software Licensing and Support Services
IT Infrastructure Modernization
Small Business IT Support Contracts

Risk Flags

Potential for vendor lock-in
Reliance on small business capacity
Scope management critical for cost control

Frequently Asked Questions

What is this federal contract paying for?

Small Business Administration awarded $34.5 million to MINBURN TECHNOLOGY GROUP, LLC. EA MICROSOFT LICENSE/ATP-365 SUPPORT

Who is the contractor on this award?

The obligated recipient is MINBURN TECHNOLOGY GROUP, LLC.

Which agency awarded this contract?

Awarding agency: Small Business Administration (Small Business Administration).

What is the total obligated amount?

The obligated amount is $34.5 million.

What is the period of performance?

Start: 2019-09-27. End: 2022-09-25.

What is the specific breakdown of Microsoft licenses and support services included in this contract?

The provided data does not specify the exact breakdown of Microsoft licenses (e.g., number of user licenses, specific product suites like Office 365, Windows, server licenses) or the details of the ATP-365 support. This level of detail is typically found in the contract's statement of work or task orders issued under the BPA call. Without this information, it's difficult to precisely assess the value or compare it to market rates for specific license types and support tiers. The 'ATP-365' likely refers to a specific Microsoft support plan or bundle, but its exact components are not detailed here.

How does the $34.5 million contract value compare to similar procurements for Microsoft licenses and support by other federal agencies?

Directly comparing the $34.5 million value without knowing the exact quantity and type of licenses, duration, and support levels makes precise benchmarking difficult. However, federal agencies frequently procure Microsoft enterprise licenses and support, with contracts often running into tens or hundreds of millions of dollars over several years, depending on agency size and scope. For instance, large agencies like the Department of Defense or GSA often have multi-year, high-value agreements. The SBA's contract appears to be a significant, but not unusually large, investment for an agency of its size, reflecting the widespread reliance on Microsoft products for federal IT operations.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with the 'ATP-365 Support'?

The provided summary data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for the 'ATP-365 Support'. These details would typically be outlined in the contract's Statement of Work (SOW) or the individual task orders issued under the Basic Purchasing Agreement (BPA) call. SLAs commonly address response times for support requests, resolution times for issues, uptime guarantees for supported services, and availability of technical expertise. The absence of this information in the summary prevents an assessment of the contractor's performance obligations and the agency's ability to measure service quality.

What is Minburn Technology Group's track record with federal contracts, particularly for IT services and Microsoft products?

Minburn Technology Group, LLC is identified as a small business awardee. While the summary doesn't detail their specific track record, their ability to win a full and open competition contract valued at $34.5 million suggests they possess the necessary qualifications, past performance, and competitive pricing to meet the SBA's requirements. Further investigation into their contract history, client feedback, and demonstrated expertise with Microsoft licensing and support would be needed for a comprehensive assessment of their track record.

What is the historical spending pattern for Microsoft licenses and support at the SBA prior to this contract?

The provided data focuses on a single contract award and does not offer historical spending patterns for Microsoft licenses and support at the SBA. To understand historical trends, one would need to analyze previous contract awards for similar services, including contract vehicles used (e.g., GSA schedules, other BPAs), award amounts, durations, and incumbent contractors. This analysis would reveal whether spending has increased, decreased, or remained stable, and whether there has been a shift in contracting strategy or vendor relationships over time.

Are there any identified risks associated with relying on a small business for this critical IT infrastructure support?

While awarding contracts to small businesses is a federal priority, there can be inherent risks associated with relying on a small business for critical IT infrastructure support. These may include potential limitations in resources, personnel depth, or financial stability compared to larger, established IT service providers. If the contractor experiences financial difficulties or key personnel depart, it could disrupt service delivery. However, the SBA likely assessed these risks during the procurement process and may have included contract clauses or performance monitoring to mitigate them. The firm-fixed-price nature also shifts some risk to the contractor.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10113 MINBURN ST, 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: $36,111,972

Exercised Options: $36,111,972

Current Obligation: $34,519,090

Actual Outlays: $34,519,090

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: SBAHQ16A0032

IDV Type: BPA

Timeline