Department of Energy awards $2.44M for Azure services renewal to Minburn Technology Group, LLC
Contract Overview
Contract Amount: $17,663,856 ($17.7M)
Contractor: Minburn Technology Group, LLC
Awarding Agency: Department of Energy
Start Date: 2024-07-03
End Date: 2026-04-30
Contract Duration: 666 days
Daily Burn Rate: $26.5K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THE PURPOSE OF THIS NEW DELIVERY ORDER IS TO ESTABLISH AN ORDER FOR THE OFFICE OF THE CHIEF INFORMATION OFFICER FOR THE RENEWAL OF AZURE SERVICES AND TO PROVIDE FUNDING TO CLIN 00001, IN THE AMOUNT OF $2,440,731.36.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $17.7 million to MINBURN TECHNOLOGY GROUP, LLC for work described as: THE PURPOSE OF THIS NEW DELIVERY ORDER IS TO ESTABLISH AN ORDER FOR THE OFFICE OF THE CHIEF INFORMATION OFFICER FOR THE RENEWAL OF AZURE SERVICES AND TO PROVIDE FUNDING TO CLIN 00001, IN THE AMOUNT OF $2,440,731.36. Key points: 1. Contract awarded for essential IT infrastructure renewal, focusing on cloud services. 2. Sole-source award raises questions about competition and potential for cost savings. 3. Long contract duration (666 days) may indicate a need for stable, ongoing support. 4. Fixed-price contract type shifts risk to the contractor for cost overruns. 5. Awarded under a Blanket Purchase Agreement (BPA) Call, suggesting a pre-existing relationship. 6. Focus on Azure services highlights reliance on a specific cloud provider.
Value Assessment
Rating: fair
The contract value of $2,440,731.36 for Azure services renewal appears to be within a reasonable range for enterprise-level cloud subscriptions, though a direct comparison is difficult without knowing the specific services and usage levels. The fixed-price nature of the contract provides cost certainty for the government. However, the lack of competition in this sole-source award prevents a robust benchmark against market rates or alternative providers, potentially leading to a less favorable price than could be achieved through competitive bidding.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. The data specifies it was 'NOT COMPETED UNDER SAP' and awarded as a 'BPA CALL'. This suggests that the services were likely procured through an existing Blanket Purchase Agreement, which may have had its own competition or was established under specific circumstances that allowed for a non-competitive call. The lack of open competition means there were no other bidders, and the government did not benefit from a bidding process to drive down prices or explore alternative solutions.
Taxpayer Impact: The absence of competition means taxpayers may not be receiving the best possible price for these Azure services. Without multiple bids, there's a risk that the awarded price is higher than it would be in a competitive environment.
Public Impact
The Office of the Chief Information Officer (OCIO) at the Department of Energy benefits from the renewal of critical Azure cloud services. This contract ensures the continued operation and availability of essential IT infrastructure supporting the agency's mission. The services delivered are fundamental to the agency's digital operations and data management. The primary beneficiaries are the internal users and systems within the Department of Energy that rely on these Azure services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price discovery and potentially increases costs for taxpayers.
- Lack of competition may indicate a missed opportunity to explore more cost-effective cloud solutions or providers.
- Reliance on a single provider for critical services could pose long-term vendor lock-in risks.
Positive Signals
- Fixed-price contract provides budget certainty for the Department of Energy.
- Award through a BPA Call suggests an established procurement vehicle, potentially streamlining the process.
- Renewal of services indicates a commitment to maintaining necessary IT infrastructure.
Sector Analysis
The IT services sector, particularly cloud computing, is a rapidly growing area of federal spending. Agencies increasingly rely on cloud platforms like Microsoft Azure for scalability, flexibility, and cost-efficiency. This contract for Azure services renewal fits within the broader trend of federal agencies migrating and managing their IT infrastructure in the cloud. Comparable spending benchmarks for cloud services are highly variable, depending on the specific services, usage, and negotiated rates. However, enterprise-level cloud subscriptions for large government agencies can run into millions of dollars annually.
Small Business Impact
This contract was awarded to Minburn Technology Group, LLC, and there is no indication of a small business set-aside. The data does not provide information on subcontracting plans. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless Minburn Technology Group itself is a small business and utilizes other small businesses in its service delivery, which is not specified.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Energy's contracting officer and the Office of the Chief Information Officer. As a delivery order under a BPA Call, the oversight mechanisms would be tied to the terms of the underlying BPA. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.
Related Government Programs
- Cloud Computing Services
- IT Infrastructure Modernization
- Software and Utilities
- Enterprise Resource Planning (ERP) Systems
- Cybersecurity Services
Risk Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Tags
it-services, cloud-computing, azure, department-of-energy, minburn-technology-group, sole-source, firm-fixed-price, bpa-call, district-of-columbia, it-infrastructure, renewal
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $17.7 million to MINBURN TECHNOLOGY GROUP, LLC. THE PURPOSE OF THIS NEW DELIVERY ORDER IS TO ESTABLISH AN ORDER FOR THE OFFICE OF THE CHIEF INFORMATION OFFICER FOR THE RENEWAL OF AZURE SERVICES AND TO PROVIDE FUNDING TO CLIN 00001, IN THE AMOUNT OF $2,440,731.36.
Who is the contractor on this award?
The obligated recipient is MINBURN TECHNOLOGY GROUP, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $17.7 million.
What is the period of performance?
Start: 2024-07-03. End: 2026-04-30.
What is the track record of Minburn Technology Group, LLC with the Department of Energy and other federal agencies?
Information regarding the specific track record of Minburn Technology Group, LLC with the Department of Energy or other federal agencies is not provided in the given data. To assess their track record, one would need to consult federal procurement databases such as SAM.gov or FPDS-NG to review past performance on similar contracts. Key areas to investigate would include on-time delivery, quality of services, adherence to budget, and any past performance issues or awards. Without this external data, it is impossible to evaluate their reliability and past performance effectively for this specific contract.
How does the pricing of this Azure services renewal compare to similar government contracts for cloud services?
Direct comparison of pricing for this Azure services renewal is challenging without detailed knowledge of the specific Azure services, quantities, and support levels included in the $2,440,731.36 award. Federal pricing for cloud services can vary significantly based on negotiated enterprise agreements, volume discounts, and the specific service-level agreements (SLAs). Since this was a sole-source award, there is no competitive benchmark to assess if the price is favorable. To perform a robust comparison, one would need to analyze pricing data from other agencies' cloud contracts for similar Azure services, ideally those that were competitively procured, to establish a market-based value.
What are the primary risks associated with a sole-source award for essential IT services like Azure renewal?
The primary risks associated with a sole-source award for essential IT services like Azure renewal include a lack of price competition, which can lead to higher costs for the government and taxpayers. It also limits the government's ability to explore alternative solutions or providers that might offer better value, innovation, or features. Furthermore, sole-source awards can sometimes indicate a lack of strategic planning or a reliance on incumbent contractors without proper market research. This can also lead to vendor lock-in, making it difficult and costly to switch providers in the future, and potentially reducing the incentive for the sole-source provider to offer competitive pricing or superior service.
How does the duration of this contract (666 days) impact the Department of Energy's flexibility and long-term IT strategy?
The contract duration of 666 days (approximately 22 months) provides the Department of Energy with a stable period for its Azure services, ensuring continuity of operations. This duration suggests a need for predictable and ongoing access to these cloud resources. However, it also implies a degree of commitment that could reduce flexibility if the agency's needs or the cloud technology landscape changes significantly during this period. A longer duration might lock the agency into specific services or pricing structures, potentially hindering its ability to adopt newer technologies or negotiate more favorable terms if market conditions shift. It balances operational stability against strategic agility.
What is the historical spending pattern for Azure services or similar cloud infrastructure at the Department of Energy?
The provided data only pertains to this specific delivery order and does not offer historical spending patterns for Azure services or similar cloud infrastructure at the Department of Energy. To analyze historical spending, one would need to access broader federal procurement data (e.g., FPDS-NG) and filter for the Department of Energy, looking at contracts categorized under cloud computing, IT infrastructure, or specific vendors like Microsoft Azure over several fiscal years. This would reveal trends in spending, identify major contracts, and potentially highlight increases or decreases in cloud adoption and associated costs.
What specific Azure services are being renewed under this contract, and what is their criticality to the OCIO's operations?
The provided data states the purpose is 'the renewal of Azure services' for the Office of the Chief Information Officer (OCIO). However, it does not specify the exact Azure services being renewed (e.g., virtual machines, storage, databases, specific SaaS applications). The criticality is implied by the fact that the OCIO requires these services, suggesting they are fundamental to the agency's IT operations, data management, and potentially the delivery of its core functions. Without a detailed service list, it's difficult to assess their precise criticality, but any renewal of core cloud infrastructure by an OCIO is generally considered essential for ongoing operations.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
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: $49,994,455
Exercised Options: $19,997,782
Current Obligation: $17,663,856
Actual Outlays: $14,247,206
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 89303024AIM000021
IDV Type: BPA
Timeline
Start Date: 2024-07-03
Current End Date: 2026-04-30
Potential End Date: 2029-04-30 00:00:00
Last Modified: 2026-04-01
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