DOE awards $646K for PM Azure services to Minburn Technology Group, a sole-source contract

Contract Overview

Contract Amount: $646,183 ($646.2K)

Contractor: Minburn Technology Group, LLC

Awarding Agency: Department of Energy

Start Date: 2025-09-01

End Date: 2029-04-30

Contract Duration: 1,337 days

Daily Burn Rate: $483/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DELIVERY ORDER FOR OFFICE OF PROJECT MANAGEMENT (PM) AZURE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585

State: District of Columbia Government Spending

Plain-Language Summary

Department of Energy obligated $646,182.72 to MINBURN TECHNOLOGY GROUP, LLC for work described as: DELIVERY ORDER FOR OFFICE OF PROJECT MANAGEMENT (PM) AZURE Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price competition. 2. The contract duration of nearly four years suggests a long-term need for these services. 3. Services are categorized under 'Other Computer Related Services,' indicating a focus on IT support. 4. The fixed-price contract type aims to provide cost certainty for the government. 5. Awarded to a single vendor, limiting opportunities for broader market engagement. 6. The contract is a delivery order under a BPA Call, implying a pre-existing framework agreement.

Value Assessment

Rating: questionable

Benchmarking the value of this $646,182.72 contract is challenging without more detailed service descriptions and comparison points. As a sole-source award, there's no direct competitive pricing to evaluate. The fixed-price nature provides some cost control, but the absence of competition means the government may not have secured the best possible price. Further analysis would require understanding the specific deliverables and comparing them to similar sole-source IT service contracts within the Department of Energy or other federal agencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded on a sole-source basis. This means that only one vendor, Minburn Technology Group, LLC, was solicited for this requirement. The lack of competition limits the government's ability to explore a wider range of pricing and service offerings from the market. While sole-source awards can be justified under specific circumstances (e.g., unique capabilities), they generally lead to less favorable pricing outcomes compared to fully competed contracts.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. Without multiple offers, there's less pressure on the contractor to offer the most cost-effective solution, potentially leading to higher overall spending for the government.

Public Impact

The Office of Project Management (PM) at the Department of Energy is the primary beneficiary, receiving essential IT services. The contract supports the ongoing management and operation of Azure cloud services. Services are delivered within the District of Columbia, impacting the local federal IT infrastructure. The contract likely supports federal IT personnel and potentially contractors involved in project management.

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 reduce incentives for innovation and service improvement from the contractor.
Contract duration of nearly four years locks the government into a single provider without periodic re-evaluation of market alternatives.

Positive Signals

Fixed-price contract type offers cost certainty for the defined scope of work.
Award is a delivery order under an existing BPA Call, suggesting a streamlined process for an established need.
Contract supports critical project management functions within the Department of Energy.

Sector Analysis

The IT services sector is highly dynamic, with cloud computing services like Azure representing a significant and growing segment of federal IT spending. Federal agencies increasingly rely on cloud platforms for scalability, flexibility, and cost-efficiency. Contracts for cloud management and support services are common across government. Benchmarking this contract's value is difficult without specific service details, but the overall federal spending on IT services runs into billions annually, with cloud-related services forming a substantial portion.

Small Business Impact

This 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. As a sole-source award, there were no subcontracting opportunities generated through a competitive process. The impact on the small business ecosystem is minimal in this specific instance, as it was not designed to foster small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Energy's contracting officers and program managers. As a delivery order under a BPA Call, the underlying BPA likely has its own oversight mechanisms. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected related to the contract's execution.

Related Government Programs

Department of Energy IT Services
Cloud Computing Services Contracts
Project Management Support Services
BPA Call Awards

Risk Flags

Sole-source award raises concerns about fair pricing and competition.
Lack of detailed service description hinders comprehensive value assessment.
Contract duration may limit future flexibility and access to market innovations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $646,182.72 to MINBURN TECHNOLOGY GROUP, LLC. DELIVERY ORDER FOR OFFICE OF PROJECT MANAGEMENT (PM) AZURE

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 $646,182.72.

What is the period of performance?

Start: 2025-09-01. End: 2029-04-30.

What is the specific nature of the 'Office of Project Management (PM) Azure' services being procured?

The provided data indicates the contract is for 'DELIVERY ORDER FOR OFFICE OF PROJECT MANAGEMENT (PM) AZURE' and falls under NAICS code 541519, 'Other Computer Related Services.' This suggests the services relate to the management, support, and potentially implementation of Microsoft Azure cloud services specifically for the Department of Energy's project management functions. This could encompass a range of activities such as cloud infrastructure management, security configuration, cost optimization, user support, and ensuring compliance within the Azure environment to facilitate project execution and oversight.

Why was this contract awarded on a sole-source basis instead of being competed?

The data explicitly states the contract was 'NOT COMPETED UNDER SAP' and was awarded as a 'BPA CALL'. While the specific justification for a sole-source award is not provided, common reasons include the existence of a unique capability held by only one vendor, a critical need arising unexpectedly where competition is not feasible, or if the award is made under specific statutory exceptions. Given it's a delivery order under a BPA Call, it's possible the original BPA itself had limited competition or was established under circumstances that led to this sole-source delivery order. Without further documentation, the precise rationale remains unclear, but it implies that the Department of Energy determined that soliciting other vendors was not practicable or necessary for this specific requirement.

How does the duration and value of this contract compare to similar IT services contracts at the Department of Energy?

This contract has a duration of approximately 33 months (from September 1, 2025, to April 30, 2029) with a total value of $646,182.72. This translates to an average annual value of roughly $195,813. This value is moderate for federal IT services, especially those related to cloud platforms like Azure. Many federal IT contracts, particularly for comprehensive cloud management or large-scale system implementations, can run into millions or tens of millions of dollars annually. However, for specialized support or specific project management functions within a particular office, this contract size and duration could be typical. A direct comparison would require analyzing other DOE contracts for similar 'Other Computer Related Services' or Azure-specific support, ideally those that were competitively procured to establish a value benchmark.

What are the potential risks associated with a sole-source award for IT services?

The primary risk of a sole-source award for IT services is the potential for inflated pricing. Without competition, the contractor faces less pressure to offer the most cost-effective solution, potentially leading to the government overpaying. Another risk is a lack of innovation, as the contractor may have less incentive to proactively improve services or introduce new efficiencies when their position is guaranteed. Furthermore, sole-source awards can limit the government's access to a broader range of technological solutions or specialized expertise that other vendors might offer. There's also a risk of vendor lock-in, making it difficult and costly to switch providers in the future if performance issues arise or needs change.

What is the significance of this contract being a 'BPA CALL'?

A 'BPA CALL' signifies that this contract is a task order issued under a Blanket Purchase Agreement (BPA). BPAs are simplified acquisition vehicles that agencies can use to streamline the procurement of recurring needs for supplies or services. They are not contracts in themselves but rather agreements establishing terms, conditions, and prices under which the agency can issue orders. A 'BPA CALL' specifically refers to an order placed against such an agreement. This implies that Minburn Technology Group, LLC, likely had a pre-existing BPA with the Department of Energy, and this delivery order represents a specific call against that agreement for the described Azure services. This method is often used to expedite purchases for known requirements.

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: $1,292,365

Exercised Options: $646,183

Current Obligation: $646,183

Actual Outlays: $220,779

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 89303024AIM000021

IDV Type: BPA

Timeline