CFPB Spends $6.9M on Microsoft EA & O365 Cloud Licenses with Minburn Technology Group

Contract Overview

Contract Amount: $6,929,265 ($6.9M)

Contractor: Minburn Technology Group, LLC

Awarding Agency: Consumer Financial Protection Bureau

Start Date: 2022-09-26

End Date: 2025-09-29

Contract Duration: 1,099 days

Daily Burn Rate: $6.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MICROSOFT ENTERPRISE AGREEMENT (EA) AND O365 CLOUD LICENSES

Place of Performance

Location: GREAT FALLS, FAIRFAX County, VIRGINIA, 22066

State: Virginia Government Spending

Plain-Language Summary

Consumer Financial Protection Bureau obligated $6.9 million to MINBURN TECHNOLOGY GROUP, LLC for work described as: MICROSOFT ENTERPRISE AGREEMENT (EA) AND O365 CLOUD LICENSES Key points: 1. Significant expenditure on essential software and cloud services. 2. Competition method indicates a potentially competitive procurement. 3. Risk of vendor lock-in and rising subscription costs. 4. IT sector spending, with a focus on software and cloud infrastructure.

Value Assessment

Rating: good

The $6.9M contract for Microsoft EA and O365 licenses appears reasonable given the scale of enterprise software and cloud services. Benchmarking against similar large-scale government agreements for Microsoft products would provide a more precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method allows multiple vendors to bid, potentially driving down costs and ensuring fair market value.

Taxpayer Impact: Taxpayer funds are being used for essential IT infrastructure, with competition aiming to ensure cost-effectiveness.

Public Impact

Ensures access to critical productivity and collaboration tools for CFPB staff. Supports cloud-based operations, potentially enhancing flexibility and scalability. Impacts the IT software market by representing a significant government purchase.

Waste & Efficiency Indicators

Waste Risk Score: 63 / 10

Warning Flags

Potential for price increases in future renewals.
Dependence on a single vendor for core software.

Positive Signals

Awarded through full and open competition.
Long-term agreement provides budget certainty.

Sector Analysis

This contract falls within the IT sector, specifically software publishing and cloud services. Government spending on enterprise software licenses and cloud subscriptions has been steadily increasing as agencies modernize.

Small Business Impact

The contract was awarded to Minburn Technology Group, LLC. Further analysis is needed to determine if this is a small business and the extent of small business participation in the subcontracting plan, if applicable.

Oversight & Accountability

The award is a delivery order under an existing agreement. Oversight should focus on contract performance, adherence to terms, and managing future renewals to ensure continued value.

Related Government Programs

Software Publishers
Consumer Financial Protection Bureau Contracting
Consumer Financial Protection Bureau Programs

Risk Flags

Vendor lock-in
Potential for price increases
Reliance on a single software provider
Data security and privacy concerns in cloud environment

Frequently Asked Questions

What is this federal contract paying for?

Consumer Financial Protection Bureau awarded $6.9 million to MINBURN TECHNOLOGY GROUP, LLC. MICROSOFT ENTERPRISE AGREEMENT (EA) AND O365 CLOUD LICENSES

Who is the contractor on this award?

The obligated recipient is MINBURN TECHNOLOGY GROUP, LLC.

Which agency awarded this contract?

Awarding agency: Consumer Financial Protection Bureau (Consumer Financial Protection Bureau).

What is the total obligated amount?

The obligated amount is $6.9 million.

What is the period of performance?

Start: 2022-09-26. End: 2025-09-29.

What is the projected total cost of ownership over the contract's duration, including potential price escalations?

The total obligated amount is $6.9M. However, the full cost of ownership over the 1099-day duration requires projecting potential price increases for O365 licenses and any additional services. Without specific escalation clauses or renewal projections, this figure represents the initial commitment, not the ultimate taxpayer expense.

What are the specific cybersecurity measures and data protection protocols in place for these O365 cloud licenses?

Given the sensitive nature of financial data handled by the CFPB, robust cybersecurity is paramount. The contract should detail adherence to federal data protection standards (e.g., NIST), encryption protocols, access controls, and incident response plans. The specific security features enabled within the O365 suite and the vendor's compliance certifications are critical oversight points.

How does the cost per user for these O365 licenses compare to other federal agencies or commercial entities?

Benchmarking the per-user cost against similar government-wide agreements (GWACs) or large commercial enterprise agreements for O365 is essential. Factors like the specific O365 suite (e.g., E3, E5), user count, and negotiated discounts influence per-unit pricing. A favorable comparison indicates effective price negotiation and value for taxpayer money.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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: $7,198,305

Exercised Options: $6,929,265

Current Obligation: $6,929,265

Actual Outlays: $6,929,265

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F309AA

IDV Type: FSS

Timeline