DoD's $5.3M Contract for DISA HACC Unified Services Awarded to Microsoft Corporation

Contract Overview

Contract Amount: $5,354,839 ($5.4M)

Contractor: Microsoft Corporation

Awarding Agency: Department of Defense

Start Date: 2022-11-01

End Date: 2026-10-31

Contract Duration: 1,460 days

Daily Burn Rate: $3.7K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: UNIFIED SERVICES SUPPORTING DISA HACC, SERVER LINE OF BUSINESS SUPPORT BRANCH HC32

Place of Performance

Location: CHAMBERSBURG, FRANKLIN County, PENNSYLVANIA, 17201

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $5.4 million to MICROSOFT CORPORATION for work described as: UNIFIED SERVICES SUPPORTING DISA HACC, SERVER LINE OF BUSINESS SUPPORT BRANCH HC32 Key points: 1. Contract awarded to a single, large vendor, raising questions about competition. 2. The contract focuses on IT services, specifically computer systems design. 3. Potential risk of limited competition and higher pricing due to sole-source nature. 4. Spending is within the Defense Information Systems Agency's IT budget.

Value Assessment

Rating: fair

The contract's value of $5.3M over four years appears moderate for IT support services. Benchmarking against similar DISA contracts for unified services is needed to assess pricing effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition could lead to suboptimal pricing, impacting taxpayer value.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding. The contract supports critical defense information systems, ensuring operational continuity. Reliance on a single vendor could pose a risk if performance issues arise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
Potential for overpayment without competitive benchmarking.
Vendor lock-in risk.

Positive Signals

Supports critical defense infrastructure.
Long-term contract provides stability.

Sector Analysis

This contract falls within the IT sector, specifically computer systems design services. Defense IT spending is substantial, and this contract represents a small portion of the overall budget.

Small Business Impact

The contract was not awarded to small businesses, as indicated by the 'sb' field being false. There is no indication of subcontracting opportunities for small businesses.

Oversight & Accountability

Oversight is likely managed by the Defense Information Systems Agency (DISA). The lack of competition warrants closer scrutiny to ensure fair pricing and performance.

Related Government Programs

Computer Systems Design Services
Department of Defense Contracting
Defense Information Systems Agency Programs

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
Limited transparency in price discovery

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.4 million to MICROSOFT CORPORATION. UNIFIED SERVICES SUPPORTING DISA HACC, SERVER LINE OF BUSINESS SUPPORT BRANCH HC32

Who is the contractor on this award?

The obligated recipient is MICROSOFT CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $5.4 million.

What is the period of performance?

Start: 2022-11-01. End: 2026-10-31.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of available alternatives. Without further details, it's difficult to ascertain the specific reason. However, such awards warrant scrutiny to ensure they are truly necessary and not a result of poor planning or market research.

How does the pricing compare to similar sole-source IT support contracts within the DoD?

Benchmarking sole-source contracts is challenging due to the lack of direct price comparisons. However, internal cost analyses or comparisons to publicly available data for similar services, adjusted for scope and duration, could provide insights. A significant deviation from industry standards or historical pricing for comparable services would be a red flag.

What are the performance metrics and accountability measures in place for this contract?

Performance metrics and accountability measures are crucial, especially in sole-source contracts. These should include clearly defined deliverables, service level agreements (SLAs), and regular performance reviews. The contract type (firm fixed price) suggests a focus on defined outcomes, but robust oversight is still necessary to ensure value.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HC102816R0024

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: ONE MICROSOFT WAY, REDMOND, WA, 98052

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,356,427

Exercised Options: $5,356,427

Current Obligation: $5,354,839

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102817D0001

IDV Type: IDC

Timeline