DoD Awards $8.7M Microsoft Consulting Contract for Thunder Camp Systems
Contract Overview
Contract Amount: $8,717,099 ($8.7M)
Contractor: Microsoft Corporation
Awarding Agency: Department of Defense
Start Date: 2024-09-20
End Date: 2026-09-19
Contract Duration: 729 days
Daily Burn Rate: $12.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MICROSOFT CONSULTING SUPPORT (MCS) FOR THUNDER CAMP
Place of Performance
Location: HILL AFB, DAVIS County, UTAH, 84056
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $8.7 million to MICROSOFT CORPORATION for work described as: MICROSOFT CONSULTING SUPPORT (MCS) FOR THUNDER CAMP Key points: 1. Significant award to a single vendor, Microsoft Corporation. 2. Focus on Computer Systems Design Services within the Defense sector. 3. Contract duration of two years raises questions about long-term needs. 4. Potential for cost savings if future needs are met through competition.
Value Assessment
Rating: fair
The $8.7 million award for consulting services is substantial. Benchmarking against similar, competitively procured IT consulting contracts is difficult without more detail on the specific services provided. The firm fixed-price structure offers some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Microsoft Corporation. This limits price discovery and may result in higher costs compared to a competitive procurement. The rationale for not competing is not provided.
Taxpayer Impact: Taxpayer funds are being spent without the benefit of competitive bidding, potentially leading to a less optimal price for the services rendered.
Public Impact
Military readiness and operational efficiency may be impacted by the specific systems supported. The reliance on a single vendor for critical IT support raises concerns about vendor lock-in. Future contract actions could continue this sole-source trend if not actively managed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Lack of justification for sole-source procurement.
- Potential for vendor lock-in.
Positive Signals
- Firm fixed-price contract provides cost certainty.
- Clear end date for the contract.
Sector Analysis
This contract falls under Computer Systems Design Services, a critical component of the IT sector supporting defense operations. Benchmarks for similar services vary widely based on scope and duration, but significant awards often warrant competitive processes.
Small Business Impact
This award does not appear to include any specific provisions or set-asides for small businesses. The sole-source nature of the procurement likely precluded small business participation.
Oversight & Accountability
Oversight is needed to ensure the services provided are necessary and effectively delivered. Future procurements should explore competitive options to ensure best value for taxpayers.
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 overpayment
- Vendor lock-in risk
Tags
computer-systems-design-services, department-of-defense, ut, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.7 million to MICROSOFT CORPORATION. MICROSOFT CONSULTING SUPPORT (MCS) FOR THUNDER CAMP
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 $8.7 million.
What is the period of performance?
Start: 2024-09-20. End: 2026-09-19.
What is the specific justification for awarding this contract sole-source to Microsoft?
The provided data does not include the justification for the sole-source award. Typically, such justifications would cite reasons like unique capabilities, urgent needs, or lack of available alternatives. Without this information, it's difficult to assess the necessity of bypassing the competitive process and its potential impact on value.
What is the risk associated with relying on Microsoft for these specific consulting services?
The primary risk is vendor lock-in, where the agency becomes dependent on Microsoft's proprietary systems and expertise, making it difficult and costly to switch to other vendors or solutions in the future. This can also lead to inflated costs over time if competition is consistently avoided.
How does this contract contribute to the overall effectiveness of the Defense Information Systems Agency's mission?
The effectiveness hinges on the critical nature of the 'Thunder Camp' systems and the quality of Microsoft's consulting support. If these systems are vital for operations, and MCS provides essential expertise, the contract contributes positively. However, the lack of competition raises questions about whether the most effective and cost-efficient solution was secured.
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: $8,717,099
Exercised Options: $8,717,099
Current Obligation: $8,717,099
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC102817D0001
IDV Type: IDC
Timeline
Start Date: 2024-09-20
Current End Date: 2026-09-19
Potential End Date: 2026-09-19 00:00:00
Last Modified: 2025-12-23
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