AZURE CONSUMPTION LICENSE
Overview
Buyer
Place of Performance
NAICS
PSC
Set Aside
Original Source
Timeline
Qualification Details
Fit reasons
- NAICS alignment with historical contract wins in similar service areas.
- Scope strongly matches core technical capabilities and delivery model.
Risks
- Past performance thresholds may require one additional teaming partner.
- Potential clarification needed on staffing minimums before bid/no-bid.
Next steps
Validate eligibility requirements, assign capture owner, and schedule partner outreach to confirm teaming strategy before submission planning.
Quick Summary
The Department of the Navy has issued a Limited Source Justification for the procurement of Microsoft (MS) Azure consumption licenses and other MS products. This action, classified as an 8(a) Sole Source (FAR 19.8), aims to establish a single-award Blanket Purchase Agreement (BPA) with an estimated value of $3.4 billion to support warfighting operations and enhance network security across the Department of Defense (DoD).
Purpose & Scope
The acquisition is critical for supporting warfighting operations, enhancing network security, ensuring system compatibility, and reducing costs associated with MS products. The scope includes:
- Procurement of MS perpetual and subscription software licenses for on-premises and cloud environments.
- Acquisition of Software Assurance (SA) for existing and future licenses.
- Support for MS Azure consumption.
- Continuation of support for existing perpetual licenses and transition to MS Office 365 (O365).
- Provision of a catalog of MS product offerings to meet DON and DoD IT infrastructure needs.
Contract Details
- Type: Single-award Blanket Purchase Agreement (BPA) under FAR 8.405-6 (Limited Sources) and FAR 8.405-3 (BPAs).
- Value: Estimated $3.4 billion, including all option years.
- Ordering Authority Expiration: May 31, 2026.
- Set-Aside: 8(a) Sole Source (FAR 19.8).
Solicitation & Evaluation
- Method: The requirement will be solicited via the GSA e-Buy tool.
- Competition: Competition is expected from at least three vendors per FAR 8.405-3(b)(1)(ii)(B)(2) for the BPA establishment.
- Basis: Best value, determined by low price and compliance with BPA terms and conditions.
Justification
This acquisition is necessary due to the pervasive use of MS products within the DoD infrastructure and the lack of viable alternatives that meet specific cybersecurity and functional requirements (e.g., Azure Active Directory Premium Plan 2, Microsoft Defender Advanced Threat Protector). The BPA aims to consolidate multiple existing Enterprise Agreements (EAs) across the DoD to achieve better pricing and licensing terms. The document notes that only one of the MS Licensing Solution Providers (LSPs) is a small business, limiting opportunities for other small business set-asides.
Contact Information
- Primary Contact: RENE VALDIVIA (rene.e.valdivia.civ@us.navy.mil, 805-727-1091)
- Secondary Contact: ARTHUR WYNN (arthur.p.wynn3.civ@us.navy.mil, 805-330-0370)