AZURE LICENSE (NEW)
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 an Award Notice for Azure License (New), designated as an 8(a) Sole Source acquisition. This procurement aims to secure Microsoft (MS) products, including perpetual and subscription software licenses, Software Assurance (SA), and MS Azure consumption, to support warfighting operations, enhance network security, and ensure system compatibility for the Department of Defense (DoD). The estimated value of the underlying Blanket Purchase Agreement (BPA) is $3.4 billion.
Scope of Work
The acquisition covers:
- Procurement of MS perpetual and subscription software licenses.
- Provision of Software Assurance (SA) for existing and future licenses.
- Support for MS Azure consumption.
- Continued support for existing perpetual licenses and compliance with DON CIO directives.
- Facilitation of transition to MS Office 365 (O365) and support for existing on-premises workloads.
- Complementing the Defense Enterprise Office Solution (DEOS) by including on-premises offerings like Windows Server, SQL Server, and System Center.
Contract Details
- Type: Award Notice (related to a single-award Blanket Purchase Agreement - BPA)
- Set-Aside (Award Notice): 8(a) Sole Source (FAR 19.8)
- BPA Structure: The proposed action is to award a single-award BPA. This BPA will be established using competitive procedures via the GSA e-Buy tool, with competition expected from at least three vendors. The justification notes that due to only one MS Licensing Solution Provider (LSP) being a small business, no opportunities exist to set the BPA requirement aside for small businesses.
- Estimated Value: $3.4 billion (including all option years) for the BPA.
- Ordering Authority Expiration: May 31, 2026.
- Place of Performance: Port Hueneme CBC Base, CA.
- Published Date: February 26, 2026.
Evaluation
For the BPA, best value will be determined on the basis of low price and compliance with BPA terms and conditions.
Additional Notes
This acquisition is justified under FAR Part 8.405-6(b) ("Items peculiar to one manufacturer") due to the pervasive nature of MS products within the DoD IT infrastructure. Market research indicated that alternative products could not meet DoD requirements. The acquisition supports various DoD policies related to cybersecurity, cloud adoption, and unified capabilities.