Microsoft Corporation (MSFT) Granted $162.76 Million Increased Ceiling Modification For Contract

Microsoft has been granted a ceiling increase modification of $162.76 million for its enterprise technical support contract







The upper limit on Microsoft Corporation’s (NASDAQ:MSFT) firm-fixed-price, single award, indefinite-delivery/indefinite-quantity contract for the company’s enterprise technical support services with the Defense Information Technology Contracting Organization, Scott Air Force Base, Illinois, has been increased by $162.76 million as part of a new modification. Consequently, the overall value of this contract has gone from $412.24 million to $575 million.



This ceiling increase allows Microsoft to attain the Blue Badge Cardholder support. Access rights to Microsoft’s propriety code are necessary for the company’s technical support services. This code is licensed under exclusive legal rights of Microsoft with technical services required to comply with the US Department of Defence’s mission.


For the contract, the timeframe for performance is a one-year base period with four one-year options for a total of five years. The operations will mainly be held in the United States with certain support services required in geographical areas on foreign soil. Microsoft responded to a proposal that was sought from it, while the notice of intent was posted on August 6, 2015, on the Federal Business Opportunity portal.

Last month Microsoft entered into an agreement with the Department of Defence, particularly the United States Air Force, over the former’s cloud technology. The contract, which would grant the Air Force access to secure e-mail, calendaring, Office Web Applications, Skype for Business, and certain other tools, will come into effect in the next government fiscal year. It will allow the Air Force to enhance its communication network and is being deemed as one of the biggest commercial cloud contracts for the Department of Defence. Shares of Microsoft closed up by 0.07% at $43.93.