FEMA's $79M Logistics System Contract Awarded to Manhattan Associates, Inc. with Limited Competition

Contract Overview

Contract Amount: $79,281,655 ($79.3M)

Contractor: Manhattan Associates, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2021-06-19

End Date: 2024-09-30

Contract Duration: 1,199 days

Daily Burn Rate: $66.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OPERATIONS, MAINTENANCE, TRAINING, AND SURGE SUPPORT FOR THE FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA) LOGISTICS SUPPLY CHAIN MANAGEMENT SYSTEM

Place of Performance

Location: ATLANTA, COBB County, GEORGIA, 30339

State: Georgia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $79.3 million to MANHATTAN ASSOCIATES, INC. for work described as: OPERATIONS, MAINTENANCE, TRAINING, AND SURGE SUPPORT FOR THE FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA) LOGISTICS SUPPLY CHAIN MANAGEMENT SYSTEM Key points: 1. The contract supports FEMA's critical logistics and supply chain management, essential for disaster response. 2. Manhattan Associates, Inc. is a significant player in supply chain software, indicating relevant expertise. 3. The 'NOT COMPETED' status raises concerns about potential overpricing and lack of market testing. 4. The sector is IT services, specifically cloud hosting and data processing, a growing area for government spending.

Value Assessment

Rating: questionable

The contract value of $79.3M over approximately 3 years for a logistics system is substantial. Without competitive bidding, it's difficult to benchmark against similar systems or determine if the pricing reflects fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was 'NOT COMPETED,' suggesting a sole-source or limited competition award. This limits price discovery and may lead to higher costs for taxpayers as there's no direct comparison to other vendors' offerings.

Taxpayer Impact: The lack of competition could result in the government paying a premium for these services, impacting taxpayer funds negatively.

Public Impact

Ensures FEMA's ability to manage resources effectively during emergencies. Potential for higher costs due to lack of competitive bidding. Impacts the efficiency of federal disaster relief operations. Relies on a single vendor for a critical national security function.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for cost overruns
Vendor lock-in risk

Positive Signals

Supports critical FEMA operations
Utilizes established vendor expertise

Sector Analysis

This contract falls within the IT services sector, specifically cloud hosting and data processing. Government spending in this area has been increasing, with a focus on modernizing infrastructure and improving operational efficiency.

Small Business Impact

The data indicates this contract was not awarded to small businesses. There is no information provided on subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The 'NOT COMPETED' status warrants further oversight to ensure the justification for limited competition was sound and that the pricing is reasonable. Accountability for taxpayer funds is crucial in such awards.

Related Government Programs

Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Department of Homeland Security Contracting
Federal Emergency Management Agency Programs

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Limited transparency in award process
Dependency on a single vendor for critical function

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $79.3 million to MANHATTAN ASSOCIATES, INC.. OPERATIONS, MAINTENANCE, TRAINING, AND SURGE SUPPORT FOR THE FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA) LOGISTICS SUPPLY CHAIN MANAGEMENT SYSTEM

Who is the contractor on this award?

The obligated recipient is MANHATTAN ASSOCIATES, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $79.3 million.

What is the period of performance?

Start: 2021-06-19. End: 2024-09-30.

What was the specific justification for not competing this contract, and was a thorough market research conducted to ensure no other vendors could meet FEMA's needs?

The justification for not competing this contract is not detailed in the provided data. Typically, agencies must demonstrate that only one source is capable of satisfying the requirement, or that exceptional circumstances preclude full and open competition. A thorough market research process is usually required to validate such claims and ensure taxpayer funds are used efficiently.

How does the per-unit cost or overall pricing compare to industry benchmarks for similar logistics supply chain management systems, especially considering the lack of competitive bidding?

Without competitive bidding, direct comparison to industry benchmarks is challenging. The absence of multiple vendor proposals means the government may not have achieved the best possible price. A detailed cost analysis by the agency, comparing the awarded price against independent cost estimates and market research data, would be necessary to assess value for money.

What measures are in place to ensure the effectiveness and ongoing performance of the Manhattan Associates system, given the sole-source nature of the award?

Effectiveness is typically ensured through robust contract performance management, including Service Level Agreements (SLAs), regular performance reviews, and clear deliverables outlined in the contract. For sole-source awards, agencies often rely more heavily on detailed technical evaluations and ongoing monitoring to ensure the vendor meets all requirements and provides value.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 70FA3021R00000005

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2300 WINDY RIDGE PKWY FL 10, ATLANTA, GA, 30339

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

Financial Breakdown

Contract Ceiling: $81,996,750

Exercised Options: $79,326,385

Current Obligation: $79,281,655

Actual Outlays: $22,971,353

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline