DoD's $23.3M Sybase Maintenance Contract Awarded to SAP National Security Services Inc

Contract Overview

Contract Amount: $23,262,596 ($23.3M)

Contractor: SAP National Security Services Inc

Awarding Agency: Department of Defense

Start Date: 2010-10-01

End Date: 2014-09-30

Contract Duration: 1,460 days

Daily Burn Rate: $15.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SYBASE MAINTENANCE

Place of Performance

Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $23.3 million to SAP NATIONAL SECURITY SERVICES INC for work described as: SYBASE MAINTENANCE Key points: 1. Contract value of $23.3M over 4 years suggests a significant investment in software maintenance. 2. Awarded to a single vendor, SAP National Security Services Inc., indicating a specialized or incumbent provider. 3. The contract duration of 1460 days (4 years) provides a stable period for service delivery. 4. Fixed-price contract type aims to control costs and provide predictability for the government. 5. The contract falls under the 'Computer and Software Stores' category, highlighting its IT focus. 6. Awarded by the Department of the Air Force, a major component of the Department of Defense.

Value Assessment

Rating: fair

The contract value of $23.3 million over four years for Sybase maintenance appears substantial. Without specific benchmarks for Sybase maintenance contracts or comparable SAP National Security Services Inc. agreements, a precise value-for-money assessment is difficult. However, the firm fixed-price nature suggests an attempt to cap costs. Further analysis would require comparing this per-year cost to industry standards for similar enterprise software maintenance agreements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The fact that it resulted in a single award suggests that SAP National Security Services Inc. was the most competitive offeror based on the evaluation criteria. The level of competition is positive for price discovery, though the specific number of bidders is not provided.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service offerings.

Public Impact

The Department of the Air Force benefits from continued support and maintenance for its Sybase software. Ensures the operational continuity and security of critical database systems. Supports the IT infrastructure necessary for various Air Force operations and administrative functions. Workforce implications are likely internal to the Air Force's IT support staff who manage and utilize the Sybase systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if Sybase becomes deeply integrated into Air Force systems.
Reliance on a single vendor for maintenance could lead to price increases in future renewals.
The specific scope of 'maintenance' needs to be clearly defined to avoid scope creep or unmet needs.

Positive Signals

Firm fixed-price contract provides cost certainty for the duration of the award.
Full and open competition suggests a potentially competitive initial award price.
Long-term contract (4 years) offers stability and predictability for the agency's IT planning.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on software maintenance and support for enterprise database systems. The market for such services is dominated by large software vendors and specialized IT support companies. The value of this contract, approximately $5.8 million annually, is moderate within the context of large federal IT spending, but significant for specialized software maintenance. Comparable spending benchmarks would involve looking at other large-scale database maintenance contracts across federal agencies.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Therefore, there is no direct indication of small business participation through a set-aside. However, the prime contractor, SAP National Security Services Inc., may engage small businesses as subcontractors, though this information is not provided in the given data.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. As a firm fixed-price contract, cost-related oversight might be less intensive than cost-plus contracts. Accountability would be managed through performance metrics and delivery schedules outlined in the contract. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

General IT Services
Software Licensing and Maintenance
Database Management Systems
Department of Defense IT Procurement

Risk Flags

Potential for vendor lock-in
Reliance on legacy technology
Cost escalation risk upon renewal

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.3 million to SAP NATIONAL SECURITY SERVICES INC. SYBASE MAINTENANCE

Who is the contractor on this award?

The obligated recipient is SAP NATIONAL SECURITY SERVICES INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $23.3 million.

What is the period of performance?

Start: 2010-10-01. End: 2014-09-30.

What is the track record of SAP National Security Services Inc. in fulfilling similar federal contracts?

SAP National Security Services Inc. (SAP NSS) is a subsidiary of SAP SE, focused on serving government clients. Their track record typically involves providing a range of SAP software solutions and support services to various federal agencies. For contracts similar to this Sybase maintenance award, SAP NSS would likely have experience in maintaining and supporting enterprise-level database and application software. Assessing their specific performance on past contracts would involve reviewing contract performance reports (CPARS), any past performance issues, and their history of on-time delivery and quality of service. Without access to CPARS data for this specific contract or others, a detailed assessment of their track record is limited to general knowledge of their market position and typical government engagements.

How does the annual cost of this contract compare to market rates for similar Sybase maintenance services?

Determining the precise market rate for Sybase maintenance is challenging without specific details on the scope of services, the number of licenses, and the level of support required (e.g., 24/7 support, response times). Sybase, now part of SAP, is an established database technology. Historically, software maintenance fees often range from 15-25% of the initial license cost annually. If this contract represents a significant portion of the Air Force's Sybase footprint, the annual cost of approximately $5.8 million needs to be benchmarked against similar large-scale enterprise software maintenance agreements. Comparing it to contracts for other enterprise database systems (like Oracle or Microsoft SQL Server) from different vendors could provide a broader perspective, but direct Sybase-specific comparisons are ideal.

What are the primary risks associated with this contract for the Department of the Air Force?

The primary risks associated with this contract include potential vendor lock-in, where the Air Force becomes heavily reliant on SAP National Security Services Inc. for Sybase maintenance, making future transitions difficult or costly. There's also a risk of price escalation upon contract renewal if competition is limited or if the vendor's leverage increases. Performance risk exists if the contractor fails to provide adequate support, leading to system downtime or security vulnerabilities. Furthermore, if the Sybase technology itself is nearing end-of-life or if the Air Force plans to migrate away from it, continuing significant investment in maintenance could be a strategic risk, representing sunk costs.

What is the historical spending pattern for Sybase maintenance by the Department of the Air Force?

The provided data covers a single contract award from 2010 to 2014 for Sybase maintenance totaling $23.3 million. To understand the historical spending pattern, one would need to examine spending data for Sybase maintenance across multiple years and potentially other contracts awarded by the Air Force or DoD components. This would involve querying federal procurement databases for all contracts related to 'Sybase maintenance' or similar terms. Without this broader dataset, it's impossible to establish a trend, identify significant increases or decreases in spending, or understand if this $23.3 million award represents a typical or anomalous level of investment for Sybase support over time.

How critical is the Sybase system being maintained under this contract to Air Force operations?

The criticality of the Sybase system is directly tied to the functions it supports within the Department of the Air Force. Sybase databases are often used for managing large datasets, supporting business intelligence, data warehousing, and operational applications. If the systems maintained under this contract support mission-critical functions such as logistics, personnel management, intelligence analysis, or command and control, then their continuous operation and security are paramount. A failure or degradation of these systems could have significant operational impacts, potentially affecting readiness, efficiency, or decision-making capabilities. The substantial contract value suggests a considerable operational reliance.

Industry Classification

NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: SAP AG (UEI: 316268655)

Address: 3809 W CHESTER PIKE BLDG 1, NEWTOWN SQUARE, PA, 19073

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

Financial Breakdown

Contract Ceiling: $23,262,596

Exercised Options: $23,262,596

Current Obligation: $23,262,596

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F5212H

IDV Type: FSS

Timeline