DoD's $27.3M ERP Contract with HERDT CONSULTING INC: Engineering Services for Navy
Contract Overview
Contract Amount: $27,258,887 ($27.3M)
Contractor: Herdt Consulting Inc
Awarding Agency: Department of Defense
Start Date: 2013-12-19
End Date: 2017-12-08
Contract Duration: 1,450 days
Daily Burn Rate: $18.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::CL::IGF ENTERPRISE RESOURCE PLANNING (ERP)
Place of Performance
Location: INDIAN HEAD, CHARLES County, MARYLAND, 20640
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $27.3 million to HERDT CONSULTING INC for work described as: IGF::CL::IGF ENTERPRISE RESOURCE PLANNING (ERP) Key points: 1. Contract awarded for Enterprise Resource Planning (ERP) services. 2. HERDT CONSULTING INC is the sole awardee. 3. The contract spans over 4 years with a value of $27.3M. 4. Awarded under full and open competition. 5. Services fall under Engineering Services (NAICS 541330).
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed carefully. Benchmarking against similar ERP implementations is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. However, the specific pricing discovery mechanisms and the final negotiated price are not detailed here.
Taxpayer Impact: Taxpayer funds are utilized for this significant IT infrastructure investment. The effectiveness of the ERP system in improving DoD operations will determine the ultimate value for taxpayers.
Public Impact
Enhances the Department of the Navy's operational efficiency through an ERP system. Supports critical defense functions by modernizing business processes. Potential for long-term cost savings through streamlined operations. Impacts personnel and resource management within the Navy.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Lack of detailed cost breakdown makes precise value assessment difficult.
- Potential for scope creep in large ERP projects.
Positive Signals
- Awarded under full and open competition.
- Addresses a critical need for modernized business systems.
- Long-term duration suggests strategic importance.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on enterprise resource planning. Spending benchmarks for large-scale ERP implementations in government can vary widely based on scope and complexity, but $27.3M over four years is a substantial investment.
Small Business Impact
The data indicates this contract was not set aside for small businesses and the awardee is not listed as a small business. Therefore, there is no direct small business participation evident from this award notice.
Oversight & Accountability
Oversight would typically involve program management reviews, financial audits, and performance monitoring by the Department of Defense to ensure the contractor meets performance requirements and stays within budget.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Lack of detailed cost breakdown.
- Potential for scope creep.
- Long contract duration increases risk exposure.
- No explicit mention of performance metrics.
Tags
engineering-services, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.3 million to HERDT CONSULTING INC. IGF::CL::IGF ENTERPRISE RESOURCE PLANNING (ERP)
Who is the contractor on this award?
The obligated recipient is HERDT CONSULTING INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $27.3 million.
What is the period of performance?
Start: 2013-12-19. End: 2017-12-08.
What specific modules or functionalities does the ERP system encompass, and how do they align with the Navy's strategic objectives?
The provided data does not specify the ERP modules. However, ERP systems typically integrate core business processes like finance, human resources, procurement, and logistics. For the Navy, these would likely focus on optimizing supply chain management, financial reporting, personnel administration, and maintenance scheduling to enhance operational readiness and efficiency.
What are the key performance indicators (KPIs) used to measure the success of this ERP implementation, and how has the contractor performed against them?
Key performance indicators for an ERP system often include system uptime, user adoption rates, transaction processing times, data accuracy, and the achievement of specific cost-saving or efficiency targets. Without access to performance reports or contractually defined KPIs, it's impossible to assess the contractor's performance against these metrics.
How does the cost of this ERP implementation compare to similar projects within the Department of Defense or other federal agencies?
Direct cost comparison is challenging without detailed project scope and implementation specifics. However, $27.3 million over four years for a full ERP system in a large organization like the Department of the Navy is within a plausible range, though potentially on the lower end for comprehensive solutions. Benchmarking requires understanding the level of customization, user base, and integrated modules.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002413R3080
Offers Received: 5
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 261 NORMANDY LANE, CHELSEA, AL, 35043
Business Categories: Category Business, Service Disabled Veteran Owned Business, Small Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $28,384,665
Exercised Options: $28,384,665
Current Obligation: $27,258,887
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017807D5088
IDV Type: IDC
Timeline
Start Date: 2013-12-19
Current End Date: 2017-12-08
Potential End Date: 2017-12-08 00:00:00
Last Modified: 2016-12-13
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